Financial Data and Key Metrics Changes - Third quarter 2025 global sales from continuing operations totaled $2.8 billion, increasing 5% on a reported basis and 2% on an operational basis [17] - Total company adjusted earnings from continuing operations were $0.69 per share, reflecting a 41% increase versus the prior year [31] - Adjusted operating margin from continuing operations was 14.9%, improving 40 basis points compared to the prior year [28] Business Line Data and Key Metrics Changes - Sales in the Medical Products & Therapies (MPT) segment were $1.3 billion, declining 1% due to softness in Infusion Therapies and Technologies [18] - Infusion Therapies and Technologies division sales totaled $1 billion, declining 4% primarily due to lower infusion pump sales [18] - Advanced Surgery sales grew 11% globally, totaling $306 million, driven by strong demand for hemostats and sealants [20] - Healthcare Systems & Technologies (HST) sales increased 2% to $773 million, with Care and Connectivity Solutions growing 3% [23] - Pharmaceuticals segment sales totaled $632 million, increasing 7%, with Injectables and Anesthesia division growing 3% [25] Market Data and Key Metrics Changes - U.S. demand for IV Solutions remains below pre-Hurricane Helene levels, with expectations for further recovery at a moderate pace [20] - Total U.S. capital orders for Care and Connectivity Solutions increased 30% compared to the prior year [24] - The company has not observed a slowdown in U.S. hospital capital spending despite broader macroeconomic uncertainty [24] Company Strategy and Development Direction - The company is focusing on stabilizing business areas that require increased attention, strengthening the balance sheet, and driving a culture of continuous improvement [11][14] - A new growth and performance system, Baxter GPS, has been launched to drive continuous improvement and efficiency [14] - The company plans to reduce the quarterly dividend to $0.01 per share to free up cash for deleveraging [13][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that current performance is unsatisfactory and emphasizes the need for immediate actions and long-term solutions [9] - The company expects operational sales growth of 1%-2% for 2025, reflecting a reduction from prior expectations [34] - Management remains confident in the strength of the IV Solutions business over the medium and long term [20][76] Other Important Information - The company is actively working to resolve issues related to the Novum IQ Large Volume Pump, which has led to a hold on deliveries and installations [12][19] - The adjusted tax rate for the quarter was 5.1%, driven by the release of reserves and discrete benefits [31] Q&A Session Summary Question: Vision for Baxter and future changes - Management emphasizes a focus on stabilizing business areas, strengthening the balance sheet, and driving continuous improvement through the new GPS system [40][41] Question: Potential for growth in 2026 - Management anticipates growth but does not provide specific guidance for 2026, highlighting the importance of customer relationships and market dynamics [44] Question: Impact of Novum on guidance - The hold on Novum is affecting sales, and management is working urgently to address outstanding field actions [58] Question: Free cash flow generation - Management expects continued positive free cash flow, particularly in the fourth quarter, and is focused on improving working capital [63][64] Question: Hospital CapEx trends - Management has not observed a slowdown in hospital capital spending, with robust order growth in the capital business [78]

