A Business at a Glance
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BAXTER INTERNATIONAL INC
BAX
$11.5B
Mkt Cap
$22.40
+3.37%
BAXTER INTERNATIONAL INC (BAX) has a 5-year average return on invested capital (ROIC) of 2.0%. This is below average and may indicate limited pricing power.
BAXTER INTERNATIONAL INC (BAX) has a market capitalization of $15.3B. It is classified as a large-cap stock.
Yes, BAXTER INTERNATIONAL INC (BAX) pays a dividend with a trailing twelve-month yield of 1.74%.
BAXTER INTERNATIONAL INC (BAX) operates in the Surgical & Medical Instruments & Apparatus industry, within the Healthcare sector.
BAXTER INTERNATIONAL INC (BAX) reported annual revenue of $11.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
BAXTER INTERNATIONAL INC (BAX) has a net profit margin of -8.5%. The company is currently unprofitable.
BAXTER INTERNATIONAL INC (BAX) generated $332 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Baxter International is a diversified healthcare company providing essential medical products and therapies across three reportable segments: Medical Products & Therapies (sterile IV solutions, infusion systems, parenteral nutrition, surgical hemostats and sealants), Healthcare Systems & Technologies (smart bed systems, patient monitoring, diagnostic technologies, respiratory devices, surgical equipment), and Pharmaceuticals (specialty injectable pharmaceuticals, inhaled anesthetics, drug compounding). The company operates a global manufacturing and distribution network spanning over 20 countries with sales in over 100 countries, serving hospitals, nursing homes, ambulatory surgery centers, dialysis centers, physicians' offices, and home-care patients. Baxter's business model combines direct sales forces with independent distributors and major third-party logistics partners such as Cardinal Health and Medline, which warehouse and distribute significant product volumes through their distribution centers. The company benefits from long-term customer contracts with hospitals, group purchasing organizations (GPOs), and integrated delivery networks (IDNs), though many contracts limit price increases and specify minimum purchase quantities. Competitive advantages include the breadth and depth of its product portfolio, strong customer relationships, manufacturing efficiencies from shared facilities, and technological product advantages, positioning Baxter as a critical supplier of essential healthcare products across developed and emerging markets.
【Operational recovery and deleveraging focus】 Management expects the first half of 2026 to remain challenging with unfavorable year-over-year comparisons and absorption headwinds from higher-cost inventory produced in late 2025, followed by improving performance in the second half driven by volume growth, cost structure improvements, and new product launches including Connex 360 and Dynamo smart hospital stretcher. The company is prioritizing debt reduction to achieve a net leverage target of approximately 3.0x by end of 2026, after which it plans to expand capital deployment options including selective tuck-in acquisitions and potential share repurchases. Baxter is implementing its Baxter Growth and Performance system (launched October 2025) to drive continuous improvement, operational discipline, and more consistent execution, while continuing to invest in R&D at or above historical levels to advance innovation in connected care and core therapy offerings. Management remains focused on resolving the Novum IQ Large Volume Pump field actions and supporting current customers with available mitigations, while expecting some level of fluid conservation to persist into 2026 and working to improve forecasting accuracy and reduce organizational complexity.
