Baxter International Inc. (BAX) has raised its sales and earnings outlook for 2026 following strong second-quarter results, with reported sales now expected to grow by 3% to 4%, compared to a previous forecast of flat growth. Adjusted earnings guidance has also increased to between $1.95 and $2.15 per share, up from $1.85 to $2.05.
In the second quarter, Baxter reported revenues of $2.96 billion, reflecting a 5% increase both reported and organically. Adjusted earnings were at 56 cents per share, beating expectations despite a 5% decline year-over-year. Major contributors included $2.08 billion from Medical Products & Therapies, which grew organically by 5%, and Advanced Surgery, with $331 million in revenue and 12% organic growth.
Despite the earnings beat, Baxter faces margin pressures as adjusted gross margin fell to 38.6%. The company is managing higher manufacturing costs and tariffs that impacted profitability, while the hold on the Novum IQ pump poses further risks to future performance.
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