Baxter International (NYSE:BAX) Shares Gap Down After Earnings Miss

Shares of Baxter International Inc. (NYSE:BAX) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $22.27, but opened at $19.52. Baxter International shares last traded at $19.0260, with a volume of 7,682,401 shares.

The medical instruments supplier reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.09). Baxter International had a negative net margin of 3.09% and a positive return on equity of 17.38%. The business had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $2.82 billion. During the same period in the previous year, the firm earned $0.58 EPS. The firm’s revenue was up 8.0% on a year-over-year basis. Baxter International has set its FY 2026 guidance at 1.850-2.050 EPS.

Key Stories Impacting Baxter International

Here are the key news stories impacting Baxter International this week:

• Positive Sentiment: Revenue and segment growth: Baxter reported Q4 sales of $2.97B (up ~8% year/year) that beat consensus and the company said it delivered sales growth across all segments — a signal that demand remains intact. Baxter Reports Fourth-Quarter 2025 Results
• Positive Sentiment: Product/segment positives: Management highlighted growth in Advanced Surgery and progress on connected care offerings, which support medium‑term revenue upside if margins recover. Baxter International: Debt, Margin Pressure, Dreadful FY26 Guidance (Downgrade)
• Neutral Sentiment: Earnings materials available: The company posted its slide deck and the full earnings‑call transcript for investors to review management’s detail on actions and timing for margin recovery. BAX Q4 2025 Earnings Call Transcript
• Negative Sentiment: EPS miss and margin compression: Q4 EPS was $0.44 vs. $0.53 expected; management pointed to contracting margins, which is the primary immediate profit concern. Baxter International (BAX) Q4 Earnings Lag Estimates
• Negative Sentiment: FY‑2026 guidance below estimates: Baxter set FY‑26 EPS of $1.85–$2.05 vs. consensus ~$2.28, a clear driver of the stock weakness because it signals slower near‑term earnings recovery. Baxter forecast 2026 profit below estimates
• Negative Sentiment: Operational disruption and balance‑sheet concerns: Management cited lingering hurricane‑related disruptions at a key plant and analysts flagged margin pressure and elevated debt risks — items that contributed to at least one downgrade and weigh on sentiment. Baxter International: Debt, Margin Pressure, Dreadful FY26 Guidance (Downgrade)
• Negative Sentiment: Market reaction/coverage: News summaries and analyst notes flagged the miss and weak guide, prompting sell‑side commentary and heavy trading volume as investors reprice the name. Why Baxter International Stock Was Tumbling Today

Analysts Set New Price Targets

A number of analysts have commented on BAX shares. Argus downgraded shares of Baxter International from a “buy” rating to a “hold” rating in a research report on Friday, October 31st. Wells Fargo & Company reduced their target price on Baxter International from $21.00 to $19.00 and set an “equal weight” rating for the company in a report on Friday, December 12th. Jefferies Financial Group decreased their price objective on shares of Baxter International from $25.00 to $21.00 and set a “hold” rating for the company in a research note on Thursday, October 30th. Wall Street Zen lowered Baxter International from a “buy” rating to a “hold” rating in a report on Saturday, February 7th. Finally, JPMorgan Chase & Co. lowered their price target on Baxter International from $25.00 to $19.00 in a report on Friday, October 31st. Two investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $21.40.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Dodge & Cox lifted its stake in shares of Baxter International by 10.1% in the 3rd quarter. Dodge & Cox now owns 57,396,370 shares of the medical instruments supplier’s stock valued at $1,306,915,000 after purchasing an additional 5,274,750 shares during the last quarter. Geode Capital Management LLC raised its holdings in Baxter International by 7.8% during the fourth quarter. Geode Capital Management LLC now owns 13,510,205 shares of the medical instruments supplier’s stock valued at $257,174,000 after buying an additional 972,891 shares in the last quarter. Greenhaven Associates Inc. lifted its position in shares of Baxter International by 70.0% in the fourth quarter. Greenhaven Associates Inc. now owns 10,693,223 shares of the medical instruments supplier’s stock worth $204,347,000 after buying an additional 4,404,874 shares during the last quarter. Ameriprise Financial Inc. lifted its position in shares of Baxter International by 1.3% in the second quarter. Ameriprise Financial Inc. now owns 7,638,629 shares of the medical instruments supplier’s stock worth $231,304,000 after buying an additional 97,687 shares during the last quarter. Finally, Thompson Siegel & Walmsley LLC boosted its stake in shares of Baxter International by 12.0% during the 4th quarter. Thompson Siegel & Walmsley LLC now owns 3,328,202 shares of the medical instruments supplier’s stock worth $63,602,000 after acquiring an additional 356,612 shares in the last quarter. Institutional investors and hedge funds own 90.19% of the company’s stock.

Baxter International Stock Performance

The stock has a fifty day moving average price of $19.77 and a 200 day moving average price of $21.32. The company has a current ratio of 1.84, a quick ratio of 1.18 and a debt-to-equity ratio of 1.21. The firm has a market cap of $9.62 billion, a price-to-earnings ratio of -28.34, a price-to-earnings-growth ratio of 1.29 and a beta of 0.59.

Baxter International Company Profile

Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company’s primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter’s offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide.

In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters.