BAX

The market expects Baxter International (BAX) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This drug and medical device maker is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -26.1%. Revenues are expected to be $2.9 billion, up 2.4% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.47% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Baxter, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.95%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Baxter will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Baxter would post earnings of $0.36 per share when it actually produced earnings of $0.56, delivering a surprise of +55.56%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Baxter doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baxter International Inc. (BAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the medical devices & supplies - diversified industry, including Baxter (NYSE:BAX) and its peers. The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies. However, the capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers. The 5 medical devices & supplies - diversified stocks we track reported a satisfactory Q2. As a group, revenues beat analysts' consensus estimates by 2.2% while next quarter's revenue guidance was 2.2% below. While some medical devices & supplies - diversified stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.4% since the latest earnings results. With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide. Baxter reported revenues of $2.96 billion, up 5.3% year on year. This print exceeded analysts' expectations by 6%. Overall, it was an incredible quarter for the company with a beat of analysts' EPS estimates and a solid beat of analysts' full-year EPS guidance estimates. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $24.84. Is now the time to buy Baxter? Access our full analysis of the earnings results here, it's free. Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ:NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health. Neogen reported revenues of $222.8 million, up 6.5% year on year, outperforming analysts' expectations by 7%. The business had a very strong quarter with a beat of analysts' EPS estimates and full-year revenue guidance meeting analysts' expectations. Neogen scored the biggest analyst estimate beat and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.6% since reporting. It currently trades at $12.16. Is now the time to buy Neogen? Access our full analysis of the earnings results here, it's free. With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ:COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services. CooperCompanies reported revenues of $1.07 billion, flat year on year, falling short of analysts' expectations by 2.9%. It was a softer quarter as it posted a significant miss of analysts' organic revenue estimates and a miss of analysts' full-year EPS guidance estimates. CooperCompanies delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. As expected, the stock is down 13.5% since the results and currently trades at $54.90. Read our full analysis of CooperCompanies's results here. With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE:ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals. Abbott Laboratories reported revenues of $12.59 billion, up 13% year on year. This print beat analysts' expectations by 1.1%. It was a satisfactory quarter as it also put up a narrow beat of analysts' full-year EPS guidance estimates. Abbott Laboratories pulled off the fastest revenue growth in the group. The stock is up 16.3% since reporting and currently trades at $103.85. Read our full, actionable report on Abbott Laboratories here, it's free. With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions. Stryker reported revenues of $6.59 billion, up 9.4% year on year. This result met analysts' expectations. More broadly, it was a mixed quarter as it also logged a beat of analysts' EPS estimates but organic revenue in line with analysts' estimates. The stock is down 18.5% since reporting and currently trades at $283.76. Read our full, actionable report on Stryker here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

With a market cap of $12.6 billion, Baxter International Inc. (BAX) is a global healthcare technology company that develops and manufactures essential medical products, therapies, and equipment used in hospitals, surgical centers, and home-care settings. Its portfolio includes intravenous (IV) solutions, infusion pumps, injectable pharmaceuticals, surgical equipment, smart hospital beds, and patient monitoring systems. The Deerfield, Illinois-based company operates through three segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals, serving healthcare providers and patients in more than 100 countries. The company is expected to unveil its fiscal Q3 2026 results before the market opens on Thursday, Oct. 29. Ahead of the event, analysts forecast BAX to post an adjusted EPS of $0.51, a decline of 26.1% from $0.69 in the same quarter last year. It has surpassed Wall Street's bottom-line projections in three of the past four quarters while missing on another occasion. - Elon Musk Sets the Record Straight on Terafab. What It Means for Intel, TSMC, and SpaceX Stocks. - Why Super Micro Stock Is Heading to $60 - A $1.3 Billion Reason Why IONQ Stock Is Down Today - Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2026, analysts predict the drug and medical device maker to report adjusted EPS of $2.04, a decline of 10.1% from $2.27 in fiscal 2025. BAX stock has soared 12.9% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 19.2% rise and the State Street Health Care Select Sector SPDR ETF's (XLV) 21% gain over the same period. Baxter International has lagged the broader market over the past year amid sluggish organic sales growth, declining profitability, and inefficient capital allocation. The company's constant-currency growth has remained underwhelming, highlighting the need for product improvements and stronger execution to regain momentum. Meanwhile, earnings per share declined by an annualized 8.5% over the past five years, outpacing revenue deterioration and pointing to mounting margin pressure. Negative returns on capital have further raised concerns about management's ability to generate attractive returns from its investments, weighing on investor confidence. Analysts' consensus rating on BAX stock is cautious, with a "Hold" rating overall. Out of 15 analysts covering the stock, opinions include one "Strong Buy," 13 "Holds," and one "Strong Sell." The average analyst price target for BAX is $26.23, suggesting a modest potential upside of 5.9% from current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

