NYSE: BAX · Health Care Supplies
Baxter International Inc.
Baxter makes hospital products: IV solutions and infusion pumps, injectable drugs and drug compounding, surgical products, and — through Hillrom, acquired in 2021 — hospital beds, patient monitoring and other connected care equipment. It has been shrinking to pay down debt: it sold BioPharma Solutions in 2023 ($3.96 billion) and its Kidney Care business (now Vantive) to Carlyle in January 2025 ($3.80 billion). 2025 sales from continuing operations rose 6% to $11.2 billion, but the company posted a net loss of $957 million after $2.09 billion of special items, including goodwill impairments. Its Novum IQ large-volume infusion pump has been on a U.S. and Canada ship hold since 2025 Class I recalls, and in November 2025 Baxter cut its quarterly dividend to $0.01 to speed up debt reduction. Andrew Hider became CEO in July 2025. Figures for 2021 include Kidney Care; 2022 onward exclude it.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 17, 2026 10:06 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Built on10-K FY2025 · filed 2026-02-1210-Q (quarter ended 2026-09-30) · filed 2026-10-29
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- -0.7%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- -2.7%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -7.9 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 11.2x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- —
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 0 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- —
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.94
Higher than 6% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 3% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 7% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 99% of 304 non-financial companies
Below 0 means more cash than debt
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$26.25close on 2026-11-04
Market cap$13.5B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- —
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 2.2x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 31.2x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 2.5%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 2.0%
At FY2025 year-end: —
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 1.6x
Book value at FY2025 year-end
At FY2025 year-end: 25.8x
EBITDA for FY2025
At FY2025 year-end: 3.4%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$2.84B → $2.98B (vs. a year earlier)↑ +5.0%$2.84B → $2.98B (vs. a year earlier)
- Operating margin6.1% → 7.6% (vs. a year earlier)↑ +1.5 pts6.1% → 7.6% (vs. a year earlier)
- Net income−$46M → $294M (vs. a year earlier)↑ $294M−$46M → $294M (vs. a year earlier)
- Diluted EPS$-0.09 → $0.57 (vs. a year earlier)↑ $0.57$-0.09 → $0.57 (vs. a year earlier)
- Cash$2.15B → $1.98B (vs. previous quarter-end)↓ −8.1%$2.15B → $1.98B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 29, 2026.
Management outlook ↑ Raised
Raised its full-year outlook. Source sentence
The company raised its full-year financial outlook:
Key changes
Q3 sales $2.98B, up 5%. Source sentence
Third-quarter sales of $2.98 billion increased 5% on both a reported and organic basis, 1,2 reflecting growth in all segments and divisions
Adjusted EPS $0.58, down 16%. Source sentence
On an adjusted basis, net income in the third quarter was $0.58 per diluted share, decreasing 16% due to a higher effective tax rate, year-over-year.
Retired $864M of debt in a $600M tender offer. Source sentence
During the third quarter, the company completed a $600 million cash tender offer , retiring $864 million of debt and accelerating deleveraging while supporting its investment-grade credit objectives.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- BAXTER INTERNATIONAL INC
- Headquarters
- DEERFIELD, IL
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: BAX
- Industry
- Health Care Supplies
- CIK
- 10456
- Website
- https://www.baxter.com/ ↗
Workforce (as of FY2025 year-end)
Employees
37,500
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 39–51 days after quarter end (Feb 12, 2026; Feb 20, 2025; Feb 8, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 29–51 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 29, 2026 (+29 days) | Oct 29, 2026 10-Q (+29 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 30, 2026 (+30 days) | Jul 30, 2026 10-Q (+30 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 30, 2026 (+30 days) | Apr 30, 2026 10-Q (+30 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 12, 2026 (+43 days) | Feb 12, 2026 10-K (+43 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 30, 2025 (+30 days) | Nov 4, 2025 10-Q (+35 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 31, 2025 (+31 days) | Aug 5, 2025 10-Q (+36 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 6, 2025 10-Q (+36 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 20, 2025 (+51 days) | Feb 21, 2025 10-K (+52 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 8, 2024 (+39 days) | Nov 12, 2024 10-Q (+43 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 6, 2024 (+37 days) | Aug 6, 2024 10-Q (+37 days) |
| Q1 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 2, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 8, 2024 (+39 days) | Feb 8, 2024 10-K (+39 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Medical Products & Therapies
Infusion therapies
Examples: IV solutions, Novum IQ and other infusion pumps, administration sets
$4.10B of 2025 sales.
