Baxter International Inc. (NYSE:BAX) Faces Challenges Despite Strong Sales

Font: Financial Modeling Prep  • Feb 12, 2026

• Baxter International Inc. (NYSE:BAX) reported a quarterly sales increase of 8% year over year, exceeding consensus estimates.
• The company's adjusted earnings per share (EPS) of 44 cents fell short of expectations due to an unfavorable product mix.
• Baxter's 2026 guidance projects flat sales growth and an EPS range below consensus estimates, contributing to a negative market reaction.

Baxter International Inc. (NYSE:BAX) is a key player in the medical products industry, specializing in devices and therapies that support healthcare professionals worldwide. The company operates in various segments, including Medical Products and Therapies, with a strong focus on Infusion Therapies and Advanced Surgery products. Despite its significant market presence, Baxter faces competition from other medical device manufacturers.

On February 12, 2026, Stifel Nicolaus set a price target of $20 for BAX, which was trading at $18.71. This target suggests a potential upside of approximately 6.9%. However, the company's recent financial performance has been challenging. Baxter's fourth-quarter adjusted earnings per share (EPS) of 44 cents fell short of both management's guidance and Wall Street's expectations, primarily due to an unfavorable product mix.

Despite the EPS shortfall, Baxter reported robust sales of $2.974 billion for the quarter, an 8% increase year over year. This figure exceeded the consensus estimate of $2.824 billion. The Medical Products and Therapies division contributed significantly, with sales of approximately $1.39 billion, driven by strong demand for IV solutions and Advanced Surgery products.

However, the company's stock price declined by 12.5% following the earnings report. The adjusted gross margin contracted by 900 basis points to 35.5%, and operating income decreased by 16% year over year. On a GAAP basis, Baxter reported a loss per share from continuing operations of $2.19, compared to a profit of 95 cents in the same quarter the previous year.

Looking ahead, Baxter's 2026 guidance is not encouraging. The company expects sales to remain flat or increase by just 1%, with EPS projected between $1.85 and $2.05, below consensus estimates. This weak outlook, coupled with ongoing disruptions at a crucial manufacturing unit, has contributed to the negative market reaction. The stock is currently priced at $18.71, reflecting a decrease of 15.99% over the past year.