Baxter International

BAX

Market cap $10.5B

Baxter International Inc. (BAX) Presents at Citi's 2026 Unplugged MedTech and Life Sciences Access Day Transcript

The S&P 500's annualized total return over the last five years has been roughly 13.5%, but the average stock currently in the index has seen an annualized total return about 2.6 percentage points less at just 10.9%.

Our largest new purchase was Houston-headquartered Prosperity BancShares, the fifth-largest bank in Texas. Another notable purchase was Union Pacific, the largest freight railroad in the US. Besides our sale of Baxter International, we also exited LKQ, a vehicle parts distributor.

Acquired 2,074,016 shares of Baxter International Inc; estimated trade value $39.63 million based on quarterly average prices Quarter-end position value rose by $39.63 million, reflecting both new shareholdings and price movement over the period Transaction resulted in a position representing 2.66% of 13F reportable assets under management (AUM) Position at quarter-end: 2,074,016 shares valued at $39.63 million This new stake represents 2.66% of fund AUM, placing it outside the fund's top five holdings We're bullish on these 10 stocks ›

Baxter International faces a fundamental downturn after weak Q4 results and a dismal FY 2026 guide, prompting a hold rating downgrade. BAX trades at a very cheap valuation, but persistent margin compression, debt risks, and repeated earnings disappointments overshadow near-term recovery prospects. Despite some growth in Advanced Surgery and new connected care offerings, operational efficiency and profitability remain under severe pressure.

Its final quarter of 2025 was mixed, with a notable whiff on earnings. On the plus side, it notched a convincing beat on revenue.

Baxter International Inc. (BAX) Q4 2025 Earnings Call Transcript

Baxter reported a fourth-quarter adjusted EPS of 44 cents, below the management guidance of 52-57 cents and the Wall Street estimate of 54 cents. The decrease was driven primarily by an unfavorable product mix.

Baxter International misses Q4 EPS estimates as margins shrink, even as revenues top forecasts; shares slide 12.5% on weak 2026 guidance.

While the top- and bottom-line numbers for Baxter (BAX) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.