Shares of Baxter International (BAX) tumbled 6.60% in pre-market trading on Thursday following the release of its second-quarter 2025 earnings report, which fell short of analyst expectations and was accompanied by cautious guidance.

The healthcare company reported adjusted earnings per share of $0.54, missing the consensus estimate of $0.61. Revenue for the quarter came in at $2.81 billion, slightly below the expected $2.823 billion. Baxter's adjusted operating income of $423 million also fell short of the $452.3 million analysts had projected, indicating pressure on the company's profitability.

Adding to investor concerns, Baxter provided a conservative outlook for the third quarter and full year 2025. The company expects Q3 sales growth from continuing operations of 6% to 7% on a reported basis, with adjusted earnings from continuing operations, before special items, of $0.58 to $0.62 per diluted share. For the full year, Baxter forecasts revenue growth of 6-7% and adjusted EPS in the range of $2.42 to $2.52. This guidance suggests ongoing challenges in the healthcare sector and potential headwinds for Baxter's business performance.