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

Baxter International (NYSE:BAX) posted its quarterly earnings data 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. Baxter International had a positive return on equity of 16.31% and a negative net margin of 8.51%.The business had revenue of $2.97 billion during the quarter, compared to analysts’ expectations of $2.82 billion. During the same period in the previous year, the business posted $0.58 EPS. The business’s quarterly revenue was up 8.0% compared to the same quarter last year. 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 Price Performance

Shares of NYSE:BAX traded up $1.09 on Friday, reaching $19.80. The company’s stock had a trading volume of 15,812,119 shares, compared to its average volume of 9,282,754. The company has a 50-day simple moving average of $19.79 and a 200 day simple moving average of $21.26. Baxter International has a 52-week low of $17.40 and a 52-week high of $37.74. 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 company has a market cap of $10.18 billion, a P/E ratio of -10.70, a PEG ratio of 1.27 and a beta of 0.59.

Baxter International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, February 27th will be given a dividend of $0.01 per share. The ex-dividend date is Friday, February 27th. This represents a $0.04 annualized dividend and a yield of 0.2%. Baxter International’s dividend payout ratio (DPR) is -2.16%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on BAX. Wells Fargo & Company cut their price objective on shares of Baxter International from $21.00 to $19.00 and set an “equal weight” rating for the company in a research report on Friday, December 12th. Jefferies Financial Group reduced their target price on shares of Baxter International from $21.00 to $19.00 and set a “hold” rating for the company in a report on Friday. TD Cowen reaffirmed a “hold” rating on shares of Baxter International in a report on Thursday, October 30th. Stifel Nicolaus dropped their price target on shares of Baxter International from $25.00 to $22.00 in a research report on Friday, October 31st. Finally, Wall Street Zen downgraded shares of Baxter International from a “buy” rating to a “hold” rating in a research report on Saturday, February 7th. Two analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average target price of $20.10.

Baxter International News Roundup

Here are the key news stories impacting Baxter International this week:

• Positive Sentiment: Barclays kept an “overweight” rating and set a $25 price target (still a meaningful upside vs current levels), which can attract buyers and help stabilize the stock. Barclays adjusts Baxter International price target to $25 from $30, maintains overweight rating
• Positive Sentiment: Baxter reported revenue of $2.97B (beat estimates) and sales growth across segments, which some investors see as evidence demand is intact despite margin stress — a reason for selective buying into the dip. Baxter Reports Fourth-Quarter 2025 Results
• Neutral Sentiment: Elevated short interest has been reported, which can amplify moves (short covering can fuel rallies but also increases volatility). That dynamic may explain some of today’s upside but is not a fundamental improvement. Looking Into Baxter International Inc’s Recent Short Interest
• Neutral Sentiment: Baxter declared a nominal quarterly dividend ($0.01 per share); it’s unlikely to move the stock materially but provides a small income signal to some investors.
• Negative Sentiment: Q4 EPS missed expectations ($0.44 vs. $0.53 consensus) and margins contracted — the earnings miss triggered the initial sell‑off and remains a negative catalyst. Baxter Posts Wider 4Q Loss, Says Results Missed Expectations
• Negative Sentiment: FY‑2026 EPS guidance (1.85–2.05) came in below Wall Street expectations (consensus ~2.28), largely blamed on manufacturing disruptions from Hurricane Helene — a clear reason for ongoing investor caution. Baxter forecast 2026 profit below estimates The Specter of Hurricane Helene Still Haunts Baxter’s Earnings
• Negative Sentiment: Analysts trimmed price targets and some ratings were reduced (Jefferies lowered its PT to $19 and kept a “hold”), signaling lingering analyst concern and pressure on sentiment. Jefferies adjusts Baxter International PT to $19 from $21, maintains hold rating
• Negative Sentiment: Analysts and commentators highlight margin compression, higher debt levels and the company’s difficult FY26 outlook — factors that could limit recovery until management proves margin improvement. Baxter International: Debt, Margin Pressure, Dreadful FY26 Guidance (Downgrade)

Institutional Investors Weigh In On Baxter International

Several large investors have recently added to or reduced their stakes in BAX. Imprint Wealth LLC bought a new position in shares of Baxter International during the 3rd quarter valued at approximately $27,000. MUFG Securities EMEA plc bought a new position in shares of Baxter International during the second quarter valued at approximately $46,000. Los Angeles Capital Management LLC bought a new stake in shares of Baxter International during the fourth quarter worth $46,000. McMillan Office Inc. purchased a new position in Baxter International in the 4th quarter worth about $54,000. Finally, Parallel Advisors LLC grew its stake in Baxter International by 113.3% in the 3rd quarter. Parallel Advisors LLC now owns 3,971 shares of the medical instruments supplier’s stock worth $90,000 after acquiring an additional 2,109 shares in the last quarter. 90.19% of the stock is owned by institutional investors.

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.