Baxter International : Q1 2026 Financial Schedules

Published: 2026-04-30 07:42:53 ET BAX

Published on 04/30/2026 at 07:42 am EDT

BAXTER - PAGE 10

Three Months Ended March 31,

2026

2025

Change

NET SALES

$ 2,701

$ 2,625

COST OF SALES

1,810

1,764

GROSS MARGIN

891

861

% of Net Sales

33.0 %

32.8 %

0.2 pts

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

728

703

% of Net Sales

27.0 %

26.8 %

0.2 pts

RESEARCH AND DEVELOPMENT EXPENSES

139

140

(1)%

% of Net Sales

5.1 %

5.3 %

(0.2) pts

OTHER OPERATING INCOME, NET

(42)

(40)

OPERATING INCOME

14%

% of Net Sales

2.4 %

2.2 %

0.2 pts

INTEREST EXPENSE, NET

OTHER (INCOME) EXPENSE, NET

(3)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(6)

(3)

100%

INCOME TAX EXPENSE (BENEFIT)

(67)

(116)%

% of Income (loss) from Continuing Operations Before Income Taxes

(183.3)%

2,233.3 %

INCOME (LOSS) FROM CONTINUING OPERATIONS

(17)

(127)%

INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX

(97)%

NET INCOME (LOSS)

(15)

126

(112)%

NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

NET INCOME (LOSS) ATTRIBUTABLE TO BAXTER STOCKHOLDERS

$ (15)

$ 126

(112)%

INCOME (LOSS) FROM CONTINUING OPERATIONS PER COMMON SHARE

Basic

$ (0.03)

$ 0.13

Diluted

$ (0.03)

$ 0.13

INCOME (LOSS) FROM DISCONTINUED OPERATIONS PER COMMON SHARE

Basic

$ 0.00

$ 0.12

Diluted

$ 0.00

$ 0.12

INCOME (LOSS) PER COMMON SHARE

Basic

$ (0.03)

$ 0.25

Diluted

$ (0.03)

$ 0.25

WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING

Basic

515

512

Diluted

515

514

ADJUSTED OPERATING INCOME (excluding special items)¹

$ 297

$ 392

(24)%

ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS (excluding special items)¹

$ 188

$ 285

(34)%

ADJUSTED INCOME (LOSS) FROM DISCONTINUED OPERATIONS (excluding special items)1

$ 2

$ 35

(94)%

ADJUSTED NET INCOME ATTRIBUTABLE TO BAXTER STOCKHOLDERS (excluding special items)¹

$ 190

$ 320

(41)%

ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS (excluding special items)¹

$ 0.36

$ 0.55

(35)%

ADJUSTED DILUTED EPS FROM DISCONTINUED OPERATIONS (excluding special items)¹

$ 0.01

$ 0.07

(86)%

ADJUSTED DILUTED EPS (excluding special items)¹

$ 0.37

$ 0.62

(40)%

1 Refer to page 11 for a description of the adjustments and a reconciliation to U.S. GAAP measures.

NM - Not Meaningful

The company's U.S. GAAP results for the three months ended March 31, 2026 included special items which impacted the U.S. GAAP measures as follows:

Income (Loss)

Income

Net Income

Diluted

Selling, Other

From Continuing

Income

(Loss) From

(Loss)

Earnings Per

General and Research and Operating (Income) Operations Tax (Loss) From Discontinued Net Attributable Share from Share from Diluted Gross Administrative Development Income Expense, Before Income Expense Continuing Operations, Income to Baxter Continuing Discontinued Earnings Margin Expenses Expenses (loss) Net Taxes (Benefit) Operations Net of Tax (Loss) Stockholders Operations Operations Per Share

Reported $ 891 $ 728 $ 139 $ 66 $ 6 $ (6) $ 11 $ (17) $ 2 $ (15) $ (15) $ (0.03) $ 0.00 $ (0.03)

Reported percent of net sales

33.0 %

27.0 %

5.1 %

2.4 %

0.2 %

(0.2) %

(183.3) %

(0.6) %

0.1

(0.6) %

(or effective tax rate for

income tax expense

(benefit))

