# BAXTER INTERNATIONAL INC (BAX)

Informational only - not investment advice.

CIK: 0000010456
SIC: 3841 Surgical & Medical Instruments & Apparatus
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3841 Surgical & Medical Instruments & Apparatus](/industry/3841/)
Latest 10-K filed: 2026-02-12
SEC page: https://www.sec.gov/edgar/browse/?CIK=10456
Filing source: https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-12 · accession 0001628280-26-007733 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000010456.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 11,244,000,000 USD | 2025 | verified |
| Net income | -957,000,000 USD | 2025 | verified |
| Assets | 20,055,000,000 USD | 2025 | verified |
| Free cash flow | 332,000,000 USD | 2025 | computed |
| Net margin | -8.51% | 2025 | computed |
| Operating margin | -2.74% | 2025 | computed |
| Revenue YoY | +5.72% | 2025 | computed |
| ROE | -15.61% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Medical devices and instruments](/compare/medical-devices/) · SIC 3841 Surgical & Medical Instruments & Apparatus

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including BAX

- Medical devices and instruments: [peer review](/compare/medical-devices/) · [market-risk page](/compare/medical-devices/risk/)

### Peer percentile fingerprint

| Ratio | BAX | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -8.5% | -6.0% | 45 | 63 |
| Operating margin | -2.7% | -2.7% | 50 | 63 |
| Revenue growth | 5.7% | 13.6% | 24 | 64 |
| FCF margin | 3.0% | 0.2% | 55 | 63 |
| ROE | -15.6% | -9.1% | 42 | 58 |
| ROA | -4.8% | -4.8% | 50 | 65 |
| Liabilities / equity | 2.28 | 0.89 | 74 | 63 |
| Current ratio | 2.31 | 3.23 | 27 | 65 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3841 Surgical & Medical Instruments & Apparatus, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 11244000000 | USD | 2025 | 2026-02-12 |
| Net income | -957000000 | USD | 2025 | 2026-02-12 |
| Assets | 20055000000 | USD | 2025 | 2026-02-12 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000010456.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 10,163,000,000 | 10,584,000,000 | 11,099,000,000 | 11,362,000,000 | 11,673,000,000 | 12,146,000,000 | 10,057,000,000 | 10,360,000,000 | 10,636,000,000 | 11,244,000,000 |
| Net income |  | 4,965,000,000 | 602,000,000 | 1,546,000,000 | 1,001,000,000 | 1,102,000,000 | 1,284,000,000 | -2,433,000,000 | 2,656,000,000 | -649,000,000 | -957,000,000 |
| Operating income |  | 745,000,000 | 1,288,000,000 | 1,584,000,000 | 1,772,000,000 | 1,616,000,000 | 1,350,000,000 | -2,845,000,000 | 707,000,000 | 14,000,000 | -308,000,000 |
| Gross profit |  | 4,116,000,000 | 4,474,000,000 | 4,759,000,000 | 4,761,000,000 | 4,587,000,000 | 4,720,000,000 | 3,549,000,000 | 4,150,000,000 | 3,984,000,000 | 3,379,000,000 |
| Diluted EPS |  | 9.01 | 1.08 | 2.83 | 1.93 | 2.13 | 2.53 | -4.83 | 5.23 | -1.27 | -1.87 |
| Operating cash flow |  | 1,654,000,000 | 1,714,000,000 | 2,017,000,000 | 2,104,000,000 | 1,868,000,000 | 2,222,000,000 | 1,211,000,000 | 1,726,000,000 | 1,019,000,000 | 845,000,000 |
| Capital expenditures |  | 719,000,000 | 616,000,000 | 659,000,000 | 696,000,000 | 709,000,000 | 691,000,000 | 377,000,000 | 432,000,000 | 446,000,000 | 513,000,000 |
| Dividends paid |  | 268,000,000 | 315,000,000 | 376,000,000 | 423,000,000 | 473,000,000 | 530,000,000 | 573,000,000 | 586,000,000 | 590,000,000 | 348,000,000 |
| Share buybacks | 550,000,000 | 292,000,000 | 564,000,000 | 2,452,000,000 | 1,270,000,000 | 500,000,000 | 600,000,000 | 32,000,000 | 0.00 | 0.00 |  |
| Assets |  | 15,546,000,000 | 17,111,000,000 | 15,720,000,000 | 18,193,000,000 | 20,019,000,000 | 33,521,000,000 | 28,287,000,000 | 28,276,000,000 | 25,782,000,000 | 20,055,000,000 |
| Liabilities |  |  | 7,995,000,000 | 7,854,000,000 | 10,281,000,000 | 11,293,000,000 | 24,400,000,000 | 22,392,000,000 | 19,808,000,000 | 18,758,000,000 | 13,953,000,000 |
| Stockholders' equity |  | 8,290,000,000 | 9,124,000,000 | 7,844,000,000 | 7,882,000,000 | 8,689,000,000 | 9,077,000,000 | 5,833,000,000 | 8,402,000,000 | 6,964,000,000 | 6,129,000,000 |
| Cash and cash equivalents |  | 2,801,000,000 | 3,394,000,000 | 1,838,000,000 | 3,335,000,000 | 3,730,000,000 | 2,951,000,000 | 1,621,000,000 | 3,078,000,000 | 1,764,000,000 | 1,966,000,000 |
| Free cash flow |  | 935,000,000 | 1,098,000,000 | 1,358,000,000 | 1,408,000,000 | 1,159,000,000 | 1,531,000,000 | 834,000,000 | 1,294,000,000 | 573,000,000 | 332,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 48.85% | 5.69% | 13.93% | 8.81% | 9.44% | 10.57% | -24.19% | 25.64% | -6.10% | -8.51% |
| Operating margin |  | 7.33% | 12.17% | 14.27% | 15.60% | 13.84% | 11.11% | -28.29% | 6.82% | 0.13% | -2.74% |
| Return on equity |  | 59.89% | 6.60% | 19.71% | 12.70% | 12.68% | 14.15% | -41.71% | 31.61% | -9.32% | -15.61% |
| Return on assets |  | 31.94% | 3.52% | 9.83% | 5.50% | 5.50% | 3.83% | -8.60% | 9.39% | -2.52% | -4.77% |
| Liabilities / equity |  |  | 0.88 | 1.00 | 1.30 | 1.30 | 2.69 | 3.84 | 2.36 | 2.69 | 2.28 |
| Current ratio |  | 2.40 | 2.57 | 2.12 | 2.32 | 2.52 | 2.09 | 1.69 | 1.48 | 1.36 | 2.31 |

