Baxter International (BAX) AI Stock Analysis

• Market Cap: $10.61B
• Dividend Yield: 2.75%
• Average Volume (3M): 9.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -21.20%
• EPS Growth: -325.40%
• Country: US
• Employees: 38,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.36
• Shares Outstanding: 514,490,050
• 10 Day Avg. Volume: 10,867,520
• 30 Day Avg. Volume: 9,126,242
• PEG Ratio: -0.27
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 30.35
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 1.64
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 11.07
• 1Y Price Target: $20.00
• Price Target Upside: -3.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.96
• Revenue Forecast (FY): $11.35B

• Rating: 47 Neutral
• Price Target: $21.50 ▲(4.22% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is held down primarily by weakening financial performance (unstable profitability and sharply deteriorated cash flow) and continued execution/margin risks highlighted in guidance (tariffs, Novum disruption, and back-half-weighted recovery). A short-term technical rebound and a moderate dividend provide partial support, but valuation remains difficult to underwrite with a negative P/E.

Positive Factors

Diversified hospital and renal franchise

A two‑segment business (Hospital Products and Renal) with consumables, capital and services exposure provides revenue diversification and recurring demand. That mix supports resilience versus single-product firms, enabling more stable revenue and cross-selling across hospitals, clinics and home care over 2–6 months.

Ongoing product pipeline and R&D commitment

Active launches and a maintained R&D commitment signal durable capacity to innovate and sustain product-led growth. New monitors, stretchers and platform upgrades expand addressable markets, help cross-sell into hospital workflows, and support medium-term organic growth and margin recovery if adoption continues.

Proactive deleveraging and interest cost reduction

Completed tender offers and note activity materially reduced near-term maturities and, per management, cut interest expense. Active liability management improves financial flexibility, lowers refinancing risk and interest burden, and supports a sustainable pathway to reduce leverage over multiple quarters.

Negative Factors

Severe cash flow deterioration in 2025

A swing to negative free cash flow and zero operating cash flow undermines internal funding for capex, R&D and debt reduction. Reliance on non‑cash items or working‑capital adjustments increases funding risk, constrains reinvestment and leaves less buffer against execution hiccups over the next several quarters.

Elevated leverage and inconsistent profitability

High debt ratios limit financial flexibility and heighten sensitivity to earnings volatility. Inconsistent ROE and profit swings point to unstable operating performance, increasing the chance of covenant pressure or restricted strategic choices if cash flow recovery lags over several quarters.

Execution challenges: Novum disruption and tariff headwinds

Product rollout disruptions and sizable tariff costs are structural execution and margin risks. A sustained installation hold reduces capital sales and order momentum, while recurring tariff exposure materially erodes margins and cash generation, pressuring operational recovery across the year.

Baxter International Business Overview & Revenue Model

Company Description

Baxter International Inc., through its subsidiaries, develops and provides a portfolio of healthcare products worldwide. The company offers peritoneal dialysis and hemodialysis, and additional dialysis therapies and services; intravenous therapies, infusion pumps, administration sets, and drug reconstitution devices; remixed and oncology drug platforms, inhaled anesthesia and critical care products and pharmacy compounding services; parenteral nutrition therapies and related products; biological products and medical devices used in surgical procedures for hemostasis, tissue sealing and adhesion prevention; and continuous renal replacement therapies and other organ support therapies focused in the intensive care unit. It also provides connected care solutions, including devices, software, communications, and integration technologies; integrated patient monitoring and diagnostic technologies to help diagnose, treat, and manage a various illness and diseases, including respiratory therapy, cardiology, vision screening, and physical assessment; surgical video technologies, tables, lights, pendants, precision positioning devices and other accessories. In addition, the company offers contracted services to various pharmaceutical and biopharmaceutical companies. Its products are used in hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, and patients at home under physician supervision. The company sells its products through direct sales force, as well as through independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers in approximately 100 countries. It has an agreement with Celerity Pharmaceutical, LLC to develop acute care generic injectable premix and oncolytic molecules. Baxter International Inc. was incorporated in 1931 and is headquartered in Deerfield, Illinois.

