Baxter International (NYSE:BAX) Issues Quarterly Earnings Results

Baxter International (NYSE:BAX) posted its quarterly earnings data on Thursday. The medical instruments supplier reported $0.44 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.09), FiscalAI reports. Baxter International had a positive return on equity of 17.38% and a negative net margin of 3.09%.The business had revenue of $2.97 billion for the quarter, compared to analyst estimates of $2.82 billion. During the same quarter in the prior year, the company earned $0.58 earnings per share. The company’s quarterly revenue was up 8.0% on a year-over-year basis. Baxter International updated its FY 2026 guidance to 1.850-2.050 EPS.

Here are the key takeaways from Baxter International’s conference call:

• Baxter reported Q4 sales of $3.0B (+8% reported, +3% operational) but adjusted EPS of $0.44 missed expectations as margins were pressured by unfavorable mix, inventory adjustments and a higher tax rate.
• The Novum IQ large-volume pump remains on a ship/installation hold with customer returns and uncertain timing for corrections, and management assumed the hold could persist through 2026, posing ongoing revenue risk.
• Management initiated a turnaround—delayered the organization, embedded functions into business units and launched the Baxter GPS continuous-improvement system while pledging R&D investment at or above historical levels to accelerate innovation and execution.
• Cash generation strengthened with Q4 free cash flow of $456M (FY2025 FCF $438M); management plans to use cash to reduce leverage and expects improved FCF in 2026, supporting balance-sheet repair.
• Select businesses showed momentum—Advanced Surgery grew 11%, HST capital orders rose nearly 30% in the U.S., and new product launches (Connex 360, Dynamo stretcher, PureView) underpin a back-half recovery thesis.

Baxter International Price Performance

NYSE BAX traded down $3.36 during trading on Thursday, hitting $18.91. 17,751,602 shares of the company’s stock were exchanged, compared to its average volume of 9,503,240. The company has a market cap of $9.72 billion, a PE ratio of -28.63, a P/E/G ratio of 1.27 and a beta of 0.59. The company has a current ratio of 1.84, a quick ratio of 1.18 and a debt-to-equity ratio of 1.21. Baxter International has a fifty-two week low of $17.40 and a fifty-two week high of $37.74. The stock’s 50 day moving average price is $19.76 and its two-hundred day moving average price is $21.34.

More Baxter International News

Here are the key news stories impacting Baxter International this week:

• Positive Sentiment: Revenue beat and broad sales growth — Baxter reported Q4 sales of $2.97B (above consensus ~$2.82B) and said it delivered sales growth across all segments, showing demand resilience even as margins pressured. Business Wire: Q4 Results
• Neutral Sentiment: Detail resources and investor materials — the company posted its earnings press release, slide deck and conference‑call presentation for investors to review operational drivers and the new operating model. These materials may help assess whether margin issues are transitory. Earnings Presentation
• Negative Sentiment: EPS miss and contracting margins — Q4 EPS was $0.44 vs. consensus ~$0.53 and down from $0.58 a year ago; Zacks and other reports highlight margin compression as a key driver of the earnings shortfall. Zacks: Q4 Earnings Lag
• Negative Sentiment: FY‑2026 guidance below Street expectations — management cut EPS guidance to $1.85–$2.05 vs. consensus ~2.28, citing persistent impact from hurricane‑related disruptions at a key plant; Reuters notes the guidance shortfall as the primary reason investors are selling. Reuters: Forecast Below Estimates
• Negative Sentiment: Market reaction and technicals — the combination of an EPS miss, weaker guidance and margin concerns produced a sharp intraday decline and elevated volume; the stock is trading below its 50‑ and 200‑day moving averages, increasing short‑term technical risk. Zacks: Stock Falls on Earnings Miss

Wall Street Analysts Forecast Growth

BAX has been the topic of several recent analyst reports. Citigroup lowered their price target on Baxter International from $26.00 to $21.00 and set a “neutral” rating on the stock in a research report on Friday, October 31st. Morgan Stanley lowered their price target on shares of Baxter International from $19.00 to $15.00 and set an “underweight” rating on the stock in a research report on Tuesday, December 2nd. UBS Group cut their price objective on shares of Baxter International from $24.00 to $21.00 and set a “neutral” rating for the company in a report on Friday, October 31st. Evercore lowered their price objective on Baxter International from $24.00 to $23.00 in a research note on Monday, January 5th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Baxter International in a report on Wednesday, January 21st. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $21.40.

Hedge Funds Weigh In On Baxter International

Several institutional investors and hedge funds have recently added to or reduced their stakes in BAX. Imprint Wealth LLC acquired a new stake in Baxter International in the third quarter valued at approximately $27,000. Los Angeles Capital Management LLC bought a new position in shares of Baxter International in the 4th quarter valued at $46,000. MUFG Securities EMEA plc acquired a new stake in shares of Baxter International during the 2nd quarter valued at $46,000. McMillan Office Inc. bought a new stake in Baxter International during the 4th quarter worth $54,000. Finally, Parallel Advisors LLC increased its holdings in Baxter International by 113.3% in the 3rd quarter. Parallel Advisors LLC now owns 3,971 shares of the medical instruments supplier’s stock worth $90,000 after purchasing an additional 2,109 shares in the last quarter. Institutional investors own 90.19% of the company’s stock.

Baxter International Company Profile

Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company’s primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter’s offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide.

In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters.