Baxter International Inc. · NYSE:BAX
Baxter International — Q2 2026 Earnings Presentation
36 slides from Baxter International's earnings presentation, Jul 30, 2026
Slide 1: Second-Quarter 2026 Earnings
Second-Quarter 2026 Earnings Baxter International Inc. July 30, 2026 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements concerning the company’s financial results (including the updated outlook for full-year 2026) and certain product development activities. These forward-looking statements are based on assumptions about many important fa
Slide 3: Use Of Non-GAAP Financial Measures
Use Of Non-GAAP Financial Measures To supplement Baxter’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United S
Slide 4: Table of Contents
Table of Contents Performance Summary 6 2026 Outlook 15 Baxter GPS and Capital Allocation 19 Non-GAAP Reconciliations 23 4
Slide 5: Key Takeaways
Key Takeaways 1. 2. 3. 4. Second-quarter results Raised full-year 2026 Positive free cash flow in Q2 Progress towards achieving exceeded expectations on financial outlook supports continued turnaround effort; focused on both the top and bottom lines confidence in achieving ~3.0x three pillars: year-
Slide 6: Performance Summary
Performance Summary Second-Quarter 2026 Earnings July 30, 2026 6
Slide 7: Performance Highlights
Performance Highlights Continuing Operations1 Adjusted Net Sales Gross Q2 2026 Results ~$3.0B Margin ▪ Worldwide sales grew 5% on both a reported and organic basis +5% Reported 38.6% +5% Organic 2 ▪ Adjusted earnings per share totaled $0.56 per diluted (210 bps) share, decreasing 5% due to: Adjusted
Slide 8: Second-Quarter 2026 Sales
Second-Quarter 2026 Sales1 Q2 2026 Revenue Total Growth $ In Millions U.S. International Total Reported Organic Infusion Therapies & Platforms2 $769 $976 $1,745 +6% +4% Advanced Surgery $182 $149 $331 +12% +12% Medical Products & Therapies $951 $1,125 $2,076 +7% +5% Care & Connectivity Solutions $36
Slide 9: First-Half 2026 Sales
First-Half 2026 Sales1 H1 2026 Revenue Total Growth $ In Millions U.S. International Total Reported Organic Infusion Therapies & Platforms2 $1,480 $1,881 $3,361 +4% +1% Advanced Surgery $347 $288 $635 +13% +11% Medical Products & Therapies $1,827 $2,169 $3,996 +5% +2% Care & Connectivity Solutions $
Slide 10: Second-Quarter 2026 Sales By Division
Second-Quarter 2026 Sales By Division1 Division Sales Organic2 Quarterly Performance Drivers Infusion Therapies Growth driven by Drug Compounding and IV solutions, partially offset by lower sales $1,745M +4% & Platforms3 within Infusion Systems and Injectables Growth reflects continued strong demand
Slide 11: Medical Products & Therapies Q2 2026 Results
Medical Products & Therapies1 Q2 2026 Results Increase / (Decrease) $ In Millions Q2 2026 Q2 2025 $ Change % Change Net Sales $2,076 $1,945 $131 +7% Cost of Sales $1,331 $1,157 $174 +15% Gross Margin $745 $788 ($43) (5%) % of Sales 35.9% 40.5% (460 bps) Selling, General and Administrative Expenses $
Slide 12: Medical Products & Therapies H1 2026 Results
Medical Products & Therapies1 H1 2026 Results Increase / (Decrease) $ In Millions H1 2026 H1 2025 $ Change % Change Net Sales $3,996 $3,803 $193 +5% Cost of Sales $2,568 $2,256 $312 +14% Gross Margin $1,428 $1,547 ($119) (8%) % of Sales 35.7% 40.7% (500 bps) Selling, General and Administrative Expen
Slide 13: Healthcare Systems & Technologies Q2 2026 Results
Healthcare Systems & Technologies Q2 2026 Results Increase / (Decrease) $ In Millions Q2 2026 Q2 2025 $ Change % Change Net Sales $801 $767 $34 +4% Cost of Sales $402 $375 $27 +7% Gross Margin $399 $392 $7 +2% % of Sales 49.8% 51.1% (130 bps) Selling, General and Administrative Expenses $202 $195 $7
Slide 14: Healthcare Systems & Technologies H1 2026 Results
Healthcare Systems & Technologies H1 2026 Results Increase / (Decrease) $ In Millions H1 2026 H1 2025 $ Change % Change Net Sales $1,506 $1,471 $35 +2% Cost of Sales $787 $729 $58 +8% Gross Margin $719 $742 ($23) (3%) % of Sales 47.7% 50.4% (270 bps) Selling, General and Administrative Expenses $384
Slide 15: 2026 Outlook
2026 Outlook Second-Quarter 2026 Earnings July 30, 2026 15
Slide 16: Full-Year 2026 Guidance (Consolidated)
Full-Year 2026 Guidance (Consolidated) Continuing Operations1 Current Outlook Previous Outlook (as of Q1 2026 earnings) Consolidated Guidance FY 2026 FY 2026 Reported Sales Growth 3% - 4% Flat to 1% Organic Sales Growth2 2% - 3% ~ Flat Adj. Diluted EPS $1.95 - $2.15 $1.85 - $2.05 1Continuing operati
Slide 17: Full-Year 2026 Guidance (Segments)
Full-Year 2026 Guidance (Segments)1 Current Outlook Previous Outlook (as of Q1 2026 earnings) Consolidated Guidance FY 2026 FY 2026 Organic Sales Growth2 Low-Single-Digit Flat to Slightly Medical Products & Therapies3 Growth Up Low-Single-Digit Low-Single-Digit Healthcare Systems & Technologies Grow
Slide 18: Full-Year 2026 Guidance Assumptions (Consolidated)