How the Company Makes Money

Baxter generates revenue through multiple key streams, primarily from the sale of its hospital products and renal care solutions. The Hospital Products segment, which includes IV solutions, infusion systems, and anesthesia products, contributes significantly to the company's earnings. The Renal segment, focusing on products for patients with kidney disease, including dialysis machines and related services, also represents a substantial revenue source. Additionally, Baxter engages in strategic partnerships with healthcare providers and organizations to enhance its product offerings and expand its market reach. Ongoing investments in research and development enable Baxter to innovate and introduce new products, which further drives revenue growth. The company's focus on efficiency and cost management also plays a crucial role in maintaining profitability.

Baxter International Financial Statement Overview

Summary

Financial statement quality is deteriorating: the income statement shows extreme volatility and a severe 2025 revenue collapse with negative EBITDA margin, while cash flow weakened into negative/zero operating cash flow in 2025. The balance sheet is adequate but constrained by elevated leverage and inconsistent ROE.

Income Statement

Results are highly volatile. After solid profitability in 2023 (strong net profit margin) and modest revenue growth through 2024, 2025 shows a severe revenue collapse (down ~96.8% YoY) alongside negative EBITDA margin, even though net income remains positive—suggesting earnings were driven by factors that didn’t translate into operating profitability. Overall margins and growth trajectory look unstable, with meaningful downside risk to earnings quality.

Balance Sheet

Leverage is elevated for the period, with debt-to-equity mostly around ~1.6–2.9 and still ~1.58 in 2025, which limits flexibility. Equity remains positive, and return on equity has been strong in some years (notably 2023 and 2025), but it also swung negative in 2022 and 2024—highlighting inconsistency in underlying profitability. Balance sheet strength is adequate but pressured by debt load and earnings volatility.

Cash Flow

Cash generation weakened materially. Free cash flow was healthy in 2021–2023, but fell in 2024 and turned negative in 2025, with operating cash flow at zero in 2025. Cash flow support for reported earnings also deteriorates in the latest year (free cash flow not covering net income), increasing reliance on non-cash items or working-capital swings and raising near-term funding risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.24B	10.64B	10.36B	14.51B	12.78B
Gross Profit	3.71B	3.85B	3.99B	5.53B	5.22B
EBITDA	1.67B	1.68B	1.89B	3.02B	2.97B
Net Income	-957.00M	-649.00M	-226.00M	-2.43B	1.28B
Balance Sheet
Total Assets	20.05B	25.78B	28.28B	28.29B	33.52B
Cash, Cash Equivalents and Short-Term Investments	1.97B	1.76B	3.08B	1.72B	2.95B
Total Debt	10.00B	13.45B	14.11B	17.20B	18.31B
Total Liabilities	13.95B	18.76B	19.81B	22.39B	24.40B
Stockholders Equity	6.13B	6.96B	8.40B	5.83B	9.08B
Cash Flow
Free Cash Flow	323.00M	559.00M	1.29B	576.00M	1.53B
Operating Cash Flow	845.00M	1.02B	1.73B	1.21B	2.22B
Investing Cash Flow	2.84B	-626.00M	3.21B	-931.00M	-11.20B
Financing Cash Flow	-4.22B	-1.08B	-3.49B	-1.44B	8.24B

Baxter International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAX, the sentiment is Neutral. The current price of 20.63 is below the 20-day moving average (MA) of 20.76, above the 50-day MA of 20.08, and below the 200-day MA of 23.62, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 67.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BAX.

