News

Baxter International Inc. BAX is scheduled to release second-quarter 2026 results on July 30, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.13%. BAX’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 3.12%.

BAX’s Q2 Estimates

The consensus estimate for revenues is pegged at $2.84 billion, indicating a decline of 0.6% from the prior-year quarter’s reported figure. The consensus mark for earnings is pinned at 36 cents per share, implying a 39% year-over-year decline.

Our model estimates total revenues from continuing operations to decline 2.5% at constant currency (cc) to $2.79 billion. Adjusted earnings per share are expected to decline 39% to 36 cents.

Baxter International Inc. Price and EPS Surprise

Important Factors to Note Ahead of BAX’s Q2 Results

Baxter is expected to have delivered a modestly improved second quarter, though results are likely to be constrained by ongoing manufacturing inefficiencies, inflationary cost pressures and the continued shipment hold on its Novum large-volume infusion pump (LVP). Management reiterated its full-year outlook following first-quarter results, indicating that second-quarter earnings may remain on par with the first quarter, with only a slight volume improvement before a more meaningful recovery in the second half.

While end-market demand remains healthy across several businesses, execution-related challenges and difficult year-over-year comparisons are expected to have weighed on profitability.

Within the Medical Products & Therapies (“MPT”) segment, performance is likely to have remained mixed. Advanced Surgery should have continued to outperform, supported by strong global demand for hemostats and sealants along with healthy procedural volumes. However, Infusion Therapies & Technologies is likely to have remained under pressure due to the ongoing Novum LVP shipment and installation hold, lower infusion pump sales and normalization in IV solutions demand following last year's Hurricane Helene-related distributor build.

Management expects pump revenues to improve during the second half as Spectrum adoption increases, but elevated manufacturing absorption costs should have constrained its second-quarter performance. Our model estimates this segment’s revenues to decline 3% at cc to $1.3 billion.

Healthcare Systems & Technologies is expected to post another subdued quarter, with stronger Patient Support Systems demand and a healthy U.S. capital equipment order book partially offset by timing delays in Front Line Care installations. Management continues to expect improvement later in the year as recently launched products, including Connex 360 and the Dynamo smart stretcher, begin contributing more meaningfully. Our model estimates this segment’s revenues to improve 2.9% at cc to $795.1 million.

The Pharmaceuticals segment likely remained challenged by supply constraints within Injectables, softer global demand for inhaled anesthesia products and unfavorable product mix. Nevertheless, improving manufacturing throughput, continued progress clearing back orders and strong growth in drug compounding should have partially mitigated these headwinds. Our model estimates this segment’s revenues to decline 3.6% at cc to $609 million.

Baxter likely continued to face elevated manufacturing costs, tariff-related expenses and inflationary pressures during the second quarter. Management expects these pressures to ease during the second half as higher-cost inventory is worked through, cost-reduction initiatives begin generating savings and operating leverage improves with seasonal volume recovery. Consequently, second-quarter adjusted EPS is likely to have remained near first-quarter levels.

What the Zacks Model Unveils for BAX Stock

Our proven model does not conclusively predict an earnings beat for Baxter this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

BAX’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.99% for Baxter. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank of BAX: Baxter currently has a Zacks Rank #4 (Sell).

BAX’s Share Price Performance

So far this year, Baxter’s shares have gained 13.4% against the industry’s 22.5% decline. The S&P 500 has gained 9.3% during the period.

Image Source: Zacks Investment Research

Stocks Worth a Look

Here are some stocks from broader medical sector worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.

Cardinal Health CAH has an Earnings ESP of +1.24% and a Zacks Rank #2 at present. The company is set to release fourth-quarter fiscal 2026 results on Aug. 11. You can see the complete list of today’s Zacks #1 Rank stocks here.

CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS indicates an improvement of 16.4% from the year-ago reported figure.

Henry Schein HSIC has an Earnings ESP of +0.41% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on Aug. 04.

HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.74%. The Zacks Consensus Estimate for HSIC’s second-quarter EPS implies an improvement of 10.9% from the year-ago reported figure.

Agilent Technologies A has an Earnings ESP of +1.02% and a Zacks Rank of 3 at present.

A’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.61%. The Zacks Consensus Estimate for A’s third-quarter fiscal 2026 EPS suggests an improvement of 8% from the year-ago reported figure.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.