Baxter International's stock plummeted 16.05% during intraday trading on Thursday, following the release of disappointing fourth-quarter 2025 results and a downbeat profit forecast for 2026.

The medical device maker reported a wider fourth-quarter loss, with adjusted earnings per share significantly missing analysts' estimates. The company's guidance for 2026 adjusted earnings of $1.85 to $2.05 per share fell well below Wall Street expectations of approximately $2.24 to $2.25.

The weak outlook is attributed to several ongoing challenges, including uncertainty around the Novum infusion pump business, with shipment holds expected to remain throughout 2026 following a Class I recall by U.S. health regulators. Additionally, demand for IV solutions remains below historical levels due to clinical practice changes that persisted after Hurricane Helene disrupted Baxter's North Carolina facility in 2024. The company also cited an unfavorable product mix, non-recurring inventory adjustments, a higher effective tax rate, and a net headwind from tariffs as factors weighing on performance.