Baxter International Stock Earnings Reports

Baxter reported Q1 2026 continuing-operations sales of $2.7 billion (+3% reported, -1% organic) and adjusted EPS of $0.36 (down 35% YoY). Management reiterated full-year 2026 guidance: flat to +1% reported sales (≈flat organic) and adjusted EPS of $1.85–$2.05. Key near-term headwinds include tariffs (~$80M full-year impact net of mitigations), higher manufacturing costs and absorption pressure (particularly in Infusion Therapies & Technologies), ongoing Novum LVP shipment/installation hold (guidance assumes hold for full year and contemplates potential customer returns), and supply constraints in certain Injectables driven partly by a contract manufacturer. Positives: Advanced Surgery grew ~10% driven by hemostats/sealants; strong early commercial traction for new products (Dynamo stretcher, IV Verified Line labeling, XR spine table, Connex 360); improved free cash flow in Q1 ($76M vs. -$221M a year ago) and active deleveraging plan targeting ~3x net leverage by end of 2026. Management emphasized a company-wide turnaround under the Baxter Growth and Performance System (GPS) to drive operational discipline, continuous improvement (230+ events launched), AI adoption, and disciplined capital allocation (debt paydown first, then potential M&A/share repurchases). They expect sequential improvement into H2 2026 driven roughly half by seasonally higher volumes, ~25% from cost-structure actions already taken, and ~25% from rolling through higher-cost inventory produced in H2 2025.