10-Q · April 30, 2026
Baxter's Q1 2026 earnings report shows a positive performance with revenues of $2.701 billion, exceeding estimates of $2.612 billion. Adjusted EPS reached $0.37, surpassing expectations of $0.31, driven by strong…
Earnings analysis · 10-Q
BAX earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Baxter delivered a strong Q3, with revenue of $2.976 billion and reported diluted EPS of $0.57, beating consensus estimates of $2.907 billion and $0.52. Revenue increased 5.2% year over year, while free cash flow rose…
Read full summary
Baxter delivered a strong Q3, with revenue of $2.976 billion and reported diluted EPS of $0.57, beating consensus estimates of $2.907 billion and $0.52. Revenue increased 5.2% year over year, while free cash flow rose to $448 million from $126 million a year earlier. Management raised FY2026 sales-growth and adjusted EPS outlooks, supporting a bullish assessment, although foreign-exchange and Turkey inflation exposures remain relevant risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.57
What stood out
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Revenue exceeded consensus and grew year over year
Q3 revenue was $2.976 billion, up approximately 0.5% from $2.96 billion in Q2 2026 and 5.2% from $2.83 billion in Q3 2025. Revenue exceeded the $2.907 billion consensus estimate by approximately $69 million.
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EPS materially improved and beat estimates
Reported diluted EPS was $0.57, versus $0.24 in Q2 2026 and a $(0.09) loss in Q3 2025. EPS exceeded the $0.52 consensus estimate by $0.05.
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Free cash flow generation strengthened
Free cash flow was $448 million, compared with $169 million in Q2 2026 and $126 million in Q3 2025, increases of $279 million and $322 million, respectively.
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MPT led growth across both segments
Both operating segments increased sales, with Medical Products & Therapies leading growth; overall growth was 5%. Segment-specific revenue amounts were not provided in the supplied filing extract.
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Full-year sales outlook was raised
FY2026 reported sales growth guidance increased to 4%-5% from 3%-4%, while organic sales growth guidance increased to 3%-4% from 2%-3%.
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Adjusted EPS guidance floor increased
Adjusted diluted EPS guidance increased to $2.05-$2.15 from $1.95-$2.15, with the low end raised by $0.10.
What to watch
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Unhedged foreign-exchange exposure
The company does not hedge its entire foreign-exchange exposure. A hypothetical 10% weakening of the U.S. dollar would change the $2 million net pre-tax liability on outstanding FX contracts by $6 million, before considering offsets from underlying hedged transactions.
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Turkey hyperinflation exposure
The Turkish subsidiary is reported under highly inflationary accounting after Turkey's three-year cumulative inflation exceeded 100% in February 2022; it had $34 million of net monetary assets as of September 30, 2026.
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No Q3 repurchases despite authorization
No shares were repurchased in Q3 2026, although approximately $1.30 billion remained available under the authorization as of September 30, 2026. The lack of repurchases may limit near-term capital-return support despite available authorization.
Management's outlook
FY2026 reported sales growth outlook was raised to 4%-5% from 3%-4%, and organic sales growth outlook was raised to 3%-4% from 2%-3%. Adjusted diluted EPS guidance was raised to $2.05-$2.15 from $1.95-$2.15. The filing itself does not provide a separate quarterly numeric outlook; these figures were disclosed with the Q3 results.
Earlier filings 4
10-K · February 12, 2026
Baxter completed strategic portfolio moves (sale of Kidney Care for $3.80 billion, receiving ~ $3.71 billion pre-tax and ~ $3.3 billion net after-tax) and used proceeds to repay debt, repaying $3.81 billion of legacy…
10-Q · November 4, 2025
Baxter reported Q3 2025 net sales of $2,835 million, up from $2,699 million in Q3 2024, but gross margin and EPS deteriorated. Gross margin fell to $950 million (33.5% of sales) from $1,033 million (38.3%), and GAAP…
10-Q · August 6, 2024
Baxter reported quarterly net sales of $3,812 million (up $105 million vs. $3,707 million in Q2 2023) but recorded a net loss of $314 million attributable to stockholders (net loss per diluted share $(0.62)). Gross…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.