Baxter International Inc. (BAX) Earnings Call Transcripts

Baxter International Inc.'s Latest Earnings Call - Q2 FY2026

In the second quarter of 2026, Baxter International Inc. reported global sales of approximately $3 billion, reflecting a 5% increase year-over-year, driven by strong performance across all segments. Adjusted earnings per share (EPS) were $0.56, down from $0.59 in the prior year, impacted by known mechanical headwinds but partially offset by a non-recurring $75 million tariff refund contributing approximately $0.11 per share. Management raised its full-year adjusted EPS guidance from $1.85-$2.05 to $1.95-$2.15, signaling confidence in the second half of the year despite ongoing supply chain challenges.

Reported metrics

Guidance from management

Baxter raised its full-year adjusted EPS guidance to $1.95-$2.15 per diluted share and expects organic sales growth of 2%-3% for 2026, reflecting confidence in the second half despite ongoing challenges.

What management said

Travis, this is Kevin. We did call out drug compounding as a good chunk of the beat in the quarter. And when you think about our raise for the second half of the year, it kind of reflects what we saw in the second quarter. It grew double digits. And you're absolutely right that inherently does have lower margin, and so that does impact our mix.

I do want to add on this a little bit. While, we're certainly pleased with the double-digit growth. Additionally, this business has favorable cash conversion, and there is some improvement on where we're focused on driving margin in a better place. So overall, again, pleased with this. We have some work to do to get this more in line with the overall Baxter performance.

What analysts pressed on

Analysts expressed concerns regarding the sustainability of growth in the second half, particularly in light of the non-recurring tariff refund and ongoing supply chain issues affecting injectable products. There were questions about the potential impact of macroeconomic factors on capital spending in hospitals.

Main topics on the call

• Revenue Growth Acceleration — Baxter achieved organic revenue growth of 5% in Q2 2026, with broad-based performance across its portfolio. CEO Andrew Hider noted, "We saw broad-based operational performance improvement, and all segments and divisions ...
• Tariff Refund Impact — The company benefited from a $75 million tariff refund, which was not included in prior guidance, contributing approximately $0.11 to adjusted EPS. Hider stated, "It's about $0.11. Absent this, we continue to be focused ...
• Guidance Update — Management raised its full-year adjusted EPS guidance to $1.95-$2.15 per share, reflecting the strong Q2 performance and confidence in the second half. The organic sales growth outlook was also increased to 2%-3%.
• Supply Chain Challenges — Ongoing supply chain issues, particularly with contract manufacturers, continue to pose challenges, especially in the injectable products segment. Hider acknowledged, "We are taking very specific actions to improve some ...

Read the full Baxter International Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 87 Baxter International Inc. earnings call transcripts on record, spanning January 13, 2020 to July 30, 2026. Based on this history, Baxter International Inc. reports quarterly. The most recent call on file is dated July 30, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

BAX

Exchange

NYSE

Country

US

Sector

Health Care

Industry

Health Care Equipment and Supplies

Calls on record

87

First call

January 13, 2020

Most recent

July 30, 2026

Reporting cadence

quarterly