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Baxter International
(NYSE:BAX)
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Rating:49Neutral
Price Target:
$22.50
▲(20.26% Upside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak profitability and a moderately levered balance sheet despite solid and improving cash generation. Technicals also remain soft with the stock below key long-term averages and a negative MACD. Offsetting these factors, management reiterated guidance and outlined a second-half recovery plan, while the dividend offers modest support even though the negative P/E reflects ongoing losses.
Positive Factors
Recurring consumables revenue
Baxter’s core business is dominated by repeat-purchase consumables (IV fluids, administration sets, dialysis supplies). This installed-base, buy-as-you-go model produces predictable recurring demand, smoothing revenue cyclicality and supporting durable cash flow and margin resilience over time.
Negative Factors
Meaningful leverage
Leverage at roughly 1.6x debt-to-equity constrains capital flexibility and increases sensitivity to interest costs. Management prioritizes deleveraging to ~3x net leverage, but elevated gross debt limits near-term ability to pursue large M&A, sizable buybacks, or aggressive investment without further improving cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables revenue
Baxter’s core business is dominated by repeat-purchase consumables (IV fluids, administration sets, dialysis supplies). This installed-base, buy-as-you-go model produces predictable recurring demand, smoothing revenue cyclicality and supporting durable cash flow and margin resilience over time.
Read all positive factors
Baxter International Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyBaxter International (BAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.70B
Dividend Yield2.75%
Average Volume (3M)6.79M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-4.79%
EPS Growth-78.01%
CountryUS
Employees38,000
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-2.10
Shares Outstanding516,469,000
10 Day Avg. Volume7,567,878
30 Day Avg. Volume6,789,420
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)1.60
Price to Sales (P/S)0.87
P/FCF Ratio30.35
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue1.56
Enterprise Value/Gross Profit5.19
Enterprise Value/Ebitda23.96
Forecast
1Y Price Target
$20.86Price Target Upside11.48% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)1.92
Revenue Forecast (FY)$11.36B
Baxter International Business Overview & Revenue Model
Company Description
Baxter International Inc., operating globally via its subsidiaries, is a leading developer and provider of a wide spectrum of healthcare products. The company's comprehensive portfolio includes various dialysis treatments, such as peritoneal and h...
How the Company Makes Money
Baxter makes money primarily by selling a mix of recurring-use consumables and durable medical equipment to hospitals, dialysis providers, and other healthcare settings worldwide. A large portion of revenue is generated from high-volume consumable...
Baxter International Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call balanced notable operational progress (product launches, improved cash flow, continuous improvement adoption and backorder remediation) and a reiterated full-year framework against meaningful near-term financial headwinds (35% EPS decline, margin compression, Novum shipment hold and supply constraints in injectables). Management emphasized a clear turnaround plan, debt reduction priority and expected second-half recovery, but the first-half results and ongoing risks temper optimism.Positive Updates
Reported Revenue and Organic Growth
Global sales from continuing operations totaled $2.7 billion, up 3% year-over-year on a reported basis and down 1% on an organic basis.
Negative Updates
Earnings Decline
Adjusted earnings from continuing operations were $0.36 per diluted share versus $0.55 in the prior year period, a decrease of 35%.
Read all updates
Q1-2026 Updates
Positive
Negative
Reported Revenue and Organic Growth
Global sales from continuing operations totaled $2.7 billion, up 3% year-over-year on a reported basis and down 1% on an organic basis.
