New York, Feb 12, 2026, 10:09 ET — The regular session is underway.
- Baxter shares dropped in early trading following a cautious profit forecast for 2026 and a Q4 earnings miss
- The main concern is still the disruption at a crucial IV fluids facility caused by Hurricane Helene
- Board welcomes former Biogen CFO Michael McDonnell; declares dividend of $0.01 per share
Baxter International Inc shares dropped roughly 13% to $19.31 during early trading in New York on Thursday. So far, the stock has fluctuated between $18.59 and $21.59, with about 7.4 million shares traded.
Baxter reported that fourth-quarter sales from continuing operations—excluding its Kidney Care unit sold to Carlyle in January 2025—increased 8% to roughly $2.97 billion. Adjusted diluted EPS, stripping out certain one-time items, came in at $0.44. However, on a U.S. GAAP basis, the company took a loss of $2.01 per share, hit by a $485 million goodwill impairment and a $330 million valuation allowance on U.S. deferred tax assets. For 2026, Baxter expects adjusted EPS between $1.85 and $2.05, with sales growth forecasted to be flat to 1%. The company also highlighted plans for a new operating model, upcoming product updates, and scheduled investor events on Feb. 26 and March 11. 1
The forecast fell short of Wall Street’s $2.25 per share expectation, according to LSEG data, after the quarter missed earnings despite revenue beating estimates. “The combination of the disappointing EPS performance in the quarter and the softer guide is likely to send shares down today,” said J.P. Morgan analyst Robbie Marcus. Baxter cited ongoing disruption from Hurricane Helene at its North Cove, North Carolina plant, which produces about 60% of the U.S. supply of intravenous fluids and peritoneal dialysis solutions. 2
North Cove matters right now because it’s a bottleneck. When production there wobbles, hospitals notice immediately—and so does Baxter, facing higher freight bills, overtime, and a tangle of last-minute shift changes.
Baxter’s largest division, Medical Products & Therapies, drove growth through IV solutions. However, infusion systems took a hit, held back by the ongoing shipment and installation freeze on the Novum IQ large-volume pump the company had already flagged. This combination has consistently weighed on the stock’s performance.
In a recent filing, Baxter announced the addition of former Biogen CFO Michael R. McDonnell to its board, starting Feb. 13, coinciding with the resignation of two directors on that very date. The board also approved a quarterly cash dividend of $0.01 per share, set for payment on April 1 to shareholders recorded by Feb. 27. 3
Traders kept an eye out for a clear timeline on when the operational drag might ease, and whether the “highly conservative” guidance is just a placeholder or the actual limit. Management argues that simplification and decentralization will boost execution, but the market wants to see results first.
The downside is clear enough. If plant disruptions drag on or if device holds and product-mix pressures stick around, 2026 might kick off with the same margin volatility that has tripped up the company in the past.
Baxter still needs to prove that supply and service are stabilizing and that the earnings outlook for 2026 is genuine, not just an accounting trick. Investors will be watching closely during management’s upcoming talks at Citi’s medtech access day on Feb. 26 and Barclays’ healthcare conference on March 11.