| Metric | Target | Period |
|---|---|---|
| Total sales growth (reported basis) | flat to 1% | FY2026 |
| Organic sales growth | approximately flat | FY2026 |
| Medical Products & Therapies organic sales growth | flat to slightly up | FY2026 |
| Healthcare Systems & Technologies organic sales growth | low single digits | FY2026 |
| Pharmaceuticals organic sales growth | approximately flat | FY2026 |
| Tariff impact (net of mitigating actions) | approximately $80 million | FY2026 |
| TSA income and other reimbursements | $130 million-$140 million | FY2026 |
| Adjusted operating margin (continuing operations) | 13%-14% | FY2026 |
| Non-operating expenses (net interest and other) | $280 million-$300 million | FY2026 |
| Tax rate (continuing operations) | 18.5%-19.5% |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 11.3B | 11.2B | 10.6B | 10.4B | 10.1B | 12.1B |
| Net Income | -1.1B | -957M | -649M | 2.7B | -2.4B | 1.3B |
| EPS | $-1.61 | $-1.87 | $-1.27 | $5.23 | $-4.83 | $2.53 |
| Free Cash Flow | 0 | 332M | 573M | 1.3B | 834M | 1.5B |
| ROIC | -4.2% | -1.9% | - | 13.1% | -10.3% | 7.0% |
| Gross Margin | 30.1% | 30.1% | 37.5% | 40.1% | 35.3% | 38.9% |
| Debt/Equity | 0.28 | 1.60 | 1.93 | 1.68 | 2.95 | 2.02 |
| Dividends/Share | $0.39 | $0.52 | $1.04 | $1.16 | $1.15 | $1.09 |
| Operating Income | -300M | -308M | - | 707M | -2.8B | 1.4B |
| Operating Margin | -2.7% | -2.7% | - | 6.8% | -28.3% | 11.1% |
| ROE | -18.2% | -14.6% | -8.4% | 37.3% | -32.6% | 14.5% |
| Shares Outstanding | 683M | 512M | 511M | 508M | 504M | 508M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 10.7B | 10.0B | 10.2B | 10.6B | 11.1B | 11.4B | 11.7B | 12.1B | 10.1B | 10.4B | 10.6B | 11.2B | 11.3B |
| Gross Margin | 42.7% | 41.6% | 40.5% | 42.4% | 42.9% | 41.9% | 39.3% | 38.9% | 35.3% | 40.1% | 37.5% | 30.1% | 30.1% |
| R&D | 610M | 603M | 646M | 615M | 654M | 595M | 521M | 531M | 450M | 518M | 590M | 518M | 517M |
| SG&A | 3.3B | 3.1B | 2.7B | 2.6B | 2.6B | 2.5B | 2.5B | 2.8B | 3.1B | 3.0B | 3.0B | 2.9B | 2.9B |
| EBIT | 656M | 449M | 745M | 1.3B | 1.6B | 1.8B | 1.6B | 1.4B | -2.8B | 707M | N/A | -308M | -300M |
| Op. Margin | 6.1% | 4.5% | 7.3% | 12.2% | 14.3% | 15.6% | 13.8% | 11.1% | -28.3% | 6.8% | N/A | -2.7% | -2.7% |
| Net Income | 2.5B | 968M | 5.0B | 602M | 1.5B | 1.0B | 1.1B | 1.3B | -2.4B | 2.7B | -649M | -957M | -1.1B |
| Net Margin | 23.3% | 9.7% | 48.9% | 5.7% | 13.9% | 8.8% | 9.4% | 10.6% | -24.2% | 25.6% | -6.1% | -8.5% | -9.7% |
| Non-Recurring | 26M | 168M | 288M | 73M | 120M | 135M | 111M | 91M | 2.9B | 141M | 571M | 647M | 179M |
| Returns on Capital | |||||||||||||
