Baxter International raised its 2026 sales and adjusted earnings outlook after second-quarter results exceeded expectations. The company now expects reported sales growth of 3% to 4%, up from its prior forecast of flat to 1% growth, and organic sales growth of 2% to 3%, compared with earlier expectations of approximately flat growth. Adjusted earnings guidance increased to $1.95-$2.15 per share from $1.85-$2.05. Second-quarter revenues were $2.96 billion, up 5% on both reported and organic bases, with adjusted earnings of 56 cents per share, ahead of expectations despite a 5% decline from the year-ago period. However, adjusted gross margin fell 210 basis points to 38.6%, and adjusted operating margin declined 90 basis points to 14.2%, reflecting higher-cost inventory, manufacturing costs, and tariffs. The Novum IQ large-volume pump hold remains an execution risk, as lower Infusion Systems sales reflected the ongoing shipment and installation hold, customer returns, and transitions to Spectrum. Baxter still expects full-year adjusted operating margin of 13% to 14%, leaving margin recovery dependent on stronger volumes, cost actions, and improved inventory flow-through.
Baxter International IncRaises 2026 sales and adjusted EPS guidance after Q2 beat.
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