Read all positive updates
Company Guidance
Baxter reiterated 2026 guidance calling for reported sales to be flat to up 1% (with foreign exchange contributing ~100 bps and a ~$25M Vantive MSA headwind, ~30 bps), implying approximately flat organic sales; segment assumptions are MPT flat to slightly up, HST up low-single-digits, and Pharmaceuticals roughly flat. They forecast a full‑year tariff headwind of about $80M (≈$40M y/y), TSA/other reimbursements of $130–$140M, adjusted operating margin of 13–14%, non‑operating expenses of $280–$300M, an effective tax rate of 18.5–19.5%, an average diluted share count of ~518M, and adjusted EPS from continuing operations of $1.85–$2.05. Management expects Q2 to be similar to Q1 ($2.7B sales; Q1 adj. EPS $0.36; Q1 free cash flow $76M) with slight sequential volume improvement, and a stronger second half driven by an implied ~500 bps operating‑margin swing (≈250 bps from higher volumes, ≈125 bps from cost‑structure actions, ≈125 bps from rolling through higher‑cost inventory); free cash flow is expected to be back‑half weighted and priority capital deployment is debt paydown toward ~3x net leverage by year‑end.Baxter International Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.32B | 11.24B | 10.64B | 10.36B | 10.06B | 12.15B |
| Gross Profit | 3.41B | 3.38B | 3.98B | 4.15B | 3.55B | 4.72B |
| EBITDA | 738.00M | 766.00M | 1.12B | 1.73B | -1.76B | 2.19B |
| Net Income | -1.10B | -957.00M | -649.00M | 2.66B | -2.43B | 1.28B |
Balance Sheet | ||||||
| Total Assets | 19.85B | 20.05B | 25.78B | 28.28B | 28.29B | 33.52B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 1.97B | 1.76B | 3.08B | 1.72B | 2.95B |
| Total Debt | 9.69B | 10.00B | 13.45B | 14.11B | 17.20B | 18.31B |
| Total Liabilities | 13.83B | 13.95B | 18.76B | 19.81B | 22.39B | 24.40B |
| Stockholders Equity | 6.04B | 6.13B | 6.96B | 8.40B | 5.83B | 9.08B |
Cash Flow | ||||||
| Free Cash Flow | 714.00M | 323.00M | 559.00M | 1.29B | 576.00M | 1.53B |
| Operating Cash Flow | 1.25B | 845.00M | 1.02B | 1.73B | 1.21B | 2.22B |
| Investing Cash Flow | -557.00M | 2.84B | -626.00M | 3.21B | -931.00M | -11.20B |
| Financing Cash Flow | -1.00B | -4.22B | -1.08B | -3.49B | -1.44B | 8.24B |
Baxter International Technical Analysis
Positive
18.71
Price Trends
19.08
Positive
18.75
Positive
19.54
Positive
Market Momentum
0.84
Negative
69.29
Neutral
82.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAX, the sentiment is Positive. The current price of 18.71 is below the 20-day moving average (MA) of 20.61, below the 50-day MA of 19.08, and below the 200-day MA of 19.54, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 82.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAX.
Baxter International Risk Analysis
Baxter International disclosed 34 risk factors in its most recent earnings report. Baxter International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Baxter International Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $25.84B | 48.64 | 17.87% | 0.32% | 11.24% | 17.11% | |
73 Outperform | $30.41B | 20.20 | 24.41% | 0.92% | 10.28% | 16.40% | |
64 Neutral | $43.56B | 40.02 | 4.54% | 2.13% | 2.39% | -24.85% | |
57 Neutral | $14.47B | 62.88 | 2.84% | ― | 6.09% | -42.65% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $11.70B | -10.79 | -16.43% | 2.75% | -4.79% | -78.01% |
* Healthcare Sector Average
BAX
Baxter International
22.65
-6.79
-23.06%
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209.63
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WST
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365.74
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65.68%
Baxter International Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Baxter Updates Executive Severance Plan and Governance Framework
Positive
May 8, 2026
On May 4, 2026, Baxter’s board approved a new Executive Severance and Change in Control Plan that replaces its prior severance program and standardizes benefits for vice presidents and above, including Interim CFO Anita Zielinski and other n...
Business Operations and StrategyDividendsFinancial Disclosures
Baxter Posts Q1 Loss Amid Mixed Sales Performance
Negative
Apr 30, 2026
On April 30, 2026, Baxter reported first-quarter 2026 results showing worldwide sales from continuing operations of about $2.7 billion, up 3% on a reported basis but down 1% organically, with U.S. revenue declining and international sales growing....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.