Financial Data and Key Metrics Changes - Third quarter 2025 global sales from continuing operations totaled $2.8 billion, increasing 5% on a reported basis and 2% on an operational basis [17] - Adjusted earnings from continuing operations were $0.69 per share, reflecting a 41% increase versus the prior year [30] - Adjusted operating margin on a continuing operations basis was 14.9%, improving 40 basis points compared to the prior year [29] Business Line Data and Key Metrics Changes - Sales in the Medical Products & Therapies (MPT) segment were $1.3 billion, declining 1% due to softness in Infusion Therapies and Technologies [18] - Infusion Therapies and Technologies division sales totaled $1 billion, declining 4% primarily due to lower infusion pump sales [18] - Advanced Surgery sales totaled $306 million, growing 11% globally, driven by strong demand for hemostats and sealants [20] - Pharmaceuticals segment sales totaled $632 million, increasing 7%, with Injectables and Anesthesia division growing 3% [24] Market Data and Key Metrics Changes - U.S. demand for IV Solutions remains below pre-Hurricane Helene levels, with expectations for further recovery at a moderate pace [20] - Total U.S. capital orders for Care and Connectivity Solutions increased 30% compared to the prior year, indicating robust demand [23] - The company anticipates continued softness in specialty mix products within Pharmaceuticals, impacting overall growth [33] Company Strategy and Development Direction - The company is focusing on stabilizing business areas that require increased attention, strengthening the balance sheet, and driving a culture of continuous improvement [11][14] - A reduction in the quarterly dividend to $0.01 per share is planned to free up cash for deleveraging [13][31] - The company plans to launch an Investor Day in 2026 to provide deeper insights into long-term strategy and financial outlook [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges current performance challenges and emphasizes the need for immediate actions and long-term solutions [9] - The company expects operational sales growth of 1 to 2% for 2025, reflecting updated expectations due to evolving business dynamics [33] - Management remains confident in the strength of the IV Solutions business over the medium and long term despite current challenges [20][76] Other Important Information - The company has undergone significant transformation in recent years, becoming more streamlined and focused [11] - The introduction of Baxter GPS, a new growth and performance system, aims to drive continuous improvement across the organization [14] Q&A Session Questions and Answers Question: Vision for Baxter and future changes - Management emphasizes a focus on stabilizing business areas, strengthening the balance sheet, and driving a culture of continuous improvement [39][40] Question: Potential for positive growth in 2026 - Management anticipates growth but is not providing specific guidance for 2026 at this time [43] Question: Impact of Novum on guidance - The hold on Novum IQ Large Volume Pump is affecting sales, leading to customer evaluations of alternative solutions [57] Question: Free cash flow generation - Management expects continued positive free cash flow, particularly in the fourth quarter, and is focused on improving working capital [63][64] Question: Hospital CapEx and political impacts - There has been no observed slowdown in hospital capital spending despite political uncertainties, with robust order growth reported [78]

Financial Data and Key Metrics Changes - Third quarter 2025 global sales from continuing operations totaled $2.8 billion, increasing 5% on a reported basis and 2% on an operational basis [22] - Adjusted earnings from continuing operations were $0.69 per share, reflecting a 41% increase versus the prior year [35] - Adjusted operating margin on a continuing operations basis was 14.9%, improving 40 basis points compared to the prior year [34] Business Line Data and Key Metrics Changes - Medical Products & Therapies segment sales were $1.3 billion, declining 1% due to softness in Infusion Therapies and Technologies [23] - Infusion Therapies and Technologies division sales totaled $1 billion, declining 4% primarily due to lower infusion pump sales [23] - Advanced Surgery sales grew 11% globally, totaling $306 million, driven by strong demand for hemostats and sealants [26] - Pharmaceuticals segment sales increased 7% to $632 million, with Injectables and Anesthesia division growing 3% [29] Market Data and Key Metrics Changes - U.S. demand for IV Solutions remains below pre-Hurricane Helene levels, with expectations for moderate recovery [25] - Total U.S. capital orders for Care and Connectivity Solutions increased 30% compared to the prior year [28] - The company anticipates continued fluid conservation in 2026, impacting IV Solutions demand [25] Company Strategy and Development Direction - The company is focusing on stabilizing business areas, strengthening the balance sheet, and driving a culture of continuous improvement [14][19] - A reduction in the quarterly dividend to $0.01 per share is planned to free up cash for deleveraging [16][36] - The company aims to improve operational execution and enhance innovation through the newly launched Baxter GPS system [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges current performance challenges and emphasizes the need for immediate actions and long-term solutions [12] - The company expects operational sales growth of 1 to 2% for 2025, reflecting updated expectations due to evolving business dynamics [39] - Management remains confident in the strength of the IV Solutions business despite current demand challenges [25][26] Other Important Information - The company has undergone significant transformation in recent years, becoming more streamlined and focused [14] - The anticipated impact of the kidney care sale is expected to help eliminate related costs [4] - The company is closely monitoring macroeconomic uncertainties, including tariffs [4] Q&A Session Summary Question: Vision for Baxter and future changes - Management emphasizes a focus on stabilizing business areas, strengthening the balance sheet, and driving continuous improvement [46][47] Question: Potential for growth in 2026 - Management anticipates growth but does not provide specific guidance for 2026 [50] Question: Impact of Novum on guidance - The hold on Novum IQ Large Volume Pump is affecting sales and customer responses, leading to a cautious outlook [66] Question: Free cash flow generation - Management expects continued positive free cash flow, particularly in the fourth quarter, and is focused on improving working capital [71][72] Question: IV fluid conservation post-Hurricane Helene - Demand remains below pre-Hurricane Helene levels, with expectations for gradual recovery [82][85] Question: Hospital CapEx trends - No signs of hesitancy in hospital capital spending have been observed, with robust order growth reported [86]

