Core Viewpoint - Baxter International Inc. reported strong first-quarter 2025 results, exceeding both management guidance and Wall Street estimates for adjusted EPS and sales growth [1][2]. Financial Performance - Adjusted EPS for Q1 2025 was 62 cents, surpassing management's guidance of 47 to 50 cents and Wall Street's estimate of 48 cents [1]. - Total sales reached $2.63 billion, reflecting a 5% year-over-year increase, which also exceeded the consensus estimate of $2.59 billion [1][2]. - The company raised its 2025 adjusted EPS guidance to a range of $2.47-$2.55, compared to the previous guidance of $2.45-$2.55, with sales growth expectations adjusted to 7%-8% from 5%-6% [3]. Segment Performance - Medical Products & Therapies sales increased by 3% to $1.26 billion, with a 6% increase on a constant currency basis, driven by strong demand for IV infusion pumps and nutrition therapies in the U.S. [3]. - Healthcare Systems & Technologies sales totaled approximately $704 million, up 6% on both a reported and operational basis, fueled by strong U.S. sales in Patient Support Systems [3]. - Pharmaceutical sales reached $581 million, reflecting a 1% increase on a reported basis and a 3% increase operationally, driven by mid-single-digit growth in specialty injectables [3]. Future Guidance - For Q2 2025, Baxter expects adjusted EPS in the range of 59 to 63 cents, with a consensus estimate of 61 cents, and sales growth projected at 4%-5% on a reported basis [4].

Core Insights - Baxter International reported a revenue of $2.63 billion for the quarter ended March 2025, reflecting a decline of 26.9% year-over-year, while EPS was $0.55 compared to $0.65 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.57 billion by 2.09%, and the EPS surpassed the consensus estimate of $0.48 by 14.58% [1] Financial Performance Metrics - Net Sales in Advanced Surgery - International reached $123 million, exceeding the average estimate of $117.52 million, with a year-over-year increase of 6% [4] - Net Sales in Pharmaceuticals - U.S. were $195 million, slightly below the average estimate of $196.51 million, showing a year-over-year growth of 2.1% [4] - Net Sales in Front Line Care - International totaled $75 million, surpassing the average estimate of $69.14 million, with a year-over-year increase of 7.1% [4] - Net Sales in Other - U.S. were reported at $48 million, significantly above the average estimate of $15.59 million, reflecting a year-over-year increase of 336.4% [4] - Total Net Sales in Pharmaceuticals amounted to $581 million, compared to the average estimate of $590.04 million, with a year-over-year change of 0.5% [4] - Net Sales in Other reached $78 million, exceeding the average estimate of $46.71 million, with a year-over-year increase of 387.5% [4] - Net Sales in Front Line Care were $277 million, above the average estimate of $269.11 million, showing a year-over-year increase of 4.5% [4] - Net Sales in Infusion Therapies and Technologies were $994 million, surpassing the average estimate of $975.62 million, with a year-over-year change of 2.9% [4] - Net Sales in Care and Connectivity Solutions reached $427 million, exceeding the average estimate of $416.60 million, with a year-over-year increase of 6.2% [4] - Net Sales in Healthcare Systems and Technologies were $704 million, above the average estimate of $685.71 million [4] - Net Sales in Medical Products and Therapies totaled $1.26 billion, slightly above the average estimate of $1.25 billion [4] - Net Sales in Injectables and Anesthesia reached $335 million, exceeding the average estimate of $330.83 million [4] Stock Performance - Baxter's shares have returned -7.4% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - First quarter sales from continuing operations grew 5% on both a reported and operational basis, totaling $2.63 billion, exceeding previous guidance of 3% to 4% [8][13][34] - Adjusted earnings per share from continuing operations were $0.55, up 53% compared to the prior year, driven by favorable top line results and lower non-operational expenses [8][33] Business Line Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 6%, with strong growth in U.S. infusion systems [14][35] - Healthcare Systems and Technologies (HST) segment sales totaled $704 million, up 6%, driven by 14% growth in the U.S. for Care and Connectivity Solutions [19][20] - Pharmaceutical segment sales were $581 million, increasing 3%, with specialty injectables showing mid-single-digit growth [23] Market Data and Key Metrics Changes - The U.S. market showed strong recovery with hospitals beginning to rebuild inventory levels, particularly in IV Solutions, which is expected to improve as allocations are removed [17][22] - International sales performance was weaker, but capital orders picked up, indicating potential future growth [20] Company Strategy and Development Direction - The company is focused on leveraging its verticalized operating model to enhance innovation and drive profitable growth [6][8] - Strategic actions are being taken to mitigate the impact of global tariffs and optimize the supply chain [9][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic trajectory despite global macroeconomic volatility and uncertainty [9][10] - The company anticipates total sales growth of 7% to 8% for the full year 2025, with operational growth expected at 4% to 5% [34][42] Other Important Information - The search for a permanent CEO is active, with the board working with a leading search firm [10] - The company is committed to accelerating investments in innovation to redefine healthcare delivery [27] Q&A Session Summary Question: What actions are being taken to offset tariff headwinds? - Management is optimizing supply chains, negotiating with suppliers, and seeking exemptions while implementing targeted pricing strategies [46][50] Question: What is the outlook for the HST business recovery? - The HST segment showed strong performance with a healthy backlog and competitive wins, indicating positive momentum [52][54] Question: What impact do conservation programs have on IV Solutions? - Hospitals are expected to continue conservation efforts, but some are using more solutions than pre-hurricane levels, indicating a mixed recovery [60][62] Question: How is the company addressing potential pharmaceutical tariffs? - The company is proactively planning for potential tariff impacts and seeking exemptions, but the situation remains uncertain [66][68] Question: What is the outlook for operating margins in 2026? - The company remains committed to margin expansion, but the impact of tariffs and other factors will be evaluated as the situation develops [100]

