Baxter International (NYSE:BAX) Releases Quarterly Earnings Results, Beats Estimates By $0.19 EPS

01 Aug 2026, 15:56 by Michael Walen · The Markets Daily

Baxter International (NYSE:BAX – Get Free Report) issued its earnings results on Thursday. The medical instruments supplier reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.37 by $0.19, FiscalAI reports. The firm had revenue of $2.96 billion during the quarter, compared to analyst estimates of $2.80 billion. Baxter International had a negative net margin of 9.27% and a positive return on equity of 16.40%. Baxter International’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.59 earnings per share. Baxter International updated its FY 2026 guidance to 1.950-2.150 EPS.

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

Second-quarter sales rose 5% organically to approximately $3 billion, with growth across all segments and geographies. Advanced Surgery and drug compounding were standout contributors, while hospital demand and order books remained solid.
Baxter raised its 2026 organic sales-growth outlook to 2%-3% and adjusted EPS guidance to $1.95-$2.15 per share, helped by stronger year-to-date performance and a $75 million tariff refund.
Adjusted EPS declined 5% to $0.56, reflecting higher-cost inventory, an unfavorable prior-year accounting comparison, and mix pressure from fast-growing but lower-margin drug compounding. Management expects operating margins to improve in the second half as these headwinds roll off and cost actions take effect.
The Novum IQ LVP infusion pump remains subject to a shipment and installation hold while Baxter conducts verification testing and works with regulators. Injectable sales and parts of the pharmaceutical portfolio also remain constrained by supply issues, including problems at a contract manufacturer.
Second-quarter free cash flow reached $181 million, bringing year-to-date free cash flow to $257 million. Management is increasingly confident it can reduce net leverage to approximately 3x by year-end, potentially creating capacity for tuck-in acquisitions or share repurchases.

Baxter International Trading Down 2.1%

BAX traded down $0.55 during trading on Friday, reaching $26.20. The company had a trading volume of 9,282,412 shares, compared to its average volume of 6,226,261. The business has a 50 day simple moving average of $21.34 and a 200-day simple moving average of $19.61. The stock has a market cap of $13.53 billion, a P/E ratio of -12.66, a PEG ratio of 4.29 and a beta of 0.62. The company has a quick ratio of 1.23, a current ratio of 1.85 and a debt-to-equity ratio of 1.43. Baxter International has a 52 week low of $15.73 and a 52 week high of $30.00.

Baxter International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, August 28th will be given a $0.01 dividend. The ex-dividend date is Friday, August 28th. This represents a $0.04 dividend on an annualized basis and a yield of 0.2%. Baxter International’s dividend payout ratio (DPR) is currently -1.93%.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Evercore cut their price objective on Baxter International from $23.00 to $22.00 and set an “outperform” rating for the company in a research report on Monday, April 6th. Barclays raised their price target on Baxter International from $25.00 to $27.00 and gave the company an “overweight” rating in a report on Friday, May 1st. TD Cowen upped their price objective on Baxter International from $20.00 to $24.00 and gave the stock a “hold” rating in a report on Monday, July 27th. Wells Fargo & Company increased their target price on Baxter International from $19.00 to $23.00 and gave the company an “equal weight” rating in a research report on Friday. Finally, UBS Group boosted their price target on shares of Baxter International from $19.00 to $25.00 and gave the stock a “hold” rating in a research report on Tuesday. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $22.45.

View Our Latest Research Report on Baxter International

Key Baxter International News

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

Positive Sentiment: Strong second-quarter results: Baxter reported adjusted earnings of $0.56 per share, well above the $0.36–$0.37 analyst consensus, while revenue rose 5.3% year over year to $2.96 billion versus expectations near $2.80 billion. Growth was supported by demand for IV solutions and drug-compounding products. Reuters article
Positive Sentiment: Raised 2026 outlook: Management increased full-year adjusted EPS guidance to $1.95–$2.15 from its prior range of $1.85–$2.05 and projected revenue of $11.6 billion–$11.7 billion, above the roughly $11.4 billion consensus. The update reflected operating momentum and an additional tariff refund benefit. Baxter second-quarter results
Positive Sentiment: More favorable analyst stance: Citigroup upgraded BAX from “sell” to “neutral” and raised its price target to $28 from $17, indicating that the turnaround and recovery outlook have improved.
Neutral Sentiment: Wells Fargo remains cautious: Wells Fargo raised its target to $23 from $19 but maintained an “equal weight” rating. The new target remains below the stock’s recent trading level, highlighting valuation concerns despite better fundamentals.
Neutral Sentiment: Dividend maintained: Baxter declared a quarterly dividend of $0.01 per share, or $0.04 annualized, representing a yield of approximately 0.2%. The ex-dividend date is August 28, with payment scheduled for October 1.
Negative Sentiment: Profit-taking and margin concerns: Shares had surged following the earnings beat and guidance increase, and the subsequent pullback may reflect profit-taking. Adjusted earnings still declined from $0.59 per share a year earlier, while margin pressure, tariffs, manufacturing costs and Baxter’s negative net margin remain risks.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. State of Tennessee Department of Treasury raised its holdings in shares of Baxter International by 99.1% in the fourth quarter. State of Tennessee Department of Treasury now owns 111,858 shares of the medical instruments supplier’s stock worth $2,245,000 after buying an additional 55,674 shares during the period. Jump Financial LLC grew its position in Baxter International by 5.7% in the 4th quarter. Jump Financial LLC now owns 15,968 shares of the medical instruments supplier’s stock valued at $305,000 after acquiring an additional 854 shares during the last quarter. Russell Investments Group Ltd. lifted its position in shares of Baxter International by 35.6% during the fourth quarter. Russell Investments Group Ltd. now owns 3,410,689 shares of the medical instruments supplier’s stock worth $65,216,000 after purchasing an additional 894,761 shares during the last quarter. Captrust Financial Advisors boosted its stake in shares of Baxter International by 5.4% during the fourth quarter. Captrust Financial Advisors now owns 49,035 shares of the medical instruments supplier’s stock valued at $937,000 after purchasing an additional 2,496 shares during the period. Finally, Entropy Technologies LP bought a new position in shares of Baxter International in the fourth quarter worth about $748,000. Hedge funds and other institutional investors own 90.19% of the company’s stock.

About Baxter International

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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.