Core Viewpoint - Baxter International Inc. is facing a securities fraud class action lawsuit due to alleged misrepresentations regarding the safety of its Novum IQ Large Volume Pump, which is claimed to have systemic issues that could endanger patients [3][4]. Group 1: Lawsuit Details - The lawsuit was filed in the United States District Court for the Northern District of Illinois on behalf of investors who purchased Baxter common stock between February 23, 2022, and July 30, 2025 [3]. - The allegations include violations of the Securities Exchange Act of 1934 against Baxter and certain senior officers [3]. Group 2: Investor Participation - Investors who wish to serve as lead plaintiffs must file papers by December 15, 2025, and can act on behalf of other class members [5]. - Participation as a lead plaintiff is not required to share in any potential recovery, and all representation is on a contingency fee basis, meaning shareholders incur no fees or expenses [5]. Group 3: Law Firm Background - Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has represented large public and private pension funds [6]. - The firm has been recognized multiple times for its success in litigating class actions, being named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for sixteen consecutive years [6].

CLASS PERIOD: February 23, 2022 to July 30, 2025 Accessibility StatementSkip Navigation NEW YORK, Oct. 30, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Baxter International, Inc. (NYSE: BAX). Shareholders who purchased shares of BAX during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/se ...

Q3 2025 Performance Summary - Worldwide sales from continuing operations grew by 5% on a reported basis and 2% on an operational basis[17] - Adjusted earnings per share from continuing operations totaled $069 per diluted share, increasing 41% compared to the prior year period[17] - Q3 2025 global reported sales were $28 billion, a 2% operational growth[21] - Adjusted diluted EPS was $069, a 41% increase[21] - Adjusted gross margin was 394%, a decrease of 430 bps[26] - Adjusted operating margin was 149%, an increase of 40 bps[26] YTD 2025 Performance Summary - YTD 2025 global reported sales were $83 billion, a 2% operational growth[24] - Adjusted diluted EPS was $183, a 40% increase[24] - Baxter expects full-year 2025 operational sales growth to be between 1% and 2%[60] - Baxter projects adjusted diluted EPS for full-year 2025 to be between $235 and $240[60]

Core Viewpoint - Baxter International has revised its forecasts for adjusted annual profit and revenue growth downward after missing third-quarter revenue estimates due to ongoing impacts from hurricane-related disruptions [1] Financial Performance - The company reported a revenue miss in the third quarter, which has led to a reassessment of its financial outlook for the year [1] - Adjusted annual profit and revenue growth forecasts have been trimmed as a result of these challenges [1] External Factors - Persistent impacts from hurricane-related disruptions have significantly affected the company's operations and financial performance [1]