Medical Products & Therapies
Advanced Surgery
Examples: Surgical sealants, hemostats
$1.20B of 2025 sales.
Healthcare Systems & Technologies
Care & Connectivity Solutions
Examples: Smart beds, patient support systems, monitoring
$1.91B of 2025 sales.
Healthcare Systems & Technologies
Front Line Care
Examples: Diagnostic and vital signs devices
$1.16B of 2025 sales.
Pharmaceuticals
Injectables & Anesthesia
Examples: Injectable drugs, inhaled anesthetics
$1.35B of 2025 sales.
Pharmaceuticals
Drug Compounding
Examples: Pharmacy compounding services outside the U.S.
$1.14B of 2025 sales.
From the FY2025 Form 10-K.
U.S. and worldwide share of flagship products/services
The filings reviewed give no market share figure for the company's products or services.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-09-30)
07
Recent strategic focusSite analysis
FY2025 from the 10-K, and 2026 events from the Q3 earnings release, 10-Q and 8-Ks.
Q3 2026 results
Sales $2.98B (+5%); GAAP EPS $0.57, adjusted $0.58; free cash flow $448M in the quarter and $705M year to date. Full-year outlook raised to 4–5% reported sales growth and $2.05–2.15 adjusted EPS.
Source: Q3 2026 earnings release
New segment structure
From Q2 2026, two segments: Medical Products & Therapies (now including Pharmaceuticals) and Healthcare Systems & Technologies.
Source: 8-K filed 2026-07-14
Debt actions
Completed a $600M cash tender offer in Q3 2026, retiring $864M of long-dated notes, and amended its credit agreement to raise the leverage covenant.
Source: 8-Ks filed 2026-08-04 and 2026-08-18; Q3 2026 earnings release
New CFO
John Rogers, CFO of Smith+Nephew, becomes CFO on October 1, 2026.
Source: 8-K filed 2026-08-19
Capex ÷ D&A (FY2025)
0.52x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$513M ÷ $981M = 0.52x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
4.6%
formularesearch & development expense ÷ revenue × 100
e.g.$518M ÷ $11,244M × 100 = 4.6%
M&A spend (6-year total)
$11.28B
Latest year: $9M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $709M in FY2020 to $513M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$11.24B
As reported in the 10-K
Revenue CAGR (5 years)
-0.7%▼caution
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($11,244M ÷ $11,673M) ^ (1÷5) − 1 = -0.7%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
-2.7%▼caution
-16.6pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$-308M ÷ $11,244M × 100 = -2.7%
ROE (FY2025)
-14.6%▼caution
6-year average: 1.5%
As reported in the 10-K
P/B (FY2025 end)
1.60x
formulafiscal year-end closing price ÷ book value per share
e.g.$19.11 ÷ $11.92 = 1.60x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
25.8x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($9,828M + $9,473M − $1,966M) ÷ ($-308M + $981M) = 25.8x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▼
Revenue grew -0.7% a year over 5 years (a shrinking trend)
From $11.67B in FY2020 to $11.24B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 13.8% → -2.7%
How much operating profit is left per $100 of revenue. It moved -16.6 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 30.6% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▼
ROE averaged 1.5% over 6 years (latest: -14.6%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
Medical Products & Therapies
Making IV solutions and infusion systems- Surgical sealants and hemostats
Healthcare Systems & Technologies
Connected care devices and softwarePharmaceuticals
Injectables and inhaled anesthesia- Pharmacy compounding
06 · what it draws on
Key resources
Medical Products & Therapies
Manufacturing in over 20 countries- Resin, chemicals and electronic components
Healthcare Systems & Technologies
Hillrom engineering and manufacturingPharmaceuticals
Pharmaceutical manufacturing
02 · why customers buy
Value propositions
- Infusion therapies, surgical products, hospital beds and monitoring, and injectable drugs used in hospitals and clinics.