| ROIC | 15.6% | 3.7% | 41.7% | 8.8% | 16.2% | 17.7% | 12.8% | 7.0% | -10.3% | 13.1% | N/A | -1.9% | -4.2% |
| ROE | 30.1% | 11.4% | 57.9% | 6.9% | 18.2% | 12.7% | 13.3% | 14.5% | -32.6% | 37.3% | -8.4% | -14.6% | -18.2% |
| ROA | 9.7% | 4.1% | 27.2% | 3.7% | 9.4% | 5.9% | 5.8% | 4.8% | -7.9% | 9.4% | -2.4% | -4.2% | -5.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 3.2B | 1.8B | 1.7B | 1.7B | 2.0B | 2.1B | 1.9B | 2.2B | 1.2B | 1.7B | 1.0B | 845M | 1.3B |
| Free Cash Flow | 2.1B | 860M | 935M | 1.1B | 1.4B | 1.4B | 1.2B | 1.5B | 834M | 1.3B | 573M | 332M | 0 |
| Owner Earnings | 2.3B | 886M | 739M | 857M | 1.1B | 1.2B | 915M | 1.2B | -1000K | 627M | -92M | -253M | 163M |
| CapEx | 1.1B | 911M | 719M | 616M | 659M | 696M | 709M | 691M | 377M | 432M | 446M | 513M | 0 |
| Maint. CapEx | 792M | 759M | 800M | 750M | 771M | 789M | 823M | 867M | 1.1B | 984M | 997M | 981M | 971M |
| Growth CapEx | 284M | 152M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 792M | 759M | 800M | 750M | 771M | 789M | 823M | 867M | 1.1B | 984M | 997M | 981M | 971M |
| CapEx/OCF | 28.8% | 51.4% | 43.5% | 34.5% | 32.7% | 33.1% | 38.0% | 33.4% | 51.2% | 25.0% | 43.8% | 60.7% | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 1.1B | 910M | 268M | 315M | 376M | 423M | 473M | 530M | 573M | 586M | 590M | 348M | 266M |
| Dividend Yield | 6.2% | 5.2% | 1.3% | 1.1% | 1.1% | 1.2% | 1.2% | 1.4% | 1.8% | 3.0% | 3.2% | 2.5% | 1.7% |
| Share Buybacks | 550M | 0 | 292M | 564M | 2.5B | 1.3B | 500M | 600M | 32M | 0 | 0 | 0 | 0 |
| Buyback Yield | 3.0% | N/A | 1.4% | 1.8% | 7.8% | 3.3% | 1.4% | 1.5% | 0.1% | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 126M | 126M | 115M | 107M | 115M | 122M | 130M | 146M | 140M | 115M | 114M | 117M | 117M |
| Debt Repayment | 1.0B | 3.8B | 1.4B | 1.0M | 0 | 0 | 1.2B | 2.8B | 954M | 2.6B | 2.7B | 5.5B | 5.5B |
| Balance Sheet | |||||||||||||
| Net Debt | 6.1B | -854M | -19M | 118M | 1.6B | 2.6B | 3.1B | 15.4B | 15.6B | 11.0B | 11.7B | 7.8B | -334M |
| Cash & Equiv. | 2.9B | 2.2B | 2.8B | 3.4B | 1.8B | 3.3B | 3.7B | 3.0B | 1.6B | 3.1B | 1.8B | 2.0B | 2.0B |
| Long-Term Debt | 7.3B | 3.9B | 2.8B | 3.5B | 3.5B | 4.8B | 5.8B | 17.1B | 15.2B | 11.1B | 10.4B | 9.5B | 842M |
| Debt/Equity | 1.11 | 0.74 | 0.34 | 0.38 | 0.44 | 0.76 | 0.78 | 2.02 | 2.95 | 1.68 | 1.93 | 1.60 | 0.28 |
| Interest Coverage | 3.9 | 3.1 | 8.4 | 15.2 | 17.0 | 16.0 | 10.6 | 6.5 | -6.9 | 1.4 | N/A | -1.1 | -1.1 |
| Equity | 8.1B | 8.8B | 8.3B | 9.1B | 7.8B | 7.9B | 8.7B | 9.1B | 5.8B | 8.4B | 7.0B | 6.1B | 6.0B |
| Total Assets | 26.1B | 21.0B | 15.5B | 17.1B | 15.7B | 18.2B | 20.0B | 33.5B | 28.3B | 28.3B | 25.8B | 20.1B | 19.8B |
