Baxter International Inc (BAX)

Baxter Reports First-Quarter 2026 ResultsApril 30, 2026 7:15 AM
Business Wire

Sales from continuing operations of $2.7 billion increased 3% on a reported basis and declined 1% on an organic basis1,2



U.S. GAAP3 diluted earnings per share (EPS) (loss) from continuing operations of ($0.03); adjusted diluted EPS from continuing operations of $0.36



Reiterates full-year 2026 financial outlook



Baxter International Inc. (NYSE: BAX), a global medtech leader, today reported results for the first quarter of 2026.


“Financial results for the quarter overall were in line with our expectations, and we are making progress to stabilize the business, embed a culture of continuous improvement, and strengthen execution,” said Andrew Hider, president and CEO. “Although more work remains to achieve our full potential, Baxter continues to take the decisive steps necessary to fulfill our commitment to delivering better and more consistent results for our shareholders. I want to thank our colleagues for their resilience, dedication and mission-driven focus to support the more than 350 million patients around the world who rely on us annually.”


First-Quarter 2026 Companywide Financial Results


Note that continuing operations exclude Baxter’s Kidney Care business, which was divested in January 2025, and is reported as discontinued operations. Results are compared to the prior-year period unless otherwise noted.



Worldwide sales from continuing operations totaled approximately $2.7 billion, increasing 3% on a reported basis and declining 1% on an organic basis.



U.S. sales from continuing operations totaled approximately $1.44 billion, declining 4% on a reported basis and 4% on an organic basis.



International sales from continuing operations in the first quarter totaled approximately $1.27 billion, increasing 12% on a reported basis and 3% on an organic basis.



On a U.S. GAAP basis, net income (loss) from continuing operations was ($17) million, or ($0.03) per diluted share.



On an adjusted basis, net income from continuing operations was $0.36 per diluted share, decreasing 35% due to the expected unfavorable comparison to the prior year, which benefited from a timing shift in expense recognition related to an updated estimate which resulted in the reclassification of certain functional costs from SG&A to cost of sales. Additionally, higher costs related to tariffs and higher manufacturing costs, including lower absorption, impacted results in the quarter.



Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxter’s segments.


First-Quarter 2026 Segment Results


Results are compared to the prior-year period unless otherwise noted.


Medical Products & Therapies



Sales totaled approximately $1.3 billion, increasing 2% on a reported basis and declining 2% on an organic basis.



Performance in the quarter reflected reduced sales within the Infusion Therapies & Technologies division, driven by lower infusion pump sales due to the previously disclosed shipment and installation hold of the Novum IQ LVP, and an unfavorable comparison to the prior year, which included a one-time distributor build following Hurricane Helene. Continued strong global demand for Advanced Surgery products partially offset the decline.



Healthcare Systems & Technologies



Sales totaled approximately $705 million, remaining flat on a reported basis and declining 2% on an organic basis.



Performance in the quarter reflected reduced sales within the Front Line Care division, driven by the timing of orders and the impact of planned global portfolio exits. Sales in the Care & Connectivity Solutions division were approximately flat.



Pharmaceuticals



Sales totaled approximately $621 million, increasing 7% on a reported basis and 1% on an organic basis.



Performance in the quarter reflected continued strength in Drug Compounding, which was partially offset by reduced sales within Injectables & Anesthesia.



Recent Strategic Highlights4


Baxter continues to advance key strategic priorities in pursuit of its Mission to Save and Sustain Lives. Recent highlights include:



Introduced the IV Verify Line Labeling System, an automated solution offering a standardized and simplified alternative to traditional handwritten line labeling that supports safer medication administration.



Showcased recent innovations at the Association of periOperative Registered Nurses (AORN) Global Surgical Conference & Expo, including the AAT XR spine surgical table and the Dynamo Series smart stretcher.



Expanded Baxter Growth and Performance System (GPS) as the enterprise operating system for continuous improvement, launching more than 230 initiatives in the first quarter, with additional efforts underway and planned throughout 2026.



Announced a partnership between the Baxter Foundation and Pet Partners to expand access to therapy animal programs in healthcare settings across the U.S.



Full-Year 2026 Financial Outlook


The Company reiterated its full-year financial outlook:



Reported sales growth from continuing operations: flat to 1%



Organic sales growth from continuing operations: approximately flat



Adjusted earnings from continuing operations per diluted share: $1.85 to $2.05



See the "Non-GAAP Financial Measures" section for explanations of our non-GAAP financial measures.


Earnings Conference Call


Baxter will host a conference call today, April 30, 2026, at 7:30 a.m. CDT to discuss its first-quarter 2026 results and provide an update on the business. The conference call for investors can be accessed live from a link in the Investor Relations section of the company’s website at www.baxter.com. Please see www.baxter.com for more information regarding this and future investor events and webcasts.