## As-reported value updates

22 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/BAX/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000010456.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -5.83 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.09 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.28 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 3,708,000,000 | 2,508,000,000 | 4.93 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 3,885,000,000 | 245,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 3,592,000,000 | 37,000,000 | 0.07 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 3,812,000,000 | -314,000,000 | -0.62 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 2,699,000,000 | 140,000,000 | 0.27 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 2,753,000,000 | -512,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 2,625,000,000 | 126,000,000 | 0.25 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 2,810,000,000 | 91,000,000 | 0.18 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 2,835,000,000 | -46,000,000 | -0.09 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 2,974,000,000 | -1,128,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 2,701,000,000 | -15,000,000 | -0.03 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 2,960,000,000 | 126,000,000 | 0.24 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from BAX's latest 10-K: [/company/BAX/business/](/company/BAX/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from BAX's latest 10-K: [/company/BAX/risk-factors/](/company/BAX/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/10456/000162828026051118/bax-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 (2025 Annual Report) for management’s discussion and analysis of our financial condition and results of operations. The following is management’s discussion and analysis of our financial condition and results of operations for the three and six months ended June 30, 2026 and 2025.

COMPLETED STRATEGIC ACTION; ONGOING BUSINESS TRANSFORMATION

On January 31, 2025, we completed the sale of our former Kidney Care business (which is now known as Vantive Health LLC (Vantive)) to certain affiliates of Carlyle Group Inc. (Carlyle) and ultimately received approximately $3.2 billion of after-tax cash proceeds that were used to repay short- and long-term legacy indebtedness in 2025.

We have incurred and expect to incur additional dis-synergies following our sale of our Kidney Care business due to the reduced size of our company and, as a result, we have undertaken certain restructuring actions (and intend to undertake additional actions) to help ensure our cost structuring is appropriate to support our remaining business. See Note 10 of this Quarterly Report on Form 10-Q for additional information.

In the second quarter of 2026, we implemented a new operating model to better align decision-making, cost structure, and commercial execution across our businesses. As part of this work, we continue to focus on increasing efficiencies through increased automation and digitization (including through our thoughtful exploration of artificial intelligence initiatives). Beginning in October 2025, we launched Baxter Growth and Performance system, our high performance business system grounded in continuous improvement and management by objectives.

