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…
Earnings analysis · 10-Q
BAX earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.37
- Gross margin
- 33.0%
- Segment
- Medical Products & Therapies
- Segment
- Healthcare Systems & Technologies
- Segment
- Pharmaceuticals
What stood out
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Revenue Beats Estimates
Total revenue for Q1 2026 was $2.701 billion, surpassing consensus estimates of $2.612 billion.
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EPS Surprise
Reported EPS was $0.37, exceeding the expected $0.31, showing a surprise of 19.35%.
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International Sales Growth
International sales increased by 12% to $1.266 billion, compared to $1.135 billion in Q1 2025.
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Operating Cash Flow Improvement
Operating cash flow improved to $213 million from a negative $99 million in Q1 2025.
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Reduction in Financing Activity
Cash used in financing activities decreased significantly to $11 million in Q1 2026 from $3.226 billion in Q1 2025.
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Gross Margin Improvement
Gross margin increased to 33.0% in Q1 2026 compared to 32.8% in Q1 2025.
What to watch
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Supply Chain Challenges
Ongoing supply constraints notably impact sales, particularly for the Novum LVP with a significant hold on distribution.
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High Inflation Impact
Rising inflation continues to drive up costs of goods sold, affecting profit margins and overall financial performance.
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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.
Management's outlook
Outlook deferred to earnings press release / call.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.