DEERFIELD, Ill., August 18, 2026--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX) ("Baxter" or the "Company") today announced the early results of its previously announced cash tender offers (each, an "Offer" and collectively, the "Offers") for its validly tendered (and not validly withdrawn) notes set forth below (collectively, the "Notes"). The Offers are being made pursuant to an Offer to Purchase, dated Aug. 4, 2026 (as it may be amended or supplemented from time to time, the "Offer to Purchase"), which sets forth a description of the terms of the Offers. In addition, the Company has exercised its previously disclosed right to amend the terms of the Offers to increase the aggregate purchase price (excluding accrued and unpaid interest, the "Offer Cap") for all Notes validly tendered and accepted for purchase pursuant to the Offers from the previously announced Offer Cap of $500 million to $600 million. Except as described in this press release, the terms and conditions of the Offers set forth in the Offer to Purchase remain unchanged. The following table summarizes certain information regarding the Notes that were validly tendered and not validly withdrawn in the Offers as of 5:00 p.m., New York City time, on Aug. 17, 2026 (the "Early Tender Time"). Withdrawal rights for the Offers expired at 5:00 p.m., New York City time, on Aug. 17, 2026 (the "Withdrawal Deadline") and, accordingly, any Notes that were validly tendered in the Offers may no longer be withdrawn, except where additional withdrawal rights are required by law. The consideration to be paid for the Notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the Offers will be determined at 10:00 a.m., New York City time, on Aug. 18, 2026 (the "Price Determination Time") in the manner described in the Offer to Purchase by reference to a fixed spread for each of the Notes over the applicable yield to maturity of the applicable U.S. Treasury Security (the "Reference Treasury Security") specified on the cover page of the Offer to Purchase in the column entitled "Reference U.S. Treasury Security." Each holder who validly tendered and did not validly withdraw its Notes at or prior to the Early Tender Time and whose Notes are accepted for purchase will be eligible to receive the applicable "Total Consideration," which includes an early tender premium of $30 per $1,000 principal amount of Notes so tendered and accepted for purchase (the "Early Tender Premium"). The Early Tender Premium will be included in the Total Consideration for each series of Notes, and will not constitute an additional or increased payment. In addition, in each case, holders whose Notes are accepted for purchase will also receive any applicable accrued and unpaid interest on those Notes in accordance with DTC procedures, regardless of the record dates with respect to each series of Notes, payable on Aug. 20, 2026 (the "Early Settlement Date"). None of the Offers is conditioned on any of the other Offers or upon any minimum principal amount of Notes of any series being tendered. The Company expects to issue a press release on Aug. 18, 2026, announcing the Total Consideration payable in connection with the Offers. The Company expressly reserves the right, in its sole discretion, subject to applicable law, to: (i) terminate any or all of the Offers and not accept for purchase any of the Notes not theretofore accepted for purchase in the terminated Offer or Offers; (ii) waive any and all of the conditions to the Offers on or prior to the time the Notes are accepted for purchase in any or all of the Offers; (iii) accept for purchase and pay for all Notes validly tendered at or before the Early Tender Time and not validly withdrawn at or before the Withdrawal Deadline in any or all of the Offers; (iv) to keep any or all of the Offers open or extend the Early Tender Time, Withdrawal Deadline or time in which the Offers are scheduled to expire to a later date and time; (v) increase or decrease the Offer Cap or change the Acceptance Priority Levels; or (vi) otherwise amend the terms and conditions of the Offers. Information Relating to the Offers The Company’s obligation to purchase, and to pay for, any Notes validly tendered pursuant to the Offers is subject to and conditioned upon the satisfaction of, or the Company’s waiver of, the conditions described in the Offer to Purchase. The Offer to Purchase was distributed to holders beginning Aug. 4, 2026. BofA Securities, Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are acting as lead dealer managers for the Offers and Citigroup Global Markets, Inc., Mizuho Securities USA LLC and SG Americas Securities, LLC are acting as co-dealer managers for the Offers. Investors with questions regarding the Offers may contact BofA Securities, Inc. at (888) 292-0070 (toll-free) or (980) 388-0539 (collect), J.P. Morgan Securities LLC at (866) 834-4666 (toll-free) or (212) 834-3554 (collect) or Goldman Sachs & Co. LLC at (800) 828-3182 (toll-free) or (212) 357-1452 (collect). D.F. King & Co., Inc. is the tender and information agent for the Offers and can be contacted at (800) 967-5051 (toll-free) or (646) 677-2521 (collect) and email at [email protected]. None of the Company or its subsidiaries or affiliates, their respective boards of directors, the Company’s management, the dealer managers, the tender and information agent, the trustee with respect to any series of Notes, any registrar, any paying agent or any of its or their affiliates, as applicable is making any recommendation as to whether holders should tender any securities in response to any of the Offers, and neither the Company nor any such other person has authorized any person to make any such recommendation. Holders of the Notes must make their own decisions as to whether to tender any of their securities, and, if so, the principal amount of securities to tender. The full details of the Offers, including complete instructions on how to tender the Notes, are included in the Offer to Purchase. Holders of the Notes are strongly encouraged to read carefully the Offer to Purchase, including materials incorporated by reference therein, because they will contain important information. The Offer to Purchase may be obtained from D.F. King & Co., Inc., free of charge by calling toll-free at (800) 967-5051 (bankers and brokers can call collect at (646) 677-2521) or by email at [email protected]. This press release is neither an offer to purchase nor a solicitation of an offer to sell securities. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation, or sale would be unlawful. The Offers are being made solely pursuant to the terms and conditions set forth in the Offer to Purchase. About Baxter At Baxter, we are everywhere healthcare happens – and everywhere it is going, with essential solutions in the hospital, physician's office and other sites of care. For nearly a century, our customers have counted on us as a vital and trusted partner. And every day, millions of patients and healthcare providers rely on our unmatched portfolio of connected solutions, medical devices, and advanced injectable technologies. Approximately 37,500 Baxter team members live our enduring Mission: to Save and Sustain Lives. Together, we are redefining how care is delivered to make a greater impact today, tomorrow, and beyond. Forward-Looking Statements This release includes forward-looking statements which are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the Company is exposed to risks as a result of its strategic actions; the Company may not achieve the anticipated benefits of its significant transactions, including the sale of its Kidney Care business and its acquisition of Hill-Rom Holdings, Inc.; the Company’s significant indebtedness requires it to use a substantial amount of its cash flow for debt service and constrains the Company’s ability to pursue growth strategies and advance its R&D capabilities; there is substantial competition in the product markets in which the Company operates and the risk of declining demand and pricing pressures could adversely affect the Company’s business, results of operations, financial condition and cash flows; the Company may be unable to successfully introduce or monetize new and existing products or services or keep pace with changing consumer preferences and needs or advances in technology; the Company may not achieve its financial goals; the Company has experienced disruptions in its supply chain and may experience additional disruptions in the future; global economic conditions, including inflation, have adversely affected, and could continue to adversely affect, the Company’s operations; the Company is subject to risks associated with doing business globally, including changes in tariffs and trade policies and treaties as well as the ongoing Iran conflict and other geopolitical events; the Company may be unable to obtain sufficient components or raw materials on a timely basis or for a cost-effective price; the Company may experience manufacturing, sterilization, supply, or distribution difficulties; the Company has experienced and may continue to experience issues with quality management or product quality; the Company may not be successful in achieving expected operating efficiencies and sustaining or improving operating expense reductions; continued consolidation in the health care industry or additional governmental controls exerted over pricing and access in key markets could lead to increased demands for price concessions or limit or eliminate the Company’s ability to sell to certain of its significant market segments; segments of the Company’s business are significantly dependent on major contracts with group purchasing organizations, integrated delivery networks, and certain other distributors and purchasers; the Company’s operating results and financial condition have fluctuated and may in the future continue to fluctuate; management transition creates uncertainties, and the Company may experience difficulties in managing such transitions, including attracting and retaining key employees; changes in foreign currency exchange rates and interest rates have had, and may in the future have, an adverse effect on the Company’s results of operations, financial condition, cash flows, and liquidity; future material impairments in the value of the Company’s goodwill, intangible assets, and other long-lived assets would negatively affect the Company’s operating results; the Company has experienced and may in the future experience breaches and breakdowns affecting its information technology systems or protected information, including from obsolescence, cybersecurity breaches and data leakage; the Company is exposed to risks associated with incorporating artificial intelligence (AI), machine learning and other emerging technologies into our products, services and operations; a portion of the Company’s workforce is unionized, and the Company could face labor disruptions that would interfere with its operations; the effects of climate change, including legal, regulatory, or market measures related to climate change and other sustainability topics, could adversely affect the Company’s business, results of operations, financial condition, and cash flows; the Company’s goals, activities, and disclosures related to sustainability and corporate responsibility matters, and the perception of the Company’s activities in these areas, may fail to satisfy the differing expectations of key stakeholders on these matters; the Company is subject to laws and regulations globally, and its failure to comply with rapidly changing and increasingly divergent expectations of regulators in different jurisdictions could adversely impact the Company; if reimbursement or other payment for our current or future products is reduced or modified in the U.S. or in foreign countries, or there are changes to policies with respect to pricing, taxation, or rebates, the Company’s business could suffer; increasing regulatory focus on, and expanding laws relating to, privacy, AI, and cybersecurity could impact the Company’s business and expose it to increased liability; the Company is party to a number of pending lawsuits and other disputes which may adversely impact it; changes in tax laws or exposure to additional income tax liabilities may have a negative impact on the Company’s operating results; the Company could be subject to fines or