Abbott Laboratories stock gains as USD 385 million infant formula settlement reduces legal risk
Published on 09/15/2026 at 13:18 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Abbott Laboratories stock (ISIN US0028241000) traded around USD 103 on the New York Stock Exchange in mid-September 2026, close to recent levels cited after a legal settlement over infant formula production, giving investors clearer visibility on one of the group’s major risk factors as of September 14, 2026.
Settlement removes a legal overhang
Abbott Laboratories, the U.S. healthcare group, has agreed to pay roughly USD 385 million to resolve allegations tied to powdered infant formula and nutritional products produced between 2018 and 2022, a settlement that became public on September 14, 2026 and immediately influenced Abbott Laboratories stock.
According to GuruFocus on September 14, 2026, Abbott Laboratories announced a settlement totaling USD 384,999,040 to resolve allegations that it submitted misleading claims regarding its powdered infant formula and nutritional products, with the agreement addressing U.S. Department of Justice investigations and related lawsuits.
As Reuters reported on September 14, 2026, Abbott Laboratories agreed to pay more than USD 384 million to settle allegations that it knowingly manufactured infant formula in environments that posed a substantial risk of contamination and then sold the products to federal and state programs, resolving False Claims Act allegations without an admission of liability.
Per an analysis cited by Investing.com on September 15, 2026, Abbott stock rose about 1.2 percent in trading following the announcement as investors reacted to the removal of a major legal uncertainty related to a recall at the company’s Sturgis, Michigan facility that had weighed on sentiment since 2022.
Stock performance and valuation context
Market data compiled by MarketBeat on September 15, 2026 showed Abbott Laboratories stock opening at USD 103.18, with the share price described as trading up about 1.2 percent and within a 52-week range between USD 81.97 and USD 137.49, underscoring that the current level still sits well below the past year’s high.
According to the same MarketBeat overview as of September 15, 2026, Abbott Laboratories carried a consensus analyst target price of USD 119.50, implying roughly 15.8 percent upside compared with the USD 103.18 opening price described in that snapshot, and the consensus rating was summarized as Moderate Buy based on recent analyst recommendations.
Valuation metrics discussed by GuruFocus on September 14, 2026 highlighted a GF Value estimate of USD 133.63 for Abbott Laboratories shares versus a contemporaneous stock price of USD 103.30, a gap that corresponds to an undervaluation of 22.7 percent on that proprietary metric.
In the same GuruFocus analysis dated September 14, 2026, Abbott Laboratories was reported to trade on a trailing price-earnings ratio of 33.43 times versus a five-year median price-earnings multiple of 30.19 times, indicating that while the stock sits at a modest premium to its own historical earnings valuation, it may still be considered reasonably priced when viewed against its growth and dividend profile.
Recent earnings show double-digit revenue growth
Beyond the settlement, Abbott Laboratories’ recent operating performance provides important context for investors evaluating Abbott Laboratories stock in September 2026, with the company’s latest quarterly figures pointing to solid top-line growth and a small beat versus consensus estimates.
According to a sector comparison published by Yahoo Finance on September 14, 2026, Abbott Laboratories reported second-quarter 2026 revenue of USD 12.59 billion, representing year-on-year growth of 13 percent and beating analysts’ expectations by approximately 1.1 percent on the top line.
The same Yahoo Finance piece dated September 14, 2026 noted that Abbott Laboratories also delivered a narrow beat on analysts’ full-year earnings-per-share guidance estimates in its second-quarter 2026 update, underlining that the company’s profitability trajectory remains slightly ahead of market forecasts even as it works through regulatory and legal challenges.
In that comparison of medical device and supplies companies, Yahoo Finance highlighted that Abbott Laboratories stock was up about 14.5 percent since reporting its second-quarter 2026 results and was trading around USD 102.25 at the time of publication, a move that signals investors have responded positively to the combination of double-digit revenue growth and guidance execution.
Dividend profile and institutional interest
Dividend income is another component of the Abbott Laboratories stock story in 2026, with the company continuing to position itself as a reliable payer in the broader healthcare sector.
On September 14, 2026, GuruFocus reported that Abbott Laboratories shares offered a dividend yield of 2.39 percent supported by a payout ratio of 46 percent and a three-year dividend growth rate of 7.9 percent, a combination that suggests the dividend is both sustainable and growing at a mid-single- to high-single-digit pace.
Institutional ownership figures compiled by MarketBeat on September 15, 2026 showed that Bank of America Corp DE held about 1.02 percent of Abbott Laboratories after purchasing 17,672,543 shares valued at approximately USD 1.60 billion in a recent period, contributing to total institutional and hedge fund ownership of around 75.18 percent of the company’s share float.
That same MarketBeat report dated September 15, 2026 indicated that multiple institutional investors had added to or initiated positions in Abbott Laboratories during recent quarters, reinforcing the perception that professional investors view the combination of settlement clarity, revenue growth and dividend stability as a favorable risk-reward balance.
Risks and next steps for investors
The USD 384,999,040 settlement addressing contaminated infant formula allegations and related False Claims Act claims removes a significant legacy issue for Abbott Laboratories, but regulatory and reputational risks remain important considerations for Abbott Laboratories stock even after September 14, 2026.
As The Wall Street Journal summarized on September 14, 2026, the settlement relates to oversight at a baby formula manufacturing site where harmful bacteria were believed to have contributed to infant fatalities, underscoring the seriousness of the underlying issues and the need for continued compliance investments at Abbott’s nutrition facilities.
Legal commentary from Law360 on September 14, 2026 further emphasized that the USD 385 million payment reflects the resolution of False Claims Act allegations at facilities in Michigan and Arizona, meaning Abbott will still need to demonstrate sustained improvements to manufacturing practices and quality assurance to reassure regulators and customers over the medium term.
For investors, the key balance in assessing Abbott Laboratories stock as of mid-September 2026 lies between the company’s documented revenue momentum in the second quarter of 2026, its continuing dividend growth and valuation metrics that suggest potential upside versus GF Value and consensus targets on the one hand, and the ongoing need to monitor regulatory scrutiny and operational execution in sensitive nutrition and devices segments on the other.
Abbott Laboratories stock price snapshot
Per NYSE trading data referenced by MarketBeat on September 15, 2026, Abbott Laboratories stock opened at USD 103.18 on that trading day, with the share price described as up about 1.2 percent versus the prior close, and the stock’s recent history includes a 52-week low of USD 81.97 and a 52-week high of USD 137.49, placing the current level closer to the lower half of its one-year range.
Abbott Laboratories stock facts
- Company: Abbott Laboratories Inc.
- ISIN: US0028241000
- Ticker: ABT
- Trading venue: NYSE
- Price (as of September 15, 2026): 103.18 USD
- Market capitalization: 179,000,000,000 USD (as of September 15, 2026)
- Sector / Industry: Healthcare - Medical Devices and Supplies
- Index membership: S&P 500
