Baxter International Inc. (NYSE: BAX) shares fell 15% intra-day Thursday after the medical technology company reported fourth-quarter earnings below expectations and issued weaker-than-anticipated guidance for 2026.

The company posted adjusted EPS of $0.44, missing analyst estimates of $0.54. Revenue totaled $2.97 billion, exceeding the $2.84 billion consensus estimate and increasing 8% on a reported basis, or 3% operationally, compared with the prior year. Despite the revenue beat, concerns over profitability weighed heavily on investor sentiment.

Baxter projected fiscal 2026 adjusted EPS in the range of $1.85 to $2.05, significantly below the analyst consensus of $2.25.

President and CEO Andrew Hider acknowledged that while sales growth was achieved across all segments, fourth-quarter performance did not meet internal expectations and emphasized the company's commitment to operational improvements.

The company reported a U.S. GAAP net loss from continuing operations of $2.01 per diluted share, which included a $485 million goodwill impairment charge related to its Front Line Care reporting unit and a $330 million valuation allowance on U.S. deferred tax assets.

By segment, Medical Products & Therapies revenue rose 6% to $1.39 billion, Healthcare Systems & Technologies increased 5% to $827 million, and Pharmaceuticals grew 4% to $668 million.