Sales Performance - Third-quarter sales from continuing operations totaled approximately $2.84 billion, increasing 5% on a reported basis and 2% on an operational basis[4] - U.S. sales from continuing operations totaled approximately $1.54 billion, increasing 3% on a reported basis but declining 1% on an operational basis[8] - International sales from continuing operations reached approximately $1.29 billion, increasing 8% on a reported basis and 5% on an operational basis[8] - Medical Products & Therapies sales for the third quarter were approximately $1.33 billion, declining 1% on both a reported and operational basis[7] - Healthcare Systems & Technologies sales for the third quarter totaled approximately $773 million, increasing 3% on a reported basis[10] - Pharmaceuticals sales for the third quarter were approximately $632 million, reflecting a 7% increase on both a reported and operational basis[10] - Infusion Therapies & Technologies segment sales decreased by 4% to $1,023 million in Q3 2025 from $1,070 million in Q3 2024[44] - Advanced Surgery segment sales increased by 13% to $306 million in Q3 2025, up from $272 million in Q3 2024[44] - The Medical Products & Therapies segment reported sales of $1,329 million in Q3 2025, a slight decrease of 1% from $1,342 million in Q3 2024[44] - The Healthcare Systems & Technologies segment achieved sales of $773 million in Q3 2025, reflecting a 3% increase from $752 million in Q3 2024[44] - The Pharmaceuticals segment's sales rose by 7% to $632 million in Q3 2025, compared to $588 million in Q3 2024[44] - For the three months ended September 30, 2025, total net sales growth for continuing operations was reported at 5%, with operational sales growth at 2%[53] - For the nine months ended September 30, 2025, total net sales growth was 5%, with operational sales growth at 2%[55] Earnings and Income - Adjusted diluted earnings per share (EPS) from continuing operations for the third quarter was $0.69, representing a 41% increase over the prior year[8] - Income (loss) from continuing operations was $(51) million, compared to $61 million in Q3 2024[28] - Adjusted income (loss) from continuing operations (excluding special items) rose by 40% to $353 million, compared to $252 million in the previous year[28] - Adjusted diluted EPS from continuing operations (excluding special items) increased by 41% to $0.69, up from $0.49[28] - The company reported a net income of $171 million for the nine months ended September 30, 2025, compared to a net loss of $128 million in 2024[35] - Diluted earnings per share from continuing operations increased by 40% to $1.83 from $1.31 in the previous year[35] - The company's net income for the nine months ended September 30, 2025, was $1,238 million, with diluted earnings per share of $1.85, reflecting a gross margin of 40.6%[37] - Adjusted diluted EPS guidance for FY 2025 is projected to be between $2.35 and $2.40[56] Costs and Expenses - Cost of sales increased by 13% to $1,885 million, compared to $1,666 million in the previous year[28] - Gross margin decreased by 8% to $950 million, with a gross margin percentage of 33.5%, down from 38.3%[28] - The company incurred $96 million in intangible asset amortization during the quarter[30] - The company incurred restructuring and business optimization costs related to the sale of its former Kidney Care segment and product line exits in 2024[33] - The company faced significant costs to comply with new European medical device regulations, which are considered a one-time regulatory change[33] - The company incurred costs related to centralizing research and development activities in 2024, impacting discontinued operations[39] - The company faced significant costs related to Hurricane Helene, impacting both continuing and discontinued operations in 2025[44] Future Projections - For full-year 2025, Baxter expects sales growth from continuing operations of 4% to 5% on a reported basis and 1% to 2% on an operational basis[12] - The company expects fourth-quarter 2025 sales growth from continuing operations of approximately 2% on a reported basis and a decline of approximately 2% on an operational basis[13] - The company projects a U.S. GAAP sales growth of approximately 2% for Q4 2025, with operational sales growth expected to be around -2%[56] - The exit of IV Solutions in China is expected to impact sales growth by approximately 50 basis points in FY 2025[56] - Foreign exchange effects are anticipated to reduce sales growth by approximately 100 basis points in Q4 2025 and 50 basis points for FY 2025[56] Special Items and Adjustments - Business optimization items contributed $25 million to the income, with a net impact of $0.05 per share[30] - The company reported a gain of $37 million from the sale of Kidney Care, impacting earnings by $0.07 per share[30] - Tax matters resulted in a net impact of $(213) million, affecting earnings by $(0.07) per share[30] - Special items included in the results for 2025 amounted to $1,082 million, impacting the net income attributable to Baxter stockholders, which was $1,087 million for the same period[38] - The effective tax rate for income tax expense was reported at 30.2% for the nine months ended September 30, 2025[38] - The effective tax rate for income tax expense was 4.3%[30] - The effective tax rate for income tax expense in 2024 was reported at (1.6)%[38] Operational Efficiency - Operating income rose by 11% to $172 million, representing 6.1% of net sales, compared to 5.7% in Q3 2024[28] - Interest expense decreased by 33% to $58 million, down from $87 million in the prior year[28] - The company experienced a 142.1% increase in operating income before income taxes, reflecting improved operational efficiency[30] - Adjusted operating income (excluding special items) increased by 8% to $423 million, up from $391 million[28] - Adjusted operating income (excluding special items) increased by 17% to $1,238 million from $1,055 million in the previous year[35] Shareholder Information - Net income attributable to Baxter stockholders was $(46) million, a significant decrease from $140 million in Q3 2024[28] - The weighted-average diluted shares as reported were 514 million, with adjusted shares at 515 million[30] - The company reported a gross margin of 38.4% for the nine months ended September 30, 2024, with a net income of $(128) million[38] - The adjusted net income for the nine months ended September 30, 2025, was $1,096 million, with adjusted diluted earnings per share of $2.13[38]

