New York, Feb 12, 2026, 10:09 ET — Regular session.
- Baxter shares slide in early trade after a cautious 2026 profit outlook and a Q4 earnings miss
- Hurricane Helene-linked disruption at a key IV fluids site remains the big overhang
- Board adds ex-Biogen CFO Michael McDonnell; dividend declared at $0.01 a share
Baxter International Inc shares were down about 13% at $19.31 in early New York trading on Thursday. The stock has traded between $18.59 and $21.59 so far, with roughly 7.4 million shares changing hands.
Baxter said fourth-quarter sales from continuing operations — excluding its Kidney Care business that Carlyle acquired in January 2025 — rose 8% to about $2.97 billion, while adjusted diluted EPS (excluding certain one-time items) was $0.44. On a U.S. GAAP basis, it posted a loss of $2.01 per share after a $485 million goodwill write-down and a $330 million valuation allowance against U.S. deferred tax assets, and it forecast 2026 adjusted EPS of $1.85 to $2.05 on reported sales growth of flat to 1%; the company also flagged a new operating model and product updates and listed investor events on Feb. 26 and March 11. (SEC)
The forecast sits well below the Street’s $2.25-a-share view, according to LSEG data, after the quarter also missed on earnings even as revenue topped estimates. “The combination of the disappointing EPS performance in the quarter and the softer guide is likely to send shares down today,” J.P. Morgan analyst Robbie Marcus said. Baxter pointed to lingering hurricane-related disruption tied to Hurricane Helene at its North Cove, North Carolina facility, which supplies about 60% of U.S. intravenous fluids and peritoneal dialysis solutions. (Reuters)
Why it matters now is simple: North Cove is a choke point. When output there is unstable, hospitals feel it, and so do Baxter’s costs — extra freight, overtime, and a lot of messy mix shifts.
Baxter’s biggest unit, Medical Products & Therapies, leaned on IV solutions for growth, while infusion systems remained constrained by the company’s previously disclosed shipment and installation hold on the Novum IQ large-volume pump. That mix has been a recurring sore spot for the stock.
In a filing, Baxter said it appointed former Biogen CFO Michael R. McDonnell to its board effective Feb. 13, as two directors resign the same day. The board also declared a quarterly cash dividend of $0.01 per share, payable April 1 to shareholders of record Feb. 27. (SEC)
Traders were also watching for any hard timeline on when the company expects the operational drag to ease, and whether “highly conservative” guidance is a placeholder or a ceiling. Management’s pitch is that simplification and decentralization improve execution, but the market is still demanding proof.
But the downside case is not hard to sketch. If plant disruption lingers longer than expected, or if device holds and product-mix pressure persist, 2026 could start with the same margin noise that has tripped the company before.
For now, Baxter has to show that supply and service levels are normalizing and that the earnings bridge into 2026 is real, not just accounting. The next signposts are management’s scheduled appearances at Citi’s medtech access day on Feb. 26 and Barclays’ healthcare conference on March 11.
