We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Baxter Q1 Preview: Will Operational Headwinds Weigh on Results Again?
Read MoreHide Full Article
Key Takeaways
Baxter expects Q1 revenues near $2.60B and EPS of 31 cents, reflecting a sharp fall YoY.
BAX faces pressure from weak infusion system demand, product disruptions and hospital volume softness.
Advanced Surgery and HST offer some stability, but margin and growth challenges persist.
Baxter International Inc. (BAX - Free Report) is scheduled to release first-quarter 2026 results on April 30, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.9%. BAX’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 2.73%.
BAX’s Q1 Estimates
The consensus estimate for revenues is pegged at $2.60 billion, indicating a decline of 0.8% from the prior-year quarter’s reported figure. The consensus mark for earnings is pinned at 31 cents per share, implying a 43.6% year-over-year decline.
Our model estimates total revenues from continuing operations to decline 1.5% at constant currency (cc) to $2.60 billion. Adjusted earnings per share are expected to decline 44.2% to 31 cents.
Important Factors to Note Ahead of BAX’s Q1 Results
Baxter’s first-quarter 2026 results are expected to reflect a continuation of near-term operational pressures, with management already signaling that the quarter will likely be the most challenging of the year. While the company remains in the early stages of a broader turnaround, execution headwinds, unfavorable comparisons and lingering product-related disruptions are likely to weigh on both revenue growth and profitability.
Total revenues are likely to have remained under pressure, indicating a modest year-over-year decline. This expected softness largely reflects continued challenges within hospital-facing product categories, particularly in infusion systems, alongside a normalization in demand trends that had previously benefited from temporary factors. Lower volumes, coupled with limited operating leverage, are likely to constrain overall top-line performance in the quarter.
Within the Medical Products & Therapies (“MPT”) segment, Infusion Therapies & Technologies (“ITT”) is expected to have been a key drag. ITT is likely to have faced a tough comparison in the first quarter due to the one-time distributor build in the prior year, along with near-term margin pressure from higher-cost inventory. However, performance is expected to improve later in the year, supported by cost optimization actions.
The ongoing shipment and installation hold on the Novum IQ large-volume pump should have disrupted sales, with customers adopting a wait-and-see approach amid uncertainty around resolution timelines. IV fluid conservation practices across U.S. hospitals are also expected to have weighed on IV solutions’ demand, reinforcing volume headwinds.
Advanced Surgery, however, is likely to have remained a relatively bright spot, supported by sustained demand for hemostats and sealants, steady procedural volumes and solid commercial execution. While growth in this business may not fully offset ITT-related weakness, it should provide some support to overall segment performance.
Healthcare Systems & Technologies (“HST”) is expected to have delivered relatively stable performance, backed by strength in Care & Connectivity Solutions and resilient hospital capital spending trends. Rising momentum in patient support systems and care communications, along with contributions from recent product launches, may help sustain modest growth, although margin expansion is likely to have been constrained by unfavorable mix, tariff-related costs and elevated corporate allocations.
Within Pharmaceuticals, sales of Injectables & Anesthesia are likely to be impacted by softer demand, shifts toward IV push administration and supply-related challenges, resulting in an unfavorable product mix. While Drug Compounding may have continued to show growth, the sustainability of prior-quarter strength remains uncertain, particularly given normalization trends.
Adjusted EPS is likely to have remained under pressure in the first quarter, impacted by lower volumes, absorption headwinds and higher interest expense, even as underlying operating performance remains subdued.
Our proven model does not conclusively predict an earnings beat for Baxter this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here, as you will see below.
BAX’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.60% for Baxter. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of BAX: Baxter currently has a Zacks Rank #5 (Strong Sell).
Stocks Worth a Look
Here are some medical product stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
FMS’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.67%. The Zacks Consensus Estimate for FMS’ first-quarter EPS indicates an improvement of 34.1% from the year-ago reported figure.
Intuitive Surgical (ISRG - Free Report) has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The company released its first-quarter 2026 results on April 21.
ISRG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.82%. The Zacks Consensus Estimate for ISRG’s second-quarter EPS implies an improvement of 13.2% from the year-ago reported figure.
Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +150.94% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2026 results on May 11.
HIMS’ earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 69.45%. The Zacks Consensus Estimate for HIMS’ first-quarter EPS calls for a decline of 70% from the year-ago reported figure.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Baxter Q1 Preview: Will Operational Headwinds Weigh on Results Again?