Upcoming Webcasted Investor Events (to be made available on www.baxter.com)



BofA Securities 2026 Health Care Conference


1:20 p.m. CDT May 13, 2026






Goldman Sachs 47th Annual Global Healthcare Conference


10:20 a.m. CDT June 9, 2026






About Baxter


At Baxter, we are everywhere healthcare happens – and everywhere it is going, with essential solutions in the hospital, physician's office and other sites of care. For nearly a century, our customers have counted on us as a vital and trusted partner. And every day, millions of patients and healthcare providers rely on our unmatched portfolio of connected solutions, medical devices, and advanced injectable technologies. Approximately 37,500 Baxter team members live our enduring Mission: to Save and Sustain Lives. Together, we are redefining how care is delivered to make a greater impact today, tomorrow, and beyond. To learn more, visit www.baxter.com and follow us on X, LinkedIn and Facebook.


Non-GAAP Financial Measures


Non-GAAP financial measures may enhance an understanding of the company's operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company's reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this release), may enhance an investor’s overall understanding of the company's past financial performance and prospects for the future. Management uses these non-GAAP measures internally in financial planning, to monitor business unit performance, and, in some cases, for purposes of determining incentive compensation. This information should be considered in addition to, and not as a substitute for, information prepared in accordance with U.S. GAAP.


Organic sales growth is a non-GAAP measure that excludes the impact of the Kidney Care MSA not reflected in reportable segments, impacts associated with business acquisitions or divestitures, and is calculated on a constant currency basis, as if foreign currency exchange rates had remained constant between the prior and current periods.


Other non-GAAP financial measures included in this release and the accompanying tables (including within the tables that provide the company's detailed reconciliations to the corresponding U.S. GAAP financial measures) are: adjusted gross margin, adjusted selling, general, and administrative expenses, adjusted research and development expenses, adjusted operating income (loss), adjusted other income (expense), net, adjusted income (loss) from continuing operations before income taxes, adjusted income tax expense (benefit), adjusted income (loss) from continuing operations, adjusted income (loss) from discontinued operations, adjusted net income (loss), adjusted net income (loss) attributable to Baxter stockholders, adjusted diluted earnings per share from continuing operations, adjusted diluted earnings per share from discontinued operations and adjusted diluted earnings per share. Those non-GAAP financial measures exclude the impact of special items. For the quarters ended March 31, 2026 and 2025, special items for one or more periods included intangible asset amortization, business optimization charges, acquisition and integration costs, separation-related costs, expenses related to European medical devices regulation, certain legal matters, business transformation costs, investment impairments, product-related reserves, the gain on the sale of the Kidney Care business, Hurricane Helene costs, and certain tax matters. These items are excluded because they are highly variable or unusual and of a size that may substantially impact the company's reported operations for a period. Additionally, intangible asset amortization is excluded as a special item to facilitate an evaluation of current and past operating performance and is consistent with how management and the company's Board of Directors assess performance.


This release and the accompanying tables also include free cash flow, a non-GAAP financial measure that Baxter defines as operating cash flow less capital expenditures. Free cash flow is used by management and the company's Board of Directors to evaluate the cash generated from Baxter's operating activities each period after deducting its capital spending.


This release also includes forecasts of certain of the aforementioned non-GAAP measures on a forward-looking basis as part of the company's financial outlook for upcoming periods. Baxter calculates forward-looking non-GAAP financial measures based on forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic sales growth represents the company's targeted future sales growth excluding sales to Vantive under the Kidney Care MSA not reflected in reportable segments, reflects impacts associated with business acquisitions or divestitures, and assumes foreign currency exchange rates remain constant in future periods. Additionally, forward-looking adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking organic sales growth guidance and adjusted diluted EPS guidance because it believes that these measures provide useful information for the reasons noted above. Baxter has not provided reconciliations of forward-looking adjusted EPS guidance to forward-looking GAAP EPS guidance because the company is unable to predict with reasonable certainty the impact of legal proceedings, future business optimization actions, separation-related costs, business transformation costs, asset impairments and unusual gains and losses, and the related amounts are unavailable without unreasonable efforts (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). In addition, Baxter believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.