04 · how it keeps them
Customer relationships
- Frequent contact by sales and customer service representatives, electronic purchasing systems, and distribution centers stocked for prompt service.
03 · how it reaches them
Channels
- Own direct sales force, plus independent distributors, drug wholesalers acting as sales agents and specialty pharmacies, in more than 100 countries.
01 · who it serves
Customer segments
Medical Products & Therapies
Hospitals, clinics and alternate-site providers- Group purchasing organizations (GPOs) and integrated delivery networks
Healthcare Systems & Technologies
Hospitals and physician officesPharmaceuticals
Hospitals and pharmacies
09 · where money goes
Cost structure
FY2025, share of revenue ($11.24B)
- Cost of revenue69.9%
- Research & development4.6%
- Selling, general & administrative25.7%
- Other operating costs2.5%
Revenue here is reported net of interest expense, so these lines overlap and add up to more than 100%.
Operating profit left: -2.7% of revenue. Depreciation & amortization (inside the costs above): $981M. Capital spending: $513M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
Medical Products & Therapies
Consumables sold repeatedly (solutions, sets)- Infusion pump sales and service
Healthcare Systems & Technologies
Equipment sales- Service and rentals
Pharmaceuticals
Drug sales- Compounding services
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Medical Products & Therapies
Infusion therapies and technologies (IV solutions, infusion pumps and sets) and advanced surgery products. From Q2 2026 this segment also includes the former Pharmaceuticals segment.
01 what it draws on
Inputs & resources
- Manufacturing in over 20 countries
- Resin, chemicals and electronic components
02 what it does
Activities
- Making IV solutions and infusion systems
- Surgical sealants and hemostats
03 who it serves
Customers
- Hospitals, clinics and alternate-site providers
- Group purchasing organizations (GPOs) and integrated delivery networks
04 how money comes in
How it earns
- Consumables sold repeatedly (solutions, sets)
- Infusion pump sales and service
Medical Products & Therapies: how it makes money
- 2025 sales $5.30B; segment operating income $970M (18.3% margin).
- Infusion Therapies & Technologies $4.10B; Advanced Surgery $1.20B (+9%).
Healthcare Systems & Technologies
Former Hillrom businesses: smart beds and patient support systems, patient monitoring and diagnostic devices, and front-line care products.
01 what it draws on
Inputs & resources
- Hillrom engineering and manufacturing
02 what it does
Activities
- Connected care devices and software
03 who it serves
Customers
- Hospitals and physician offices
04 how money comes in
How it earns
- Equipment sales
- Service and rentals
Healthcare Systems & Technologies: how it makes money
- 2025 sales $3.07B; segment operating income $441M (14.4% margin).
- Segment operating income fell from $468M in 2024 as more corporate costs were allocated after the Kidney Care sale, and tariffs rose.
Pharmaceuticals (in MPT from Q2 2026)
Injectable drugs and anesthesia products, plus drug compounding services outside the U.S.
01 what it draws on
Inputs & resources
- Pharmaceutical manufacturing
02 what it does
Activities
- Injectables and inhaled anesthesia
- Pharmacy compounding
03 who it serves
Customers
- Hospitals and pharmacies
04 how money comes in
How it earns
- Drug sales
- Compounding services
Pharmaceuticals (in MPT from Q2 2026): how it makes money
- 2025 sales $2.49B; segment operating income fell to $222M (8.9% margin) from $313M.
- Drug Compounding sales $1.14B (+10%), all outside the U.S.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Baxter sells through negotiated hospital purchasing contracts and government tenders.
Regulated prices & reimbursement
GPO and IDN contracting
Group purchasing organizations and integrated delivery networks negotiate prices with manufacturers for their members.
Constrains the businessTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Government as customer
Government tenders
Many international sales come through annual government and public tenders that can be lost.
Supports and constrainsTouches: CustomersSource: Form 10-K (FY2025)
Approvals & licenses
FDA device clearance
U.S. sales require FDA 510(k) clearance or premarket approval for each device; noncompliance can bring warning letters, recalls or other sanctions.
