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Dec 31, 2025
Baxter Q4 2025 Earnings Report
Baxter reported its financial results for the fourth quarter of 2025, with sales increasing by 8% on a reported basis and 3% operationally, despite not meeting expectations. The company reported a U.S. GAAP diluted EPS loss of ($2.01) and an adjusted diluted EPS of $0.44.
Key Takeaways
Baxter International Inc. reported fourth-quarter 2025 sales from continuing operations of $2.97 billion, an 8% increase on a reported basis. However, the company's results did not meet expectations, with a U.S. GAAP diluted EPS loss of ($2.01) and an adjusted diluted EPS of $0.44, a 24% decrease from the prior year. This was primarily due to unfavorable product mix, non-recurring items, and a higher effective tax rate. The company is implementing a new operating model to simplify its organization and improve performance.
Fourth-quarter sales from continuing operations reached $2.97 billion, marking an 8% increase on a reported basis and 3% operationally.
The company reported a U.S. GAAP diluted EPS loss of ($2.01) and an adjusted diluted EPS of $0.44, which was a 24% decrease from the prior year.
Net income (loss) from continuing operations totaled ($1,035) million, impacted by a goodwill impairment charge of $485 million and a valuation allowance on deferred tax assets of $330 million.
Baxter is advancing a new operating model to simplify its organization, accelerate innovation, and improve performance, alongside ongoing board refreshment.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the full year 2026, Baxter projects reported sales growth from continuing operations to be flat to 1%, with organic sales growth from continuing operations expected to be approximately flat. Adjusted earnings from continuing operations per diluted share are forecasted to be between $1.85 and $2.05.
Positive Outlook
- Projected adjusted diluted EPS for FY 2026 is between $1.85 and $2.05, indicating expected profitability.
- The company is implementing a new operating model designed to simplify the organization, accelerate innovation, and improve performance.
- Continued demand for Care & Connectivity Solutions products and growth in the Front Line Care division are expected to contribute positively.
- Strong global demand for Advanced Surgery products is anticipated to continue.
- The upcoming U.S. launch of the Dynamo Series smart stretcher is expected to enhance the product portfolio and address hospital challenges.
Challenges Ahead
- Reported sales growth from continuing operations for FY 2026 is projected to be flat to 1%, indicating minimal growth.
- Organic sales growth from continuing operations for FY 2026 is expected to be approximately flat, suggesting limited underlying business expansion.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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