Baxter International (BAX) is scheduled to report second-quarter 2026 earnings before the U.S. stock market open on July 30. In the prior-year quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.13%. Over the past four quarters, BAX has beaten estimates in two quarters and missed them in two quarters, by an average of 3.12%.
The market consensus is for revenue to be $2.84 billion, down 0.6% from the previous year. Earnings per share are expected to be $0.36, down 39% from the previous year.
Our model projects that, at constant exchange rates, total revenue from continuing operations will decline 2.5% to $2.79 billion. Adjusted earnings per share are expected to decline 39% to 36 cents.
Baxter expects a slight improvement in its second-quarter results, but persistent efficiency gaps, cost inflationary pressures, and the ongoing suspension of high-volume infusion pump (LVP) shipments could constrain growth. Following the release of its first-quarter results, management reiterated its full-year outlook, stating that second-quarter profits are likely to remain flat compared to the first quarter, with only a slight increase in sales, and that a more significant recovery is expected in the second half of the year.
While demand remains strong in end markets across various industries, project execution challenges and difficulties in year-over-year comparisons are expected to negatively impact profitability.
In the Medical Devices and Therapies (MPT) segment, performance is likely to remain mixed. The Advanced Surgical segment should continue to outperform other segments due to strong global demand for hemostatic agents and sealants, as well as significant surgical volumes. However, the Infusion Therapies and Technologies segment may remain under pressure due to factors such as ongoing suspensions of Novum LVP device shipments and installations, declining infusion pump sales, and normalization of IV infusion demand following the expansion of the distribution network impacted by Hurricane Helene last year.
Management expects pump revenue to increase in the second half of the year as Spectrum technology gains traction, but higher production costs should limit performance in the second quarter. Our model projects revenue in this segment to decline 3% to $1.3 billion at constant exchange rates.
The Healthcare Systems and Technologies segment is expected to face another weak quarter, offset by strong demand for patient support systems and significant capital equipment orders in the US, partly due to delays in the installation of first aid equipment. Management still expects the segment’s performance to improve later this year as recently launched products, including Connex 360 and the Dynamo intelligent stretcher, begin to make a more significant contribution. Our model projects revenue for this segment to grow 2.9% to $795.1 million at constant currency rates.
The pharmaceutical segment may still face challenges such as limited supply of injectables, weak global demand for inhalational anesthetics, and an unfavorable product mix. However, improved manufacturing efficiency, continued declines in order volumes, and strong growth in the formulation business should mitigate these negative factors to some extent. According to our model, at constant exchange rates, segment revenue will decline 3.6% to $609 million.
Baxter may continue to face high production costs, tariff-related expenses, and inflationary pressure in the second quarter. Management expects this pressure to ease in the second half of the year as high-cost inventory is depleted, cost-cutting measures are implemented, and operating leverage improves thanks to a seasonal sales recovery. Therefore, adjusted earnings per share in the second quarter are likely to remain flat compared to the first quarter.
Our model didn’t predict that Baxter would beat earnings estimates this time. The likelihood of a beat increases when the earnings estimate deviation is positive and the Zacks Rank is a 1 (Strong Buy), 2 (Buy), or 3 (Hold). However, as you’ll see below, this isn’t the case for Baxter.
Baxter (ESP) Earnings Estimate Variance: The earnings estimate deviation is the difference between the most accurate earnings forecast and the Zacks Consensus Estimate. Baxter’s earnings estimate deviation is -0.99%. Use our earnings estimate deviation filter to find the best stocks to buy and sell before earnings releases.
Baxter’s stock price has risen 13.4% year-to-date, while the industry as a whole has fallen 22.5% over the same period. The S&P 500 has risen 9.3% over the same period.
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Post time: Jul-27-2026