Financial Data and Key Metrics Changes - First quarter sales from continuing operations grew 5% on both a reported and operational basis, totaling $2.63 billion, exceeding previous guidance of 3% to 4% [6][12] - Adjusted earnings per share from continuing operations were $0.55, up 53% compared to the prior year, driven by favorable top line results and lower non-operational expenses [27][33] - Adjusted gross margin from continuing operations was 41.8%, a decrease of 160 basis points year-over-year, impacted by higher planning and fulfillment costs [29] Business Line Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 6%, with strong growth in U.S. Infusion systems [13][14] - Healthcare Systems and Technologies (HST) segment sales totaled $704 million, increasing 6%, driven by 14% growth in the U.S. for Care and Connectivity Solutions [18][19] - Pharmaceutical segment sales were $581 million, increasing 3%, with injectables and anesthesia sales growing 4% [22] Market Data and Key Metrics Changes - The U.S. market showed strong recovery with hospitals beginning to rebuild inventory levels, particularly in IV Solutions, which is expected to improve as allocations are removed [16][62] - International procurement remains a part of operations, with ongoing impacts from U.S. and retaliatory tariffs affecting the supply chain [39][40] Company Strategy and Development Direction - The company is focused on leveraging its verticalized operating model to enhance agility and drive profitable growth [5] - Continued investments in innovation are prioritized to bring new products to market and redefine healthcare delivery [26] - The search for a permanent CEO is active, with the board working with a leading search firm to identify the right candidate [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the global macro environment and the uncertainty created by new tariffs, but remains positive about opportunities for sales growth and margin expansion [8][34] - The company expects total sales growth of 7% to 8% on a reported basis for the full year 2025, with operational growth of 4% to 5% [35][42] Other Important Information - The company is actively working on mitigating the impacts of tariffs, including optimizing supply chains and seeking exemptions [40] - Adjusted operating margin from continuing operations is expected to be between 16% to 16.5% for the full year [41] Q&A Session Summary Question: What actions are being taken to offset tariff headwinds? - Management is optimizing supply chains, negotiating with suppliers, and seeking exemptions while maintaining targeted pricing strategies [47][48] Question: How should we think about the sustainability of the HST business recovery? - The HST segment has shown strong order growth and competitive wins, with management optimistic about its future performance despite monitoring the capital environment [52][56] Question: What is the expected impact of IV Solutions on the business as hospitals return to normal inventory levels? - Hospitals are expected to continue conservation efforts, but some are using more solutions than pre-hurricane levels, indicating a mixed recovery [60][62] Question: Can you provide clarity on the potential impact of pharmaceutical tariffs? - The company is monitoring the situation closely, with a small exposure from the Clarus plant, and is proactive in scenario planning [66] Question: What are the expectations for operating margin expansion in 2026? - Management remains committed to margin expansion, but acknowledges that the tariff environment will influence future projections [100][102]

