Baxter raises 2026 outlook to 3‑4% organic sales growth and $2.05‑$2.15 adjusted EPS
Baxter International reported third‑quarter 2026 net sales of about $3.0 billion, up 5% year‑over‑year, and adjusted earnings per share of $0.58. The company lifted its full‑year guidance, now targeting 3‑4% organic sales growth and adjusted EPS of $2.05‑$2.15, and aims for net leverage near 3.0×. CEO Andrew Hider said the results show the turnaround is gaining traction, while the adjusted gross margin fell 110 basis points to 38.3%. Shares slipped 5.2% in pre‑market trading after the release.
Why it matters
The higher full‑year guidance could support the stock if margin pressure eases, but the 110 bp margin decline and pre‑market sell‑off highlight investor concern over profitability. The leverage target of roughly 3.0× signals continued balance‑sheet strengthening, which may affect credit‑rating considerations.
Key facts
- 1Q3 2026 net sales were approximately $3.0 billion, a 5% increase year‑over‑year. investing.com
- 2Adjusted EPS for the quarter was $0.58. investing.com
- 3Adjusted gross margin declined 110 basis points year‑over‑year to 38.3%. investing.com
- 4Full‑year 2026 organic sales growth guidance was raised to 3‑4%. investing.com
- 5Full‑year 2026 adjusted EPS guidance was set at $2.05‑$2.15. investing.com
- 6The company targets net leverage of approximately 3.0× by year‑end 2026. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.