Intangible asset amortization

(51)

146

112

0.22

0.00

0.22

Business optimization items1

(42)

(15)

0.10

0.00

0.10

European medical devices

regulation3

0.01

0.00

0.01

Product-related items4

(12)

(3)

(9)

(0.02)

0.00

(0.02)

Hurricane Helene costs5

0.00

Separation-related costs6

(11)

0.02

0.00

0.02

Investment impairments7

(5)

0.01

0.00

0.01

Business transformation8

(10)

0.02

0.00

0.02

Tax matters11

(26)

0.05

0.00

0.05

Adjusted

$ 993

$ 614

$ 124

$ 297

$ 1

$ 230

$ 42

$ 188

$ 2

$ 190

$ 0.36

$ 0.01

$ 0.37

Adjusted percent of net sales 36.8 % 22.7 % 4.6 % 11.0 % 0.0 % 8.5 % 18.3 % 7.0 % 0.1 % 7.0 % 7.0 %

(or effective tax rate for income tax expense (benefit))

Weighted-average diluted shares as reported 515

Effect of dilutive securities that were anti-dilutive to dilutive EPS as reported 2

Weighted-average diluted shares as adjusted 517

The company's U.S. GAAP results for the three months ended March 31, 2025 included special items which impacted the U.S. GAAP measures as follows:

Gross Margin

Selling, General and Administrative Expenses

Research and Development Expenses

Operating Income

Other (Income) Expense, Net

Income (Loss) From Continuing Operations Before Income Taxes

Income Tax Expense (Benefit)

Income (Loss) From Continuing Operations

Income (Loss) From Discontinued Operations, Net of Tax

Net Income (Loss)

Net Income (Loss) Attributable to Baxter Stockholders

Diluted Earnings Per Share from Continuing Operations

Diluted Earnings Per Share from Discontinued Operations

Diluted Earnings Per Share

Reported $ 861 $ 703 $ 140 $ 58 $ (3) $ (3) $ (67) $ 64 $ 62 $ 126 $ 126 $ 0.13 $ 0.12 $ 0.25

Intangible asset amortization 104 (51) - 155 - 155 37 118 - 118 118 0.23 0.00 0.23

Reported percent of net sales (or effective tax rate for income tax expense (benefit))

32.8 % 26.8 % 5.3 % 2.2 % (0.1)% (0.1)% 2,233.3 % 2.4 % 2.4 % 4.8 % 4.8 %

Business optimization items1 13 (30) (2) 45 - 45 11 34 - 34 34 0.07 0.00 0.07

Acquisition and integration items2

(1)

(5)

0.01

0.00 0.01

European medical devices

Product-related items4 6 - - 6 - 6 2 4 - 4 4 0.01 0.00 0.01

regulation3 5 - - 5 - 5 1 4 - 4 4 0.01 0.00 0.01

Legal matters9 11 - - 11 - 11 2 9 - 9 9 0.02 0.00 0.02

Hurricane Helene costs5 98 - - 98 - 98 25 73 6 79 79 0.14 0.01 0.15

Investment impairments7 - - - - (9) 9 2 7 - 7 7 0.01 0.00 0.01

Separation-related costs6 - (13) - 13 - 13 3 10 31 41 41 0.02 0.06 0.08

Gain on Kidney Care sale10 - - - - - - - - (111) (111) (111) 0.00 (0.22) (0.22)

Adjusted percent of net sales (or 41.8 %

effective tax rate for income tax expense (benefit))

23.2 %

5.3 % 14.9 % (0.6)%

13.1 % 17.4 % 10.9 %

1.3 % 12.2 %

12.2 %

Adjusted

$ 1,098 $

608 $

138 $ 392 $ (17) $

345 $ 60 $ 285 $

35 $ 320 $ 320 $

0.55 $

0.07 $ 0.62

Tax matters11 - - - - - - 43 (43) 47 4 4 (0.08) 0.09 0.00

1 The company's results of continuing operations in 2026 and 2025 included costs related to programs to optimize its organization and cost structure. These restructuring and business optimization costs in 2026 and 2025 included costs primarily related to its initiatives to reduce its cost structure following the sale of its former Kidney Care segment.