Financial Performance - Worldwide Baxter sales from continuing operations grew by 5% on both a reported and operational basis[16] - Adjusted earnings per share from continuing operations totaled $055, exceeding the original guidance of $047 to $050 per diluted share[16] - Adjusted diluted EPS increased by 53% year-over-year, from $036 in Q1 2024 to $055 in Q1 2025[18, 21, 23] - Global reported sales increased from $25 billion in Q1 2024 to $26 billion in Q1 2025, representing a 5% increase[21] - Adjusted operating margin increased by 260 bps, from 123% in Q1 2024 to 149% in Q1 2025[21, 23] Segment Performance - Medical Products & Therapies net sales increased by 3%, from $1229 million in Q1 2024 to $1262 million in Q1 2025[34] - Healthcare Systems & Technologies net sales increased by 6%, from $667 million in Q1 2024 to $704 million in Q1 2025[36] - Pharmaceuticals net sales increased by 1%, from $578 million in Q1 2024 to $581 million in Q1 2025[38] 2025 Outlook - The company expects full-year 2025 operational sales growth from continuing operations to be 4%-5%[44] - The company expects full-year 2025 adjusted diluted EPS from continuing operations to be $247-$255[44]

Financial Performance - First-quarter sales from continuing operations totaled $2.63 billion, representing a 5% increase on both a reported and operational basis, exceeding the company's previous guidance[4] - Adjusted diluted EPS from continuing operations for the first quarter was $0.55, surpassing the company's prior guidance of $0.47 to $0.50 per diluted share[8] - Baxter has raised the lower end of its full-year 2025 adjusted diluted EPS guidance to a range of $2.47 to $2.55[4] - For full-year 2025, Baxter expects sales growth from continuing operations of 7% to 8% on a reported basis and 4% to 5% on an operational basis[11] - The company anticipates second-quarter 2025 sales growth from continuing operations of 4% to 5% on a reported basis and 1% to 2% on an operational basis[12] - Net sales for Q1 2025 were $2,625 million, a 5% increase from $2,490 million in Q1 2024[26] - The company reported a total operating income of $58 million for Q1 2025, down from $115 million in Q1 2024[35] - Free cash flow from continuing operations was $(221) million in Q1 2025, compared to $(43) million in Q1 2024[39] - The company anticipates U.S. GAAP sales growth of 4% - 5% for Q2 2025 and 7% - 8% for the full year 2025[44] - Adjusted diluted EPS guidance for Q2 2025 is projected to be between $0.59 and $0.63, and for FY 2025 between $2.47 and $2.55[44] Segment Performance - Medical Products & Therapies segment sales reached approximately $1.26 billion, a 3% increase on a reported basis and 6% on an operational basis, driven by strong demand in Infusion Therapies & Technologies[7] - Healthcare Systems & Technologies segment sales totaled approximately $704 million, reflecting a 6% increase on both a reported and operational basis, supported by strong U.S. sales[10] - Pharmaceuticals segment sales were approximately $581 million, showing a 1% increase on a reported basis and 3% on an operational basis, with mid-single-digit growth in specialty injectables[10] - Infusion Therapies & Technologies segment reported sales of $994 million in Q1 2025, up 3% from $966 million in Q1 2024, with operational sales growth of 6%[33] - Medical Products & Therapies segment achieved sales of $1,262 million in Q1 2025, a 3% increase from $1,229 million in Q1 2024, with operational sales growth of 6%[33] - Healthcare Systems & Technologies segment saw sales rise to $704 million in Q1 2025, a 6% increase from $667 million in Q1 2024, with operational sales growth of 6%[33] Cost and Income Analysis - Cost of sales increased by 15% to $1,764 million, compared to $1,529 million in the previous year[26] - Gross margin decreased by 10% to $861 million, representing 32.8% of net sales, down from 38.6%[26] - Operating income fell by 50% to $58 million, which is 2.2% of net sales, down from 4.6%[26] - Adjusted operating income (excluding special items) increased by 28% to $392 million from $307 million[26] - Adjusted income from continuing operations (excluding special items) rose by 56% to $285 million compared to $183 million[26] - Net income attributable to Baxter stockholders increased to $126 million from $37 million[26] - Adjusted diluted EPS from continuing operations (excluding special items) increased by 53% to $0.55 from $0.36[26] - The company reported a significant increase in income from discontinued operations, rising 88% to $62 million from $33 million[26] - The effective tax rate for income tax expense in 2025 was 2.4%[28] - The company reported a significant increase in intangible asset amortization costs in 2025, totaling $104 million[28] Research and Development - Research and development expenses increased by 17% to $140 million, representing 5.3% of net sales[26] Strategic Initiatives - Baxter introduced the Voalte Linq device, its first voice-activated technology, enhancing communication efficiency among care teams[10] - The company launched Hemopatch Sealing Hemostat with room temperature storage in Europe, optimizing accessibility for surgeons[10] - The company is focusing on optimizing its organization and cost structure to better align its manufacturing and supply chain with commercial activities[29] - The company incurred restructuring and business optimization costs in 2025 primarily related to initiatives following the sale of its former Kidney Care segment[29] - Incremental costs for compliance with EU medical device regulations were recognized, which the company views as a significant one-time regulatory change[31] - The company incurred charges related to Hurricane Helene amounting to $98 million in Q1 2025[35]

