Deerfield, Illinois — Baxter International reported second-quarter sales of $2.96 billion, up 5% from a year earlier on both a reported and organic basis, as all of its business segments and divisions recorded growth.
The medical technology company also raised its full-year 2026 financial outlook following better-than-expected revenue and earnings.
“Our second-quarter results exceeded expectations on both the top and bottom lines, driven by both operating performance and an additional benefit from a tariff refund that was not previously contemplated in our guidance,” Baxter President and Chief Executive Officer Andrew Hider said.
Hider said the company remains focused on stabilizing its operations, strengthening its balance sheet and improving performance through the Baxter Growth and Performance System.
Baxter reported second-quarter net income of $135 million, or 26 cents per diluted share, under generally accepted accounting principles.
Adjusted earnings were 56 cents per diluted share, down 5% from the same period last year.
The adjusted results included an 11-cent-per-share benefit from a refund of tariffs imposed under the International Emergency Economic Powers Act. Earnings were partly pressured by higher-cost inventory produced in late 2025 and the reclassification of certain expenses from selling, general and administrative costs to cost of sales.
U.S. sales totaled approximately $1.6 billion, increasing 4% on both a reported and organic basis.
International sales rose 7% on a reported basis and 5% organically to about $1.4 billion.
Free cash flow totaled $181 million during the quarter and $257 million during the first half of 2026.
Baxter’s Medical Products & Therapies segment generated sales of approximately $2.1 billion, up 7% on a reported basis and 5% organically.
Growth was led by the Infusion Therapies & Platforms division, particularly drug compounding and intravenous solutions. Strong global demand for advanced surgery products also supported the segment’s performance.
The gains were partially offset by lower sales of infusion systems following a previously announced shipment and installation hold involving the Novum IQ large-volume infusion pump, as well as reduced injectable product sales.
Healthcare Systems & Technologies sales increased 4% on both a reported and organic basis to approximately $801 million.
The segment benefited from strong demand for Care & Connectivity Solutions products, led by Patient Support Systems, as well as growth in the Front Line Care business.
Beginning in the second quarter, Baxter revised its segment reporting structure to align with changes to its operating model. Previously reported results were recast to reflect the new structure.
The company now expects full-year reported sales from continuing operations to grow between 3% and 4%, compared with its previous forecast of flat growth to 1%.
Organic sales are expected to increase between 2% and 3%, up from the company’s earlier forecast of approximately flat growth.
Baxter also raised its adjusted earnings forecast to between $1.95 and $2.15 per diluted share, compared with its previous range of $1.85 to $2.05.
The financial results exclude Baxter’s former Kidney Care business, which is classified as discontinued operations.
