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

Baxter International (NYSE:BAX) released 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 for the quarter, compared to the consensus estimate of $2.82 billion. Baxter International had a positive return on equity of 17.38% and a negative net margin of 3.09%.Baxter International’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter last year, the company posted $0.58 EPS. 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

NYSE BAX traded up $1.16 on Friday, hitting $19.87. 4,988,169 shares of the company’s stock were exchanged, compared to its average volume of 9,707,753. Baxter International has a 52 week low of $17.40 and a 52 week high of $37.74. The stock has a 50-day moving average of $19.77 and a 200-day moving average of $21.32. The company has a current ratio of 1.84, a quick ratio of 1.18 and a debt-to-equity ratio of 1.21. The stock has a market cap of $10.21 billion, a price-to-earnings ratio of -30.19, a P/E/G ratio of 1.29 and a beta of 0.59.

Baxter International Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors 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 dividend yield of 0.2%. Baxter International’s dividend payout ratio (DPR) is currently -6.06%.

Hedge Funds Weigh In On Baxter International

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

Analysts Set New Price Targets

Several equities research analysts have recently commented on BAX shares. The Goldman Sachs Group increased their price objective on Baxter International from $22.00 to $23.00 and gave the company a “neutral” rating in a report on Friday, January 9th. Wells Fargo & Company reduced their target price 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. Evercore reduced their price objective on shares of Baxter International from $24.00 to $23.00 in a research report on Monday, January 5th. UBS Group lowered their price target on shares of Baxter International from $24.00 to $21.00 and set a “neutral” rating on the stock in a report on Friday, October 31st. Finally, Morgan Stanley reduced their price target on Baxter International from $19.00 to $15.00 and set an “underweight” rating for the company in a research note on Tuesday, December 2nd. 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 company’s stock. According to data from MarketBeat, Baxter International currently has a consensus rating of “Reduce” and a consensus target price of $20.70.

Baxter International News Roundup

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

• Positive Sentiment: Barclays kept an “overweight” rating and trimmed its price target to $25 (from $30), implying meaningful upside vs. the current price — a supportive analyst vote that likely attracted buyers. Barclays Adjusts Baxter International Price Target
• Positive Sentiment: Baxter declared a quarterly dividend of $0.01 per share (ex‑dividend Feb. 27), a small cash return that provides modest income support for the stock.
• Neutral Sentiment: Top‑line strength: Q4 revenue of $2.97B topped the ~$2.82B consensus and showed 8% year‑over‑year growth — evidence that sales momentum exists even as profitability is pressured. Baxter Press Release / Slide Deck

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.