As part of our new operating model, we have changed our reportable segments. Our business is now comprised of two reportable segments under this new operating model: Medical Products & Therapies and Healthcare Systems & Technologies. Previously, our business was comprised of three segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals. Our former Pharmaceuticals segment is now reported within the Infusion Therapies & Platforms division of the Medical Products & Therapies segment. Additionally, sales of products and services provided directly through certain of our manufacturing facilities related to Infusion Therapies & Platforms that were previously reported in Other are now reported in our Infusion Therapies & Platforms division of the Medical Products & Therapies segment. In addition, we have updated our approach to our corporate cost allocations. Certain shared corporate expenses will now remain unallocated, rather than being fully allocated to the segments (as they had been previously). Prior period segment disclosures have been recast to reflect the new segment presentation. See Note 16 of this Quarterly Report on Form 10-Q for additional information.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Novum IQ Large Volume Pump (Novum LVP)

During 2025, we initiated voluntary corrections for the Novum LVP. The U.S. Food and Drug Administration (FDA) classified these voluntary corrections as Class I recalls. We have implemented certain corrections related to the recalls and have identified additional corrections to address these recalls, some of which may require regulatory clearance or approval, and are in the early stages of verification testing. In July 2025, we elected to temporarily stop distributing and installing the Novum LVP in the U.S. and Canada, except in the case of medical necessity. The timing of the release of the shipment and installation hold remains uncertain. As a result, we expect no meaningful sales of Novum LVP while these holds are in effect. Our Spectrum IQ large volume pump remains available as an alternative option for customers with Novum LVPs. In 2025, we recorded estimates for sales reductions, for returns or exchanges of Novum LVP, and certain other charges, including estimates of reserves for remediation costs and inventory and contract asset write-downs associated with these Novum LVP corrections. We regularly review these estimates (including those associated with any future additional corrections and customer returns or exchanges), which may be subject to additional change in the future. In the first quarter of 2026, we adjusted certain estimates associated with these Novum LVP corrections that were not material to our condensed consolidated financial statements; no such adjustments were recorded in the second quarter of 2026.

Supply Constraints, Tariffs and Global Economic Conditions

We have experienced challenges to our global supply chain, including, as a result of adverse impacts from significant weather events like Hurricane Helene and other global macroeconomic and geopolitical events (including the ongoing conflict in Iran), which have had a negative impact on our results of operations and may do so in the future. In addition, announcements regarding changes in U.S. trade policies and practices, including the implementation of

30

global tariffs and proposed further tariffs (including potential medical device and pharmaceutical tariffs), the Supreme Court's decision to invalidate tariffs levied under the International Emergency Economic Powers Act (IEEPA), and responses from other jurisdictions, have significantly affected financial markets and economic conditions. In the second quarter of 2026, we recorded tariff refunds of approximately $75 million to costs of goods sold in our condensed consolidated statements of income (loss) (which is inclusive of $65 million in prepaid expenses and other current assets) for probable receipt of amounts eligible for refund in the first and second phases of the process and expect to submit additional refund requests in future phases subject to further rulings by the Court of International Trade. While uncertainty remains surrounding the timing of any additional amounts we may ultimately recover on current or future refund claims, we do not expect for any additional amounts to be material to our condensed consolidated financial statements. We currently expect that our results will continue to be adversely impacted by Section 122 duties and recently announced Section 301 tariffs that have been imposed following the judicial review of certain tariffs. Additionally, continued global macroeconomic uncertainty, including in trade policies and practices, elevated tariffs and operational and policy changes in the governments of the U.S. and other countries and other geopolitical events or conflicts (including the ongoing conflict in Iran and the potential for escalation of this and other conflicts), could contribute to further market volatility, deteriorating or prolonged weakened economic conditions and decreased hospital capital spending levels. We continue to closely monitor these developing situations and the estimated impact on our business, results of operations, financial condition and cash flows.

Over the past few years, the existence of high inflation rates in the United States and in many of the countries where we conduct business has resulted in, and may in the future result in, higher interest rates, shipping costs, labor costs, and other costs and expenses. Additionally, adverse changes in foreign currency exchange rates have increased, and could continue to increase, our costs of sourcing certain raw materials in some jurisdictions. We have experienced and are likely in the future to continue to experience inflationary and other increases in manufacturing costs and operating expenses (including as a result of the aforementioned tariffs and conflicts) and are limited in our ability to pass these cost increases on to our customers in a timely manner or at all due to the longer term nature of our customer contracts and arrangements, which could have a material adverse impact on our profitability and results of operations. Inflation and general macroeconomic factors have caused certain of our customers to reduce or delay orders for our products and services and could cause them to do so in the future, which could have a material adverse impact on our sales and results of operations.