| Total Liabilities | 18.0B | 12.1B | 7.3B | 8.0B | 7.9B | 10.3B | 11.3B | 24.4B | 22.4B | 19.8B | 18.8B | 14.0B | 13.8B |
| Intangibles | 1.6B | 1.3B | 1.1B | 1.4B | 1.4B | 1.5B | 1.7B | 7.8B | 6.8B | 5.9B | 5.2B | 4.4B | 4.2B |
| Retained Earnings | 13.2B | 9.7B | 14.2B | 14.5B | 15.1B | 15.7B | 16.3B | 17.1B | 14.1B | 16.1B | 14.9B | 13.7B | 13.7B |
| Working Capital | 4.1B | 6.0B | 3.8B | 4.4B | 3.1B | 4.3B | 5.1B | 4.6B | 3.3B | 3.1B | 2.3B | 3.9B | 3.2B |
| Current Assets | 10.2B | 11.8B | 6.6B | 7.3B | 6.0B | 7.5B | 8.4B | 8.9B | 8.0B | 9.6B | 8.9B | 6.9B | 6.8B |
| Current Liabilities | 6.0B | 5.8B | 2.7B | 2.8B | 2.8B | 3.2B | 3.3B | 4.2B | 4.7B | 6.5B | 6.5B | 3.0B | 3.7B |
| Per Share Data | |||||||||||||
| EPS | 4.56 | 1.76 | 9.01 | 1.08 | 2.83 | 1.93 | 2.13 | 2.53 | -4.83 | 5.23 | -1.27 | -1.87 | -1.61 |
| Owner EPS | 4.19 | 1.61 | 1.34 | 1.54 | 2.07 | 2.30 | 1.77 | 2.38 | -0.00 | 1.23 | -0.18 | -0.49 | 0.24 |
| Book Value | 14.83 | 16.08 | 15.04 | 16.37 | 14.36 | 15.20 | 16.79 | 17.89 | 11.58 | 16.54 | 13.63 | 11.98 | 8.84 |
| Cash Flow/Share | 5.87 | 3.22 | 3.00 | 3.07 | 3.69 | 4.06 | 3.61 | 4.38 | 2.40 | 3.40 | 1.99 | 1.65 | -0.19 |
| Dividends/Share | 2.05 | 1.27 | 0.51 | 0.61 | 0.73 | 0.85 | 0.96 | 1.09 | 1.15 | 1.16 | 1.04 | 0.52 | 0.39 |
| Shares Out. | 547.6M | 550.0M | 551.1M | 557.4M | 546.3M | 518.7M | 517.4M | 507.5M | 503.7M | 507.8M | 511.0M | 511.8M | 683.5M |
| Valuation | |||||||||||||
| P/E Ratio | 7.4 | 18.4 | 4.2 | 43.8 | 20.2 | 38.7 | 33.4 | 31.2 | N/A | 7.1 | N/A | N/A | -13.9 |
| P/FCF | 8.6 | 20.8 | 22.4 | 28.7 | 23.1 | 27.5 | 31.8 | 26.2 | 28.2 | 14.5 | 25.6 | 29.9 | N/A |
| EV/EBIT | 33.0 | 44.4 | 25.1 | 21.8 | 19.6 | 21.4 | 22.6 | 31.0 | N/A | 37.7 | N/A | N/A | N/A |
| Price/Book | 2.3 | 2.0 | 2.5 | 3.4 | 4.0 | 4.9 | 4.2 | 4.4 | 4.0 | 2.2 | 2.1 | 1.6 | 2.5 |
| Price/Sales | 1.6 | 1.7 | 2.0 | 2.6 | 3.0 | 3.2 | 3.3 | 2.9 | 3.1 | 1.9 | 1.7 | 1.2 | 1.4 |
| FCF Yield | 11.6% | 4.8% | 4.5% | 3.5% | 4.3% | 3.6% | 3.1% | 3.8% | 3.5% | 6.9% | 3.9% | 3.3% | N/A |
| Market Cap | 18.5B | 17.8B | 21.0B | 31.4B | 31.3B | 38.7B | 36.8B | 40.1B | 23.5B | 18.8B | 14.6B | 9.9B | 15.3B |
| Avg. Price | 32.17 | 31.55 | 37.50 | 50.04 | 61.04 | 70.28 | 75.14 | 72.85 | 62.19 | 38.56 | 35.79 | 26.83 | 22.40 |
| Year-End Price | 33.72 | 32.45 | 38.04 | 56.44 | 57.30 | 74.65 | 71.19 | 79.01 | 46.67 | 37.02 | 28.67 | 19.37 | 22.40 |
BAXTER INTERNATIONAL INC passes 1 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 34.5x vs a median of 26.8x. The company's 5-year average ROIC is 2.0% with a gross margin of 36.3%. Total shareholder yield (dividends) is 1.7%. At current prices, the estimated annualized return to fair value is -13.6%.
