Core Insights - Baxter International Inc. reported third-quarter 2025 adjusted earnings per share (EPS) of 69 cents, exceeding the Zacks Consensus Estimate of 60 cents by 15%, although the bottom line declined 14% from the previous year [1][6] - Revenues from continued operations totaled $2.84 billion, reflecting a 5% increase on a reported basis but missing the Zacks Consensus Estimate by 1% [2][6] - The company's shares fell 16.2% in pre-market trading due to lower-than-expected quarterly sales, with a year-to-date decline of 3.8% compared to the industry's growth of 6% [2] Revenue Details - Total revenues from continued operations were $2.84 billion, up 5% reported and 2% operationally, but missed expectations [2] - The Medical Products & Therapies segment generated $1.33 billion, down 1% on both reported and operational bases, primarily due to lower sales in Infusion Therapies & Technologies [4] - Infusion Therapies and Technologies sales were $1.02 billion, down 4% year over year, while Advanced Surgery sales rose 13% to $306 million [5][6] - Healthcare Systems and Technologies segment sales reached $773 million, up 3% year over year, driven by growth in Care & Connectivity Solutions [7] - Pharmaceuticals segment sales totaled $632 million, up 7% year over year, with strong performance in Drug Compounding and Injectables & Anesthesia [8][9] Margin Analysis - Adjusted gross profit was $1.12 billion, down 5.3% year over year, with an adjusted gross margin contraction of 430 basis points to 39.4% [10] - Selling, general and administrative expenses were $708 million, down 6% from the previous year, while research and development expenses totaled $118 million, down 9% [10] - Adjusted operating income from continuing operations was $423 million, up 8% year over year, with an adjusted operating margin improvement of 40 basis points to 14.9% [11] 2025 Guidance - For Q4 2025, Baxter anticipates sales growth of 2% reported and a decline of 2% operationally, with adjusted EPS expected in the range of 52-57 cents [12] - Full-year 2025 guidance for continuing operational sales growth is now 4-5% reported and 1-2% operationally, with adjusted EPS projected at $2.35-$2.40, down from previous guidance [13]