Baxter Guides 2026 EPS to $1.85–$2.05 After Q4 EPS Miss
Baxter reported Q4 adjusted EPS of $0.44, missing its guidance of $0.52–$0.57 and analysts’ $0.54 estimate, while revenue rose 8% year-over-year to $2.974 billion versus the $2.824 billion consensus. It now forecasts fiscal 2026 adjusted EPS of $1.85–$2.05 against a $2.25 consensus and sales of $11.24–$11.36 billion.
1. Q4 Financial Results
Baxter reported adjusted fourth-quarter EPS of $0.44, below its guidance of $0.52–$0.57 and the $0.54 analyst estimate, while revenue rose 8% year-over-year to $2.974 billion, surpassing the $2.824 billion consensus; the shortfall was attributed to an unfavorable product mix.
2. Segment Performance
Medical Products & Therapies sales reached $1.39 billion (up 6% reported, 4% operational) driven by infusion therapies and Advanced Surgery products, Healthcare Systems & Technologies generated $827 million (up 5% reported, 4% operational) from Care & Connectivity solutions, and Pharmaceuticals delivered $668 million (up 4% reported, 2% operational) supported by drug compounding.
3. 2026 Guidance
The company expects fiscal 2026 adjusted EPS of $1.85–$2.05, below the $2.25 consensus, a 13%–14% adjusted operating margin, and sales of $11.24–$11.36 billion, implying flat to 1% growth versus the $11.31 billion consensus.
4. Market Reaction
Shares plunged about 15.6% following the report, trading near $18.79 and approaching the 52-week low of $17.40, reflecting investor concerns over the profit guidance.