For further discussion, please refer to Item 1A, Risk Factors in our 2025 Annual Report.

NON-GAAP FINANCIAL MEASURES

Our presentation of percentage changes in net sales at organic sales growth excludes the impact of the Kidney Care Manufacturing and Supply Agreement (Kidney Care MSA) sales not reflected in reportable segments, impacts associated with business acquisitions or divestitures, and is calculated at constant currency rates. Constant currency rates are computed using current period local currency sales at the prior period’s foreign exchange rates. Organic sales growth is a non-GAAP financial measure. This measure provides information about growth (or declines) in our net sales as if the Kidney Care MSA had no impact on our sales and foreign currency exchange rates had not changed between the prior period and the current period. We believe that the non-GAAP measure of percent change in net sales at organic sales growth, when used in conjunction with the U.S. GAAP measure of percent change in net sales at actual rates, may provide a more complete understanding and facilitate a fuller analysis of our results of operations, particularly in evaluating performance from one period to another.

RESULTS OF OPERATIONS

Net income (loss) attributable to Baxter stockholders for the three months ended June 30, 2026 was $126 million, or $0.24 per diluted share, compared to $91 million, or $0.18 per diluted share for the three months ended June 30, 2025. For the three months ended June 30, 2026, our results included special items that adversely impacted net income (loss) attributable to Baxter stockholders by $155 million, or $0.30 per diluted share. For the three months ended June 30, 2025, our results included special items that adversely impacted net income (loss) attributable to Baxter stockholders by $185 million, or $0.36 per diluted share.

Net income (loss) attributable to Baxter stockholders for the six months ended June 30, 2026 was $111 million, or $0.21 per diluted share, compared to $217 million, or $0.42 per diluted share for the six months ended June 30, 2025. For the six months ended June 30, 2026, our results included special items that adversely impacted net income (loss) attributable to Baxter stockholders by $360 million, or $0.70 per diluted share. For the six months ended June 30,

31

2025, our results included special items that adversely impacted net income (loss) attributable to Baxter stockholders by $379 million, or $0.74 per diluted share.

Net income (loss) from continuing operations for the three months ended June 30, 2026 was $135 million, or $0.26 per diluted share, compared to $122 million, or $0.24 per diluted share for the three months ended June 30, 2025. Net income (loss) from continuing operations for the three months ended June 30, 2026 included special items that adversely impacted net income (loss) by $155 million, or $0.30 per diluted share. Net income (loss) from continuing operations for the three months ended June 30, 2025 included special items that adversely impacted net income (loss) by $182 million, or $0.35 per diluted share.

Net income (loss) from continuing operations for the six months ended June 30, 2026 was $118 million, or $0.23 per diluted share, compared to $186 million, or $0.36 per diluted share for the six months ended June 30, 2025. Net income (loss) from continuing operations for the six months ended June 30, 2026 included special items that adversely impacted net income (loss) by $360 million, or $0.69 per diluted share. Net income (loss) from continuing operations for the six months ended June 30, 2025 included

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/10456/000162828026007733/bax-20251231.htm
Complete FY 2025 MD&A: /company/BAX/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-12
Report date: 2025-12-31

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following commentary should be read in conjunction with the consolidated financial statements and accompanying notes included in Item 8 of this Annual Report on Form 10-K. The discussion and analysis of our financial condition as of December 31, 2024 and results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, is included in Item 7. Management's Discussion and Analysis of

32

Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the year ended December 31, 2024.

EXECUTIVE OVERVIEW

Description of the Company, Recent Strategic Actions and Business Segments

Baxter International Inc. is a global medical technology with approximately 37,500 employees worldwide who are engaged in the development, manufacture and sale of a broad range of products, digital health solutions and therapies used by hospitals, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors’ offices and patients at home under physician supervision. Our global footprint and the critical nature of our products and services, which are sold in over 100 countries as of December 31, 2025, play a key role in expanding access to healthcare in emerging and developed countries.