Supports and constrainsTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Medical Products & Therapies
5,299 (49%)profit 970 · margin 18.3%
Healthcare Systems & Technologies
3,071 (28%)profit 441 · margin 14.4%
Pharmaceuticals
2,493 (23%)profit 222 · margin 8.9%
Source: Form 10-K (FY2025) — Note 17, segment and geographic information Profit is segment operating income, before $1.98B of corporate costs, amortization, impairments and other items that produced a total operating loss of $308M. Other sales ($381M, primarily sales to Vantive under the Kidney Care manufacturing and supply agreement) are not shown. From Q2 2026 Pharmaceuticals is reported within Medical Products & Therapies.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 54% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
6,122 (54%)Rest of world (Western Europe, Canada, Japan, Australia, New Zealand)
3,728 (33%)Emerging markets
1,394 (12%)
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Baxter sells to hospitals and other providers directly and through distributors; in the U.S., Cardinal Health and Medline warehouse and ship a significant portion of its products. Much of its business is recurring consumables such as IV solutions, sets and injectable drugs.
Kidney Care manufacturing and supply agreement
Most of $381M of Other sales in 2025
Typical term: Baxter supplies products to Vantive after the sale
Added about 3 points to 2025 sales growth.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Hospitals, clinics, GPOs, integrated delivery networks, physicians and patients in over 100 countries.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- 54% of 2025 sales came from the United States. (Form 10-K (FY2025), MD&A)
- In the U.S., Cardinal Health and Medline warehouse and ship a significant portion of Baxter's products. (Form 10-K (FY2025), Item 1)
Suppliers
Raw materials and components for manufacturing in over 20 countries.
Named by the company
None named in the 10-K or the company’s press releases.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Baxter's 10-K says no single company competes with it in all its businesses, but it faces substantial competition in each segment from healthcare, medical products and pharmaceutical companies of all sizes. It names no competitors.
Competitors named in the 10-K
Baxter's 10-K describes competition but doesn't name companies.
Peer group the company chose
2025 executive compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
U.S.-based healthcare equipment, services and supplies and life sciences tools companies with revenue and market capitalization in a reasonable range of Baxter's.
- Abbott Laboratoriessite ↗
- Agilent Technologiessite ↗
- Becton Dickinsonsite ↗
- Boston Scientificsite ↗
- Danahersite ↗
- DaVitasite ↗
- Dentsply Sironasite ↗
- Edwards Lifesciencessite ↗
- GE HealthCaresite ↗
- Hologicsite ↗
- Intuitive Surgicalsite ↗
- Labcorpsite ↗
- Medtronicsite ↗
- Quest Diagnosticssite ↗
- Strykersite ↗
- Zimmer Biometsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
M&A historySite analysisShow
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Baxter bought Hillrom in 2021 and has since sold two businesses to reduce debt.
Cash spent on acquisitions, FY2020–FY2025: $11.28B
Sep 2023
BioPharma Solutions (divestiture)
$3.96B cash proceeds
Contract manufacturing of injectables; reported as discontinued operations.
- Stated purpose (company)
- Substantially all after-tax proceeds were used to repay debt.
Source: Form 10-K (FY2025) — Item 1
Jan 2025
Kidney Care (divestiture to Carlyle, now Vantive)
$3.80B
The former Kidney Care segment (dialysis products); about $3.3B of net after-tax proceeds.
- Stated purpose (company)
- Not stated in the 10-K; Baxter repaid $3.81B of debt in 2025.
