# Baxter International Inc. (BAX) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/BAX/thesis · /stocks/BAX/memo

## Financial Snapshot

---
ticker: BAX
step: 04
generated: 2026-05-12
source: quick-research
---

### Baxter International Inc. (BAX) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue (cont. ops) | ~$8.5B | ~$10.4B | ~$10.6B | +2.7% |
| Gross Margin | ~43% | ~40% | ~38% | |
| Operating Margin | ~8% | ~5% | ~(5)% | |
| Net Income (GAAP) | ~$0.3B | ~$(0.1)B | ~$(0.6)B | N/M |
| Adj. EPS (cont. ops) | ~$2.90 | ~$2.60 | ~$2.00 | -23% |

*Note: GAAP results are heavily impacted by non-cash items — FY2024 net loss of ~$(649)M included ~$2.13B after-tax in special items (goodwill impairment of Front Line Care and Chronic Therapies, separation-related costs, business optimization charges). Adjusted EPS from continuing operations (~$2.00 in 2024) better reflects underlying operational performance. The Kidney Care (renal) business was classified as discontinued operations and sold to Carlyle in January 2025 — historical revenue comparisons are restated on a continuing-ops basis. Hurricane Helene damaged the North Cove, NC IV solutions facility in Q3 2024, cutting guidance and disrupting supply. FY2025 guidance: adj. EPS $2.45–$2.55 from continuing operations.*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$1.2B |
| Free Cash Flow | ~$0.6B |
| Cash & Equivalents | ~$2.5B (pre-Kidney Care close proceeds) |
| Total Debt | ~$10B (high leverage from Hillrom acquisition) |
| Kidney Care Sale Proceeds | ~$3.8B (closed January 2025) |

#### Key Ratios (approximate, FY2024)
- P/E: N/M (GAAP loss) | EV/EBITDA: ~12–14x (on adj. EBITDA)
- Adj. FCF Yield: ~6–8% | Market Cap: ~$8–10B
- Debt/EBITDA: ~5–6x (elevated; being reduced with Kidney Care proceeds)

#### Growth Profile
Baxter has been in restructuring mode since the challenged $12B acquisition of Hillrom (2021) which saddled the balance sheet with $10B+ in debt. The Kidney Care divestiture (January 2025, ~$3.8B) deleverages the balance sheet and narrows focus. From continuing operations, sales growth guidance of 5–6% for 2025 reflects a recovery from Hurricane Helene disruptions and improving execution. Adj. EPS is expected to recover from the $2.00 trough (2024) toward $2.45–$2.55 in 2025 as production normalizes.

#### Forward Estimates
- FY2025E: Revenue ~$11.2B, Adj. EPS $2.45–$2.55 (company guidance)
- FY2026E: Revenue ~$11.5–12B, Adj. EPS ~$2.70–$3.00 (consensus estimate)
- Post-Kidney Care deleveraging target: Debt/EBITDA below 3x by 2026–2027

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/BAX/fundamental

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