Feb 12 - Baxter said on Thursday that it expects adjusted earnings for 2026 to be in the range of $1.85 to $2.05 per share, a projection that sits noticeably below the average analyst forecast of $2.25 per share compiled by LSEG. The company attributed the shortfall to the continued impact of hurricane-related disruptions at a critical manufacturing unit.
The announcement prompted a sharp market reaction, with Baxter shares tumbling approximately 14 percent in premarket trading following the release of the outlook and quarterly results.
For the fourth quarter, Baxter reported adjusted earnings from continuing operations of $0.44 per share, underperforming the consensus estimate of $0.54 per share. At the same time, quarterly revenue was $2.97 billion, which exceeded analyst expectations of $2.82 billion.
In a statement accompanying the results, the company noted that it achieved sales growth across all of its business segments but that fourth-quarter performance did not meet internal expectations. The company singled out lingering operational impacts tied to a hurricane that disrupted a key manufacturing location as a driver of the weaker-than-anticipated profit trajectory.
The interplay of a revenue beat and an earnings miss highlights the uneven nature of the quarter: top-line demand held up sufficiently to outpace revenue forecasts, while profit margins or operational constraints linked to the manufacturing disruption reduced adjusted earnings from continuing operations versus analyst models.
Separately, the company and market commentary referenced tools that evaluate the stock. One such tool, ProPicks AI, reviews thousands of companies monthly across more than 100 financial metrics to generate stock ideas and rank opportunities based on fundamentals, momentum, and valuation. The tool has noted notable past winners such as Super Micro Computer, which returned +185 percent, and AppLovin, which returned +157 percent. ProPicks AI indicated it assesses whether Baxter is included in its strategies or if alternative opportunities in the sector may offer a better risk-reward profile.
Investors and market participants will be watching how long the hurricane-related effects persist at the manufacturing unit and whether the company can convert sales growth into improved adjusted earnings in the periods ahead.
Contextual recap
- Baxter projects 2026 adjusted EPS of $1.85 to $2.05, below the analysts' average of $2.25.
- Fourth-quarter adjusted EPS was $0.44, shy of the $0.54 consensus; quarterly revenue was $2.97 billion, above the $2.82 billion estimate.
- Management pointed to persistent hurricane-related disruption at a key manufacturing unit as affecting profit outlook.