greeksoup/ stock research
Stock research / United States / BAX / FY2025

Baxter International (BAX) FY2025 results: revenue $11.2 billion, up 5.7% on the year

Baxter International Inc. (BAX) reported revenue of $11.2 billion for fiscal 2025, the year ended 31 December 2025, up 5.7% on the year before. Net income was -$957 million, and diluted earnings per share $-1.87. The figures are the company's own, from the 10-K it filed with the SEC on 12 February 2026.

Revenue
$11.2 billion
+5.7% on the year
FY2018FY2025
Operating margin
-2.7%
0.1% a year earlier
FY2018FY2025
Net income
-$957 million
FY2018FY2025
Diluted EPS
-$1.87
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 5 new.

  • Sales up 8% reported, 3% operational: Continuing-operations sales were about $2.97 billion. The reconciliation removes about 3 points for the Kidney Care MSA and 2 points for currency, leaving 3% operational growth.
  • Adjusted EPS down 24%: Adjusted diluted EPS from continuing operations was $0.44 against $0.58 a year earlier. Management attributed the decline to product mix, non-recurring items such as inventory adjustments, and a higher effective tax rate.
  • GAAP loss from continuing operations: On a U.S. GAAP basis, continuing operations lost $1,035 million, or $2.01 per diluted share, against a $488 million loss a year earlier.
  • Medical Products & Therapies up 6%: Medical Products & Therapies sales were $1.39 billion, up 6% reported and 4% operational. Infusion Therapies & Technologies rose on IV solutions against a prior-year comparison.
  • Gross margin fell to 19.4%: Reported gross margin was $577 million, or 19.4% of net sales, down from $959 million and 34.8% a year earlier, as cost of sales rose to $2,397 million.
Read the Q4 FY2025 earnings call summary

From this 10-K

Baxter International supplies essential healthcare products through its subsidiaries: sterile intravenous solutions, infusion systems and devices, parenteral nutrition therapies, inhaled anesthetics, generic injectable pharmaceuticals, surgical hemostat and sealant products, advanced surgical equipment, smart bed systems, patient monitoring and diagnostic technologies, and respiratory health devices. They are used by hospitals, nursing homes, rehabilitation centres, ambulatory surgery centres, doctors' offices, kidney dialysis centres and patients at home under physician supervision. The company was incorporated in Delaware in 1931. At the end of 2025, after the sale of the Kidney Care business, it manufactured in over 20 countries and sold in over 100.

Baxter International Inc., the 10-K for 2025

Baxter International supplies essential healthcare products through its subsidiaries: sterile intravenous solutions, infusion systems and devices, parenteral nutrition therapies, inhaled anesthetics, generic injectable pharmaceuticals, surgical hemostat and sealant products, advanced surgical equipment, smart bed systems, patient monitoring and diagnostic technologies, and respiratory health devices. They are used by hospitals, nursing homes, rehabilitation centres, ambulatory surgery centres, doctors' offices, kidney dialysis centres and patients at home under physician supervision. The company was incorporated in Delaware in 1931. At the end of 2025, after the sale of the Kidney Care business, it manufactured in over 20 countries and sold in over 100.

Three segments

Medical Products and Therapies covers sterile intravenous solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. Healthcare Systems and Technologies covers connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices, and advanced equipment for the surgical space such as operating room integration technologies and precision positioning devices. Pharmaceuticals covers specialty injectable pharmaceuticals, inhaled anesthetics and drug compounding services. This three-segment structure came from a new operating model completed in the third quarter of 2023, intended to simplify operations and align manufacturing and supply chain more closely with commercial activity.

Two businesses sold, and the debt they repaid

On 12 August 2024 Baxter agreed to sell its Kidney Care business, now known as Vantive Health, to affiliates of Carlyle Group, and completed the sale on 31 January 2025 for an aggregate purchase price of $3.80 billion in cash, subject to closing adjustments. After adjustments it received approximately $3.71 billion of pre-tax cash at closing, with net after-tax proceeds of approximately $3.3 billion before certain post-closing adjustments. During 2025 it repaid $3.81 billion of legacy borrowings, primarily with those net proceeds, separately from $2.00 billion repaid with the proceeds of a new notes offering. That business is reported as discontinued operations, and prior period results have been adjusted accordingly.

Before it, on 29 September 2023, Baxter completed the sale of its BioPharma Solutions business for cash proceeds of $3.96 billion, recognising a pre-tax gain of $2.88 billion, or $2.59 billion net of tax, and also reported as discontinued operations. Substantially all of the after-tax proceeds went to repaying obligations: $514 million of commercial paper and $2.28 billion of long-term borrowings in the fourth quarter of 2023, and €750 million of senior notes in the second quarter of 2024.

How the products reach a customer

Baxter runs its own direct sales force and also sells to and through independent distributors, drug wholesalers acting as sales agents, and specialty pharmacy and other alternate site providers. In the United States, third parties including Cardinal Health and Medline warehouse and ship a large part of the product through their own distribution centres, which are generally stocked to allow prompt service. The selling methods named are frequent contact by sales and customer service representatives, automated communication through electronic purchasing systems, catalogues and merchandising bulletins, direct mail, trade publications and advertising. Sales are made directly or through independent distributors or sales agents in more than 100 countries.

A large part of revenue is generated outside the United States, with operations in Europe, the Middle East, Africa, Asia-Pacific, Latin America and Canada. Products are sold under contracts with customers inside and outside the United States, some of them running more than one year and placing limits on the company's pricing freedom.

From Baxter International's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 12 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue11,24410,63610,360+5.7%
Cost of revenue7,8656,6526,210+18.2%
Gross profit3,3793,9844,150-15.2%
Gross margin30.1%37.5%40.1%
Research and development518590518-12.2%
Selling, general and administrative2,8902,9672,953-2.6%
Operating income-30814.0707
Operating margin-2.7%0.1%6.8%
Interest expense290408508-28.9%
Pre-tax income-505-289242
Income tax39537.061.0+967.6%
Effective tax raten/an/a25.2%
Net income-957-6492,656
Net margin-8.5%-6.1%25.6%
Diluted EPS-$1.87-$1.27$5.25
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow8451,0191,726-17.1%
Capital expenditure513446432+15.0%
Free cash flow3325731,294-42.1%
Free cash flow margin3.0%5.4%12.5%
Cash from investing2,841-6263,213
Cash from financing-4,216-1,081-3,489
Depreciation and amortisation981997984-1.6%
Share-based compensation117114115+2.6%
Buybacksn/a0.00.0
Dividends paid348590586-41.0%
Dividend per share$0.52$1.04$1.16-50.0%
Diluted shares, weighted513m510m506m+0.6%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity6,1296,9648,402-12.0%
Non-controlling interest-27.060.066.0
Short-term borrowings1.02,1260.0-100.0%
Debt9,43813,18013,855-28.4%
Operating lease liabilities223243265-8.2%
Finance lease liabilities21.019.025.0+10.5%
Other liabilities4,2703,1905,663+33.9%
Total liabilities and equity20,05525,78228,276-22.2%
Fixed assets2,9102,8702,871+1.4%
Goodwill4,9295,2755,793-6.6%
Intangible assets4,3695,2235,918-16.4%
Securities held for sale or to maturity1.0n/an/a
Cash and equivalents1,9661,7643,078+11.5%
Receivables1,8611,6791,719+10.8%
Inventory2,2322,0461,918+9.1%
Other assets1,7876,9256,979-74.2%
Total assets20,05525,78228,276-22.2%

10-K for the year ended 31 December 2025, filed 12 February 2026: the filing.