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Will Baxter's Q3 Earnings Show Progress Despite Cost Pressures?
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Key Takeaways
Baxter's Q3 revenues are projected to rise 2.4% to $2.90B, while EPS is expected to drop 26.1% to 51 cents.
Demand for Advanced Surgery products, IV solutions and Patient Support Systems may boost Baxter's growth.
BAX faces infusion pump issues, high manufacturing costs and $40M in second-half tariff-related expenses.
Baxter International Inc. (BAX - Free Report) is scheduled to release third-quarter 2026 results on Oct. 29, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 55.6%. BAX’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 17.4%.
BAX’s Q3 Estimates
The consensus estimate for revenues is pegged at $2.9 billion, indicating growth of 2.4% from the prior-year quarter’s reported figure. The consensus mark for earnings is pinned at 51 cents per share, implying a 26.1% year-over-year decline.
Our model estimates total revenues from continuing operations to grow 2.7% at constant currency (cc) to $2.9 billion. Adjusted earnings per share are expected to decline 25.6% to 51 cents.
Important Factors to Note Ahead of BAX’s Q3 Results
Baxter is expected to report higher revenues but lower earnings year over year for the third quarter of 2026. Although the company’s operating performance has improved, profitability is likely to remain constrained by elevated manufacturing costs, tariff-related expenses and ongoing challenges in its infusion pump business. Management raised its full-year outlook following second-quarter results, reflecting stronger operating momentum and a favorable tariff refund, but execution-related headwinds remain important to monitor.
Within the Medical Products & Therapies (MPT) segment, performance is likely to benefit from continued strong demand for Advanced Surgery products, including hemostats and sealants, as well as growth in drug compounding and IV solutions. However, Infusion Systems is expected to remain under pressure from the ongoing shipment and installation hold on the Novum IQ large-volume infusion pump. Continued customer transitions to Spectrum IQ pumps and elevated manufacturing costs may also weigh on profitability. Easier year-over-year comparisons in infusion systems and sustained demand across key product categories could support improvement. Our model estimates this segment’s revenues to grow 2.8% at cc to $2.03 billion.
Healthcare Systems & Technologies (HST) is likely to benefit from continued demand for Patient Support Systems and growth in Front Line Care. Connex 360’s market traction and anticipated contributions from both Care & Connectivity Solutions and Front Line Care should support growth, although installation timing and execution challenges remain important factors to watch. Management expects low-single-digit organic sales growth for HST for the full year 2026. The pace of product installations and the recovery in hospital capital spending will remain important factors. Our model estimates this segment’s revenues to grow 2.9% at cc to $795.5 million.
Baxter is expected to face higher-cost inventory and tariff-related expenses during the quarter. Management anticipates approximately $40 million in net tariff-related costs during the second half of 2026, despite mitigating actions. Improved operating performance and cost-reduction initiatives could support earnings recovery. Investors will watch on execution, manufacturing efficiency and the company’s full-year adjusted EPS outlook of $1.95-$2.15.
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. 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 -0.95% 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 #3.
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.
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
IDEXX Laboratories (IDXX - Free Report) currently has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.1% from the year-ago quarter’s figure.
Becton, Dickinson and Company (BDX - Free Report) or BD currently has an Earnings ESP of +0.21% and a Zacks Rank #2. The company is due to release fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.9%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.
View the Zacks #1 Rank List
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Will Baxter's Q3 Earnings Show Progress Despite Cost Pressures?
Key Takeaways
Baxter International Inc. (BAX - Free Report) is scheduled to release third-quarter 2026 results on Oct. 29, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 55.6%. BAX’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 17.4%.
BAX’s Q3 Estimates
The consensus estimate for revenues is pegged at $2.9 billion, indicating growth of 2.4% from the prior-year quarter’s reported figure. The consensus mark for earnings is pinned at 51 cents per share, implying a 26.1% year-over-year decline.
Our model estimates total revenues from continuing operations to grow 2.7% at constant currency (cc) to $2.9 billion. Adjusted earnings per share are expected to decline 25.6% to 51 cents.
Baxter International Inc. Price and EPS Surprise
Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote
Important Factors to Note Ahead of BAX’s Q3 Results
Baxter is expected to report higher revenues but lower earnings year over year for the third quarter of 2026. Although the company’s operating performance has improved, profitability is likely to remain constrained by elevated manufacturing costs, tariff-related expenses and ongoing challenges in its infusion pump business. Management raised its full-year outlook following second-quarter results, reflecting stronger operating momentum and a favorable tariff refund, but execution-related headwinds remain important to monitor.
Within the Medical Products & Therapies (MPT) segment, performance is likely to benefit from continued strong demand for Advanced Surgery products, including hemostats and sealants, as well as growth in drug compounding and IV solutions. However, Infusion Systems is expected to remain under pressure from the ongoing shipment and installation hold on the Novum IQ large-volume infusion pump. Continued customer transitions to Spectrum IQ pumps and elevated manufacturing costs may also weigh on profitability. Easier year-over-year comparisons in infusion systems and sustained demand across key product categories could support improvement. Our model estimates this segment’s revenues to grow 2.8% at cc to $2.03 billion.
Healthcare Systems & Technologies (HST) is likely to benefit from continued demand for Patient Support Systems and growth in Front Line Care. Connex 360’s market traction and anticipated contributions from both Care & Connectivity Solutions and Front Line Care should support growth, although installation timing and execution challenges remain important factors to watch. Management expects low-single-digit organic sales growth for HST for the full year 2026. The pace of product installations and the recovery in hospital capital spending will remain important factors. Our model estimates this segment’s revenues to grow 2.9% at cc to $795.5 million.
Baxter is expected to face higher-cost inventory and tariff-related expenses during the quarter. Management anticipates approximately $40 million in net tariff-related costs during the second half of 2026, despite mitigating actions. Improved operating performance and cost-reduction initiatives could support earnings recovery. Investors will watch on execution, manufacturing efficiency and the company’s full-year adjusted EPS outlook of $1.95-$2.15.
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. 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 -0.95% 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 #3.
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.
Phibro Animal Health (PAHC - Free Report) has an Earnings ESP of +2.10% and sports a Zacks Rank #1 at present. The company is expected to release first-quarter fiscal 2027 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
IDEXX Laboratories (IDXX - Free Report) currently has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies an increase of 9.1% from the year-ago quarter’s figure.
Becton, Dickinson and Company (BDX - Free Report) or BD currently has an Earnings ESP of +0.21% and a Zacks Rank #2. The company is due to release fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.9%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.