Key Takeaways
Baxter International Inc. (BAX - Free Report) is scheduled to release first-quarter 2026 results on April 30, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 16.9%. BAX’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 2.73%.
BAX’s Q1 Estimates
The consensus estimate for revenues is pegged at $2.60 billion, indicating a decline of 0.8% from the prior-year quarter’s reported figure. The consensus mark for earnings is pinned at 31 cents per share, implying a 43.6% year-over-year decline.
Our model estimates total revenues from continuing operations to decline 1.5% at constant currency (cc) to $2.60 billion. Adjusted earnings per share are expected to decline 44.2% to 31 cents.
Important Factors to Note Ahead of BAX’s Q1 Results
Baxter’s first-quarter 2026 results are expected to reflect a continuation of near-term operational pressures, with management already signaling that the quarter will likely be the most challenging of the year. While the company remains in the early stages of a broader turnaround, execution headwinds, unfavorable comparisons and lingering product-related disruptions are likely to weigh on both revenue growth and profitability.
Total revenues are likely to have remained under pressure, indicating a modest year-over-year decline. This expected softness largely reflects continued challenges within hospital-facing product categories, particularly in infusion systems, alongside a normalization in demand trends that had previously benefited from temporary factors. Lower volumes, coupled with limited operating leverage, are likely to constrain overall top-line performance in the quarter.
Within the Medical Products & Therapies (“MPT”) segment, Infusion Therapies & Technologies (“ITT”) is expected to have been a key drag. ITT is likely to have faced a tough comparison in the first quarter due to the one-time distributor build in the prior year, along with near-term margin pressure from higher-cost inventory. However, performance is expected to improve later in the year, supported by cost optimization actions.
The ongoing shipment and installation hold on the Novum IQ large-volume pump should have disrupted sales, with customers adopting a wait-and-see approach amid uncertainty around resolution timelines. IV fluid conservation practices across U.S. hospitals are also expected to have weighed on IV solutions’ demand, reinforcing volume headwinds.
Advanced Surgery, however, is likely to have remained a relatively bright spot, supported by sustained demand for hemostats and sealants, steady procedural volumes and solid commercial execution. While growth in this business may not fully offset ITT-related weakness, it should provide some support to overall segment performance.
Healthcare Systems & Technologies (“HST”) is expected to have delivered relatively stable performance, backed by strength in Care & Connectivity Solutions and resilient hospital capital spending trends. Rising momentum in patient support systems and care communications, along with contributions from recent product launches, may help sustain modest growth, although margin expansion is likely to have been constrained by unfavorable mix, tariff-related costs and elevated corporate allocations.
Within Pharmaceuticals, sales of Injectables & Anesthesia are likely to be impacted by softer demand, shifts toward IV push administration and supply-related challenges, resulting in an unfavorable product mix. While Drug Compounding may have continued to show growth, the sustainability of prior-quarter strength remains uncertain, particularly given normalization trends.
Adjusted EPS is likely to have remained under pressure in the first quarter, impacted by lower volumes, absorption headwinds and higher interest expense, even as underlying operating performance remains subdued.
Baxter International Inc. Price and EPS Surprise
Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote
What the Zacks Model Unveils for BAX Stock
Our proven model does not conclusively predict an earnings beat for Baxter this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here, as you will see below.
BAX’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.60% for Baxter. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of BAX: Baxter currently has a Zacks Rank #5 (Strong Sell).
Stocks Worth a Look
Here are some medical product stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.
Fresenius Medical Care AG & Co. (FMS - Free Report) has an Earnings ESP of +3.39% and a Zacks Rank #3 at present. The company is set to release first-quarter 2026 results on May 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
FMS’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.67%. The Zacks Consensus Estimate for FMS’ first-quarter EPS indicates an improvement of 34.1% from the year-ago reported figure.
Intuitive Surgical (ISRG - Free Report) has an Earnings ESP of +0.06% and a Zacks Rank of 2 at present. The company released its first-quarter 2026 results on April 21.
ISRG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.82%. The Zacks Consensus Estimate for ISRG’s second-quarter EPS implies an improvement of 13.2% from the year-ago reported figure.
Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +150.94% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2026 results on May 11.
HIMS’ earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 69.45%. The Zacks Consensus Estimate for HIMS’ first-quarter EPS calls for a decline of 70% from the year-ago reported figure.