Forward-Looking Statements


This release includes forward-looking statements concerning the company’s financial results (including the outlook for full-year 2026) and certain business development and product development activities. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the company is exposed to risks as a result of its strategic actions; the company may not achieve the anticipated benefits of its significant transactions, including the sale of its Kidney Care business and its acquisition of Hill-Rom Holdings, Inc.; the company’s significant indebtedness requires it to use a substantial amount of its cash flow for debt service and constrains the company’s ability to pursue growth strategies and advance its R&D capabilities; there is substantial competition in the product markets in which the company operates and the risk of declining demand and pricing pressures could adversely affect the company’s business, results of operations, financial condition and cash flows; the company may be unable to successfully introduce or monetize new and existing products or services or keep pace with changing consumer preferences and needs or advances in technology; the company may not achieve its financial goals; the company has experienced disruptions in its supply chain; global economic conditions, including inflation, have adversely affected, and could continue to adversely affect, the company’s operations; the company may not be successful in achieving expected operating efficiencies and sustaining or improving operating expense reductions; continued consolidation in the health care industry or additional governmental controls exerted over pricing and access in key markets could lead to increased demands for price concessions or limit or eliminate the company’s ability to sell to certain of its significant market segments; the company’s operating results and financial condition have fluctuated and may in the future continue to fluctuate; management transition creates uncertainties, and the company may experience difficulties in managing such transitions, including attracting and retaining key employees; changes in foreign currency exchange rates and interest rates have had, and may in the future have, an adverse effect on the company’s results of operations, financial condition, cash flows, and liquidity; the company is subject to risks associated with doing business globally, including changes in tariffs and trade policies and treaties (including with respect to the validity of previously issued tariffs and the availability of any related refunds) as well as the ongoing Iran conflict and other geopolitical events; future material impairments in the value of the company’s goodwill, intangible assets, and other long-lived assets would negatively affect the company’s operating results; segments of the company’s business are significantly dependent on major contracts with group purchasing organizations, integrated delivery networks, and certain other distributors and purchasers; the company may be unable to obtain sufficient components or raw materials on a timely basis or for a cost-effective price; the company may experience manufacturing, sterilization, supply, or distribution difficulties; the company has experienced and may continue to experience issues with quality management or product quality, including with respect to Novum IQ Large Volume Pump; the company may experience breaches and breakdowns affecting its information technology systems or protected information, including from obsolescence, cyber security breaches and data leakage; the company is exposed to risks associated with incorporating artificial intelligence (AI), machine learning and other emerging technologies into our products, services and operations; a portion of the company’s workforce is unionized, and the company could face labor disruptions that would interfere with its operations; the effects of climate change, including legal, regulatory, or market measures related to climate change and other sustainability topics, could adversely affect the company’s business, results of operations, financial condition, and cash flows; the company’s commitments, goals, activities, and disclosures related to sustainability and corporate responsibility matters, and the perception of the company’s activities in these areas, may fail to satisfy the differing expectations of key stakeholders on these matters; the company is subject to laws and regulations globally, and its failure to comply with rapidly changing and increasingly divergent expectations of regulators in different jurisdictions could adversely impact the company; if reimbursement or other payment for our current or future products is reduced or modified in the U.S. or in foreign countries, or there are changes to policies with respect to pricing, taxation, or rebates, the company’s business could suffer; increasing regulatory focus on, and expanding laws relating to, privacy, artificial intelligence, and cybersecurity could impact the company’s business and expose it to increased liability; the company is party to a number of pending lawsuits and other disputes which may adversely impact it; the company could be subject to fines or damages and possible exclusion from participation in federal or state healthcare programs if it fails to comply with the laws and regulations applicable to its business; if the company is unable to protect or enforce its patents or other proprietary rights, or if the company becomes subject to claims or litigation alleging infringement of the patents or other proprietary rights of others, the company’s competitiveness and business prospects may be materially damaged; changes in tax laws or exposure to additional income tax liabilities may have a negative impact on the company’s operating results; the company’s Amended and Restated Bylaws could limit its stockholders’ ability to choose their preferred judicial forum for disputes with the company or its directors, officers, or employees; the company recently decreased its quarterly dividend to $0.01 per share and cannot guarantee that it will increase the amount of dividends it pays, or that it will not cease paying dividends; the company’s common stock price has fluctuated significantly and may continue to do so; and other risks discussed in Baxter’s most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws.


Baxter, Dynamo Series, IV Verify and Novum IQ are trademarks of Baxter International Inc.




____________________








1Sales growth on an organic basis and adjusted diluted EPS are non-GAAP financial measures. See the “Non-GAAP Financial Measures” section below for information about the non-GAAP financial measures included in this release and see the accompanying tables to this press release for reconciliations of those non-GAAP measures to the corresponding U.S. GAAP measures.








2Organic sales growth excludes the impact of the Kidney Care manufacturing and supply agreement (MSA) not reflected in reportable segments, impacts associated with business acquisitions or divestitures, and is calculated at constant currency rates.








3Generally Accepted Accounting Principles








4See links to original press releases for additional information.









BAXTER INTERNATIONAL INC.




