BAX earnings analysis
What we found in BAX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Baxter's Q1 2026 earnings report shows a positive performance with revenues of $2.701 billion, exceeding estimates of $2.612 billion. Adjusted EPS reached $0.37, surpassing expectations of $0.31, driven by strong international sales growth. However, challenges remain due to rising costs and supply chain issues following the divestiture of its Kidney Care segment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Beats Estimates
- Total revenue for Q1 2026 was $2.701 billion, surpassing consensus estimates of $2.612 billion.
- EPS Surprise
- Reported EPS was $0.37, exceeding the expected $0.31, showing a surprise of 19.35%.
- International Sales Growth
- International sales increased by 12% to $1.266 billion, compared to $1.135 billion in Q1 2025.
- Operating Cash Flow Improvement
- Operating cash flow improved to $213 million from a negative $99 million in Q1 2025.
- Reduction in Financing Activity
- Cash used in financing activities decreased significantly to $11 million in Q1 2026 from $3.226 billion in Q1 2025.
- Gross Margin Improvement
- Gross margin increased to 33.0% in Q1 2026 compared to 32.8% in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Supply Chain Challenges
- Ongoing supply constraints notably impact sales, particularly for the Novum LVP with a significant hold on distribution.
- High Inflation Impact
- Rising inflation continues to drive up costs of goods sold, affecting profit margins and overall financial performance.
- Decline in U.S. Sales
- Sales declined by 4% in the U.S. to $1.435 billion compared to $1.490 billion in Q1 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.37
- Gross margin
- 33.0%
- Segment
- Medical Products & Therapies
- Segment
- Healthcare Systems & Technologies
- Segment
- Pharmaceuticals
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads better than the one before it.
What came before.
- 10-K · February 12, 2026
- Baxter completed strategic portfolio moves (sale of Kidney Care for $3.80 billion, receiving ~ $3.71 billion pre-tax and ~ $3.3 billion net after-tax) and used proceeds to repay debt, repaying $3.81 billion of legacy…
- 10-Q · November 4, 2025
- Baxter reported Q3 2025 net sales of $2,835 million, up from $2,699 million in Q3 2024, but gross margin and EPS deteriorated. Gross margin fell to $950 million (33.5% of sales) from $1,033 million (38.3%), and GAAP…
- 10-Q · August 6, 2024
- Baxter reported quarterly net sales of $3,812 million (up $105 million vs. $3,707 million in Q2 2023) but recorded a net loss of $314 million attributable to stockholders (net loss per diluted share $(0.62)). Gross…
- 10-Q · May 2, 2024
- Baxter reported Q1 net sales of $3,592 million, up $79 million versus Q1 2023 ($3,513 million), with operating income improving to $187 million from $129 million a year ago. Income from continuing operations was $39…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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