BAXTER INTERNATIONAL INC (BAX) has a debt-to-equity ratio of 1.60. This indicates higher leverage, which may increase financial risk.
BAXTER INTERNATIONAL INC (BAX) reported earnings per share (EPS) of $-1.87 in its most recent fiscal year.
BAXTER INTERNATIONAL INC (BAX) has a return on equity (ROE) of -14.6%. A negative ROE may indicate losses or negative equity.
BAXTER INTERNATIONAL INC (BAX) has a 5-year average gross margin of 36.3%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for BAXTER INTERNATIONAL INC (BAX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
BAXTER INTERNATIONAL INC (BAX) has a book value per share of $11.98, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the first half of 2026 to remain challenging with unfavorable year-over-year comparisons and absorption headwinds from higher-cost inventory produced in late 2025, followed by improving performance in the second half driven by volume growth, cost structure improvements, and new product launches including Connex 360 and Dynamo smart hospital stretcher. The company is prioritizing debt reduction to achieve a net leverage target of approximately 3.0x by end of 2026, after which it plans to expand capital deployment options including selective tuck-in acquisitions and potential share repurchases. Baxter is implementing its Baxter Growth and Performance system (launched October 2025) to drive continuous improvement, operational discipline, and more consistent execution, while continuing to invest in R&D at or above historical levels to advance innovation in connected care and core therapy offerings. Management remains focused on resolving the Novum IQ Large Volume Pump field actions and supporting current customers with available mitigations, while expecting some level of fluid conservation to persist into 2026 and working to improve forecasting accuracy and reduce organizational complexity.
Based on recent SEC filings and earnings calls, BAXTER INTERNATIONAL INC (BAX) has provided the following forward guidance: Total sales growth (reported basis): flat to 1% (FY2026); Organic sales growth: approximately flat (FY2026); Medical Products & Therapies organic sales growth: flat to slightly up (FY2026); Healthcare Systems & Technologies organic sales growth: low single digits (FY2026); Pharmaceuticals organic sales growth: approximately flat (FY2026), plus 8 additional metrics.
| FY2026 |
| Diluted share count | approximately 518 million shares | FY2026 |
| Adjusted earnings per diluted share (continuing operations) | $1.85-$2.05 | FY2026 |
| Net leverage target | approximately 3.0x | end of 2026 |
Total sales growth (reported basis) (FY2026): “For the full year, we continue to expect total sales growth to be flat to 1% growth on a reported basis.”
Organic sales growth (FY2026): “Excluding the impact of foreign currency and MSA revenues, we expect approximately flat organic sales growth for 2026.”
Medical Products & Therapies organic sales growth (FY2026): “In MPT, we expect full year organic sales to be flat to slightly up.”
Healthcare Systems & Technologies organic sales growth (FY2026): “In HST, we continue to expect full year organic sales to grow low single digits, supported by anticipated contributions from both the Care and Connectivity Solutions and Front Line Care divisions.”
Pharmaceuticals organic sales growth (FY2026): “In pharmaceuticals, we expect full year organic sales to be approximately flat.”
Tariff impact (net of mitigating actions) (FY2026): “we continue to estimate a full year impact net of mitigating actions to be approximately $80 million, which represents a year-over-year headwind of approximately $40 million”
TSA income and other reimbursements (FY2026): “TSA income and other reimbursements are expected to range from $130 million-$140 million.”
Adjusted operating margin (continuing operations) (FY2026): “We continue to expect full year adjusted operating margin from Continuing Operations to range between 13%-14%.”