BAX US S&P 500Russell 1000 Earnings call
Baxter International (BAX) · Q2 2026 results and valuation
Share price: $26.34 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter
Net income turned to a profit from a loss last quarter, guidance raised. Tone in line with last period.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned profit
Net income vs Q1 2026
Guidance raised
Net income 126.0M vs -15.0M
Revenue +9.6%
2 · How management spoke
Unchanged
Language tone vs last period
Language: typical — about as upbeat as in Q1 2026.
3 · What stood out
Key theme
Care & Connectivity Solutions sales were $502 million, up 5%, fueled by global patient support system volumes and U.S. backlog execution.
Valuation
Is Baxter International undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$26.34
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+22.6% for 10 yrs
Fair value / share
$-2.15
Buy below
$-1.61
Price vs fair value
n/a
Price vs buy-below price
n/a
Read between the lines
-
Guidance ↑
Full-year organic sales growth outlook raised on strong Q2 results and confidence in the second half.
Source quote
“Looking ahead, we are raising our outlook for full year organic sales growth to reflect the strong Q2 performance and our confidence in the back half of the year.”
-
Guidance ↑
Adjusted EPS outlook was raised to reflect a tariff refund.
Source quote
“We are also increasing our outlook for adjusted EPS to reflect the tariff refund.”
-
Figure
BAX's Q2 global sales reached $3 billion, up 5% organically, showing steady demand across its business despite economic headwinds.
Source quote
“Second quarter global sales totaled approximately $3 billion, representing an increase of 5% on both a reported and organic basis.”
-
Last period
Global sales from continuing operations rose 3% year over year to $2.7 billion.
Source quote
“First quarter global sales from continuing operations totaled $2.7 billion, representing an increase of 3% year-over-year on a reported basis... With that, let me provide a high-level overview of our performance within the quarter. Adjusted earnings from continuing operations for the quarter were $0.36 per diluted share versus $0.55 in the prior year period.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Typical — about as upbeat as in Q1 2026.
Sentences that drove the tone
“Additionally, adoption continues to build for the Connex 360 connected patient monitoring platform with strong order growth throughout Q2 and a growing sales funnel.”
“Baxter sits on a foundation of good businesses with leading positions and time-trusted brands with clear opportunities for more rigorous execution to unlock our full potential and deliver consistent and...”
“Continuous improvement activity is supporting working capital, commercial, manufacturing and R&D priorities with early examples of improved efficiency and simplification across the business.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.96B | 2.70B | +9.6% | 2.81B | +5.3% |
| Gross profit | 1.03B | 891.0M | +15.8% | 991.0M | +4.1% |
| Operating income | 217.0M | 66.0M | +228.8% | 191.0M | +13.6% |
| Net income | 126.0M | -15.0M | Turned profit | 91.0M | +38.5% |
| EPS | 0.24 | -0.03 | Turned profit | 0.18 | +33.3% |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- Baxter International is laser-focused on executing in the second half of the year as well as driving improved performance and long-term...
- Certain sales previously reported within Other, primarily related to products and services provided through manufacturing facilities…
- Commentary regarding sales growth will be on an organic basis.
- These 2 headwinds were partially offset by a $0.11 per diluted share benefit related to an IEEPA tariff refund.
- Baxter International also saw continued strong performance in its Advanced Surgery business.
Faded since Q1 2026
- Dropped Baxter International uses something called daily visual management around managing and ensuring it has its supply base.
- Fading I have full confidence that Anita's stewardship, supported by the diligence of Baxter International's finance team will help ensure…
- Fading Performance in the quarter reflects lower infusion pump sales due to the previously discussed ship and installation hold of Novum...
- Fading And as expected, Baxter International saw higher costs related to tariffs, which were not present in the prior year period...
Latest announcements
Official filings, newest first.
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Other events · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Director or officer change; Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations; Other events · SEC 8-K