Baxter raises annual profit forecast on strong demand for IV solutions

July 30 (Reuters) - Medical products maker Baxter International BAX.N on Thursday raised its annual profit forecast and beat Wall Street estimates for quarterly results, banking on robust sales of its medical products such as IV solutions.

Shares of the Deerfield, Illinois-based company jumped 14% in premarket trading.

Investors and analysts are closely monitoring whether the loss of enhanced, pandemic-driven subsidies under Obamacare, or Affordable Care Act, plans is reducing elective procedure volumes and demand for surgical products used in those procedures.

Baxter is in the middle of a turnaround effort, led by its cost-cutting actions, after a period of uncertainty around its infusion pump business.

The medical device maker said strength in drug compounding and IV solutions was partly offset by lower infusion systems sales following a hold on its Novum pump shipments and installations.

Last quarter Baxter said the Novum infusion pump shipment hold is expected to remain in place throughout 2026 as customers await clarity on additional corrections.

Baxter now expects 2026 adjusted profit per share of $1.95 to $2.15, compared with its prior outlook of $1.85 to $2.05.

Second-quarter sales at its largest medical products and therapies segment, which includes IV solutions, rose 7% to $2.08 billion from a year ago.

The company earned 56 cents per share on an adjusted basis in the quarter, compared with estimates of 37 cents, according to LSEG data.

Revenue for the quarter came in at $2.96 billion, beating estimates of $2.80 billion.