Baxter tops Q3 estimates and raises 2026 outlook
Adjusted EPS of 58 cents topped the 52 cents consensus estimate compiled by Finnhub, and sales of $2.98 billion were above the $2.94 billion estimate.
Key takeaways
- Baxter International Inc. (BAX) reported third-quarter 2026 sales of $2.98 billion, up 5% from a year earlier, and adjusted diluted EPS of 58 cents, down from 69 cents a year earlier, according to a filing on Oct. 29. The company raised its 2026 adjusted EPS forecast to $2.05 to $2.15 and its sales growth outlook to 4% to 5%.
Baxter International Inc. (BAX) said on Oct. 29 that third-quarter adjusted diluted earnings per share were 58 cents, topping the 52 cents consensus estimate compiled by Finnhub. It also raised its full-year 2026 outlook for sales growth and adjusted earnings.
Sales rose 5% to $2.98 billion, above the $2.94 billion estimate. Organic sales growth was also 5%, the company said in its earnings release furnished with the 8-K.
Here's how the company did:
- Adjusted diluted EPS: 58 cents vs. 69 cents a year earlier, topping the 52 cents consensus estimate compiled by Finnhub
- Revenue: $2.98 billion vs. $2.84 billion a year earlier, above the $2.94 billion consensus estimate compiled by Finnhub
- GAAP diluted EPS: 57 cents vs. a loss of 9 cents a year earlier
Net income attributable to Baxter stockholders was $294 million, compared with a loss of $46 million a year earlier. The GAAP result included a $253 million gain on the early extinguishment of debt.
Free cash flow, or operating cash flow less capital expenditures, was $448 million in the quarter and $705 million for the first nine months.
Segment results
Medical Products & Therapies sales were $2.1 billion, up 6% from a year earlier. Infusion Therapies & Platforms sales were $1.76 billion, up 5%, driven primarily by Infusion Systems, Drug Compounding and IV Solutions. Reduced sales in Injectables partly offset that growth.
Healthcare Systems & Technologies sales were $806 million, up 4%. The company said demand for Care & Connectivity Solutions products drove the increase, led by Global Surgical Solutions and Patient Support Systems.
Beginning in the second quarter of 2026, Baxter updated its segment reporting structure, and previously reported results have been recast to match.
2026 guidance
Baxter raised its full-year 2026 adjusted EPS forecast to $2.05 to $2.15, from the $1.95 to $2.15 range it gave on July 30. It raised its reported sales growth forecast to 4% to 5%, from 3% to 4%, and its organic sales growth forecast to 3% to 4%, from 2% to 3%.
“We delivered a strong third quarter, with growth across all segments and divisions globally,” said President and CEO Andrew Hider. “We continue to make steady progress stabilizing the business, strengthening the balance sheet and driving continuous improvement.”
Cash and capital returns
During the quarter, the company completed a $600 million cash tender offer, retiring $864 million of debt. The company said the move accelerated deleveraging while supporting its investment-grade credit objectives.
Its board declared a quarterly cash dividend of 1 cent per share, effective Oct. 28, 2026. The dividend is payable Jan. 4, 2027, to stockholders of record as of Nov. 27, 2026.
According to its SEC filings, net income swung from a loss of $15.0 million in the first quarter of 2026 to a profit of $126.0 million in the second quarter of 2026.