Baxter International

BAX Q1 2026 Earnings

Reported Apr 30, 2026 at 7:17 AM ET · SEC Source

Q1 26 EPS

$0.36

BEAT +15.90%

Est. $0.31

Q1 26 Revenue

$2.70B

BEAT +3.27%

Est. $2.62B

vs S&P Since Q1 26

+16.6%

BEATING MARKET

BAX +18.7% vs S&P +2.0%

Market Reaction

Did BAX Beat Earnings? Q1 2026 Results

Baxter International posted better-than-expected first-quarter results but couldn't escape a sharp profit decline, as tariff-related costs and elevated manufacturing expenses weighed heavily on the period. The medical products company reported adjust… Read more Baxter International posted better-than-expected first-quarter results but couldn't escape a sharp profit decline, as tariff-related costs and elevated manufacturing expenses weighed heavily on the period. The medical products company reported adjusted diluted EPS of $0.36 from continuing operations, down 35% year-over-year, while revenue of $2.70 billion slipped 3.9% from a year ago, though management noted the comparison was unfavorable partly because the prior-year quarter benefited from a one-time reclassification of functional costs. Adjusted operating margin compressed to 11.0% from 14.9%, underscoring the margin pressure analysts have flagged as a persistent concern, with at least one price target reduction following the report. Segment results were mixed, with Pharmaceuticals standing out at $621.00 million on 7% reported growth, while Medical Products and Therapies faced headwinds from a shipment hold on its Novum IQ infusion pump. Despite the profit squeeze, Baxter reaffirmed its full-year 2026 outlook for flat to 1% reported sales growth and adjusted diluted EPS of $1.85 to $2.05, signaling confidence in its ongoing portfolio optimization efforts.

Key Takeaways

  • Drug Compounding strength with 30% reported growth driving Pharmaceuticals segment
  • Advanced Surgery continued strong global demand with 13% reported growth
  • International sales up 12% on reported basis, benefiting from favorable currency
  • Unfavorable year-over-year comparison due to prior year cost reclassification benefiting SG&A
  • Higher tariff-related costs and higher manufacturing costs including lower absorption
  • Lower Novum IQ LVP infusion pump sales due to shipment and installation hold

BAX Forward Guidance & Outlook

Baxter reiterated its full-year 2026 financial outlook: reported sales growth from continuing operations of flat to 1%, organic sales growth approximately flat (with approximately 30 bps impact from Kidney Care MSA and approximately negative 100 bps from foreign exchange), and adjusted diluted EPS from continuing operations of $1.85 to $2.05.

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BAX YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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BAX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26
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BAX Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Financial results for the quarter overall were in line with our expectations, and we are making progress to stabilize the business, embed a culture of continuous improvement, and strengthen execution.”

— Andrew Hider, Q1 2026 Earnings Press Release