damages and possible exclusion from participation in federal or state healthcare programs if it fails to comply with the laws and regulations applicable to its business; if the Company is unable to protect or enforce its patents or other proprietary rights, or if the Company becomes subject to claims or litigation alleging infringement of the patents or other proprietary rights of others, the Company’s competitiveness and business prospects may be materially damaged; the Company’s Amended and Restated Bylaws could limit its stockholders’ ability to choose their preferred judicial forum for disputes with the Company or its directors, officers, or employees; the Company recently decreased its quarterly dividend to $0.01 per share and cannot guarantee that it will increase the amount of dividends it pays, or that it will not cease paying dividends; the Company’s common stock price has fluctuated significantly and may continue to do so; and other risks discussed in the Company’s most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on the Company's website. The Company does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws. Baxter and Novum IQ are trademarks of Baxter International Inc. View source version on businesswire.com: https://www.businesswire.com/news/home/20260817204991/en/ Contacts Media Contact:Stacey Eisen, (224) [email protected] Investor Contact:Kevin Moran, (224) [email protected]

In early August 2026, Cardinal Health announced that Anita Zielinski will become Chief Accounting Officer in November, following her interim CFO and senior accounting roles at Baxter and long tenure at Sysco and Ernst & Young, while the company also faced ongoing Class II recalls of subpotent levothyroxine tablets distributed nationwide in the US. This combination of leadership change in Cardinal Health’s finance function and routine but nationwide product recalls comes as analysts are highlighting expectations for stronger upcoming quarterly earnings across key distribution and medical segments. We’ll now explore how the appointment of seasoned finance leader Anita Zielinski influences Cardinal Health’s existing investment narrative and risk profile. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. To own Cardinal Health, you need to believe its scale in drug and medical supply distribution can keep generating modest growth and cash returns despite tight margins, regulation and customer concentration. The latest appointment of Anita Zielinski as Chief Accounting Officer and the Class II levothyroxine recalls do not appear to materially change the near term focus on execution in core distribution or the key risk around pricing and contract pressure. The most relevant recent announcement here is the ongoing nationwide Class II recalls of subpotent levothyroxine tablets distributed by Cardinal Health. While these recalls are voluntary and relatively routine for a large distributor, they underline operational and quality control risks that sit alongside the main earnings catalyst of steady pharmaceutical volume growth and efficiency gains in the supply chain. Yet behind the headline leadership change, investors should still be aware of how tightening government pricing scrutiny could... Read the full narrative on Cardinal Health (it's free!) Cardinal Health's narrative projects $314.3 billion revenue and $2.3 billion earnings by 2029. This requires 7.8% yearly revenue growth and about a $0.7 billion earnings increase from $1.6 billion today. Uncover how Cardinal Health's forecasts yield a $250.53 fair value, a 5% upside to its current price. Three fair value estimates from the Simply Wall St Community span roughly US$250 to almost US$495 per share, showing how far apart individual views can be. Against that backdrop, regulatory and pricing risks around Cardinal Health's low margin distribution model give you a very different angle on how its performance could evolve, so it is worth weighing several perspectives before forming your own view. Explore 3 other fair value estimates on Cardinal Health - why the stock might be worth over 2x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Cardinal Health research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free Cardinal Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cardinal Health's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: AI is about to change healthcare. These 42 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Find 50 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CAH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Baxter International Inc.? Here are five stocks we like better. Baxter exceeded second-quarter expectations, with sales rising 5% to approximately $3 billion and adjusted earnings of $0.56 per share. Results included a roughly $75 million tariff refund, but management said underlying operating performance also surpassed expectations. Growth was led by Advanced Surgery, up 12%, and drug compounding, while infusion-system sales were pressured by the Novum IQ pump shipment and installation hold. Baxter is conducting verification testing on corrective actions for Novum IQ and continues working with regulators. Baxter raised its 2026 outlook, now expecting 2%–3% organic sales growth and adjusted earnings of $1.95–$2.15 per share. The company remains focused on cash generation and debt reduction, targeting net leverage of about three times by year-end. The Value Deepens for Medtech Stocks: Reversal Imminent Baxter International (NYSE:BAX) reported second-quarter 2026 results that exceeded its expectations, supported by broad-based sales growth, strong demand in Advanced Surgery and drug compounding, and a $75 million tariff refund. The company raised its full-year organic sales-growth outlook and increased its adjusted earnings guidance, while maintaining its focus on operational execution, cash generation and debt reduction. Global sales totaled approximately $3 billion, up 5% on both a reported and organic basis. Adjusted earnings were $0.56 per diluted share, compared with $0.59 per share a year earlier. The results included an approximately $0.11-per-share benefit from an IEEPA tariff refund that had not been included in Baxter’s prior outlook. → Microsoft Just Flipped the AI Spending Narrative Overnight A Significant Reversal is in Sight for These 5 Med Tech Companies President and Chief Executive Officer Andrew