Consolidated Statements of Income (Loss)




(unaudited)




(in millions, except per share and percentage data)











 








 






Three Months

Ended March 31,






 






 








 






2026






 






2025






 






Change








NET SALES






$






2,701






 






 






$






2,625






 






 






3%








COST OF SALES






 






1,810






 






 






 






1,764






 






 






3%








GROSS MARGIN






 






891






 






 






 






861






 






 






3%








% of Net Sales






 






33.0






%






 






 






32.8






%






 






0.2 pts








SELLING, GENERAL AND ADMINISTRATIVE EXPENSES






 






728






 






 






 






703






 






 






4%








% of Net Sales






 






27.0






%






 






 






26.8






%






 






0.2 pts








RESEARCH AND DEVELOPMENT EXPENSES






 






139






 






 






 






140






 






 






(1)%








% of Net Sales






 






5.1






%






 






 






5.3






%






 






(0.2) pts








OTHER OPERATING INCOME, NET






 






(42






)






 






 






(40






)






 






5%








OPERATING INCOME






 






66






 






 






 






58






 






 






14%








% of Net Sales






 






2.4






%






 






 






2.2






%






 






0.2 pts








INTEREST EXPENSE, NET






 






66






 






 






 






64






 






 






3%








OTHER (INCOME) EXPENSE, NET






 






6






 






 






 






(3






)






 






NM








INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES






 






(6






)






 






 






(3






)






 






100%








INCOME TAX EXPENSE (BENEFIT)






 






11






 






 






 






(67






)






 






(116)%








% of Income (loss) from Continuing Operations Before Income Taxes






 






(183.3






)%






 






 






2,233.3






%






 






NM








INCOME (LOSS) FROM CONTINUING OPERATIONS






 






(17






)






 






 






64






 






 






(127)%








INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX






 






2






 






 






 






62






 






 






(97)%








NET INCOME (LOSS)






 






(15






)






 






 






126






 






 






(112)%








NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS






 






—






 






 






 






—






 






 






NM








NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER STOCKHOLDERS






$






(15






)






 






$






126






 






 






(112)%








INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE






 






 






 






 






 








Basic






$






(0.03






)






 






$






0.13






 






 






NM








Diluted






$






(0.03






)






 






$






0.13






 






 






NM








INCOME (LOSS) FROM DISCONTINUED OPERATIONS PER COMMON SHARE






 






 






 






 






 








Basic






$






0.00






 






 






$






0.12






 






 






NM








Diluted






$






0.00






 






 






$






0.12






 






 






NM








INCOME (LOSS) PER COMMON SHARE






 






 






 






 






 








Basic






$






(0.03






)






 






$






0.25






 






 






NM








Diluted






$






(0.03






)






 






$






0.25






 






 






NM








WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING






 






 






 






 






 








Basic






 






515






 






 






 






512






 






 






 








Diluted






 






515






 






 






 






514






 






 






 








ADJUSTED OPERATING INCOME (excluding special items)¹






$






297






 






 






$






392






 






 






(24)%








ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS (excluding special items)¹






$






188






 






 






$






285






 






 






(34)%








ADJUSTED INCOME (LOSS) FROM DISCONTINUED OPERATIONS (excluding special items)1






$






2






 






 






$






35






 






 






(94)%








ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹






$






190






 






 






$






320






 






 






(41)%








ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items)¹






$






0.36






 






 






$






0.55






 






 






(35)%








ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items)¹






$






0.01






 






 






$






0.07






 






 






(86)%








ADJUSTED DILUTED EPS (excluding special items)¹






$






0.37






 






 






$






0.62






 






 






(40)%









1






Refer to page 11 for a description of the adjustments and a reconciliation to U.S. GAAP measures








NM - Not Meaningful









BAXTER INTERNATIONAL INC.




Description of Adjustments and Reconciliation of U.S. GAAP to Non-GAAP Measures




(unaudited, in millions)








 



The company’s U.S. GAAP results for the three months ended March 31, 2026 included special items which impacted the U.S. GAAP measures as follows:






















 



 






Gross Margin






Selling, General and Administrative Expenses






Research and Development Expenses






Operating Income (loss)






Other (Income) Expense, Net






Income (Loss) From Continuing Operations Before Income Taxes






Income Tax Expense (Benefit)






Income (Loss) From Continuing Operations






Income (Loss) From Discontinued Operations, Net of Tax






Net Income (Loss)






Net Income (Loss) Attributable to Baxter Stockholders






Diluted Earnings Per Share from Continuing Operations






Diluted Earnings Per Share from Discontinued Operations






Diluted Earnings Per Share








Reported






$






891






 






$






728






 






$






139






 






$






66






 






$






6






 






$






(6






)






$






11






 






$






(17






)






$






2






 






$






(15






)






$






(15






)






$






(0.03






)






$






0.00






$






(0.03






)








Reported percent of net sales (or effective tax rate for income tax expense (benefit))






 






33.0






%






 






27.0






%






 






5.1






%






 






2.4






%






 






0.2






%






 






(0.2






)%






 






