Baxter International Inc. · NYSE:BAX
Baxter International — Q4 2025 Earnings Presentation
41 slides from Baxter International's earnings presentation, Feb 12, 2026
Slide 1: Fourth-Quarter 2025 Earnings
Fourth-Quarter 2025 Earnings Baxter International Inc. February 12, 2026 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements concerning the company's financial results (including the outlook for full-year 2026), certain business and product development activities and the company's capital allocation priorities (including the estimated time to
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 5 Financial Results 12 2026 Outlook and Capital Allocation 23 Non-GAAP Reconciliations 27 4
Slide 5: Performance Summary
Performance Summary Fourth-Quarter 2025 Earnings February 12, 2026 5
Slide 6: Executing On Our Strategy For Value Creation
Executing On Our Strategy For Value Creation Q4 2025 Results1 Worldwide sales from continuing operations grew 8% on a reported basis and 3% on an operational basis Adjusted earnings per share from continuing operations totaled $0.44 per diluted share, decreasing 24% from the prior year driven pr
Slide 7: Performance Highlights
Performance Highlights Continuing Operations1 Fourth-Quarter 2025 Full-Year 2025 $3.0B +8% Reported $11.2B +6% Reported +3% Operational2 +3% Operational2 Sales Sales Key Metrics GAAP Adjusted3 Key Metrics GAAP Adjusted3 Gross Margin 19.4% 35.5% Gross Margin 30.1% 39.3% YOY Change (1,540 bps) (900 bp
Slide 8: Key Financial Metrics
Key Financial Metrics Fourth-Quarter 2025 Snapshot (Continuing Operations)1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $3.0B $2.8B 15.2% $0.58 11.8% $0.44 +3% Operational Growth2 (340 bps) (24%) Q4 2024 Q4 2025 Q4 2024 Q4 2025 Q4 2024 Q4 2025 1Non-GAAP financial metrics ref
Slide 9: Key Financial Metrics
Key Financial Metrics Full-Year 2025 Snapshot (Continuing Operations)1 Global Reported Sales Adjusted Operating Margin Adjusted Diluted EPS $11.2B $2.27 $10.6B 13.9% 14.1% $1.89 +3% Operational Growth 2 +20 bps +20% FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 1Non-GAAP financial metrics referenc
Slide 10: Fourth-Quarter 2025 Adjusted Financial Results
Fourth-Quarter 2025 Adjusted Financial Results1 Continuing Operations Metric Q4 2024 Q4 2025 Change Adjusted Gross Margin 44.5% 35.5% (900 bps) Adjusted SG&A Expense 24.7% 21.4% (330 bps) (% of Sales) Adjusted R&D Expense 4.8% 3.9% (90 bps) (% of Sales) Adjusted Operating Margin 15.2% 11.8% (340 bps
Slide 11: Fourth-Quarter 2025 Performance
Fourth-Quarter 2025 Performance1 Continuing Operations Metric Q4 2025 Q4 2025 Guidance Actual Sales Growth ~2% +8% Reported Sales Growth (~2%) +3% Operational Growth GAAP Diluted EPS N/A ($2.01) Growth vs. Prior-Year Period (112%) Adjusted Diluted EPS $0.52 - $0.57 $0.44 Growth vs. Prior-Year Period
Slide 12: Financial Results By Operating Segment
Financial Results By Operating Segment Fourth-Quarter 2025 Earnings February 12, 2026 12
Slide 13: Fourth-Quarter 2025 Sales By Product Category
Fourth-Quarter 2025 Sales By Product Category1 Q4 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $543 $517 $1,060 +4% +1% Advanced Surgery $177 $151 $328 +12% +11% Medical Products & Therapies $720 $668 $1,388 +6% +4% Care & Co
Slide 14: Full-Year 2025 Sales By Product Category
Full-Year 2025 Sales By Product Category1 Full-Year 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $2,236 $1,865 $4,101 (0%) +1% Advanced Surgery $648 $550 $1,198 +9% +8% Medical Products & Therapies $2,884 $2,415 $5,299 +2% +2
Slide 15: Fourth-Quarter 2025 Sales By Product Category
Fourth-Quarter 2025 Sales By Product Category1 Product Category Sales Operational2 Quarterly Performance Drivers Infusion Therapies & Performance in the quarter was driven by growth in IV solutions, which benefited from $1,060M +1% a favorable comparison to the prior-year period, partially offset by
Slide 16: Medical Products & Therapies
Medical Products & Therapies Q4 2025 Results Increase / (Decrease) $ In Millions Q4 2025 Q4 2024 $ Change % Change Net Sales $1,388 $1,314 $74 +6% Cost of Sales $864 $731 $133 +18% Gross Margin $524 $583 ($59) (10%) % of Sales 37.8% 44.4% (660 bps) Selling, General and Administrative Expenses $295 $
Slide 17: Medical Products & Therapies
Medical Products & Therapies Full-Year 2025 Results Increase / (Decrease) $ In Millions FY 2025 FY 2024 $ Change % Change Net Sales $5,299 $5,207 $92 +2% Cost of Sales $3,065 $2,867 $198 +7% Gross Margin $2,234 $2,340 ($106) (5%) % of Sales 42.2% 44.9% (270 bps) Selling, General and Administrative E
Slide 18: Healthcare Systems & Technologies
Healthcare Systems & Technologies Q4 2025 Results Increase / (Decrease) $ In Millions Q4 2025 Q4 2024 $ Change % Change Net Sales $827 $784 $43 +5% Cost of Sales $449 $370 $79 +21% Gross Margin $378 $414 ($36) (9%) % of Sales 45.7% 52.8% (710 bps) Selling, General and Administrative Expenses $215 $2
Slide 19: Healthcare Systems & Technologies
Healthcare Systems & Technologies Full-Year 2025 Results Increase / (Decrease) $ In Millions FY 2025 FY 2024 $ Change % Change Net Sales $3,071 $2,951 $120 +4% Cost of Sales $1,603 $1,464 $139 +9% Gross Margin $1,468 $1,487 ($19) (1%) % of Sales 47.8% 50.4% (260 bps) Selling, General and Administrat
Slide 20: Pharmaceuticals
Pharmaceuticals Q4 2025 Results Increase / (Decrease) $ In Millions Q4 2025 Q4 2024 $ Change % Change Net Sales $668 $643 $25 +4% Cost of Sales $503 $415 $88 +21% Gross Margin $165 $228 ($63) (28%) % of Sales 24.7% 35.5% (1080 bps) Selling, General and Administrative Expenses $113 $107 $6 +6% % of S
