Companies /Healthcare

Baxter International Inc

NYSE: BAX Medical Instruments & Supplies
$25.93
▼ $0.57 (−2.15%) today
Markets closed · 10:13pm ET

Q2 2026 Earnings

Reported Jul 30, 2026, 7:17am ET · SEC source
$0.56
Beat +52.51%
EPS · est. $0.37
$3.0B
Beat +5.88%
Revenue · est. $2.8B
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%Jul 30Jul 31report 7:17am ETearnings+1.6%−5.8%
−10%−5%0+5%Jul 30Jul 31earnings+1.6%−5.8%
BAX −5.8%S&P 500 +1.6%
−10%−5%0+5%Jul 30Jul 31report 7:17am ETearnings+2.8%−5.8%
−10%−5%0+5%Jul 30Jul 31earnings+2.8%−5.8%
BAX −5.8%NASDAQ +2.8%
−12%−6%0+6%Jul 29Aug 7report 7:17am ETearnings+4.8%−3.1%
−12%−6%0+6%Jul 29Aug 7earnings+4.8%−3.1%
BAX −3.1%S&P 500 +4.8%
−14%−7%0+7%Jul 29Aug 7report 7:17am ETearnings+6.9%−3.1%
−14%−7%0+7%Jul 29Aug 7earnings+6.9%−3.1%
BAX −3.1%NASDAQ +6.9%
+7.99%
Day of report
−2.21%
Next session
+0.97%
One week

Did BAX Beat Earnings? Q2 2026 Results

Baxter International delivered a notably strong second quarter, with adjusted diluted EPS of $0.56 coming in 52.51% above the $0.37 consensus estimate and revenue of $2.96 billion beating expectations by 5.88% while growing 5.3% year over year. The headline beat was powered by broad-based sales momentum across all segments, with Medical Products & Therapies generating roughly $2.08 billion in revenue, up 7% on a reported basis, and Advanced Surgery posting particularly impressive 12% growth. A significant tailwind came from an IEEPA tariff refund contributing $0.11 per diluted share, a benefit that had not been factored into prior guidance. The strong performance came despite adjusted gross margin contracting to 38.6% from 40.7% a year earlier, reflecting higher-cost inventory and reclassified functional costs weighing on profitability. Analysts had been watching margin trajectory closely heading into the print, and management's confidence in the business is now reflected in a raised full-year 2026 outlook, with adjusted diluted EPS guidance lifted to $1.95 to $2.15 and organic sales growth now expected at 2% to 3%.

Key Takeaways
  • Drug Compounding and IV Solutions strength within Infusion Therapies & Platforms
  • Strong global demand for Advanced Surgery products with 12% organic growth
  • Patient Support Systems driving Care & Connectivity Solutions growth
  • IEEPA tariff refund contributing $0.11 per diluted share benefit
  • Growth across all segments and divisions in both U.S. and International markets

“Our second-quarter results exceeded expectations on both the top and bottom lines, driven by both operating performance and an additional benefit from a tariff refund that was not previously contemplated in our guidance.”

Baxter International CEO, on the earnings call

Forward Guidance & Outlook

Baxter raised its full-year 2026 financial outlook: reported sales growth from continuing operations of 3% to 4% (previously flat to 1%), organic sales growth from continuing operations of 2% to 3% (previously approximately flat), and adjusted diluted EPS from continuing operations of $1.95 to $2.15 (previously $1.85 to $2.05). The raised guidance reflects stronger-than-expected operating performance and a benefit from an IEEPA tariff refund.

BAX YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$900.0M$1.8B$2.7B$2.8B$3.0BRevenue$991.0M$1.0BGross Profit$191.0M$217.0MOperating Income$91.0M$135.0MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income

BAX Revenue by Segment

Medical Products & Therapies$2.1B+7.0%
Infusion Therapies & Technologies$1.7B+6.0%
Healthcare Systems & Technologies$801.0M+4.0%
Pharmaceuticals
Care & Connectivity Solutions$502.0M+6.0%
Injectables & Anesthesia
Advanced Surgery$331.0M+12.0%
Drug Compounding

BAX Revenue by Geography

United States$1.6B+4.0%
Rest of World$1.4B+7.0%

Figures from SEC filings and company reports. Not investment advice.