Baxter International (NYSE:BAX) Posts Quarterly Earnings Results, Misses Expectations By $0.09 EPS

Baxter International (NYSE:BAX) announced its earnings results on Thursday. The medical instruments supplier reported $0.44 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.09), FiscalAI reports. The firm had revenue of $2.97 billion during the quarter, compared to analyst estimates of $2.82 billion. Baxter International had a negative net margin of 3.09% and a positive return on equity of 17.38%. The firm’s revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period last year, the company earned $0.58 earnings per share. 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 Trading Down 15.9%

Baxter International stock traded down $3.53 during midday trading on Thursday, reaching $18.74. The stock had a trading volume of 19,322,259 shares, compared to its average volume of 9,553,296. The stock has a market capitalization of $9.63 billion, a PE ratio of -28.38, a price-to-earnings-growth ratio of 1.27 and a beta of 0.59. The company has a debt-to-equity ratio of 1.21, a quick ratio of 1.18 and a current ratio of 1.84. The stock’s 50-day simple moving average is $19.76 and its 200 day simple moving average is $21.34. Baxter International has a twelve month low of $17.40 and a twelve month high of $37.74.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Baird Financial Group Inc. grew its stake in shares of Baxter International by 3.2% in the second quarter. Baird Financial Group Inc. now owns 52,436 shares of the medical instruments supplier’s stock valued at $1,588,000 after buying an additional 1,604 shares in the last quarter. California State Teachers Retirement System increased its holdings in shares of Baxter International by 2.9% in the 2nd quarter. California State Teachers Retirement System now owns 649,463 shares of the medical instruments supplier’s stock worth $19,666,000 after acquiring an additional 18,439 shares during the period. Ameriprise Financial Inc. boosted its stake in Baxter International by 1.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,638,629 shares of the medical instruments supplier’s stock valued at $231,304,000 after purchasing an additional 97,687 shares during the period. BI Asset Management Fondsmaeglerselskab A S grew its position in Baxter International by 21.4% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 24,356 shares of the medical instruments supplier’s stock worth $737,000 after purchasing an additional 4,293 shares during the last quarter. Finally, Captrust Financial Advisors raised its holdings in shares of Baxter International by 5.5% during the second quarter. Captrust Financial Advisors now owns 53,933 shares of the medical instruments supplier’s stock valued at $1,633,000 after buying an additional 2,813 shares during the last quarter. 90.19% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Evercore lowered their price objective on shares of Baxter International from $24.00 to $23.00 in a research report on Monday, January 5th. UBS Group cut their target price on Baxter International from $24.00 to $21.00 and set a “neutral” rating for the company in a research note on Friday, October 31st. Citigroup dropped their price objective on Baxter International from $26.00 to $21.00 and set a “neutral” rating for the company in a research note on Friday, October 31st. TD Cowen reissued a “hold” rating on shares of Baxter International in a report on Thursday, October 30th. Finally, Wells Fargo & Company cut their price target on Baxter International from $21.00 to $19.00 and set an “equal weight” rating for the company in a research note on Friday, December 12th. Two equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Baxter International presently has an average rating of “Reduce” and a consensus price target of $21.40.

Key Headlines Impacting Baxter International

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

About Baxter International

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.