Slide 21: Pharmaceuticals
Pharmaceuticals FY 2025 Results Increase / (Decrease) $ In Millions FY 2025 FY 2024 $ Change % Change Net Sales $2,493 $2,411 $82 +3% Cost of Sales $1,777 $1,612 $165 +10% Gross Margin $716 $799 ($83) (10%) % of Sales 28.7% 33.1% (440 bps) Selling, General and Administrative Expenses $429 $396 $33 +
Slide 22: Fourth-Quarter & Full-Year 2025 Results
Fourth-Quarter & Full-Year 2025 Results1 Q4 2025 Results Adjusted Adjusted Reported Reported Operational Operating Operating YoY Margin $ In Millions Revenue Growth Growth Income Margin Change2 Baxter Continuing Operations $2,974 +8% +3% $352 11.8% (340 bps) FY 2025 Results Adjusted Adjusted Reporte
Slide 23: 2026 Outlook and Capital Allocation
2026 Outlook and Capital Allocation Fourth-Quarter 2025 Earnings February 12, 2026 23
Slide 24: Full-Year 2026 Guidance
Full-Year 2026 Guidance1 FY 2026 Guidance Sales Growth Flat - 1% Reported (Continuing Operations) Kidney Care MSA ~30 bps Foreign Exchange (~100 bps) Sales Growth ~Flat Organic (Continuing Operations) 2 Adjusted Diluted EPS $1.85 - $2.05 Continuing Operations 1Non-GAAP financial metrics referenced i
Slide 25: Full-Year 2026 Guidance By Segment
Full-Year 2026 Guidance By Segment1 Sales Growth FY 2026 Organic Guidance Medical Products & Therapies Flat to Slightly Up Healthcare Systems & Technologies Low-Single-Digit Growth Pharmaceuticals ~Flat 1Non-GAAP financial metrics referenced in this slide include organic sales growth. Information ab
Slide 26: 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 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Fourth-Quarter 2025 Earnings February 12, 2026 27
Slide 28: Non-GAAP Reconciliations as of February 12, 2026
NON-GAAP RECONCILIATIONS AS OF FEBRUARY 12, 2026 Non-GAAP Reconciliations: As part of its Q4 2025 earnings announcement on February 12, 2026, Baxter presented its financial results for the fourth quarter of 2025. Baxter also presented guidance for the full year of 2026. In these presentations, Baxte
Slide 29: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended December 31, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended December 31, 2025 included special items which impacted the
Slide 30: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended December 31, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended December 31, 2024 included special items which impacted the
Slide 31: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended December 31, 2025 and 2024 (unaudited) 1 The company’s results of continuing operations in 2025 and 2024 included costs related to programs to optimize its organization and cost structure. These restr
Slide 32: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTIONS OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Twelve Months Ended December 31, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the twelve months ended December 31, 2025 included special items which impacted
Slide 33: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Twelve Months Ended December 31, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the twelve months ended December 31, 2024 included special items which impacted t
Slide 34: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Twelve Months Ended December 31, 2025 and 2024 (unaudited) 1 The company’s results of continuing operations in 2025 and 2024 included costs related to programs to optimize its organization and cost structure. These rest
Slide 35: Description of Adjustments and Reconciliations of U.S. GAAP to Non-GAAP Measures, Continued
DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES, CONTINUED Twelve Months Ended December 31, 2025 and 2024 (unaudited) 11 The company's results of continuing operations in 2025 included a gain on sale of a long-lived asset. 12 The company's results of continuing opera
Slide 36: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Operating Cash Flow to Free Cash Flow (unaudited) (in millions) Three months ended December 31, 2025 Cash flows from (used in) operations – continuing operations $ 596 Cash flows from (used in) investing activities - continuing operations (114) Cash flows
Slide 37: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Operational Sales Growth From The Three Months Ended December 31, 2024 to The Three Months Ended December 31, 2025 (unaudited) Sales By Product Category: Exit of IV Net Sales Growth Kidney Care Solutions in Operat
Slide 38: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Operational Sales Growth From The Twelve Months Ended December 31, 2024 to The Twelve Months Ended December 31, 2025 (unaudited) Sales By Product Category: Net Sales Growth Exit of IV Solutions Operational Sales A
Slide 39: Reconciliation of Non-GAAP Financial Measure
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 Flat - 1% Kidney Care MSA ~30 bps Foreign Exchange (~100 bps) Organic sales growth ~ Flat Organic sales g
Slide 40: Reconciliation of Non-GAAP Financial Measure
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Full Year 2026 Projected Adjusted Operating Margin, Projected Full Year 2026 Projected Adjusted Tax Rate, and Projected Full Year 2026 Projected Adjusted Earnings Per Share (unaudited) Adjusted Operating Margin Guidance FY 2026 Adjusted operatin
Slide 41: Fourth-Quarter 2025 Earnings
Fourth-Quarter 2025 Earnings Baxter International Inc. February 12, 2026 41