Core Insights - Baxter International Inc. reported fourth-quarter 2025 adjusted earnings per share (EPS) of 44 cents, missing the Zacks Consensus Estimate of 53 cents by 17% and declining 24% from the previous year [1][7] - On a GAAP basis, the company reported a loss per share of $2.19 compared to a loss of 95 cents in the prior-year quarter [1] Revenue Performance - Revenues from continuing operations totaled $2.97 billion, reflecting an 8% increase on a reported basis and a 3% increase on an operational basis, surpassing the Zacks Consensus Estimate by 6.5% [3] - U.S. sales from continuing operations were $1.55 billion, up 3% on a reported basis but down 1% on an operational basis [3] - International sales from continuing operations reached $1.42 billion, showing a 14% increase on a reported basis and an 8% increase on an operational basis [3] Segment Analysis - Medical Products & Therapies segment sales totaled $1.39 billion, up 6% reported and 4% operationally, driven by strong demand in Infusion Therapies & Technologies and Advanced Surgery products [5] - Infusion Therapies and Technologies sales were $1.06 billion, up 4% year over year reported and 1% operationally [8] - Healthcare Systems and Technologies segment sales were $827 million, up 5% year over year reported and 4% operationally [9] - Pharmaceuticals segment sales were $668 million, up 4% year over year reported and 2% operationally, with growth driven by Drug Compounding [10] Margin and Expense Analysis - Adjusted gross profit was $1.06 billion, down 13.9% year over year, with adjusted gross margin contracting 900 basis points to 35.5% [11] - Adjusted operating income from continuing operations totaled $352 million, down 16% year over year, with adjusted operating margin contracting 340 basis points to 11.8% [12] 2026 Guidance - Baxter expects 2026 sales to be flat to up 1% on a reported basis, with adjusted EPS projected in the range of $1.85-$2.05, below the Zacks Consensus Estimate of $2.33 [13]

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]