The raised guidance and strong Q3 beat on EPS suggest improving operational momentum, but the YoY decline in adjusted EPS and the FDA warning letter on Novum IQ LVP are risks to monitor. Watch for resolution of the FDA issue and continued debt reduction progress.
Price Chart
Executive Summary
Baxter reported Q3 2026 revenue of $2.976B, up 5% YoY, and adjusted EPS of $0.58, down 16% YoY due to a higher effective tax rate. The company raised its full-year 2026 guidance: reported sales growth now 4%-5% (previously 3%-4%), organic sales growth 3%-4% (previously 2%-3%), and adjusted EPS $2.05-$2.15 (previously $1.95-$2.15). The beat on consensus EPS ($0.58 vs $0.52) and the raised guidance are positive, but the YoY decline in adjusted EPS tempers the read.
Key Financial Metrics
Key Facts
- Q3 2026 revenue $2.976B, +5% YoY (reported and organic)
- Q3 2026 GAAP diluted EPS $0.57, adjusted diluted EPS $0.58
- Adjusted EPS $0.58 vs consensus $0.52, a beat of 11.5%
- Adjusted EPS declined 16% YoY from $0.69, attributed to a higher effective tax rate
- Full-year 2026 guidance raised: reported sales growth 4%-5%, organic sales growth 3%-4%, adjusted EPS $2.05-$2.15
- Free cash flow $448M in Q3, $705M year-to-date
- Completed $600M cash tender offer in Q3, retiring $864M of debt
- All segments and divisions grew; Medical Products Therapies +6%, Healthcare Systems Technologies +4%
Financial Impact
Revenue $2.976B, adjusted EPS $0.58, guidance raised to $2.05-$2.15 adjusted EPS
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Medical Products Therapies | $2.1B | +6.0% |
| Healthcare Systems Technologies | $806.0M | +4.0% |
Risk Factors
- FDA Warning Letter on Novum IQ large volume pump could impact future sales
- Adjusted EPS declined 16% YoY due to higher tax rate; sustainability of tax rate is uncertain
- Forward-looking statements note risks from tariffs, trade policy, and geopolitical events
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000010456-26-000004 |
| Document: bax-20261028.htm | 0000010456-26-000004 |
| Document: 0000010456-26-000004-index-headers.html | 0000010456-26-000004 |
| Document: 0000010456-26-000004-index.html | 0000010456-26-000004 |
| Document: 0000010456-26-000004.txt | 0000010456-26-000004 |
| 8-K Data (Synthetic) | 0000010456-26-000004 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $23.50 | awaiting T+5 | awaiting T+5 | $23.00 (−2.13%) |
Oct 27, 2026 5d ago | SC 13G/A | $24.92 | awaiting T+5 | awaiting T+5 | $23.00 (−7.70%) |
Oct 23, 2026 9d ago | Institutional Cluster | $25.30 $23.00 | ▼ −9.09% | ▼ −8.53% | $23.00 (−9.09%) |
Aug 19, 2026 10w ago | 8-K | $26.64 $26.50 | ▼ −0.53% | ▼ −0.14% | $23.00 (−13.66%) |
Aug 18, 2026 10w ago | 8-K | $26.64 $26.50 | ▼ −0.53% | ▼ −0.14% | $23.00 (−13.66%) |
Aug 12, 2026 11w ago | Institutional Cluster | $26.95 $26.64 | ▼ −1.15% | ▼ −0.71% | $23.00 (−14.66%) |
Aug 4, 2026 12w ago | 8-K | $28.35 $27.61 | ▼ −2.61% | ▼ −2.51% | $23.00 (−18.87%) |
Jul 30, 2026 13w ago | 8-K | $26.75 $27.01 | ▲ +0.97% | ▼ −2.65% | $23.00 (−14.02%) |
Jun 11, 2026 20w ago | Institutional Cluster | $20.49 $19.39 | ▲ +5.37% | ▲ +5.80% | $23.00 (−12.25%) |
May 8, 2026 25w ago | 8-K | $17.53 $17.79 | ▲ +1.48% | ▲ +1.57% | $23.00 (+31.20%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers