Baxter International Inc. (NYSE:BAX) stock is trading higher on Thursday after the company reported better-than-expected second-quarter financial results and raised its fiscal 2026 guidance.

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Baxter Stock Gains After Q2 Earnings Beat, Raised 2026 Guidance

The hospital product maker reported adjusted earnings of 54 cents, beating the consensus of 37 cents.

The results reflect the roll-through of higher-cost inventory produced at the end of 2025, as well as an unfavorable comparison to the prior year related to the reclassification of certain functional costs from SG&A to cost of sales.

These impacts were partially offset by a 11 cents per diluted share benefit related to an IEEPA tariff refund.

Sales increased 5% to $2.96 billion, beating the consensus of $2.795 billion, led by advanced surgery and drug compounding.

In an earnings conference call, Andrew Hider, president and CEO, said, “I am encouraged by our second quarter financial results that came in ahead of expectations, demonstrating continued steady progress on our strategic priorities and improved execution.”

“We are still early in our turnaround and have more work ahead of us. We are laser-focused on executing in the second half of the year as well as driving improved performance and long-term shareholder value creation.”

Medical Products Business Drives Revenue Growth

Medical Products & Therapies sales reached approximately $2.1 billion, increasing 7% on a reported basis and 5% on an organic basis.

The growth reflects strength within the Infusion Therapies & Platforms division, driven primarily by Drug Compounding and IV Solutions, partially offset by reduced sales within Infusion Systems, due to the previously disclosed shipment and installation hold of the Novum IQ LVP and Injectables.

Continued strong global demand for Advanced Surgery products also contributed to performance.

Healthcare Systems & Technologies revenues were approximately $801 million, increasing 4% on both a reported and organic basis, led by strong demand for Care & Connectivity Solutions products, driven by growth in Patient Support Systems.

Results also reflected growth in Front Line Care.

Baxter Raises Full-Year Sales and Earnings Outlook

Hider further commented, “We are raising our outlook for full-year organic sales growth to reflect the strong Q2 performance and our confidence in the back half of the year.”

Baxter raised its fiscal 2026 adjusted earnings guidance from $1.85-$2.05 per share to $1.95-$2.15 per share compared to the consensus of $1.91.

The company also raised its 2026 sales guidance from $11.244 billion-$11.356 billion to $11.581 billion-$11.694 billion, compared to the consensus of $11.357 billion.

The company expects margins to expand in the second half of the year, driven by higher volumes consistent with typical seasonality, benefits from cost-structure actions, and the roll-through of higher-cost inventory shifting.

BAX Stock Price Activity: Baxter International shares were up 10.98% at $27.49 at the time of publication on Thursday, according to Benzinga Pro data.

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