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

Shares of Baxter International Inc. (NYSE:BAX) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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 traded.

The medical instruments supplier reported $0.44 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.09). The company had revenue of $2.97 billion during the quarter, compared to analysts’ expectations of $2.82 billion. Baxter International had a positive return on equity of 16.31% and a negative net margin of 8.51%.The business’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.58 EPS. Baxter International has set its FY 2026 guidance at 1.850-2.050 EPS.

Baxter International Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, February 27th will be issued a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.2%. The ex-dividend date of this dividend is Friday, February 27th. Baxter International’s dividend payout ratio is -2.16%.

Key Stories Impacting Baxter International

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

• Positive Sentiment: Barclays kept an “overweight” rating and set a $25 price target (still a meaningful upside vs current levels), which can attract buyers and help stabilize the stock. Barclays adjusts Baxter International price target to $25 from $30, maintains overweight rating
• Positive Sentiment: Baxter reported revenue of $2.97B (beat estimates) and sales growth across segments, which some investors see as evidence demand is intact despite margin stress — a reason for selective buying into the dip. Baxter Reports Fourth-Quarter 2025 Results
• Neutral Sentiment: Elevated short interest has been reported, which can amplify moves (short covering can fuel rallies but also increases volatility). That dynamic may explain some of today’s upside but is not a fundamental improvement. Looking Into Baxter International Inc’s Recent Short Interest
• Neutral Sentiment: Baxter declared a nominal quarterly dividend ($0.01 per share); it’s unlikely to move the stock materially but provides a small income signal to some investors.
• Negative Sentiment: Q4 EPS missed expectations ($0.44 vs. $0.53 consensus) and margins contracted — the earnings miss triggered the initial sell‑off and remains a negative catalyst. Baxter Posts Wider 4Q Loss, Says Results Missed Expectations
• Negative Sentiment: FY‑2026 EPS guidance (1.85–2.05) came in below Wall Street expectations (consensus ~2.28), largely blamed on manufacturing disruptions from Hurricane Helene — a clear reason for ongoing investor caution. Baxter forecast 2026 profit below estimates The Specter of Hurricane Helene Still Haunts Baxter’s Earnings
• Negative Sentiment: Analysts trimmed price targets and some ratings were reduced (Jefferies lowered its PT to $19 and kept a “hold”), signaling lingering analyst concern and pressure on sentiment. Jefferies adjusts Baxter International PT to $19 from $21, maintains hold rating
• Negative Sentiment: Analysts and commentators highlight margin compression, higher debt levels and the company’s difficult FY26 outlook — factors that could limit recovery until management proves margin improvement. Baxter International: Debt, Margin Pressure, Dreadful FY26 Guidance (Downgrade)

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Barclays decreased their target price on Baxter International from $30.00 to $25.00 and set an “overweight” rating on the stock in a research report on Friday. TD Cowen reaffirmed a “hold” rating on shares of Baxter International in a research note on Thursday, October 30th. Evercore lowered their target price on Baxter International from $24.00 to $23.00 in a research report on Monday, January 5th. JPMorgan Chase & Co. decreased their price target on shares of Baxter International from $25.00 to $19.00 in a research note on Friday, October 31st. Finally, Citigroup dropped their price objective on shares of Baxter International from $26.00 to $21.00 and set a “neutral” rating for the company in a research note on Friday, October 31st. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $20.70.

Hedge Funds Weigh In On Baxter International

Several hedge funds have recently bought and sold shares of the business. Creative Financial Designs Inc. ADV increased its stake in Baxter International by 169.6% in the second quarter. Creative Financial Designs Inc. ADV now owns 984 shares of the medical instruments supplier’s stock worth $30,000 after purchasing an additional 619 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in Baxter International by 14.4% during the 3rd quarter. EverSource Wealth Advisors LLC now owns 5,448 shares of the medical instruments supplier’s stock valued at $124,000 after buying an additional 686 shares in the last quarter. Covestor Ltd lifted its holdings in Baxter International by 9.5% during the 4th quarter. Covestor Ltd now owns 8,014 shares of the medical instruments supplier’s stock valued at $153,000 after buying an additional 695 shares in the last quarter. Bruce G. Allen Investments LLC boosted its position in Baxter International by 22.8% in the 4th quarter. Bruce G. Allen Investments LLC now owns 4,452 shares of the medical instruments supplier’s stock valued at $85,000 after buying an additional 827 shares during the period. Finally, CoreFirst Bank & Trust bought a new position in Baxter International in the 2nd quarter worth about $27,000. Institutional investors own 90.19% of the company’s stock.

Baxter International Trading Up 5.8%

The stock’s 50-day moving average price is $19.79 and its 200 day moving average price is $21.26. The company has a debt-to-equity ratio of 1.21, a current ratio of 1.84 and a quick ratio of 1.18. The firm has a market capitalization of $10.18 billion, a PE ratio of -10.70, a price-to-earnings-growth ratio of 1.27 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.