Baxter reported adjusted earnings per share of $0.44 for the quarter ended December 31, falling short of the $0.53 consensus and down from $0.58 in the prior-year period. The EPS miss reflects margin pressures and product mix challenges faced in its medical products segment.

On February 12, Baxter shares plunged to rank as the worst-performing S&P 500 stock, with investors reacting to the Q4 earnings surprise. The selloff underscores concern over near-term profitability and potential headwinds in 2026.