Baxter International (NYSE: BAX) saw its shares plummet by 15.72% in Thursday's trading session, following the release of disappointing second-quarter earnings results and reduced guidance for the upcoming periods. The healthcare company's performance fell short of analyst expectations, raising concerns about its near-term growth prospects.

Baxter reported adjusted earnings per share of $0.54 for the second quarter, significantly missing the consensus estimate of $0.61. Revenue for the quarter came in at $2.81 billion, slightly below the expected $2.823 billion. The company's adjusted operating income of $423 million also fell short of the projected $452.3 million, indicating pressure on profitability. These misses across key financial metrics have sparked a sharp sell-off among investors.

Adding to the negative sentiment, Baxter provided a cautious outlook for the third quarter and full year 2025. The company expects Q3 adjusted earnings from continuing operations, before special items, of $0.58 to $0.62 per diluted share, below the analyst estimates of $0.65. For the full year, Baxter trimmed its adjusted earnings guidance to $2.42 to $2.52 per diluted share, down from the previous range of $2.47 to $2.55. Furthermore, the company lowered its annual sales growth forecast from continuing operations to 6% to 7% on a reported basis, compared to the earlier projection of 7% to 8%. Baxter executives also warned of potential downside risks if conservation efforts don't improve in the second half of 2025, further intensifying investor concerns about the company's future performance.