Hider said that, excluding the refund, margins and earnings still exceeded the company’s expectations because of operating performance. “We are still early in our turnaround and have more work ahead of us,” Hider said, adding that the company remains focused on execution during the second half of 2026. Medical Products & Therapies sales rose 5% organically to $2.1 billion. The segment’s newly combined Infusion Therapies & Platforms division, which includes the former pharmaceuticals and infusion therapies and technologies businesses, generated $1.7 billion in sales, up 4%. → 2 Unique Space ETFs That Could Upend the Industry 5 Good Reasons it's Time to Buy High-Yield Dividend King 3M Growth in Infusion Therapies & Platforms was driven by drug compounding and IV Solutions. Drug compounding services grew at a double-digit rate, though management noted that the business carries lower margins than the broader company. IV Solutions benefited from growth following a lower demand baseline associated with clinical-practice changes in the market. Those gains were partly offset by lower sales of infusion systems and injectables. Infusion-system performance reflected the ongoing shipment and installation hold for the Novum IQ large-volume pump, customer returns and transitions to Spectrum pumps. Baxter said demand for Spectrum IQ remained steady and that it did not see a material impact from Novum-related returns during the quarter. → MarketBeat Week in Review – 07/27- 07/31 Hider said Baxter has identified corrections for Novum IQ LVP field actions and is in the early stages of verification testing. The company continues to work with regulators and support existing Novum customers using available mitigations, while serving customers through its broader pump portfolio. Advanced Surgery sales increased 12% to $331 million, reflecting demand and higher volumes for hemostats and sealants, commercial execution across regions and steady procedure volumes. Hider described the business as a strong performer, citing its customer alignment and global product portfolio. Healthcare Systems & Technologies sales increased 4% organically to $801 million. Care & Connectivity Solutions revenue rose 5% to $502 million, driven by global Patient Support Systems demand, execution against the U.S. backlog and international growth. Front Line Care sales grew 2% to $299 million, aided by Connex 360 connected patient monitoring and the timing of large customer deals, partly offset by planned product exits. Medical Products & Therapies adjusted operating margin declined 350 basis points to 19.3%, while Healthcare Systems & Technologies adjusted operating margin was flat at 20.3%. At the company level, adjusted gross margin fell 210 basis points to 38.6% and adjusted operating margin declined 90 basis points to 14.2%. Interim Chief Financial Officer Anita Zielinski said the declines reflected higher manufacturing costs, including lower absorption, Section 122 tariff effects, lower pricing contribution and an unfavorable comparison with the prior-year period. The prior-year quarter had benefited from a change in estimate that reclassified expenses between selling, general and administrative costs and cost of sales. The impact was partly offset by the tariff refund and higher sales volumes. Zielinski said higher-cost inventory produced at the end of 2025 has now moved through Baxter’s profit and loss statement, which the company expects to support sequential improvement in the second half. Second-quarter free cash flow totaled $181 million, bringing year-to-date free cash flow to $257 million. Baxter said improved operating performance and working-capital actions supported cash generation. The company continues to target net leverage of about three times by year-end, with debt reduction its top near-term capital-allocation priority. Baxter raised its full-year organic sales-growth forecast to 2% to 3%, compared with its previous outlook, reflecting stronger first-half performance and expectations for continued growth in the second half. The company now expects reported sales growth of 3% to 4%, including an expected approximately 100-basis-point benefit from foreign exchange and an approximately $25 million headwind from Vantive master services agreement revenue. Medical Products & Therapies organic sales are expected to grow low single digits for the full year. Healthcare Systems & Technologies organic sales are also expected to grow low single digits. Adjusted operating margin is still expected to be between 13% and 14%. Net non-operating expenses are projected at $260 million to $280 million. The adjusted tax rate is expected to range from 18.5% to 19.5%. Full-year adjusted earnings guidance was raised to $1.95 to $2.15 per diluted share from $1.85 to $2.05 per share, primarily reflecting the tariff refund. Baxter expects approximately $40 million of tariff impact, net of mitigating actions, in the second half. It also expects improved second-half performance from higher seasonal volumes, benefits from cost actions and the roll-through of higher-cost inventory. Hider said Baxter’s Growth and Performance System, or Baxter GPS, is becoming more embedded across the organization. The company completed more than 400 continuous-improvement events during the first half, has nearly 200 in progress and has another 400 planned. Baxter also highlighted several product initiatives. It launched PeerView, a digital benchmarking application designed to help hospitals compare infusion data and improve infusion practices. In Front Line Care, the company began a limited market release of Vest APX Acute Care, an airway-clearance device, with a full release planned near the end of the third quarter. Baxter also reported growing adoption of Connex 360 and early commercial momentum for its Dynamo smart hospital stretcher, which has now launched in Canada. Management said it has not observed a change in U.S. hospital capital-spending patterns to date. Hider said the company’s order book and sales funnel remain solid, though Baxter continues to monitor macroeconomic uncertainty and customer buying behavior. Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company's primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter's offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide. In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Baxter International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Baxter International Inc. recently reported past Q2 2026 results, with sales rising to US$2,960 million and quarterly net income increasing to US$126 million compared with the prior year. Alongside this, Baxter raised its 2026 sales growth and adjusted earnings guidance while maintaining a quarterly dividend, signaling management’s confidence in its operating direction. Next, we’ll examine how Baxter’s upgraded 2026 guidance, particularly its higher sales outlook, shapes the company’s broader investment narrative. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. For Baxter to make sense in a portfolio, you need to believe the company can turn its low valuation and improving operations into durable, profitable growth, despite recent execution and balance sheet issues. The latest quarter helps that case: sales and earnings beat expectations, guidance for 2026 was raised, and the stock jumped sharply, suggesting the market is starting to reward progress. In the near term, upgraded sales guidance and better-than-expected cash generation are likely to be key catalysts, especially as management focuses on debt reduction after years of underwhelming returns. On the risk side, Baxter is still coming off a period of losses, has relatively high leverage, and remains exposed to product and regulatory issues such as the recent Volara recall. The fresh results improve sentiment, but they do not erase those underlying challenges. However, investors should not ignore the tension between stronger guidance and Baxter’s still-stretched balance sheet. Baxter International's shares have been on the rise but are still potentially undervalued by 32%. Find out what it's worth. Six fair value estimates from the Simply Wall St Community span roughly US$14.80 to just under US$38.60 per share, showing how far apart individual views on Baxter sit. Set that against the improved 2026 outlook and recent recall headlines, and it is clear you are weighing both a recovery story and operational risk when you decide where you stand. Explore 6 other fair value estimates on Baxter International - why the stock might be worth as much as 47% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Baxter International research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Baxter International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Baxter International's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: Invest in the nuclear renaissance through our list of 88 elite nuclear energy infrastructure plays powering the global AI revolution. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Find 55 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BAX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Baxter International Inc. BAX reported second-quarter 2026 adjusted earnings per share (EPS) from continuing operations of 56 cents, which topped the Zacks Consensus Estimate of 36 cents by 55.6%. The bottom line declined 5% from the year-ago quarter’s level. On a GAAP basis, the company reported an EPS from continuing operations of 26 cents compared to an EPS of 24 cents in the prior-year quarter. Shares of BAX gained 16.6% in pre-market trading. Year to date, the company’s shares have gained 29.6%, outperforming the industry’s fall of 16.1% and the broader S&P 500 Index’s increase of 6.7%. Image Source: Zacks Investment Research Revenues from continued operations totaled $2.96 billion, up 5% year over year on both a reported and organic basis. The top line surpassed the Zacks Consensus Estimate by 5.9%. Growth was driven by broad-based gains across Baxter’s segments and divisions. U.S. sales from continuing operations totaled $1.59 billion, up 4% on both a reported and organic basis. International sales from continuing operations totaled $1.37 billion, reflecting an increase of 7% on a reported basis and 5% on an organic basis. International growth outpaced the domestic business, while organic growth matched reported growth companywide despite currency effects and the Kidney Care manufacturing and supply agreement. Medical Products & Therapies The segment includes the Infusion Therapies & Platforms and Advanced Surgery divisions. Sales in this segment totaled $2.08 billion, up 7% year over year on a reported basis and 5% organically. Growth was driven by strength in Drug Compounding and IV Solutions, along with continued solid global demand for Advanced Surgery products. The increase was partly offset by lower Infusion Systems sales due to the previously disclosed shipment and installation hold of the Novum IQ LVP, as well as weakness in Injectables. Infusion Therapies & Platforms sales totaled $1.75 billion, up 6% year over year on a reported basis and 4% organically. Advanced Surgery revenues amounted to $331 million, up 12% on both a reported and organic basis. The division benefited from demand for hemostats and sealants, strong commercial execution across regions and steady procedure volumes. Healthcare Systems & Technologies The segment includes the Care & Connectivity Solutions and Front Line Care divisions. Total sales in this segment were $801 million, up 4% year over year on both a reported and organic basis. Growth reflected strong demand for Care & Connectivity Solutions products, led by Patient Support Systems, along with improvement in Front Line Care. Care & Connectivity Solutions sales totaled $502 million, up 6% year over year on a reported basis and 5% organically. Performance benefited from higher Patient Support Systems volumes, execution against the U.S. backlog and growth across international markets. Front Line Care revenues were $299 million, up 2% on both a reported and organic basis, driven by Connex 360 momentum and the timing of large customer deals, partly offset by planned global product exits. Adjusted gross profit was $1.14 billion, down 0.2% year over year. Adjusted gross margin contracted 210 basis points to 38.6%, reflecting the roll-through of higher-cost inventory produced at the end of 2025 and an unfavorable comparison tied to prior-year cost reclassification. Selling, general and administrative expenses amounted to $735 million, up 2% year over year. Research and development expenses totaled $129 million, down 4%. Adjusted operating income was $421 million, down 0.5% year over year. Adjusted operating margin contracted 90 basis points to 