(183.3






)%






 






(0.6






)%






 






0.1






%






 






(0.6






)%






 






(0.6






)%






 






 






 








Intangible asset amortization






 






95






 






 






(51






)






 






—






 






 






146






 






 






—






 






 






146






 






 






34






 






 






112






 






 






—






 






 






112






 






 






112






 






 






0.22






 






 






0.00






 






0.22






 








Business optimization items1






 






11






 






 






(42






)






 






(15






)






 






68






 






 






—






 






 






68






 






 






17






 






 






51






 






 






—






 






 






51






 






 






51






 






 






0.10






 






 






0.00






 






0.10






 








European medical devices regulation3






 






4






 






 






—






 






 






—






 






 






4






 






 






—






 






 






4






 






 






1






 






 






3






 






 






—






 






 






3






 






 






3






 






 






0.01






 






 






0.00






 






0.01






 








Product-related items4






 






(12






)






 






—






 






 






—






 






 






(12






)






 






—






 






 






(12






)






 






(3






)






 






(9






)






 






—






 






 






(9






)






 






(9






)






 






(0.02






)






 






0.00






 






(0.02






)








Hurricane Helene costs5






 






3






 






 






—






 






 






—






 






 






3






 






 




—







 






3






 






 






1






 






 






2






 






 






—






 






 






2






 






 






2






 






 






0.00






 






 






0.00






 






0.00






 








Separation-related costs6






 






—






 






 






(11






)






 






—






 






 






11






 






 






—






 






 






11






 






 






3






 






 






8






 






 






—






 






 






8






 






 






8






 






 






0.02






 






 






0.00






 






0.02






 








Investment impairments7






 






—






 






 






—






 






 






—






 






 






—






 






 






(5






)






 






5






 






 






1






 






 






4






 






 






—






 






 






4






 






 






4






 






 






0.01






 






 






0.00






 






0.01






 








Business transformation8






 






1






 






 






(10






)






 






—






 






 






11






 






 




—







 






11






 






 






3






 






 






8






 






 






—






 






 






8






 






 






8






 






 






0.02






 






 






0.00






 






0.02






 








Tax matters11






 






—






 






 






—






 






 






—






 






 






—






 






 






—






 






 






—






 






 






(26






)






 






26






 






 






—






 






 






26






 






 






26






 






 






0.05






 






 






0.00






 






0.05






 








Adjusted






$






993






 






$






614






 






$






124






 






$






297






 






$






1






 






$






230






 






$






42






 






$






188






 






$






2






 






$






190






 






$






190






 






$






0.36






 






$






0.01






$






0.37






 








Adjusted percent of net sales (or effective tax rate for income tax expense (benefit))






 






36.8






%






 






22.7






%






 






4.6






%






 






11.0






%






 






0.0






%






 






8.5






%






 






18.3






%






 






7.0






%






 






0.1






%






 






7.0






%






 






7.0






%






 






 






 








 






 






 






 






 






 







 






 






 






 






 






 






 






 






 








Weighted-average diluted shares as reported






 






 






 







 






515






 






 






 






 






 






 






 






 






 








Effect of dilutive securities that were anti-dilutive to dilutive EPS as reported







 






2






 






 






 






 






 






 






 






 






 








Weighted-average diluted shares as adjusted






 






 







 






517






 






 






 






 






 






 






 






 






 









The company’s U.S. GAAP results for the three months ended March 31, 2025 included special items which impacted the U.S. GAAP measures as follows:























 



 






Gross Margin






Selling, General and Administrative Expenses






Research and Development Expenses






Operating Income






Other (Income) Expense, Net






Income (Loss) From Continuing Operations Before Income Taxes






Income Tax Expense (Benefit)






Income (Loss) From Continuing Operations






Income (Loss) From Discontinued Operations, Net of Tax






Net Income (Loss)






Net Income (Loss) Attributable to Baxter Stockholders






Diluted Earnings Per Share from Continuing Operations






Diluted Earnings Per Share from Discontinued Operations






Diluted Earnings Per Share








Reported






$






861






 






$






703






 






$






140






 






$






58






 






$






(3






)






$






(3






)






$






(67






)






$






64






 






$






62






 






$






126






 






$






126






 






$






0.13






 






$






0.12






 






$






0.25






 








Reported percent of net sales (or effective tax rate for income tax expense (benefit))






 






32.8






%






 






26.8






%






 






5.3






%






 






2.2






%






 






(0.1






)%






 






(0.1






)%






 






2,233.3






%






 






2.4






%






 






2.4






%






 






4.8






%






 






4.8






%






 






 






 








Intangible asset amortization






 






104






 






 






(51






)






 






—






 






 






155






 






 






—






 






 






155






 






 






37






 






 






118






 






 






—






 






 






118






 






 






118






 