Source: Form 10-K (FY2025) — Item 1
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 11,673 | 12,146 | 10,057 | 10,360 | 10,636 | 11,244 |
| Operating income | 1,616 | 1,350 | -2,845 | 707 | 14 | -308 |
| Pretax income | 1,292 | 1,116 | -3,248 | 242 | -289 | -505 |
| Net income (attributable) | 1,102 | 1,284 | -2,433 | 2,656 | -649 | -957 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 4.1% | -17.2% | 3.0% | 2.7% | 5.7% |
| Operating margincalcoperating income ÷ revenue × 100 | 13.8% | 11.1% | -28.3% | 6.8% | 0.1% | -2.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 9.4% | 10.6% | -24.2% | 25.6% | -6.1% | -8.5% |
| Balance sheet ($M) | ||||||
| Total assets | 20,019 | 33,521 | 28,287 | 28,276 | 25,782 | 20,055 |
| Total equity | 8,726 | 9,121 | 5,895 | 8,468 | 7,024 | 6,129 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 6,233 | 18,055 | 17,001 | 13,855 | 15,306 | 9,473 |
| Equity ratio | 43.4% | 27.1% | 20.6% | 29.7% | 27.0% | 30.6% |
| ROE | 12.7% | 14.5% | -32.6% | 37.3% | -8.4% | -14.6% |
| Cash flow ($M) | ||||||
| Operating CF | 1,868 | 2,222 | 1,211 | 1,726 | 1,019 | 845 |
| Investing CF | -1,179 | -11,200 | -931 | 3,213 | -626 | 2,841 |
| Financing CF | -345 | 8,245 | -1,438 | -3,489 | -1,081 | -4,216 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,159 | 1,531 | 834 | 1,294 | 573 | 332 |
| Cash and equivalents | 3,730 | 2,951 | 1,621 | 3,078 | 1,764 | 1,966 |
| Per share & other | ||||||
| EPS ($) | 2.13 | 2.53 | -4.83 | 5.23 | -1.27 | -1.87 |
| BVPS ($) | 17.21 | 18.10 | 11.56 | 16.55 | 13.63 | 11.92 |
| Dividend per share ($) | 0.96 | 1.09 | 1.15 | 1.16 | 1.04 | 0.52 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 44.8% | 42.9% | — | 22.2% | — | — |
| P/E (x) | 37.7 | 33.9 | — | 7.4 | — | — |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 17.6 | 26.2 | — | 18.0 | 28.1 | 25.8 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 4.66 | 4.74 | 4.41 | 2.34 | 2.14 | 1.60 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $2.98B+5.0% | $225M+30.8% | $294M | $0.57 |
| 2026-06-30 | $2.96B+5.3% | $217M+13.6% | $126M+38.5% | $0.24 |
| 2026-03-31 | $2.7B+2.9% | $66M+13.8% | −$15M-111.9% | $-0.03 |
| 2025-12-31 † | $2.97B+8.0% | −$729M | −$1.13B | — |
| 2025-09-30 | $2.84B | $172M | −$46M | $-0.09 |
| 2025-06-30 | $2.81B | $191M | $91M | $0.18 |
| 2025-03-31 | $2.63B | $58M | $126M | $0.25 |
| 2024-12-31 † | $2.75B | −$435M | −$512M | $-1.00 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
-1.4%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$-308M × (1 − 12.5%) ÷ $18,966M × 100 = -1.4%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.47%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $9.83B ÷ ($9.83B + $9.47B) = 50.9%
e.g.Debt weight: $9.47B ÷ ($9.83B + $9.47B) = 49.1%
e.g.WACC: 10.1% × 50.9% + 3.1% × (1 − 12.5%) × 49.1% = 6.47%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.5%–7.6% and ROIC − WACC runs −9.0 to −7.0 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 6.47% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.94 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 10.12%
- Cost of debt
- 3.06%
- Tax rate
- 12.5% (effective rate, FY2020–FY2023)
- Capital structure (equity : debt)
- 51% : 49%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.47%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.94 (price-derived adjusted beta. Raw β 0.91, R² 0.11, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.910 + 0.33 = 0.939
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.94 × 5.5% = 10.1%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
4.9%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.5% − 1.6%
Past FCF growth (FY2020–FY2025)
-22.1%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
-0.7%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $332M (operating CF − capex); enterprise value $21.01B = market cap $13.5B (latest close, 2026-11-04) + debt $9.47B − cash and short-term investments $1.97B; r = WACC of 6.5% using this page’s default assumptions (β 0.94, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$20.75B
FCF $332M ÷ (6.5% − 4.9%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.5% | 5.5% | 6.5% | 7.5% | 8.5% |
|---|---|---|---|---|---|
| 0% | 0.35x | 0.29x | 0.24x | 0.21x | 0.19x |
| 2% | 0.63x | 0.45x | 0.35x | 0.29x | 0.24x |
| 4% | 3.16x | 1.05x | 0.63x | 0.45x | 0.35x |
| 6% | — | — | 3.16x | 1.05x | 0.63x |
| 8% | — | — | — | — | 3.16x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
18
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.36x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -7.9%
A small share of profit rests on accounting estimates.
