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Research Alert: Bax Q1: Mixed Results Amid Operational Challenges And Transformation Efforts

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Baxter delivered mixed Q1 2026 results with sales of $2.7B (+3% reported, -1% organic) beating consensus by $80M, though organic decline highlighted execution issues. Adjusted EPS of $0.36 beat expectations by $0.05 but declined 35% Y/Y due to unfavorable expense timing and higher manufacturing costs. We view the persistent operational challenges across key divisions as concerning despite management's transformation efforts. Management reiterated full-year 2026 guidance of flat to 1% sales growth and adjusted EPS of $1.85-$2.05, emphasizing progress on the Baxter Growth and Performance System with 230+ Q1 initiatives. Segment performance remained mixed with Medical Products & Therapies generating $1.3B (+2% reported, -2% organic) hampered by infusion pump issues, while Pharmaceuticals provided strength at $621M (+7% reported). We believe the ongoing execution challenges underscore the complexity in stabilizing operations despite improved free cash flow of $76M vs. -$221M in the prior year.

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