14.2%. Cumulative net cash from operating activities at the end of second-quarter 2026 was $510 million compared with $118 million a year ago. Management continues to target net leverage of about 3.0 times by the end of 2026 while maintaining an investment-grade credit rating. Near-term capital priorities remain debt repayment and organic investment in core platforms, innovation and productivity-enhancing projects. Baxter raised its sales and adjusted earnings guidance for 2026. Sales from continuing operations are now estimated to grow 3-4% on a reported basis, compared with the prior projection of flat to 1% growth. Organic sales growth is anticipated in the 2-3% range compared with the earlier expectation of approximately flat growth. The Zacks Consensus Estimate is pegged at $11.36 billion, implying 1% growth. Adjusted EPS from continuing operations is now projected in the band of $1.95-$2.15, up from the previous range of $1.85-$2.05. Medical Products & Therapies and Healthcare Systems & Technologies are each expected to deliver low-single-digit organic growth. The Zacks Consensus Estimate for adjusted EPS is pegged at $1.91 per share. Baxter International Inc. price-consensus-eps-surprise-chart | Baxter International Inc. Quote Currently, Baxter carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the broader medical space are West Pharmaceutical WST, McKesson MCK and Cardinal Health CAH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. West Pharmaceutical reported second-quarter 2026 adjusted earnings per share (EPS) of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%. West Pharmaceutical has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%. McKesson reported a fourth-quarter fiscal 2026 adjusted EPS of $11.69, which beat the Zacks Consensus Estimate by 1.1%. Revenues of $96.3 billion missed the Zacks Consensus Estimate by 5.5%. McKesson has an estimated long-term earnings growth rate of 13.7%. MCK’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.1%. Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%. Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baxter International Inc. (BAX) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Baxter International (BAX) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +55.56%. A quarter ago, it was expected that this drug and medical device maker would post earnings of $0.31 per share when it actually produced earnings of $0.36, delivering a surprise of +16.13%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Baxter, which belongs to the Zacks Medical - Products industry, posted revenues of $2.96 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.95%. This compares to year-ago revenues of $2.81 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Baxter shares have added about 29.6% since the beginning of the year versus the S&P 500's gain of 6.9%. While Baxter has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Baxter was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.53 on $2.84 billion in revenues for the coming quarter and $1.91 on $11.36 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. ResMed (RMD), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This maker of medical products for respiratory disorders is expected to post quarterly earnings of $2.90 per share in its upcoming report, which represents a year-over-year change of +13.7%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. ResMed's revenues are expected to be $1.46 billion, up 8.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baxter International Inc. (BAX) : Free Stock Analysis Report ResMed Inc. (RMD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: Global sales totaled approximately $3 billion, an increase of 5% on both a reported and organic basis. Adjusted Earnings Per Share (EPS): $0.56 per diluted share, a decrease of 5% from $0.59 in the prior year period. Adjusted Gross Margin: 38.6%, a decrease of 210 basis points. Adjusted Operating Margin: 14.2%, a decrease of 90 basis points. Free Cash Flow: $181 million in the second quarter, bringing the year-to-date total to $257 million. Medical Products and Therapies (MPT) Segment Sales: $2.1 billion, an increase of 5% on an organic basis. Infusion Therapies and Platforms (ITP) Sales: $1.7 billion, an increase of 4% on an organic basis. Advanced Surgery Sales: $331 million, an increase of 12% on an organic basis. Healthcare Systems and Technologies (HST) Segment Sales: $801 million, an increase of 4% on an organic basis. Care and Connectivity Solutions (CCS) Sales: $502 million, an increase of 5% on an organic basis. Frontline Care Sales: $299 million, an increase of 2% on an organic basis. Full-Year 2026 Organic Sales Growth Outlook: Raised to 2% to 3%. Full-Year 2026 Adjusted EPS Outlook: Raised to $1.95 to $2.15 per diluted share. Warning! GuruFocus has detected 9 Warning Signs with BAX. Is BAX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Second quarter organic revenue growth of 5% exceeded expectations, driven by broad-based operational performance across all segments and divisions. Strong double-digit growth in drug compounding and continued robust performance in advanced surgery (12% growth) highlight key growth drivers. Positive free cash flow generation of $181 million in Q2 and $257 million year-to-date, reflecting improved working capital and strengthening financial flexibility. Progress on the Baxter GPS continuous improvement program, with over 400 events completed and hundreds more planned, driving efficiency and execution. Innovation momentum with new product launches like PeerView, Vest APX Acute Care, and Dynamo smart stretcher, expanding market offerings and customer value. Adjusted EPS declined 5% year-over-year to $0.56, impacted by higher manufacturing costs and unfavorable prior-year cost comparisons. Novum IQ LVP infusion pump remains under shipment and installation hold due to field actions, with ongoing regulatory engagement and no timeline for resolution. Supply constraints persist in injectables and certain premixed products, particularly from a contract manufacturer, pressuring pharmaceutical portfolio performance. Gross margin decreased 210 basis points to 38.6%, driven by higher cost inventory roll-through and tariff impacts, partially offset by a one-time tariff refund. Full-year organic sales growth guidance raised to only 2%-3%, reflecting