- ✓
Days sales outstanding: 63 → 57 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-12
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($1,679M + $1,861M) ÷ 2 ÷ $11,244M × 365 = 57 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($2,046M + $2,232M) ÷ 2 ÷ $7,865M × 365 = 99 days
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 100%+
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- ≈0%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 18 of 416
- Beta (adjusted)
- 0.94
Reported total 107.7%
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 4% of covered companies have more
above 1 = swings more than the market
- 556.6M shares reported by 688 13F filers ÷ 517.0M shares outstanding on 2026-07-23. Option positions are excluded.
- The 13F total exceeds shares outstanding because some shares are reported twice — for example shares lent to short sellers and then bought by another manager, or holdings that overlapping managers both report.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-23 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-23)
20
Strengths & weaknessesSite analysis
Strengths
1. Broad hospital portfolio
The 10-K cites the breadth of its product offerings and relationships with hospitals, GPOs and integrated delivery networks; products are sold in over 100 countries.
Evidence: Form 10-K (FY2025), Item 1
2. Growth returning in 2026
Q3 2026 sales rose 5% (reported and organic) with growth in all segments and divisions, and the full-year outlook was raised again to 4–5% reported growth and $2.05–2.15 adjusted EPS.
Evidence: Q3 2026 earnings release
Weaknesses
1. Losses and impairments
Net losses of $649M (2024) and $957M (2025), including goodwill impairments of $425M and $485M.
Evidence: Form 10-K (FY2025)
2. Dividend cut
The quarterly dividend was cut to $0.01 per share in November 2025 to accelerate debt reduction.
Evidence: Form 10-K (FY2025), Item 1A
3. Management turnover
A new CEO in July 2025, the CFO departed in March 2026, the interim CFO resigned in July 2026, and a new CFO starts October 1, 2026.
Evidence: Form 10-K (FY2025); 8-Ks filed 2026-03-16, 2026-08-04, 2026-08-19
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
—
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
2.72%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.4%
(Operating CF − capex) ÷ market cap
1. Turnaround under new management
After divestitures and impairments, Baxter is focused on deleveraging and its Growth and Performance System; it raised its full-year outlook in both Q2 and Q3 2026.
- What has to hold
- The pump hold is resolved and margins recover.
- The other side
- GAAP losses in 2024 and 2025, and frequent finance leadership changes.
Evidence: Form 10-K (FY2025); Q3 2026 earnings release
These summarize facts in Baxter's filings, not a recommendation.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
100x+
$1.97B vs. $3M
Interest coverage (operating income ÷ interest expense)
-1.1x
−$308M vs. $290M
Free cash flow ÷ dividends paid
1.0x
$332M vs. $348M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -17.2% in FY2022 ($12.15B → $10.06B) | Not yet, as of FY2025 |
| Operating income | -2300.0% in FY2025 ($14M → −$308M) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Debt reduction
Debt fell from $18.1B (2021) to $9.5B (2025) after divestitures.
Source: SEC EDGAR XBRL
Cash
$2.0B of cash at year-end 2025; free cash flow of $705M in the first nine months of 2026.
Source: SEC EDGAR XBRL; Q3 2026 earnings release
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Baxter's main exposures stem from FDA Class I recalls of its Novum IQ large-volume infusion pump: securities class actions and derivative suits followed, and the DOJ is investigating Hillrom and IV container production. In August 2026, 19 plaintiffs sued over ethylene oxide at its Mountain Home, Arkansas plant. Legal and environmental reserves were $41 million at September 30, 2026.
4 open matters (1 flagged as major)
Novum LVP securities class actions
PendingClass actionMajorElectrical Workers Pension Fund Local 103 v. Baxter; City of Hallandale Beach v. Baxter (N.D. Ill.)
Allege false and misleading statements about the Novum LVP from February 23, 2022 to October 29, 2025. The FDA classified Baxter's 2025 corrections as Class I recalls, and Baxter paused U.S. and Canadian distribution in July 2025.
