With a market cap of $12.6 billion, Baxter International Inc. (BAX) is a global healthcare technology company that develops and manufactures essential medical products, therapies, and equipment used in hospitals, surgical centers, and home-care settings. Its portfolio includes intravenous (IV) solutions, infusion pumps, injectable pharmaceuticals, surgical equipment, smart hospital beds, and patient monitoring systems. The Deerfield, Illinois-based company operates through three segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals, serving healthcare providers and patients in more than 100 countries.
The company is expected to unveil its fiscal Q3 2026 results before the market opens on Thursday, Oct. 29. Ahead of the event, analysts forecast BAX to post an adjusted EPS of $0.51, a decline of 26.1% from $0.69 in the same quarter last year. It has surpassed Wall Street's bottom-line projections in three of the past four quarters while missing on another occasion.
For fiscal 2026, analysts predict the drug and medical device maker to report adjusted EPS of $2.04, a decline of 10.1% from $2.27 in fiscal 2025.
BAX stock has soared 12.9% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 19.2% rise and the State Street Health Care Select Sector SPDR ETF's (XLV) 21% gain over the same period.
Baxter International has lagged the broader market over the past year amid sluggish organic sales growth, declining profitability, and inefficient capital allocation. The company’s constant-currency growth has remained underwhelming, highlighting the need for product improvements and stronger execution to regain momentum. Meanwhile, earnings per share declined by an annualized 8.5% over the past five years, outpacing revenue deterioration and pointing to mounting margin pressure. Negative returns on capital have further raised concerns about management’s ability to generate attractive returns from its investments, weighing on investor confidence.
Analysts' consensus rating on BAX stock is cautious, with a "Hold" rating overall. Out of 15 analysts covering the stock, opinions include one "Strong Buy," 13 "Holds," and one “Strong Sell.” The average analyst price target for BAX is $26.23, suggesting a modest potential upside of 5.9% from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.