 






0.23






 






 






0.00






 






 






0.23






 








Business optimization items1






 






13






 






 






(30






)






 






(2






)






 






45






 






 






—






 






 






45






 






 






11






 






 






34






 






 






—






 






 






34






 






 






34






 






 






0.07






 






 






0.00






 






 






0.07






 








Acquisition and integration items2






 






—






 






 






(1






)






 






—






 






 






1






 






 






(5






)






 






6






 






 






1






 






 






5






 






 






—






 






 






5






 






 






5






 






 






0.01






 






 






0.00






 






 






0.01






 








European medical devices regulation3






 






5






 






 






—






 






 






—






 






 






5






 






 






—






 






 






5






 






 






1






 






 






4






 






 






—






 






 






4






 






 






4






 






 






0.01






 






 






0.00






 






 






0.01






 








Product-related items4






 






6






 






 






—






 






—







 






6






 






—







 






6






 






 






2






 






 






4






 






 






—






 






 






4






 






 






4






 






 






0.01






 






 






0.00






 






 






0.01






 








Hurricane Helene costs5






 






98






 






 






—






 






—







 






98






 






—







 






98






 






 






25






 






 






73






 






 






6






 






 






79






 






 






79






 






 






0.14






 






 






0.01






 






 






0.15






 








Legal matters9






 






11






 






 






—






 






 






—






 






 






11






 






 






—






 






 






11






 






 






2






 






 






9






 






 






—






 






 






9






 






 






9






 






 






0.02






 






 






0.00






 






 






0.02






 








Separation-related costs6






 






—






 






 






(13






)






 






—






 






 






13






 






 






—






 






 






13






 






 






3






 






 






10






 






 






31






 






 






41






 






 






41






 






 






0.02






 






 






0.06






 






 






0.08






 








Investment impairments7






 






—






 






 






—






 






 






—






 






 






—






 






 






(9






)






 






9






 






 






2






 






 






7






 






 






—






 






 






7






 






 






7






 






 






0.01






 






 






0.00






 






 






0.01






 








Gain on Kidney Care sale10






 






—






 






 






—






 






 






—






 






 






—






 






—







 






—






 






 






—






 






 






—






 






 






(111






)






 






(111






)






 






(111






)






 






0.00






 






 






(0.22






)






 






(0.22






)








Tax matters11






 






—






 






 






—






 






 






—






 






 






—






 






 






—






 






 






—






 






 






43






 






 






(43






)






 






47






 






 






4






 






 






4






 






 






(0.08






)






 






0.09






 






 






0.00






 








Adjusted






$






1,098






 






$






608






 






$






138






 






$






392






 






$






(17






)






$






345






 






$






60






 






$






285






 






$






35






 






$






320






 






$






320






 






$






0.55






 






$






0.07






 






$






0.62






 








Adjusted percent of net sales (or effective tax rate for income tax expense (benefit))






 






41.8






%






 






23.2






%






 






5.3






%






 






14.9






%






 






(0.6






)%






 






13.1






%






 






17.4






%






 






10.9






%






 






1.3






%






 






12.2






%






 






12.2






%






 






 






 








 






 






 






 







 






 







 






 






 






 






 






 






 






 






 









1






The company’s results of continuing operations in 2026 and 2025 included costs related to programs to optimize its organization and cost structure. These restructuring and business optimization costs in 2026 and 2025 included costs primarily related to its initiatives to reduce its cost structure following the sale of its former Kidney Care segment.








2






The company’s results of continuing operations in 2025 included integration-related items comprised of Hill-Rom Holdings, Inc. (Hillrom) acquisition and integration expenses. In 2025 these expenses primarily reflected the recognition of a noncash impairment of property, plant and equipment related to integration activities.








3






The company’s results in 2026 and 2025 included incremental costs to comply with the European Union’s medical device regulations for previously registered products, which primarily consisted of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results.








4






The company's results of continuing operations in 2026 included a benefit related to a revised estimate of warranty and remediation activities from field corrective actions across our infusion pump category initially recorded in 2025. The company's results of continuing operations in 2025 included charges related to a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022.








5






The company's results of continuing operations in 2026 and 2025 included charges related to Hurricane Helene which primarily consisted of remediation, air freight and other costs.








6






The company’s results of continuing operations in 2026 and 2025 and included separation-related costs primarily related to external advisors supporting its activities related to the sale of its former Kidney Care segment. The company's results of discontinued operations in 2025 included separation-related costs primarily related to external advisors supporting its activities related to the completed sale of its Kidney Care segment.








7






The company's results of continuing operations in 2026 and 2025 included investment impairments which include losses from noncash impairment write-downs of investments.








