# Abbott Spins Off $8.5B Nutrition Unit

> Abbott separates nutrition business into independent company, boosting margins while defending its 'position of strength'.
- Title: Abbott Spins Off $8.5B Nutrition Unit · BigGo Finance
- Summary: Abbott separates nutrition business into independent company, boosting margins while defending its 'position of strength'. Abbott will spin off its nutrition…
- Keywords: abbott laboratories, robert ford, daniel salvadori, spin off, nutrition unit, s&p 500, barron's, tax-free spin-off, sales growth, gross margin, operating margin, electrophysiology
- Source: BigGo Finance — https://finance.biggo.com/news/US_ABT_2026-10-21
- Author: BigGo Finance
- Published: 2026-10-21T15:14:16+00:00
- Read time: 1 min
- Topics: abbott laboratories, robert ford, daniel salvadori, spin off, nutrition unit, s&p 500, barron's, tax-free spin-off, sales growth, gross margin, operating margin, electrophysiology
## Abbott Announces Nutrition Spin-Off
Abbott Laboratories will separate its nutrition business into an independent, publicly traded company by end of 2027.
## New Company Details
The new company has $8.5 billion in annual sales, 16,000 employees, and 14 manufacturing sites.
## CEO Defends Strategy
CEO Robert Ford said the move comes from a position of strength, rejecting negative reports.

> I think I read a story that just came out, a headline that just came out on Barron's, who got it totally wrong
## Expected Financial Impact
The spin-off is projected to accelerate sales growth by 50-100 basis points and expand gross margin by more than 200 basis points.
## Q3 Financial Results
Abbott reported 7% comparable sales growth and adjusted EPS of $1.42 for the quarter.
## Guidance Cut
Management trimmed full-year organic growth outlook to about 6% due to electrophysiology and diabetes market headwinds.
## Electrophysiology Headwinds
Left atrial appendage market slowdown and Amulet 360 device launch are impacting growth in electrophysiology.
## Diabetes Market Challenges
CGM penetration is slowing without reimbursement expansion, affecting diabetes product growth.
## Nutrition Segment Growth
Nutrition segment grew 5% with pediatric sales up 9% and adult sales up 2%.
## Cologuard Launch
Abbott launched its first blood-based colorectal cancer screening test on September 30.
## 2027 Outlook
Abbott expects more conservative top-line guidance for 2027 with potential for growth as the year progresses.
## Spin-Off Benefits
The new company will maintain investment-grade credit ratings and pay dividends equal to Abbott's at separation.
## Key takeaway

Abbott will spin off its nutrition business into a $8.5 billion standalone company by end of 2027, improving margins and defending its strategic position.