Sale of Kidney Care Business

On August 12, 2024, we entered into an Equity Purchase Agreement (EPA ) with certain affiliates of Carlyle Group Inc. (Carlyle) to sell our Kidney Care business. That business, which is now known as Vantive Health LLC (Vantive) is comprised of our former Kidney Care segment. On January 31, 2025, we completed the sale of our Kidney Care business to Carlyle for an aggregate purchase price of $3.80 billion in cash, subject to certain closing cash, working capital and debt adjustments. After giving effect to certain adjustments, we received approximately $3.71 billion pre-tax cash proceeds at closing of the transaction with the net after tax proceeds of approximately $3.3 billion, prior to giving effects to certain post-closing adjustments. As of December 31, 2025, we repaid $3.81 billion of legacy indebtedness in 2025 (which repayment does not include $2.00 billion of indebtedness repaid with proceeds from a new notes offering) primarily with the net after-tax cash proceeds from the sale of our Kidney Care business.

The financial position, results of operations and cash flows of our Kidney Care business, including our gain from the sale of that business and the related cash proceeds received, are reported as discontinued operations in the accompanying consolidated financial statements, and our prior period results have been adjusted to reflect discontinued operations.

We have incurred and expect to incur additional dis-synergies following our sale of our Kidney Care business due to the reduced size of our company and, as a result, we have begun to undertake certain restructuring actions (and intend undertake additional actions) to help ensure our cost structure is appropriate to support our remaining businesses.

See Notes 2 and 5 in Item 8 of this Annual Report on Form 10-K for additional information.

Implementation of New Operating Model

In the third quarter of 2023, we completed the implementation of a new operating model intended to simplify and streamline our operations and better align our manufacturing and supply chain to our commercial activities. Under this operating model, our business is currently comprised of three reportable segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals (each discussed below).

For financial information about our segments, see Note 17 in Item 8 of this Annual Report on Form 10-K.

Sale of BPS Business

On September 29, 2023, we completed the sale of our BioPharma Solutions (BPS) business and received cash proceeds of $3.96 billion from that transaction. The results of operations and cash flows of our BPS business, including the $2.88 billion pre-tax gain ($2.59 billion net of tax) from the sale of that business and the related cash proceeds received, are reported as discontinued operations in the accompanying consolidated financial statements. We used substantially all of the after-tax proceeds from this transaction to repay certain of our debt obligations, including $514 million of commercial paper borrowings and $2.28 billion of long-term debt that we repaid during the fourth quarter of 2023, as well as €750 million of senior notes that we repaid during the second quarter of 2024.

See Notes 2 and 5 in Item 8 of this Annual Report on Form 10-K for additional information.

33

Financial Results

Our global net sales totaled $11.24 billion in 2025, an increase of 6% over 2024 on a reported basis and 3% on an operational sales basis. International sales totaled $5.12 billion in 2025, an increase of 7% compared to 2024 on a reported basis and 5% on an operational sales basis. Sales in the United States totaled $6.12 billion in 2025, an increase of 5% compared to 2024 on a reported basis and 1% on an operational basis. Refer to the Net Sales discussion in the Results of Operations section below for more information related to changes in net sales on an operational sales basis.

Net income (loss) attributable to Baxter stockholders totaled $(957) million, or $(1.87) per diluted share, in 2025. Net income (loss) attributable to Baxter stockholders in 2025 included special items which adversely impacted net income (loss) by $2.09 billion, or $4.08 per diluted share. See our special items subsection, in the Results of Operations section below, for information about special items for all periods present.

Net income (loss) from continuing operations totaled $(900) million, or $(1.75) per diluted share, in 2025. Net income (loss) from continuing operations in 2025 included special items which adversely impacted our results by $2.07 billion, or $4.02 per diluted share.

Our financial results included research and development (R&D) expenses totaling $518 million in 2025, which reflects our focus on balancing investments to support our new product pipeline with efforts to optimize overall R&D spending (including with respect to the maintenance of our portfolio).

While we have faced and may continue to face operational and global macroeconomic challenges, our financial position remains strong, with operating cash flows from continuing operations totaling $951 million in 2025. We have continued to execute on our disciplined capital allocation framework, as discussed in the "Business Strategy" section in Item 1. Business of this Annual Report on Form 10-K, which is designed to optimize stockholder value creation in a manner and timing consistent with our previously stated commitment to achieve our net leverage targets.

Capital expenditures totaled $513 million in 2025 as we continued to invest across our businesses to support future growth, including additional investments in support of new and existing product capacity expansions. Our investments in capital expenditures in 2025 were focused on projects that are structured to improve production efficiency, enhance our quality systems and optimize manufacturing capabilities to support our business growth.