cautious outlook amid macroeconomic uncertainty and potential hospital capital spending slowdown. Here are the key highlights from Baxter International Inc.'s Q2 2026 earnings call, presented as Q&A pairs. Q: Can you unpack the drivers of the strong Q2 top-line beat and the confidence behind the guidance raise? Also, given the one-time tariff refund, does the lower implied second-half EPS guidance suggest caution, and are you still confident in EPS growth for 2027?A: (Andrew Hider, President and CEO) The Q2 beat was driven by broad-based operational performance across all segments and divisions, including double-digit growth in drug compounding, strong performance in advanced surgery, and solid demand in IV solutions and patient support systems. The tariff refund of $0.11 per share was not contemplated in original guidance. While we are pleased with the quarter, it is just one quarter, and we are focused on executing in the second half of 2026. The non-recurring tariff benefit will not flow through to 2027, and we will provide more color on 2027 at the appropriate time. Q: What is the status of the Novum IQ LVP pump, and what are the next steps? If it doesn't return to market, how durable is the Spectrum IQ pump as a workhorse?A: (Andrew Hider, President and CEO) We are making progress on the Novum IQ LVP. We have identified corrections and are in the early stages of verification testing. We continue to work closely with regulatory authorities and support current customers with available mitigations. We like our total pump portfolio, which includes the Novum syringe and Spectrum LVP on the IQX platform, and we recently launched PeerView to enhance our digital roadmap. We are focused on bringing value to customers today and will launch Novum LVP when it is ready. Q: How large was the drug compounding business in Q2, and did its lower margin profile contribute to the gross margin being a bit light?A: (Kevin Moran, VP of Investor Relations) Drug compounding was a good chunk of the beat in Q2 and grew double-digits. It inherently has a lower margin, which does impact the mix. (Andrew Hider, President and CEO) While pleased with the growth, this business has favorable cash conversion, and we are focused on driving margin improvement. Q: The Q2 beat included a $0.11 tariff refund, higher TSA income, and lower interest. Why is the full-year EPS guidance only raised by $0.10? Is this conservatism for the second half?A: (Kevin Moran, VP of Investor Relations) The higher TSA income in Q2 was offset by higher TSA-related expenses, so it was not material to operating income. The full-year EPS guidance raise primarily reflects the one-time tariff refund. The underlying operating performance framework for the second half remains consistent with our previous expectations, including higher volumes, cost structure benefits, and the roll-through of higher-cost inventory. Q: Can you talk about the order book and any signs of a slowdown in hospital capital spending, particularly for the Connected Care business?A: (Andrew Hider, President and CEO) Demand remains stable, supported by a strong US capital order book and funnel visibility across Patient Support Systems and Global Supply Systems. We are staying close to the market and have not observed any change in hospital capital spending behavior. Customer feedback on new products like the Dynamo stretcher is positive, but we are not immune to broader macroeconomic uncertainty and continue to monitor the environment closely. Q: What is the plan to turn around the injectables and anesthesia business, which remains pressured?A: (Andrew Hider, President and CEO) The business remains pressured due to ongoing supply constraints, particularly from a contract manufacturer. We are taking specific actions to improve supply conditions on select products and are working closely with the contract manufacturer to improve operational efficiency and quality. The full-year guidance has this built in. Q: Was there any restocking benefit from IV Fluids in Q2, given the market rebasing?A: (Andrew Hider, President and CEO) We did not see a massive restocking in IV Solutions, so it was not material. We are operating at the new norm baseline and feel good about our market position and the value we bring to customers. Q: The organic revenue guidance was raised, but the implied EPS for the second half seems lighter. What are the good guys and bad guys on margins for the rest of the year?A: (Kevin Moran, VP of Investor Relations) The operating margin framework remains consistent: first-half headwinds followed by second-half improvement. The new item is the non-recurring Q2 tariff refund. For the balance of the year, you should normalize for that and then expect sequential improvement from higher volumes, cost structure actions, and the roll-through of higher-cost inventory, which will be a Q2 to Q3 sequential improvement. (Andrew Hider, President and CEO) Supply chain pressures and oil prices are being managed and are within our guidance. Q: Can you quantify the impact of planned product exits on Frontline Care's 2% growth in Q2, and what is the long-term growth aspiration for this business?A: (Kevin Moran, VP of Investor Relations) The planned product exits were not material. Connect 360 did contribute to the growth. (Andrew Hider, President and CEO) We are focused on strong portfolio management and aligning with areas where we have value creation for customers. This includes launching new products and sustaining our solution set. It is early days, but the leadership team is focused on execution and value creation. Q: Where has the turnaround gone better and faster than expected, and where has it been slower? How are you evolving your focus?A: (Andrew Hider, President and CEO) I am very pleased with how the Baxter GPS (Growth and Performance System) has taken hold across the organization. We have completed over 400 continuous improvement events year-to-date, with many more in the pipeline. This is the driving force for consistent execution. There is no single innovation that will define our future; it is the accumulation of all these small improvements. I am never satisfied, but I am pleased with the progress. One quarter is one quarter, and we are focused on finishing the year strong and preparing for 2027. For the complete transcript of the earnings call, please refer to the full earnings call transcript.