- Next step
- A lead plaintiff was appointed in June 2026. The consolidated derivative suits are stayed.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
DOJ investigations (Hillrom; IV containers)
PendingGovernment investigationU.S. Department of Justice
The DOJ issued a False Claims Act and Anti-Kickback civil investigative demand to Hillrom (October 2022), then a 2024 subpoena on its respiratory health business. A December 2025 demand covers production of Baxter's IV flexible containers. Baxter is cooperating.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Hillrom hospital-bed antitrust suits
PendingAntitrustLinet Americas (N.D. Ill.); Reading Hospital putative class (E.D. Pa.; on appeal)
Allege anticompetitive conduct in standard, ICU and birthing bed markets. Discovery continues in Linet. The Reading Hospital class action was dismissed with prejudice in September 2025, and appellate briefing is complete. The appeals court heard oral argument on September 24, 2026.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Ethylene oxide exposure suits
PendingProduct liabilityPlaintiffs in Cook County and St. Clair County Circuit Courts, Ill.
Suits over historical ethylene oxide sterilization at Round Lake, Illinois were resolved for an amount not material to Baxter. In June 2026 the court dismissed all pending matters against Baxter with prejudice. On August 17, 2026, 19 plaintiffs filed a new complaint in St. Clair County, Illinois, alleging injuries from ethylene oxide used to sterilize products at Baxter's Mountain Home, Arkansas facility; they seek unspecified compensatory damages and declaratory relief.
Source: Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings
Based on Form 10-Q (quarter ended 2026-09-30) — Legal Proceedings, reviewed 2026-10-18. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Governance & quality
Product quality and recalls
- Company disclosure (summarized from the 10-K)
- Novum IQ large-volume pump corrections were classified by the FDA as Class I recalls in 2025; a U.S. and Canada ship and installation hold remains, reducing Infusion Systems sales.
- Company’s stated mitigation
- Corrections implemented and more under development, some needing regulatory clearance.
- This site’s assessment
- Impact High / Likelihood High
- 2Funding & liquidity
Debt and leverage covenant
- Company disclosure (summarized from the 10-K)
- The 10-K says its indebtedness constrains flexibility; in August 2026 lenders agreed to raise the maximum net leverage ratio through September 2027.
- Company’s stated mitigation
- Debt repaid with sale proceeds ($3.81B in 2025), dividend cut, and tender offers for long-dated notes.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Competition & technology shift
Competition in each segment
- Company disclosure (summarized from the 10-K)
- No single company competes in all its businesses, but it faces substantial competition in each segment on price, cost-effectiveness, innovation and supply.
- Company’s stated mitigation
- Breadth of offerings and customer relationships.
- This site’s assessment
- Impact Med / Likelihood High
- 4Costs & inflation
Tariffs and manufacturing costs
- Company disclosure (summarized from the 10-K)
- Tariffs and higher manufacturing and supply costs weighed on segment profit in 2025.
- Company’s stated mitigation
- Pricing increases; a Q2 2026 IEEPA tariff refund added $0.11 to adjusted EPS.
- This site’s assessment
- Impact Med / Likelihood Med
- 5M&A & integration
Portfolio changes
- Company disclosure (summarized from the 10-K)
- The 10-K lists risks from the Kidney Care and BPS divestitures and the Hillrom acquisition, including stranded costs and supply agreements with Vantive.
- Company’s stated mitigation
- A new operating model and two-segment structure from Q2 2026.
- This site’s assessment
- Impact Med / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
• Continued consolidation in the health care industry or additional governmental controls exerted over pricing and access in key markets could lead to increased demands for price concessions or limit or eliminate our ability to sell to certain of our significant market segments.
Our businesses have faced, and will continue to face, challenges in connection with strategic actions we have undertaken, including the divestitures of our Kidney Care business and our BPS business, the acquisition of Hill-Rom Holdings, Inc. Read more
(Hillrom), and the ongoing implementation of a simplified operating model and manufacturing footprint. These actions have entailed significant changes across our organizational structure and functional areas and have led to select market exits and may lead to additional market exits as we continue to optimize our portfolio. Today, we are a smaller, less diversified company, with more limited and concentrated businesses, which may leave us more vulnerable to changing market conditions and increased volatility in our financial performance. We may also continue to experience diversion of management attention and the loss of experienced leaders with…
In addition to the transactions referenced above, other strategic transactions we have undertaken or strategic transactions we may undertake in the future could subject us to various risks and additional costs.