We also continued to return value to our stockholders. During 2025, we paid cash dividends to our stockholders totaling $348 million.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Hurricane Helene

In September 2024, Hurricane Helene, which brought significant rain and extensive flooding to Western North Carolina, caused damage to certain of our assets at our North Cove facility in Marion, N.C. and disrupted operations at that facility. The facility was fully operational by the end of the first quarter of 2025. In response to Hurricane Helene and the related supply disruption, certain customers have enacted fluid conservation practices embedded with clinical practice changes which have resulted in, and are currently expected to continue to result in, reduced demand in our intravenous (IV) solutions business and may impact other aspects of our business. See Note 1 in Item 8 of this Annual Report on Form 10-K for additional information.

Novum IQ Large Volume Pump (Novum LVP)

Beginning in April 2025, we initiated a voluntary correction for the Novum LVP due to the potential for under-infusion when the pump is in "standby mode" for an extended period of time. Beginning in July 2025, we initiated voluntary corrections for the Novum LVP due to the potential for under-infusion when the pump is directed to deliver a bolus infusion or significantly increase the rate of infusion after it has been running at a lower infusion rate and the potential for over- and under-infusion related to set misloading, as well as certain software anomalies. The U.S. Food and Drug Administration (FDA) classified these voluntary corrections as Class I recalls. We have implemented certain corrections related to the recalls and are developing additional corrections related to these recalls, some of which may require regulatory clearance or approval. In July 2025, we elected to temporarily stop distributing and

34

installing the Novum LVP in the U.S. and Canada, except in the case of medical necessity. The timing of the release of the ship and installation hold remains uncertain. As a result, we expect no meaningful sales of Novum LVP while these holds are in effect. Our Spectrum IQ large volume pump remains available as an alternative option for customers with Novum LVPs. We have recorded estimates for sales reductions, for returns or exchanges of Novum LVP, and certain other charges, including estimates of reserves for remediation costs and inventory and contract asset write-downs associated with these Novum LVP corrections of approximately $105 million in the aggregate in 2025. We regularly review these estimates (including those associated with any additional future corrections and customer returns or exchanges) which may be subject to change in the future.

Supply Constraints, Tariffs and Global Economic Conditions

We have experienced challenges to our global supply chain, including, as a result of adverse impacts from significant weather events like Hurricane Helene, as well as adverse impacts as result of other global macroeconomic and geopolitical events, which have had a negative impact on our results of operations and may do so in the future. In addition, announcements regarding changes in U.S. trade policies and practices, including the implementation of global tariffs and proposed further tariffs (including potential medical device and pharmaceutical tariffs), have significantly affected financial markets and economic conditions. While we are in the process of implementing select tariff offsets and working to identify additional mitigation opportunities, our results have been adversely affected by these events and we expect for our results to continue to be negatively affected by tariffs. Additionally, continued global macroeconomic uncertainty, including in trade policies and practices, elevated tariffs and operational and policy changes in the governments of the U.S. and other countries and other geopolitical events or conflicts, could contribute to further market volatility, deteriorating or prolonged weakened economic conditions and decreased hospital capital spending levels, all of which could adversely affect our business, results of operations or financial condition. Sole source supplier relationships may limit our ability to respond to these tariffs with alternative or lower cost raw materials or component parts.

Over the past few years, the existence of high inflation rates in the United States and in many of the countries where we conduct business has resulted in, and may in the future result in, higher interest rates, shipping costs, labor costs, and other costs and expenses. Additionally, adverse ch

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/BAX/mda/fy2025/
All MD&A years: /company/BAX/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/BAX/mda/fy2024/): filed 2025-02-21; accession 0001628280-25-007201 (https://www.sec.gov/Archives/edgar/data/10456/000162828025007201/bax-20241231.htm)
- [FY 2023 MD&A](/company/BAX/mda/fy2023/): filed 2024-02-08; accession 0001628280-24-003932 (https://www.sec.gov/Archives/edgar/data/10456/000162828024003932/bax-20231231.htm)
- [FY 2022 MD&A](/company/BAX/mda/fy2022/): filed 2023-02-09; accession 0001628280-23-002864 (https://www.sec.gov/Archives/edgar/data/10456/000162828023002864/bax-20221231.htm)
- [FY 2021 MD&A](/company/BAX/mda/fy2021/): filed 2022-02-23; accession 0001628280-22-003432 (https://www.sec.gov/Archives/edgar/data/10456/000162828022003432/bax-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3841 Surgical & Medical Instruments & Apparatus) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/BAX.md · JSON record: /company/BAX.json · verified financials: /company/BAX/financials.json / /company/BAX/financials.csv · machine TOC for the whole site: /llms.txt