EarningsQ3 2026 Earnings Report
MX:BAX Q3 2026 EPS Results
Actual EPS$10.95
Consensus EPS$9.78
Beat/MissBeat by +$1.17
One Year Ago EPS$13.03
MX:BAX Q3 2026 Revenue Results
Actual Revenue$56.19B
Expected Revenue$54.91B
Beat/MissBeat by +$1.28B
YoY Revenue Growth+4.97%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeBefore Open
Conference CallThursday, October 29, 2026
MX:BAX Upcoming Earnings
Baxter International's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:BAX Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly constructive and reflected improving execution, strong free cash flow, deleveraging progress, segment growth and raised full-year guidance. Management also highlighted ongoing challenges, including lower adjusted earnings, injectables and cephalosporin-related issues, lower margins, inflation, tariffs and several 2027 headwinds. Highlights significantly outweighed the lowlights, while management acknowledged that further work is required to improve consistency and execution.Company Guidance
Quarterly Sales Growth Exceeded Expectations
Third-quarter global sales totaled approximately $3 billion, increasing 5% on both a reported and organic basis. Growth was broad-based, with every division contributing and both U.S. and international markets growing; Advanced Surgery, Drug Compounding and Infusion Systems were the largest contributors.
Full-Year Sales and Earnings Outlook Raised
Baxter raised its full-year 2026 organic sales growth outlook to 3% to 4% from 2% to 3%. The company also raised the bottom end of its adjusted earnings outlook to $2.05 to $2.15 per diluted share from $1.95 to $2.15.
Steady End-Market Demand
End-market demand remained generally steady during the quarter, with continued strength in Advanced Surgery and a healthy order book in Care & Connectivity Solutions.
Operational Execution Improved
Care & Connectivity Solutions improved its on-time shipment metric by 8% year-over-year, while Advanced Surgery improved a quality measure by nearly 20% year-over-year. Baxter also reported improvement in supply challenges involving a contract manufacturer within injectables and expects a more limited impact going forward.
Strong Free Cash Flow and Deleveraging Progress
Third-quarter free cash flow was $448 million, bringing year-to-date free cash flow to $705 million. Baxter completed a $600 million cash tender offer that retired $864 million of debt and remains confident in achieving approximately 3x net leverage by year-end.
Balance Sheet Creates Capital Allocation Flexibility
Management said a stronger balance sheet could provide flexibility for additional internal investment, strategic tuck-in acquisitions and share repurchases, while maintaining a disciplined approach to shareholder value creation. The company said its funnel of potential additions remains strong and that its M&A cultivation process is ongoing.
Baxter GPS Continuous Improvement Momentum
Baxter completed more than 700 continuous improvement initiatives year-to-date, with more than 200 currently in flight and approximately 350 additional initiatives planned. Front Line Care reduced blood-pressure-cuff manufacturing cycle times by more than 10% without additional capital investment, and certain alternative-shipment back orders were reduced by more than 50%.
Medical Products and Therapies Growth
Medical Products and Therapies sales were $2.1 billion, up 6%. Infusion Therapies & Platforms sales were $1.8 billion, up 4%, driven by Infusion Systems, Drug Compounding and IV Solutions. Drug Compounding services grew 9%, reflecting strong demand, including from international health systems.
Advanced Surgery Delivered Double-Digit Growth
Advanced Surgery sales totaled $342 million and grew 12%, driven by strong demand and increased volumes for the global hemostats and sealants portfolio, strong commercial execution across regions and steady procedure volumes.
Healthcare Systems and Technologies Growth
Healthcare Systems & Technologies sales totaled $806 million, up 4%. Care & Connectivity Solutions sales were $498 million, up 5%, supported by U.S. backlog execution and international markets. Front Line Care sales were $308 million, up 3%, driven by connected monitoring and demand for Connex 360.
Segment Margin Improvement
Medical Products and Therapies adjusted operating margin was 20.9%, up 10 basis points, while Healthcare Systems & Technologies adjusted operating margin was 17.2%, up 140 basis points. The improvements reflected increased sales volume and previously implemented cost actions.
Selling and Administrative Cost Improvement
Adjusted SG&A was $637 million, or 21.4% of sales, an improvement of 80 basis points, reflecting benefits from implemented cost actions.
Product Innovation and Customer Adoption
Connex 360 continued to gain customer traction and contributed to Front Line Care growth. The Dynamo Series Smart Stretcher was recognized for user-centric design by the Human Factors and Ergonomics Society. Baxter also reported continued progress with Novum LVP and ongoing work with regulatory authorities.
Quality and Supply-Continuity Actions
Baxter has implemented corrective and preventative actions and other enhancements to strengthen quality systems and operations at the Round Lake facility and across its network. Management said the decision to reposition Round Lake for non-cephalosporin production will simplify operations, support supply continuity for the non-cephalosporin portfolio and is not expected to create a market shortage.
Potential Efficiency Savings Identified for 2027
Management said it has line of sight to further savings opportunities in 2027 and is building a sustainable pipeline of efficiency initiatives across operations, supply chain, IT, finance and other functions to address inflationary pressures.
MX:BAX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed