Companies /Healthcare

Baxter International Inc

NYSE: BAX Medical Instruments & Supplies
$25.93
▼ $0.57 (−2.15%) today
Markets closed · 4:33am ET

Q1 2026 Earnings

Reported Apr 30, 2026, 7:17am ET · SEC source
$0.36
Beat +15.90%
EPS · est. $0.31
$2.7B
Beat +3.27%
Revenue · est. $2.6B
+0.6%
Beating market
BAX vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Apr 30May 1report 7:17am ETearnings+1.2%−3.7%
−8%−4%0Apr 30May 1earnings+1.2%−3.7%
BAX −3.7%S&P 500 +1.2%
−8%−4%0Apr 30May 1report 7:17am ETearnings+1.6%−3.7%
−8%−4%0Apr 30May 1earnings+1.6%−3.7%
BAX −3.7%NASDAQ +1.6%
−8%−4%0+4%Apr 29May 7report 7:17am ETearnings+2.0%−3.9%
−8%−4%0+4%Apr 29May 7earnings+2.0%−3.9%
BAX −3.9%S&P 500 +2.0%
−10%−5%0+5%Apr 29May 7report 7:17am ETearnings+4.1%−3.9%
−10%−5%0+5%Apr 29May 7earnings+4.1%−3.9%
BAX −3.9%NASDAQ +4.1%
+4.02%
Day of report
−2.10%
Next session
−0.51%
One week
+6.26%
30 days

S&P 500 over the same 30 days: +5.69%.

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 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

“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.”

Baxter International CEO, on the earnings call

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.

BAX YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$800.0M$1.6B$2.4B$2.8B$2.7BRevenue$991.0M$891.0MGross Profit$191.0M$66.0MOperating Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating Income

BAX Revenue by Segment

Medical Products & Therapies$1.3B+2.0%
Infusion Therapies & Technologies$981.0M−1.0%
Healthcare Systems & Technologies$705.0M+0.0%
Pharmaceuticals$621.0M+7.0%
Care & Connectivity Solutions$435.0M+2.0%
Injectables & Anesthesia$301.0M−10.0%
Advanced Surgery$304.0M+13.0%
Drug Compounding$320.0M+30.0%

BAX Revenue by Geography

United States$1.4B−4.0%
Rest of World$1.3B+12.0%

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