Baxter International Raises 2026 Sales and Earnings Outlook Following Q3 Turnaround

Baxter International Inc. has raised its full-year 2026 guidance after posting third-quarter revenue growth and returning to profitability from continuing operations. Management increased its reported sales growth forecast to between 4 percent and 5 percent, up from its earlier expectation of 3 to 4 percent. The company also adjusted its full-year adjusted diluted earnings-per-share outlook to a range of $2.05 to $2.15, raising the lower end from $1.95.

For the third quarter, Baxter generated $2.976 billion in revenue, representing a 5 percent increase from a year earlier on both a reported and organic basis. Medical Products and Therapies expanded 6 percent to approximately $2.1 billion, helped by demand across infusion systems, drug compounding, intravenous solutions, and advanced surgery. Meanwhile, the Healthcare Systems and Technologies division posted a 4 percent increase in sales to $806 million.

Profitability also rebounded as income from continuing operations reached $298 million, recovering from a $51 million loss in the same quarter last year. However, adjusted diluted earnings per share fell 16 percent to $0.58, weighed down by a higher effective tax rate. The company generated $448 million in free cash flow during the period and utilized a $600 million cash tender offer to retire $864 million in outstanding debt.

Despite the stronger projections, Baxter cautioned that it continues to confront headwinds. The company pointed to ongoing execution risks regarding infusion pumps, including field actions related to its Novum IQ system, as well as regulatory compliance, supply-chain constraints for injectable therapies, and potential tariff impacts. Management also noted that upcoming periods will lap non-recurring cash receipts, including a tariff refund and legal settlement received during the third quarter.

Over the wider market, shares of the Deerfield, Illinois-based healthcare supplier traded at 23.76 euros on Lang and Schwarz at 11:00 p.m. Central European Time on November 11, 2026. BAX shares had previously traded at $25.49 on November 3, 2026, marking a 33.6 percent advance since the start of the year.