Baxter Cuts 2025 Forecast, Shares Plunge

Baxter International has lowered its 2025 earnings and sales growth forecasts, now expecting operational sales growth of 3% to 4% and adjusted earnings per share of $2.42 to $2.52, leading to a nearly 20% drop in share price to the lowest level since 2006. Hurricane Helene damaged the company’s North Carolina facility, prompting hospitals to conserve IV fluids and resulting in ongoing weak demand despite restored supply. Baxter also voluntarily halted shipments of its Novum IQ Large Volume Pumps after FDA alerts linked the devices to two deaths and multiple injuries. The medical products segment has been further impacted, with second-quarter adjusted earnings at 59 cents per share and revenue at $2.81 billion, both below analyst expectations. The revised guidance reflects continued risks from fluid conservation and lower hospital admissions throughout the year. These developments have added to investor concerns over the company’s outlook.