8






The company's results of continuing operations in 2026 included business transformation costs which include expenses incurred in connection with discrete, newly launched enterprise-wide initiatives to modernize and simplify systems, redesign operating models, and enhance process efficiency and digital capabilities. These costs are distinct from restructuring-related charges (which are included in footnote 1 above as Business Optimization items) and are excluded to provide investors with greater comparability of underlying operating performance.








9






The company’s results of continuing operations in 2025 included charges related to matters involving alleged injury from environmental exposure.








10






The company's results of discontinued operations in 2025 included a gain from the sale of the Kidney Care business.








11






The company's results of continuing operations in 2026 included an income tax expense primarily related to an increase in interest related to uncertain tax positions and differences arising from the use of a forecasted effective tax rate to compute income tax expense during the quarter. The company's results of continuing operations in 2025 included an income tax benefit driven by an entity classification election that the Company made for U.S. tax purposes, which resulted in a capital loss. The company's results of discontinued operations in 2025 included indirect impacts of the carryback of the tax benefits generated by the sale of its Kidney Care business to prior years.











For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.









BAXTER INTERNATIONAL INC.




Sales by Operating Segment




(unaudited)




($ in millions)











The Medical Products & Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. The Healthcare Systems & Technologies segment includes sales of our 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, including operating room integration technologies, precision positioning devices and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia and drug compounding. Other sales not allocated to a segment primarily includes sales to Vantive, pursuant to the Kidney Care Manufacturing and Supply Agreement (MSA), and sales of products and services provided directly through certain of our manufacturing facilities.









 






Three Months Ended March 31,






% Change @ Actual Rates






% Change @

Organic Sales

Growth








 






2026






2025








Infusion Therapies & Technologies






$






981






$






994






(1






)%






(5






)%








Advanced Surgery






 






304






 






268






13






%






10






%








Medical Products & Therapies






 






1,285






 






1,262






2






%






(2






)%








Care & Connectivity Solutions






 






435






 






427






2






%






(0






)%








Front Line Care






 






270






 






277






(3






)%






(4






)%








Healthcare Systems & Technologies






 






705






 






704






0






%






(2






)%








Injectables & Anesthesia






 






301






 






335






(10






)%






(13






)%








Drug Compounding






 






320






 






246






30






%






20






%








Pharmaceuticals






 






621






 






581






7






%






1






%








Other






 






90






 






78






15






%






(13






)%








Total - Continuing Operations






$






2,701






$






2,625






3






%






(1






)%








 






 






 






 






 






 






 






 






 








Organic sales growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.









BAXTER INTERNATIONAL INC.




Segment Operating Income




(unaudited)




($ in millions)








 






 








 






Three Months Ended March 31,








 






2026






2025








Medical Products & Therapies






$






186






 






$






244






 








% of Segment Net Sales






 






14.5






%






 






19.3






%








Healthcare Systems & Technologies






 






66






 






 






93






 








% of Segment Net Sales






 






9.4






%






 






13.2






%








Pharmaceuticals






 






46






 






 






63






 








% of Segment Net Sales






 






7.4






%






 






10.8






%








Other






 






11






 






 






9






 








Total






 






309






 






 






409






 








Unallocated corporate costs






 






(12






)






 






(17






)








Intangible asset amortization expense






 






(146






)






 






(155






)








Legal matters






 






—






 






 






(11






)








Business optimization items






 






(68






)






 






(45






)








Acquisition and integration items






 






—






 






 






(1






)








Separation-related costs






 






(11






)






 






(13






)








European Medical Devices Regulation






 






(4






)






 






(5






)








Product-related items






 






12






 






 






(6






)








Business transformation






 






(11






)






 






—






 








Hurricane Helene costs






 






(3






)






 






(98






)








Total operating income (loss)






 






66






 






 






58






 








Interest expense, net






 






66






 






 






64






 








Other (income) expense, net






 






6






 






 






(3






)








Income (Loss) from continuing operations before income taxes






$






(6






)






$






(3






)









BAXTER INTERNATIONAL INC.




Operating Segment Sales by U.S. and International




(unaudited)




($ in millions)












 



 






Three Months Ended March 31,






 






 






 






 








 






2026






 






2025






 






% Growth








 






U.S.






International






Total






 






U.S.






International






Total






 






U.S.






