Baxter Raises Full-Year Sales and Earnings Outlook

The Tip Desk · October 29, 2026 · 2 min read

Third-quarter sales of $2.98 billion rose 5% on both a reported and organic basis as the company lifted 2026 organic growth to 3%–4%.

Baxter International Inc. (BAX) raised its full-year 2026 outlook after third-quarter sales of $2.98 billion increased 5% on both a reported and organic basis, matching the second quarter’s 5% reported and organic growth and extending a rebound from a first quarter that had risen 3% reported and fallen 1% organically.

The global medtech company now expects reported sales growth from continuing operations of 4% to 5%, up from 3% to 4%, and organic sales growth of 3% to 4%, up from 2% to 3%. Adjusted earnings from continuing operations per diluted share are now seen at $2.05 to $2.15, lifting the low end from $1.95.

U.S. sales were approximately $1.6 billion, up 3% on a reported basis and 5% organically. International sales were approximately $1.4 billion, up 7% reported and 6% organic.

On a U.S. GAAP basis, income from continuing operations was $298 million, or $0.57 a share. Adjusted diluted EPS was $0.58, down 16% from a year earlier, which the company attributed to a higher effective tax rate. Adjusted operating income was $432 million, up 2% from $423 million a year earlier.

Growth continued across all segments and divisions under the reporting structure Baxter introduced in the second quarter. Medical Products & Therapies sales were approximately $2.1 billion, up 6% on both a reported and organic basis. The company said performance reflected strength in the Infusion Therapies & Platforms division, driven primarily by Infusion Systems, Drug Compounding and IV Solutions, partially offset by reduced Injectables sales. Continued global demand for Advanced Surgery products also contributed.

Healthcare Systems & Technologies sales were approximately $806 million, up 4% on both a reported and organic basis. The company said results reflected strong demand for Care & Connectivity Solutions products, driven by growth in Global Surgical Solutions and Patient Support Systems, as well as growth in Front Line Care.

Free cash flow was $448 million in the third quarter and $705 million year-to-date. During the quarter, Baxter completed a $600 million cash tender offer, retiring $864 million of debt and, the company said, accelerating deleveraging while supporting its investment-grade credit objectives.

Gross margin was $994 million, or 33.4% of net sales. Selling, general and administrative expenses were 24.5% of sales. Operating income was $225 million, or 7.6% of sales. Other operating income, net, was $86 million. Other income, net, was $253 million, including a gain on debt extinguishment.

President and CEO Andrew Hider said the company delivered growth across all segments and divisions globally and continued to make progress stabilizing the business, strengthening the balance sheet and driving continuous improvement.