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Jun 30, 2025
Baxter Q2 2025 Earnings Report
Baxter reported its second-quarter 2025 results, with sales and adjusted EPS in line with guidance, and announced a new CEO to drive future growth and operational excellence.
Key Takeaways
Baxter International Inc. delivered a performance in line with its guidance for the second quarter of 2025, with worldwide sales from continuing operations reaching $2.81 billion, a 4% increase on a reported basis. The company reported GAAP diluted EPS of $0.24 and adjusted diluted EPS of $0.59. A key highlight was the appointment of Andrew Hider as the new President and CEO, signaling a focus on accelerating innovation and sustainable growth.
Second-quarter sales from continuing operations reached $2.81 billion, marking a 4% increase on a reported basis and 1% operationally, aligning with previous guidance.
U.S. GAAP diluted EPS from continuing operations was $0.24, while adjusted diluted EPS from continuing operations stood at $0.59, also in line with guidance.
Andrew Hider was appointed as the new President and CEO, expected to accelerate innovation, drive sustainable growth, and enhance operational effectiveness.
The company successfully restored IV solutions inventory levels and removed allocations post-Hurricane Helene, and partnered with Vizient to ensure reliable access to critical products.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For full-year 2025, Baxter expects sales growth from continuing operations of 6% to 7% on a reported basis and 3% to 4% operationally. Adjusted earnings from continuing operations are projected to be $2.42 to $2.52 per diluted share. For the third quarter of 2025, sales growth is expected to be 6% to 7% reported and 3% to 4% operationally, with adjusted EPS between $0.58 and $0.62.
Positive Outlook
- Full-year 2025 reported sales growth guidance of 6% to 7% indicates continued revenue expansion.
- Full-year 2025 operational sales growth guidance of 3% to 4% suggests underlying business strength.
- Adjusted diluted EPS guidance for full-year 2025 of $2.42 to $2.52 shows expected profitability.
- Third-quarter 2025 sales growth guidance of 6% to 7% reported and 3% to 4% operational indicates consistent performance.
- Third-quarter 2025 adjusted diluted EPS guidance of $0.58 to $0.62 provides a positive short-term outlook.
Challenges Ahead
- Updated guidance attempts to capture potential downside risks, primarily impacting the Medical Products & Therapies segment.
- The Kidney Care MSA is expected to have a negative impact of approximately 300 basis points on both Q3 and FY 2025 sales growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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