International






Total








Infusion Therapies & Technologies






$






526






$






455






$






981






 






$






584






$






410






$






994






 






(10






)%






11






%






(1






)%








Advanced Surgery






 






165






 






139






 






304






 






 






145






 






123






 






268






 






14






%






13






%






13






%








Medical Product & Therapies






 






691






 






594






 






1,285






 






 






729






 






533






 






1,262






 






(5






)%






11






%






2






%








Care & Connectivity Solutions






 






315






 






120






 






435






 






 






316






 






111






 






427






 






(0






)%






8






%






2






%








Front Line Care






 






198






 






72






 






270






 






 






202






 






75






 






277






 






(2






)%






(4






)%






(3






)%








Healthcare Systems & Technologies






 






513






 






192






 






705






 






 






518






 






186






 






704






 






(1






)%






3






%






0






%








Injectables & Anesthesia






 






180






 






121






 






301






 






 






195






 






140






 






335






 






(8






)%






(14






)%






(10






)%








Drug Compounding






 






—






 






320






 






320






 






 






—






 






246






 






246






 






0






%






30






%






30






%








Pharmaceuticals






 






180






 






441






 






621






 






 






195






 






386






 






581






 






(8






)%






14






%






7






%








Other






 






51






 






39






 






90






 






 






48






 






30






 






78






 






6






%






30






%






15






%








Total - Continuing Operations






$






1,435






$






1,266






$






2,701






 






$






1,490






$






1,135






$






2,625






 






(4






)%






12






%






3






%








 






 






 






 






 






 






 






 






 






 






 






 









BAXTER INTERNATIONAL INC.




Reconciliation of Non-GAAP Financial Measure




Operating Cash Flow to Free Cash Flow




(unaudited)




($ in millions)








 









 






Three Months Ended March 31,








 






2026






 






2025








Cash flows from (used in) operations – continuing operations






$






213






 






 






$






(99






)








Cash flows from (used in) investing activities - continuing operations






 






(133






)






 






 






(124






)








Cash flows from (used in) financing activities






 






(11






)






 






 






(3,226






)








 






 






 






 








Cash flows from (used in) operations - continuing operations






$






213






 






 






$






(99






)








Capital expenditures - continuing operations






 






(137






)






 






 






(122






)








Free cash flow - continuing operations






$






76






 






 






$






(221






)














 









 



Free cash flow is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.









BAXTER INTERNATIONAL INC.




Reconciliation of Non-GAAP Financial Measure

Change in Net Sales Growth As Reported to Organic Sales Growth From the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2026

(unaudited)











 



 






Net Sales Growth




As Reported






Kidney Care MSA






FX






Organic Sales Growth*








Infusion Therapies & Technologies






(1






)%






0






%






(4






)%






(5






)%








Advanced Surgery






13






%






0






%






(3






)%






10






%








Medical Products & Therapies






2






%






0






%






(4






)%






(2






)%








Care & Connectivity Solutions






2






%






0






%






(2






)%






(0






)%








Front Line Care






(3






)%






0






%






(1






)%






(4






)%








Healthcare Systems & Technologies






0






%






0






%






(2






)%






(2






)%








Injectables & Anesthesia






(10






)%






0






%






(3






)%






(13






)%








Drug Compounding






30






%






0






%






(10






)%






20






%








Pharmaceuticals






7






%






0






%






(6






)%






1






%








Other






15






%






(17






)%






(11






)%






(13






)%








Total - Continuing Operations






3






%






(1






)%






(3






)%






(1






)%









*Totals may not add across due to rounding




 








Organic sales growth is a non-GAAP measure. For more information on the company’s use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.









BAXTER INTERNATIONAL INC.




Reconciliation of Non-GAAP Financial Measures

Projected Full Year 2026 U.S. GAAP Sales Growth to Projected Organic Sales Growth and Projected Full Year 2026 Adjusted Earnings Per Share

(unaudited)








 



Sales Growth Guidance






FY 2026*








Sales growth - U.S. GAAP






Flat - 1%








Kidney Care MSA






~30 bps








Foreign Exchange






(~100 bps)








Organic sales growth






~ Flat









Adjusted Earnings Per Share Guidance






FY 2026








Adjusted diluted EPS






$1.85 - $2.05








 



*Totals may not foot due to rounding




 










 


Baxter calculates forward-looking non-GAAP financial measures based on forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic sales growth represents the company’s targeted future sales growth excluding the impact of the Kidney Care MSA not reflected in reportable segments, impacts associated with business acquisitions or divestitures, and is calculated on a constant currency basis, as if foreign currency exchange rates had remained constant between the prior and current periods. Additionally, forward-looking adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking organic sales growth guidance and adjusted diluted EPS guidance because it believes that these measures provide useful information for the reasons noted above. Baxter has not provided reconciliations of forward-looking adjusted EPS guidance to forward-looking GAAP EPS guidance because the company is unable to predict with reasonable certainty the impact of legal proceedings, future business optimization actions, separation-related costs, business transformation-related costs, asset impairments and unusual gains and losses, and the related amounts are unavailable without unreasonable efforts (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). In addition, Baxter believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.


 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260428466246/en/
Media Contact

Andrea Johnson, (224) 948-5353

media@baxter.com


Investor Contact

Kevin Moran, (224) 948-3085

global_corp_investor_relations@baxter.com


Original: Baxter Reports First-Quarter 2026 Results