Baxter International Inc. (BAX) is scheduled to release first-quarter 2025 results on May 1, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 11.54%. BAX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 5.92%. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)Q1 EstimatesCurrently, the consensus estimate for revenues is pegged at $2.57 billion, indicating a decline of ...

Baxter International Inc. (BAX) recently introduced Voalte Linq , a lightweight, wearable badge powered by Scotty assistant, a voice-activated technology, at the 2025 HIMSS Global Healthcare Conference. Voalte Linq is the company’s latest innovation within connected care, providing health systems with an ecosystem that promotes full connectivity for care teams and their patients. The latest product introduction by Baxter is aimed at driving workflow automation for hospital settings and transforming how care ...

Research and Development - R&D expenditures were $590 million in 2024, $518 million in 2023, and $450 million in 2022, reflecting a focus on enhancing future growth through clinical differentiation [43]. - The company is working to create a more resilient supply chain and may consolidate R&D facilities as part of its new operating model [43]. Financial Performance and Challenges - The company faced challenges in recovering cost increases for raw materials and components due to contractual limits and market forces, negatively impacting profit margins in 2022 and 2023 [36]. - The company’s profit margins were adversely affected in Q4 2024 due to increased supply chain costs related to ongoing recovery efforts [36]. - The company’s ability to increase prices is constrained by global healthcare cost containment efforts, including price controls and competitive tenders [38]. Workforce and Talent - The company employs approximately 38,000 people globally, with 15,000 in the United States and 23,000 outside the United States, emphasizing the importance of talent in achieving strategic objectives [53]. Regulatory Environment - The company is subject to extensive regulation by government agencies, including the FDA and EMA, impacting the marketing and sale of its products [50]. Competitive Landscape - The company’s competitive advantages include a broad product offering and strong relationships with customers, but it faces substantial competition from both domestic and international healthcare companies [37]. - The company has purchasing agreements with major Group Purchasing Organizations (GPOs) in the U.S., which may limit price increases and create competition from other suppliers [33]. Corporate Governance and Transparency - The company provides free access to its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K on its website [56]. - Reports are also available via EDGAR through the SEC website, ensuring transparency and accessibility for stakeholders [56]. - Corporate Governance Guidelines and Code of Conduct are accessible on the company's website, promoting accountability and ethical standards [56]. - Stockholders can request printed materials, indicating the company's commitment to shareholder communication [56]. - The company incorporates market risk disclosures in its financial reporting, highlighting its awareness of financial instrument risks [374]. Corporate Responsibility - The company’s corporate responsibility strategy focuses on empowering patients, protecting the planet, and championing communities, with a commitment to report progress annually [48].

Financial Performance - Worldwide Baxter sales from continuing operations grew 1% on a reported basis and 2% on a constant currency basis[13] - Adjusted earnings per share from continuing operations totaled $058, exceeding the company's original guidance of $050 to $053 per diluted share[13] - Full-Year 2024 global reported sales were $106 billion, a 3% increase compared to FY 2023[22] - Full-Year 2024 adjusted diluted EPS was $189, an 11% increase compared to FY 2023[22] - Q4 2024 adjusted operating margin was 152%, a decrease of 190 bps year-over-year[19] Business Operations and Strategy - Baxter completed the sale of its Kidney Care business to Carlyle on January 31, 2025 for approximately $34 billion of net, after-tax proceeds[13] - Hurricane Helene negatively impacted sales by approximately $110 million in Q4 2024[13] - Baxter's North Cove manufacturing site has restarted all 10 manufacturing lines and is producing at pre-hurricane levels[13] - Baxter paid a quarterly dividend of $017 per share, reflecting a commitment to return value to shareholders[16, 31] 2025 Outlook - The company projects Q1 2025 sales growth of 3%-4% and adjusted diluted EPS from continuing operations of $047-$050[46] - The company projects FY 2025 sales growth of 5%-6% and adjusted diluted EPS from continuing operations of $245-$255[47]