2 The company's results of continuing operations in 2025 included integration-related items comprised of Hill-Rom Holdings, Inc. (Hillrom) acquisition and integration expenses. In 2025 these expenses primarily reflected the recognition of a noncash impairment of property, plant and equipment related to integration activities.

3 The company's results in 2026 and 2025 included incremental costs to comply with the European Union's medical device regulations for previously registered products, which primarily consisted of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results.

4 The company's results of continuing operations in 2026 included a benefit related to a revised estimate of warranty and remediation activities from field corrective actions across our infusion pump category initially recorded in 2025. The company's results of continuing operations in 2025 included charges related to a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022.

5 The company's results of continuing operations in 2026 and 2025 included charges related to Hurricane Helene which primarily consisted of remediation, air freight and other costs.

6 The company's results of continuing operations in 2026 and 2025 and included separation-related costs primarily related to external advisors supporting its activities related to the sale of its former Kidney Care segment. The company's results of discontinued operations in 2025 included separation-related costs primarily related to external advisors supporting its activities related to the completed sale of its Kidney Care segment.

7 The company's results of continuing operations in 2026 and 2025 included investment impairments which include losses from noncash impairment write-downs of investments.

8 The company's results of continuing operations in 2026 included business transformation costs which include expenses incurred in connection with discrete, newly launched enterprise-wide initiatives to modernize and simplify systems, redesign operating models, and enhance process efficiency and digital capabilities. These costs are distinct from restructuring-related charges (which are included in footnote 1 above as Business Optimization items) and are excluded to provide investors with greater comparability of underlying operating performance.

9 The company's results of continuing operations in 2025 included charges related to matters involving alleged injury from environmental exposure.

10 The company's results of discontinued operations in 2025 included a gain from the sale of the Kidney Care business.

11 The company's results of continuing operations in 2026 included an income tax expense primarily related to an increase in interest related to uncertain tax positions and differences arising from the use of a forecasted effective tax rate to compute income tax expense during the quarter. The company's results of continuing operations in 2025 included an income tax benefit driven by an entity classification election that the Company made for U.S. tax purposes, which resulted in a capital loss. The company's results of discontinued operations in 2025 included indirect impacts of the carryback of the tax benefits generated by the sale of its Kidney Care business to prior years.

For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.

BAXTER - PAGE 12

The Medical Products & Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products. The Healthcare Systems & Technologies segment includes sales of our connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices and advanced equipment for the surgical space, including operating room integration technologies, precision positioning devices and other accessories. The Pharmaceuticals segment includes sales of specialty injectable pharmaceuticals, inhaled anesthesia and drug compounding. Other sales not allocated to a segment primarily includes sales to Vantive, pursuant to the Kidney Care Manufacturing and Supply Agreement (MSA), and sales of products and services provided directly through certain of our manufacturing facilities.

Three Months Ended March 31, % Change @

% Change @

Organic Sales

2026

2025

Actual Rates

Growth

Infusion Therapies & Technologies

$ 981

$ 994

(1)%

(5)%

Advanced Surgery

304

268

13 %

10 %

Medical Products & Therapies

1,285

1,262

2 %

(2)%

Care & Connectivity Solutions

435

427

2 %

(0)%

Front Line Care

270

277

(3)%

(4)%

Healthcare Systems & Technologies

705

704

0 %

(2)%

Injectables & Anesthesia

301

335

(10)%

(13)%

Drug Compounding

320

246

30 %

20 %

Pharmaceuticals

621

581

7 %

1 %

Other

15 %

(13)%

Total - Continuing Operations

$ 2,701

$ 2,625

3 %

(1)%

Organic sales growth is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures, please see the Non-GAAP Financial Measures section of this press release.

Disclaimer

Baxter International Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:41 UTC.