Baxter International earnings: guidance and results
MyStockButler's October 2026 analysis: Baxter International reported September 2026 revenue of $2.98 billion, operating income of $225 million and EPS of $0.57. Baxter International’s next release should show whether Novum corrections and Round Lake remediation are progressing.
What has Baxter International guided for 2026?
Management’s 2026 guidance is 4%–5% reported sales growth. It also promises 3%–4% organic sales growth. Adjusted EPS is guided to $2.05–$2.15. The net-leverage target is 3.0x by year-end. Baxter kept only 2 of 5 comparable promises. Sales missed once; adjusted EPS missed twice.
| The period guided | Low | High | The date it was given | |
|---|---|---|---|---|
| Sales growth - U.S. GAAP | Year to Dec 2026 | 4.0% | 5.0% | Oct 29, 2026 |
| Organic sales growth | Year to Dec 2026 | 3.0% | 4.0% | Oct 29, 2026 |
| Adjusted diluted EPS | Year to Dec 2026 | 2.05 | 2.15 | Oct 29, 2026 |
| Net leverage target | Year to Dec 2026 | 3.0x | 3.0x | Feb 12, 2026 |
Has Baxter International kept its past promises?
| What management forecast | Checked | Above | Within | Below |
|---|---|---|---|---|
| Sales growth on a reported basis | 5 years | 1 | 3 | 1 |
| Adjusted earnings per diluted share, before special items | 5 years | 1 | 2 | 2 |
What do Baxter International's last eight quarters show?
In the September 2026 quarter, revenue reached $2.98 billion. Operating income was $225 million, a 7.6% margin. EPS was $0.57, but adjusted EPS fell 16% as the prior year benefited from discrete tax items. Net income included a $195 million after-tax gain from retiring debt below its accounting value. Medical Products & Therapies and Healthcare Systems & Technologies grew organically. Advanced Surgery benefited from demand for bleeding-control and tissue-sealing products. Compounding accelerated while injectable sales declined.
Adjusted EPS fell 16% from the prior-year quarter. Management said the earlier period benefited from withholding-tax reserve releases and other discrete tax benefits, so the comparison does not measure operating performance alone. Adjusted operating margin also declined as lower pricing contribution and the shift toward compounding weighed on mix.
| Sep 2026 | Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2,976 | 2,960 | 2,701 | 2,974 | 2,835 | 2,810 | 2,625 | 2,753 |
| Operating income | 225 | 217 | 66 | -729 | 172 | 191 | 58 | -435 |
| Net income | 298 | 135 | -17 | -1,035 | -51 | 122 | 64 | -488 |
| EPS, diluted | 0.57 | 0.26 | -0.03 | -2.01 | -0.10 | 0.24 | 0.13 | -0.95 |
| = Free cash flow | 448 | 181 | 76 | 456 | 126 | 77 | -221 | 311 |
What should I watch in Baxter International's next release?
The result turns on Novum corrections and Round Lake remediation through 2027 and 2028, IV-fluid demand, and whether Vantive transition services end by January 2027 without stranded costs. February 2027 guidance will show whether cash generation and debt reduction are durable.