By Kamal Choudhury
Feb 12 (Reuters) – Baxter forecast annual profit well below Wall Street expectations on Thursday, bracing for a year marked by uncertainty around its infusion pump business and weaker IV‑solutions demand, sending shares down 13% in morning trading.
The medical products maker expects 2026 adjusted profit between $1.85 and $2.05 per share, significantly below analysts’ average expectation of $2.25 per share, according to data compiled by LSEG.
“We need to get better. And we are not satisfied with our current performance,” CEO Andrew Hider said on the earnings call.
Baxter warned that the first quarter would be particularly challenging, with performance expected to improve through the year as recent cost-cutting actions take effect.
The company also faces uncertainty around its Novum infusion pump, with shipment holds expected to remain in place throughout 2026 as customers await clarity on additional corrections.
The U.S. health regulator last year issued a Class I recall, the most serious type, on Baxter’s Novum infusion pumps after the company reported 79 injuries and two deaths linked to the issue.
Demand was below historical levels in the company’s IV solutions segment following clinical practice changes, after Hurricane Helene disrupted Baxter’s North Carolina facility in 2024.
“We believe that the market is at a new baseline,” CFO Joel Grade said.
J.P.Morgan analyst Robbie Marcus said the combination of “disappointing EPS performance in the quarter and the softer guide is likely to send shares down today.”
Baxter earned adjusted profit of 44 cents per share in the fourth quarter, below estimates of 54 cents, though quarterly revenue of $2.97 billion beat expectations of $2.82 billion.
It forecast flat-to-1% sales growth for 2026, compared with about growth of 5.6% in 2025. Analysts were expecting 2026 sales to be $11.31 billion.
The company also announced board changes, with two directors resigning and finance veteran Michael McDonnell joining, effective February 13.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Shreya Biswas)
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