Core Insights - Baxter International Inc. reported its third-quarter 2025 financial results, highlighting a significant increase in adjusted net income and earnings per share, alongside a strategic focus on continuous improvement and growth initiatives [1][4][11]. Financial Performance - The company reported third-quarter sales from continuing operations of approximately $2.84 billion, representing a 5% increase on a reported basis and a 2% increase on an operational basis [11][12]. - Adjusted net income from continuing operations was $0.69 per diluted share, marking a 41% increase compared to the previous year [4][11]. - U.S. GAAP diluted earnings per share from continuing operations was reported at a loss of $0.10, while adjusted diluted EPS from continuing operations was $0.69 [11][12]. Segment Results - Medical Products & Therapies sales totaled approximately $1.33 billion, declining 1% on both a reported and operational basis, primarily due to reduced sales in the Infusion Therapies & Technologies division [12]. - Healthcare Systems & Technologies sales reached approximately $773 million, increasing 3% on a reported basis and 2% on an operational basis, driven by demand for Care & Connectivity Solutions [12]. - Pharmaceuticals sales amounted to approximately $632 million, reflecting a 7% increase on both a reported and operational basis, supported by strong performance in Drug Compounding and Injectables & Anesthesia products [12]. Strategic Initiatives - The company has launched a new enterprise-wide continuous improvement system aimed at enhancing execution and strengthening future results [2]. - Baxter expects full-year 2025 sales growth from continuing operations to be between 4% to 5% on a reported basis and 1% to 2% on an operational basis, with adjusted earnings from continuing operations projected at $2.35 to $2.40 per diluted share [6][7]. - For the fourth quarter of 2025, Baxter anticipates sales growth from continuing operations of approximately 2% on a reported basis and a decline of about 2% on an operational basis [7].

Core Viewpoint - Baxter International, Inc. is facing a class action lawsuit due to allegations of systemic defects in its Novum IQ Large Volume Pump, which resulted in serious patient risks and a significant drop in stock price following the announcement of a pause in shipments [3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Electrical Workers Pension Fund, Local 103, I.B.E.W. v. Baxter International, Inc., and covers purchasers of Baxter common stock from February 23, 2022, to July 30, 2025 [1]. - Investors have until December 15, 2025, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit alleges that Baxter made false or misleading statements regarding the safety and functionality of its Novum LVP, which led to malfunctions and patient risks [3]. Group 2: Allegations Against Baxter - Specific allegations include that Baxter was aware of multiple malfunctions and injuries related to the Novum LVP but failed to adequately address these issues [3]. - The lawsuit claims that Baxter's customer alerts were insufficient and that design flaws persisted, leading to serious harm [3]. - Following Baxter's announcement on July 31, 2025, to pause shipments of the Novum LVP, the company's stock price fell by more than 22% [4]. Group 3: Legal Process and Representation - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Baxter common stock during the class period to seek lead plaintiff status [5]. - The lead plaintiff will represent the interests of all class members and can select a law firm to litigate the case [5]. Group 4: Company Background - Robbins Geller Rudman & Dowd LLP is a leading firm in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [6]. - The firm has a strong track record, including securing the largest securities class action recovery in history at $7.2 billion in the Enron case [6].