Baxter International (BAX)
NYSE:BAX
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Baxter International
(NYSE:BAX)
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Rating:46Neutral
Price Target:
$16.50
▼(-4.62% Downside)
Action:ReiteratedDate:03/20/26
The score is held down primarily by deteriorating financial performance (notably the 2025 revenue collapse and negative/weak cash generation) and a bearish technical setup (below key moving averages with negative MACD). Valuation provides only limited support due to a negative P/E despite a moderate dividend yield, while the latest earnings call indicates a back-half-weighted recovery but with substantial margin and execution risks (Novum disruption, tariffs, and Pharmaceuticals weakness).
Positive Factors
Recurring consumables revenue
Baxter's core business includes renal PD fluids, infusion consumables and IV solutions tied to ongoing patient care. This installed-base and repeat-purchase model creates durable, predictable revenue streams and pull-through for disposables, supporting steady demand and long-term cash visibility independent of single-product cycles.
Negative Factors
Deteriorated cash generation
A swing to negative free cash flow and effectively zero operating cash flow undermines internal funding for R&D, capex and debt paydown. Sustained weak cash conversion raises refinancing risk, forces tougher capital-allocation tradeoffs, and limits buffer against future operational shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables revenue
Baxter's core business includes renal PD fluids, infusion consumables and IV solutions tied to ongoing patient care. This installed-base and repeat-purchase model creates durable, predictable revenue streams and pull-through for disposables, supporting steady demand and long-term cash visibility independent of single-product cycles.
Read all positive factors
Baxter International (BAX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.93B
Dividend Yield2.75%
Average Volume (3M)9.73M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-21.20%
EPS Growth-325.40%
CountryUS
Employees38,000
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.36
Shares Outstanding514,490,050
10 Day Avg. Volume6,590,988
30 Day Avg. Volume9,730,379
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)1.60
Price to Sales (P/S)0.87
P/FCF Ratio30.35
Enterprise Value/Market Cap1.86
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit4.92
Enterprise Value/Ebitda21.72
Forecast
1Y Price Target
$20.18Price Target Upside16.65% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)1.91
Revenue Forecast (FY)$11.35B
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...
How the Company Makes Money
Baxter primarily makes money by selling medical products and therapies to hospitals, dialysis providers, clinics, and other healthcare customers, with revenue largely driven by recurring demand for consumables used in ongoing patient care. A major...
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 Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: solid top-line growth in Q4 (+8% reported; +3% operational) and notable strength in Advanced Surgery, CCS capital orders (nearly +30%), Drug Compounding (+18%), and improved cash generation. However, material margin deterioration (gross margin down ~900 bps), an adjusted EPS miss, ongoing Novum pump disruptions and IV Solutions demand rebaselining, tariff headwinds ($130–$140M), and Pharmaceutical weakness are significant challenges. Management outlined concrete organizational and operational actions (new operating model, Baxter GPS, cost structure work) and provided a cautious, back-half-weighted 2026 outlook (flat organic growth, 13%–14% operating margin, $1.85–$2.05 EPS) while emphasizing deleveraging and continuous improvement. Overall, the positives are meaningful but are offset by substantial margin and execution risks, with improvement expected to be gradual into the back half of 2026.Positive Updates
Top-line Growth in Q4
Fourth quarter 2025 global sales from continuing operations were $3,000,000,000, up 8% reported and up 3% on an operational basis versus prior year.
Negative Updates
Adjusted EPS Miss and Lower Profitability
Total company adjusted earnings from continuing operations were $0.44 per diluted share in Q4, falling short of expectations; full-year adjusted EPS guidance for 2026 is modest at $1.85 to $2.05 per share.
Read all updates
Q4-2025 Updates
Positive
Negative
Top-line Growth in Q4
Fourth quarter 2025 global sales from continuing operations were $3,000,000,000, up 8% reported and up 3% on an operational basis versus prior year.
Read all positive updates
Company Guidance
For full‑year 2026 Baxter guided reported sales flat to +1% (with foreign exchange expected to contribute ~+100 bps and MSA/Vantiv revenue a ~-$25M (~30 bps) headwind), implying organic sales of ~flat; by segment they expect MPT organic flat to slightly up, HST organic low‑single‑digit growth, and Pharmaceuticals organic ~flat; tariffs are expected to cost $130–140M; full‑year adjusted operating margin is targeted at 13%–14%; non‑operating expenses (net interest and other) are expected to total $280–300M; continuing‑operations tax rate 18.5%–19.5%; diluted share count ~518M; and adjusted EPS from continuing operations of $1.85–$2.05. Management assumed the Novum ship‑and‑installation hold remains in place for the full year, expects Q1 to be the most challenging quarter, and said sales growth, operating margin, adjusted EPS and free cash flow will be back‑half weighted (with free cash flow expected to improve versus 2025).Baxter International Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
29
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.24B | 10.64B | 10.36B | 10.06B | 12.15B |
| Gross Profit | 3.38B | 3.98B | 4.15B | 3.55B | 4.72B |
| EBITDA | 766.00M | 1.12B | 1.73B | -1.76B | 2.19B |
| Net Income | -957.00M | -649.00M | 2.66B | -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
Neutral
17.30
Price Trends
18.83
Negative
18.99
Negative
21.63
Negative
Market Momentum
-0.50
Negative
48.58
Neutral
66.84
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 17.3 is above the 20-day moving average (MA) of 16.85, below the 50-day MA of 18.83, and below the 200-day MA of 21.63, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 66.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $33.21B | 22.47 | 24.81% | 0.92% | 9.36% | 29.56% | |
72 Outperform | $18.62B | 40.29 | 16.68% | 0.32% | 4.90% | -0.26% | |
68 Neutral | $44.27B | 28.46 | 6.93% | 2.13% | 8.23% | -2.04% | |
67 Neutral | $16.97B | 23.34 | 11.01% | ― | 1.74% | -25.29% | |
64 Neutral | $13.94B | 30.60 | 4.83% | ― | 5.06% | -4.47% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $8.93B | -10.24 | -13.78% | 2.75% | -21.20% | -325.40% |
* Healthcare Sector Average
BAX
Baxter International
17.30
-10.16
-37.01%
BDX
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155.46
0.53
0.34%
COO
Cooper Co
71.46
-6.00
-7.75%
HOLX
Hologic
76.01
18.16
31.39%
RMD
Resmed
227.98
15.89
7.49%
WST
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258.54
48.58
23.14%
Baxter International Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
Baxter Names Interim CFO as Board Refresh Continues
Positive
Mar 19, 2026
In August 2025 Baxter appointed Andrew Hider as president, CEO and director after a robust search overseen by independent directors, and in connection with his arrival the board separated the CEO and chair roles, naming former interim CEO Brent Sh...
Executive/Board ChangesFinancial Disclosures
Baxter International Appoints Interim CFO Amid Leadership Transition
Neutral
Mar 16, 2026
On March 16, 2026, Baxter International announced that executive vice president and chief financial officer Joel Grade stepped down from his CFO role and moved into an advisory, non-executive position through April 30, 2026, with his departure unr...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial Disclosures
Baxter International Reports Mixed Q4 Results and Outlook
Negative
Feb 12, 2026
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 show...
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.