Baxter International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	78 Outperform	$36.66B	24.87	25.68%	0.92%	9.36%	29.56%
WST	72 Outperform	$17.67B	36.13	16.85%	0.32%	4.90%	-0.26%
COO	68 Neutral	$16.38B	44.54	4.59%	―	5.06%	-4.47%
BDX	66 Neutral	$51.96B	29.81	6.96%	2.13%	8.23%	-2.04%
HOLX	66 Neutral	$16.82B	31.26	10.86%	―	1.74%	-25.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	47 Neutral	$10.61B	-12.35	-13.75%	2.75%	-21.20%	-325.40%

Baxter International Corporate Events

Baxter International Reports Mixed Q4 Results and Outlook

Baxter International reported on Feb. 12, 2026, that fourth-quarter 2025 sales from continuing operations rose 8% to $2.97 billion on a reported basis, though adjusted diluted EPS from continuing operations fell 24% to $0.44, and GAAP results showed a $1.04 billion loss driven by goodwill impairment and a large tax valuation allowance. Segment performance was mixed, with solid growth across Medical Products & Therapies, Healthcare Systems & Technologies and Pharmaceuticals, supported by new product launches and hospital connectivity initiatives, while management cautioned that 2026 sales from continuing operations are expected to be roughly flat and guided adjusted EPS to $1.85–$2.05, signaling a focus on operational improvement after the Kidney Care divestiture.

As part of a broader board refresh announced alongside earnings, Baxter appointed veteran finance executive Michael R. McDonnell to its board and Audit Committee effective Feb. 13, 2026, while directors Cathy R. Smith and Stephen H. Rusckowski resigned the same day, reducing the board to 10 members and shifting Nominating Committee leadership to Patricia B. Morrison. The board on Feb. 11, 2026, also declared a quarterly cash dividend of $0.01 per share payable April 1, 2026, actions that collectively underscore a period of governance transition and disciplined capital management as the company works to improve execution and reinforce its long-term trajectory.

The most recent analyst rating on (BAX) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Baxter International stock, see the BAX Stock Forecast page.

Baxter International Completes Cash Tender Offers, Cuts Debt

On December 22, 2025, Baxter International Inc. completed the final settlement of previously announced cash tender offers targeting any and all of its 2.600% senior unsecured notes due 2026 and up to $600 million in aggregate purchase price of its 1.915% senior unsecured notes due 2027. By the early settlement date of December 8, 2025, the company had already purchased $420.589 million of the 2026 notes and $614.37 million of the 2027 notes, fully satisfying and discharging the outstanding 2026 notes and fully subscribing the 2027 note offer, with no further 2027 notes accepted thereafter; an additional $2.61 million of 2026 notes tendered by the final expiration time on December 18, 2025, were accepted at a discounted price of $960.50 per $1,000 of principal plus accrued interest, underscoring Baxter’s continued effort to actively manage and reduce its near-term debt obligations.

The most recent analyst rating on (BAX) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Baxter International stock, see the BAX Stock Forecast page.

Baxter International Issues $2 Billion in Senior Notes

On December 4, 2025, Baxter International Inc. announced the issuance of $2 billion in senior notes, with proceeds intended to fund a tender offer for its 2026 and 2027 notes. The company reported early tender results and pricing for these offers, indicating a strong investor response, which may enhance its financial flexibility and strategic positioning.

The most recent analyst rating on (BAX) stock is a Sell with a $15.00 price target. To see the full list of analyst forecasts on Baxter International stock, see the BAX Stock Forecast page.

Baxter International Amends Credit Agreement for Flexibility

On November 25, 2025, Baxter International Inc. amended its five-year credit agreement to adjust the net leverage ratio covenant, allowing for an increased maximum net leverage ratio for the fiscal quarters ending December 31, 2025, March 30, 2026, June 30, 2026, and September 30, 2026. This amendment may impact Baxter’s financial strategy by providing greater flexibility in managing its leverage, potentially affecting its operations and stakeholder interests.

The most recent analyst rating on (BAX) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Baxter International stock, see the BAX Stock Forecast page.