Baxter International Inc. (BAX) is a global healthcare company headquartered in Deerfield, Illinois, that develops and manufactures medical devices, connected care solutions, and injectable medicines. With a market capitalization of $12.5 billion, its products serve hospitals, clinics, and home care settings, helping improve patient outcomes through innovations in critical care, medication delivery, renal care, and healthcare technology.
Shares of this healthcare company have substantially outperformed the broader market over the past year. BAX has gained 40% during this period, while the broader S&P 500 Index ($SPX) has rallied nearly 10.5%. Likewise, the stock is up 33.4% year-to-date, outperforming the index's 10.6% gain over the same period.
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Narrowing the comparison, BAX has also outperformed the iShares U.S. Medical Devices ETF (IHI), which has declined 7.1% over the past year. The stock has maintained its lead year-to-date, while IHI has fallen 9.2%.
www.barchart.com On Oct. 29, Baxter International reported its third-quarter 2026 results, with shares plunging 7.7% that day despite beating analyst estimates for both revenue and adjusted EPS. Sales increased 5% year over year to $2.98 billion on both reported and organic bases, reflecting growth across all segments and divisions. Medical Products & Therapies revenue rose 6% to approximately $2.1 billion, driven by growth in Infusion Systems, Drug Compounding, IV Solutions, and Advanced Surgery. Healthcare Systems & Technologies revenue increased 4% to $806 million, supported by demand for Care & Connectivity Solutions and Front-Line Care. However, adjusted diluted EPS declined 16% to $0.58, primarily due to a higher effective tax rate.
Alongside its results, Baxter raised its full-year 2026 reported sales growth guidance to 4% to 5%, up from 3% to 4%. The company also raised the lower end of its adjusted diluted EPS guidance to $2.05 from $1.95, while maintaining the upper end at $2.15. Additionally, Baxter completed a $600 million cash tender offer during the quarter, retiring $864 million in debt as part of its efforts to strengthen its balance sheet.
For the current fiscal year, ending in December 2026, analysts expect BAX’s diluted EPS to decrease 7.5% to $2.10. The company has beaten Wall Street’s consensus EPS estimates in three of the past four quarters, while missing expectations once.
Among the 16 analysts covering BAX stock, the consensus rating is “Hold.” That’s based on one “Strong Buy” rating, 14 “Hold” ratings, and one “Strong Sell” rating.
www.barchart.com The consensus has been consistent over the past months.
On Oct. 5, 2026, Citi analyst Joanne Wuensch lowered the price target on Baxter International to $27 from $28 and maintained a “Neutral” rating.
The mean analyst price target of $25.77 implies a modest 1.1% premium to BAX's current share price, while the Street-high target of $32 suggests a potential premium of 25.5%.
On the date of publication, Abhishek Bhuyan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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