Full-Year 2026 Guidance Assumptions (Consolidated) Continuing Operations1 Current Outlook Previous Outlook (as of Q1 2026 earnings) Guidance Assumptions FY 2026 FY 2026 Kidney Care MSA Revenue Contribution ($25M) ($25M) (~30 bps) (~30 bps) FX Revenue Contribution ~100 bps ~100 bps Tariff Impact2 ~$8
Slide 19: Baxter GPS and Capital Allocation
Baxter GPS and Capital Allocation Second-Quarter 2026 Earnings July 30, 2026 19
Slide 20: Growth & Performance System
GROWTH & PERFORMANCE SYSTEM 20
Slide 21: Growth & Performance System
GROWTH & PERFORMANCE SYSTEM 21
Slide 22: Disciplined Capital Allocation Driving Long-Term Shareholder Value
Disciplined Capital Allocation Driving Long-Term Shareholder Value CURRENT FUTURE Debt Invest For M&A 1 Repayment Growth • Strategic tuck-in opportunities that enhance growth capabilities • Near-term priority to strengthen • Continued organic investment in balance sheet to enhance core platforms and
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Second-Quarter 2026 Earnings July 30, 2026 23
Slide 24: Non-GAAP Reconciliations as of July 30, 2026
NON-GAAP RECONCILIATIONS AS OF July 30, 2026 Non-GAAP Reconciliations: As part of its Q2 2026 earnings announcement on July 30, 2026, Baxter presented its financial results for the second quarter of 2026. Baxter also presented guidance the full year of 2026. In these presentations, Baxter used non-G
Slide 25: Reconciliations of U.S. GAAP to Non-GAAP Measures: Q2 2026
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended June 30, 2026 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended June 30, 2026 included special items which impacted the U.S. GA
Slide 26: Reconciliations of U.S. GAAP to Non-GAAP Measures: Q2 2025
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended June 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended June 30, 2025 included special items which impacted the U.S. GA
Slide 27: Reconciliations of U.S. GAAP to Non-GAAP Measures: Q2 Notes
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended June 30, 2026 and 2025 (unaudited) 1. The company’s results of continuing operations in 2026 and 2025 included costs related to programs to optimize its organization and cost structure. These restruct
Slide 28: Reconciliations of U.S. GAAP to Non-GAAP Measures: H1 2026
DESCRIPTIONS OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Six Months Ended June 30, 2026 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the six months ended June 30, 2026 included special items which impacted the U.S. GAAP
Slide 29: Reconciliations of U.S. GAAP to Non-GAAP Measures: H1 2025
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Six Months Ended June 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the six months ended June 30, 2025 included special items which impacted the U.S. GAAP m
Slide 30: Reconciliations of U.S. GAAP to Non-GAAP Measures: H1 Notes
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Six Months Ended June 30, 2026 and 2025 (unaudited) 1. The company’s results of continuing operations in 2026 and 2025 included costs related to programs to optimize its organization and cost structure. These restructur
Slide 31: Operating Cash Flow to Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Operating Cash Flow to Free Cash Flow (unaudited) (in millions) Three Months Ended June 30, 2026 2026 Cash flows from (used in) operations – continuing operations $ 297 Cash flows from (used in) investing activities - continuing operations (117) Cash flow
Slide 32: Net Sales Growth to Organic Sales Growth: Q2
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Organic Sales Growth From the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2026 (unaudited) Sales By Product Category: Net Sales Growth Kidney Care Organic Sales As Reported MSA FX Growth* I
Slide 33: Net Sales Growth to Organic Sales Growth: H1
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Organic Sales Growth From the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2026 (unaudited) Sales By Product Category: Net Sales Growth Kidney Care Organic Sales As Reported MSA FX Growth* Infus
Slide 34: Projected Full Year 2026 Organic Sales Growth
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Full Year 2026 U.S. GAAP Sales Growth to Projected Organic Sales Growth (unaudited) Sales Growth Guidance FY 2026* Sales growth - U.S. GAAP 3% - 4% Kidney Care MSA ~30 bps Foreign Exchange (~100 bps) Organic sales growth 2% - 3% *Totals may not
Slide 35: Projected 2026 Adjusted Operating Margin, Tax Rate and EPS
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Full Year 2026 Adjusted Operating Margin, Projected Full Year 2026 Adjusted Tax Rate and Projected Full Year 2026 Adjusted Earnings Per Share (unaudited) Adjusted Operating Margin Guidance FY 2026 Adjusted operating margin 13.0% - 14.0% Adjusted
Slide 36: Second-Quarter 2026 Earnings
Second-Quarter 2026 Earnings Baxter International Inc. July 30, 2026 36