Baxter Sales Rise 5% to $2.98 Billion, Company Raises 2026 Outlook
Key Facts
Baxter posted sales of about $2.98 billion in the third quarter of 2026, up 5% on both a reported and organic basis, and raised its forecasts for sales growth and earnings per share for the fiscal year. Chief Executive Andrew Hider said the company achieved "growth across all segments and divisions globally." Adjusted earnings per share were $0.58, topping the average analyst estimate of $0.52, while revenue reached $2.98 billion against expectations of $2.91 billion. The company said sales from continuing operations rose from $2.835 billion in the year-earlier period to $2.976 billion. Income from continuing operations also swung from a loss of $51 million a year earlier to $298 million in the latest quarter.
Baxter raised its forecast for reported sales growth from continuing operations in 2026 to 4%–5%, from 3%–4% previously, and lifted its organic growth forecast to 3%–4% from 2%–3%. The company raised the floor of its adjusted earnings-per-share forecast from continuing operations to $2.05, while keeping the top end at $2.15; the previous range was $1.95–$2.15. The guidance update follows a quarter in which revenue and adjusted earnings per share exceeded analyst estimates. But sales growth was not accompanied by an increase in quarterly adjusted earnings per share. They fell 16% year over year to $0.58, compared with $0.69 in the third quarter of 2025, and the company said a higher effective tax rate contributed to the decline.
Geographically, U.S. sales were about $1.6 billion, up 3% on a reported basis and 5% organically. International sales were about $1.4 billion, up 7% on a reported basis and 6% organically. Company data show organic U.S. sales growth outpaced reported growth, while reported growth exceeded organic growth in international markets. The increase was not confined to one region, as Baxter said quarterly growth spanned all segments and divisions. Sales in the year-earlier quarter were about $2.84 billion, putting the latest results in the context of continued annual growth.
In the Medical Products and Therapies segment, sales were about $2.1 billion, up 6% on both a reported and organic basis. The company attributed the performance to strength in infusion systems, drug compounding and IV solutions, alongside demand for advanced surgery products. Lower sales of injectable pharmaceuticals partly offset growth. The Healthcare Systems and Technologies segment posted sales of $806 million, up 4% on both a reported and organic basis. Baxter linked the segment's growth to global surgery solutions and patient support systems, as well as growth in front-line care activities.
GAAP net income was about $298 million, or $0.57 per diluted share, in the third quarter. Gross margin was 33.4% of sales, compared with 33.5% a year earlier. Operating income, meanwhile, rose 31% to $225 million from $172 million in the year-earlier period. Free cash flow was $448 million during the quarter and reached $705 million from the start of the year through the results announcement. During the same quarter, the company completed a $600 million cash tender offer and retired $864 million in debt.
Baxter shares rose 6.44% in premarket trading on October 29 following the results announcement, according to Investing.com. The company said its conference call to discuss the results would be held the same day, October 29, 2026, at 7:30 a.m. Central Time. The investor calendar also lists the J.P. Morgan Healthcare Conference for January 11 to 13, 2027. These dates provide two announced upcoming events on the company's schedule following its annual financial forecast update. The stock's initial move followed a quarterly earnings beat and higher annual growth and profitability ranges.