Baxter International Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.54%.
Did BAX Beat Earnings? Q4 2025 Results
Baxter International delivered a disappointing fourth quarter, with adjusted EPS from continuing operations of $0.44 missing the $0.55 consensus estimate by 19.56%, even as revenue climbed 8.0% year-over-year to $2.97 billion. The profitability shortfall was driven in large part by a cascade of non-recurring charges, including a $485 million goodwill impairment tied to the Front Line Care reporting unit, $290 million in indefinite-lived asset impairments, and $52 million in product-related reserves linked to infusion pump corrective actions, which collectively compressed GAAP gross margin to just 19.4% from 34.8% a year ago. The quarter also reflected the structural reset following Carlyle's acquisition of Baxter's Kidney Care business in January 2025, with results now reflecting continuing operations only. CEO Andrew Hider acknowledged the miss while pointing to a new operating model intended to simplify the company and accelerate innovation. Looking ahead, Baxter guided fiscal 2026 adjusted diluted EPS to a range of $1.85 to $2.05, implying a potential step-down from the $2.27 posted in fiscal 2025, with organic sales growth expected to be approximately flat.
- IV solutions strength reflecting favorable comparison to prior-year Hurricane Helene impacted period
- Strong global demand for Advanced Surgery products
- Continued strength in Drug Compounding
- Demand for Care & Connectivity Solutions products
- International sales growth of 14% reported and 8% operational
“While we delivered sales growth across all segments, our fourth-quarter results did not meet our expectations, underscoring the importance of our focus on driving continuous improvement across the enterprise.”
Baxter International CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Baxter guides reported sales growth from continuing operations of flat to 1%, organic sales growth of approximately flat, and adjusted diluted EPS from continuing operations of $1.85 to $2.05. The company expects approximately 100 basis points of negative FX impact on sales and approximately 30 basis points benefit from the Kidney Care MSA.
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Figures from SEC filings and company reports. Not investment advice.