Baxter Raises 2026 Sales and Earnings Outlook as Quarterly Sales Rise 5%

Baxter International raised its full-year 2026 outlook on Thursday after third-quarter sales grew 5% to about $2.98 billion, with the medical technology company reporting growth across all of its segments and divisions.

The Deerfield, Illinois-based company now expects 2026 organic sales growth from continuing operations of 3% to 4%, up from 2% to 3%, according to the earnings release it filed with an 8-K on Thursday. It lifted its reported sales growth forecast to 4% to 5%, from 3% to 4%, and narrowed adjusted EPS guidance to $2.05 to $2.15, raising the bottom of its prior $1.95 to $2.15 range.

Back to a profit

On a GAAP basis, income from continuing operations was $298 million, or $0.57 a diluted share, compared with a loss of $0.10 a share a year earlier. Adjusted EPS was $0.58, down 16% from $0.69, which the company attributed to a higher effective tax rate.

Operating income rose 31% to $225 million, and the operating margin widened 1.5 percentage points to 7.6% of sales.

"We delivered a strong third quarter, with growth across all segments and divisions globally," President and CEO Andrew Hider said in the release. He said the company continues to make "steady progress stabilizing the business, strengthening the balance sheet and driving continuous improvement."

Infusion leads the segments

Medical Products & Therapies, the largest segment, grew sales 6% on both a reported and organic basis to about $2.1 billion. Baxter cited strength in Infusion Systems, Drug Compounding and IV Solutions within its Infusion Therapies & Platforms division, along with strong global demand for Advanced Surgery products, partly offset by lower Injectables sales.

Healthcare Systems & Technologies sales rose 4% to about $806 million, driven by Global Surgical Solutions and Patient Support Systems, with growth in Front Line Care as well.

U.S. sales increased 3% on a reported basis, or 5% organically, to about $1.6 billion, while international sales rose 7% to about $1.4 billion.

Debt paydown and a penny dividend

Free cash flow was $448 million in the quarter and $705 million year to date. Baxter said it completed a $600 million cash tender offer during the quarter that retired $864 million of debt, which it said accelerated deleveraging while supporting its investment-grade credit objectives.

In the same 8-K, Baxter said its board declared a quarterly cash dividend of $0.01 a share, effective Oct. 28. The dividend is payable Jan. 4, 2027, to stockholders of record as of Nov. 27, 2026.

By the numbers

• About $2.98 billion: third-quarter sales, up 5% reported and organic
• $0.57: GAAP diluted EPS, versus a loss of $0.10 a share a year earlier
• $0.58: adjusted EPS, down 16%
• $448 million: third-quarter free cash flow
• $2.05 to $2.15: new 2026 adjusted EPS outlook

Baxter scheduled a conference call for 7:30 a.m. CDT on Thursday to discuss the results.

Sources

1. Baxter International Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and dividend declaration (Item 8.01), filed Oct. 29, 2026 (accession 0000010456-26-000004)

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