As of December 31, 2025, we had approximately $9.48 billion of indebtedness outstanding. Read more
While we repaid $3.81 billion of legacy indebtedness in 2025 (which repayment does not include $2.00 billion of indebtedness repaid with proceeds from a new notes offering), our significant level of indebtedness requires us to use a substantial
Continued consolidation in the health care industry or additional governmental controls exerted over pricing and access in key markets could lead to increased demands for price concessions or limit or eliminate our ability to sell to certain of our significant market segments.
Numerous initiatives and reforms by legislators, regulators, and third-party payers to curb the rising cost of health care, and to increase access to care, have catalyzed a consolidation of aggregate purchasing power within many of the markets in which we sell our products. Additionally, a growing number of countries have instituted or are contemplating introducing regional or national tender processes driven primarily by price. In some cases, such processes may favor local companies to multinational companies like us. In other instances, multinational companies, including Baxter, are subject to a separate tender bidding process in which they compete only with each other and not with domestic companies. Further, in certain markets, the regulatory process through which new medical devices are approved may be faster and/or less burdensome for domestic companies compared to multinational…
expect that market demand, government regulation, third-party coverage and reimbursement policies, government contracting requirements, and societal pressures will continue to change the worldwide health care industry, resulting in further business consolidations and alliances among our customers, which may increase competition, exert further downward pressure on the prices of our products and services and may adversely impact our business, results of operations, financial condition, and cash flows.
Management transition creates uncertainties, and any difficulties we experience in managing such transitions, including attracting and retaining our key employees, could adversely affect our business and results of operations.
No longer in the text (4)
• Incorporating artificial intelligence, machine learning and other emerging technologies into our products, services and operations exposes us to legal and regulatory risks and could result in reputational harm or have other adverse consequences to our business, financial condition or results of operations.
Our businesses have begun to face, and will continue to face, material challenges in connection with the sale of our Kidney Care business and the other strategic actions we have undertaken (including the implementation of a simplified operating model and the ongoing simplification of our manufacturing footprint). The success of the sale of our Kidney Care business depends on, among other things, our ability to effectively transition the Kidney Care business to Carlyle in a manner that: minimizes disruption to our customers, employees, other personnel and operations; realizes the expected tax benefits; avoids potential liabilities or claims; and enables us to achieve related cost savings initiatives. The Kidney Care sale may result in challenges such as: the diversion of management’s attention from our ongoing business concerns and any newly identified strategic initiatives; attracting,…
In addition, in the last few years, we have undertaken other strategic and business transformation actions (including the divestiture of our BPS business, the acquisition of Hillrom and cost reduction initiatives) that have entailed changes across our organizational structure, senior leadership, culture, functional alignment, outsourcing and other areas. These actions pose risks in the form of personnel capacity constraints and institutional knowledge loss that has led to, and could in the future lead to, missed performance of financial targets (including those related to cost savings initiatives) and harm to our reputation.
In connection with the closing of the Kidney Care sale, we entered into certain agreements as described above (including a transition services agreement and a manufacturing and supply agreement). Read more
These agreements provide for the performance of services, and the provision of certain dialysis-related products, other products and product components, by each company for the benefit of the other for a period of time. If Vantive is unable to satisfy its obligations under these agreements, including its supply and indemnification obligations, we could incur losses. Additionally, in the event that Vantive asserts claims for breaches of any of these agreements, our indemnity obligations and other liabilities to Vantive under these agreements could be significant. These arrangements could also lead to disputes over rights to certain shared property and rights and over the allocation of costs and…
30 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 12, 2026 ↗ with the 10-K filed Feb 21, 2025 ↗.
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What to watch going forwardSite analysis
- Resolution of the Novum IQ LVP ship hold.
- Net leverage versus the amended covenant through September 2027.
- Whether the raised 2026 outlook (adjusted EPS $1.95–2.15) holds.
- Stability of the finance team under the new CFO.
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Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 31, 2026 · Financial data fetched: October 17, 2026 10:06 (SEC EDGAR) · Source 10-K filed: February 12, 2026
Built on10-K FY2025 · filed 2026-02-12
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Baxter International Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.