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Baxter International
(NYSE:BAX)
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Rating:57Neutral
Price Target:
$27.00
▲(20.54% Upside)
Action:Reiterated
Date:08/20/26
The score is held back mainly by weak profitability (negative net income/EBIT and negative ROE) and declining free cash flow despite still-positive cash generation. Offsetting this, technicals show a clear improving trend and the latest earnings call featured raised guidance and operational progress, though a meaningful portion of the upside was helped by a one-time tariff refund and management acknowledged ongoing margin and supply-chain headwinds.
Positive Factors
Recurring consumables and installed-base demand
Baxter’s recurring-use consumables and therapy-linked products create repeat demand from hospitals and dialysis providers. Device placements can also support follow-on sales of compatible sets and accessories, providing durable customer relationships and revenue visibility.
Negative Factors
Persistent unprofitability
Negative EBIT and net income show that Baxter’s revenue base is not currently translating into durable shareholder returns. Compressed EBITDA also suggests weaker operating leverage or higher costs, limiting the company’s ability to self-fund growth and reduce debt.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables and installed-base demand
Baxter’s recurring-use consumables and therapy-linked products create repeat demand from hospitals and dialysis providers. Device placements can also support follow-on sales of compatible sets and accessories, providing durable customer relationships and revenue visibility.
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
$13.62B
Dividend Yield0.76%
Average Volume (3M)5.88M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth5.36%
EPS Growth-632.85%
CountryUS
Employees37,500
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-2.04
Shares Outstanding516,996,000
10 Day Avg. Volume5,502,147
30 Day Avg. Volume5,880,560
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$25.90Price Target Upside15.63% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)2.04
Revenue Forecast (FY)$11.61B
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:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a mostly positive picture: revenue growth was broad-based with Q2 organic sales up 5%, management raised full-year sales and EPS guidance, free cash flow and balance sheet metrics improved, and several product and operational initiatives showed traction (Baxter GPS, PeerVue, Connex 360, Dynamo). However, meaningful near-term headwinds remain — margin pressure from higher-cost inventory and tariffs, ongoing supply constraints (notably in injectables), and the disruption around the Novum IQ LVP platform. The tariff refund was a helpful one-time boost but is nonrecurring. On balance, the company demonstrated tangible operational progress and raised guidance while acknowledging discrete challenges that are being managed.Positive Updates
Top-line growth — Q2 sales up 5%
Second quarter global sales totaled approximately $3.0 billion, increasing 5% on both a reported and organic basis. Growth was broad-based with increases across every segment and in both U.S. and international markets.
Negative Updates
Margins pressured — gross and operating margin declines
Adjusted gross margin was 38.6%, down 210 basis points year-over-year. Adjusted operating margin declined 90 basis points to 14.2%. MPT adjusted operating margin fell 350 basis points, driven by higher manufacturing costs, lower absorption and tariff impacts, partially offset by the tariff refund.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line growth — Q2 sales up 5%
Second quarter global sales totaled approximately $3.0 billion, increasing 5% on both a reported and organic basis. Growth was broad-based with increases across every segment and in both U.S. and international markets.
Read all positive updates
Company Guidance
Baxter raised its full‑year 2026 outlook to reported sales growth of 3–4% and organic sales growth of 2–3% (with ~100 bps of FX benefit and a ~$25M Vantive MSA headwind, ~30 bps), and increased adjusted EPS guidance to $1.95–$2.15 (up from $1.85–$2.05) after a ~$75M IEEPA tariff refund that contributed ~ $0.11 per diluted share; the company expects full‑year adjusted operating margin of 13–14%, non‑operating expenses of $260–$280M, an effective tax rate of 18.5–19.5%, average diluted shares of ~518M, TSA income of $155–$165M, a second‑half tariff impact of ~ $40M net of mitigations, and reiterated a target of ~3x net leverage by year‑end while forecasting improved free cash flow (Q2 FCF $181M; YTD FCF $257M) and H2 margin expansion driven by seasonality, higher volumes, cost‑structure actions and roll‑through of higher‑cost inventory.Baxter International Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
52
Neutral
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.47B | 11.24B | 10.64B | 10.36B | 10.06B | 12.15B |
| Gross Profit | 3.45B | 3.38B | 3.98B | 4.15B | 3.55B | 4.72B |
| EBITDA | 750.00M | 766.00M | 1.12B | 1.73B | -1.76B | 2.19B |
| Net Income | -1.06B | -957.00M | -649.00M | 2.66B | -2.43B | 1.28B |
Balance Sheet | ||||||
| Total Assets | 19.79B | 20.05B | 25.78B | 28.28B | 28.29B | 33.52B |
| Cash, Cash Equivalents and Short-Term Investments | 2.15B | 1.97B | 1.76B | 3.08B | 1.72B | 2.95B |
| Total Debt | 9.67B | 10.00B | 13.45B | 14.11B | 17.20B | 18.31B |
| Total Liabilities | 13.61B | 13.95B | 18.76B | 19.81B | 22.39B | 24.40B |
| Stockholders Equity | 6.21B | 6.13B | 6.96B | 8.40B | 5.83B | 9.08B |
Cash Flow | ||||||
| Free Cash Flow | 678.00M | 323.00M | 559.00M | 1.29B | 576.00M | 1.53B |
| Operating Cash Flow | 1.32B | 845.00M | 1.02B | 1.73B | 1.21B | 2.22B |
| Investing Cash Flow | -825.00M | 2.84B | -626.00M | 3.21B | -931.00M | -11.20B |
| Financing Cash Flow | -270.00M | -4.22B | -1.08B | -3.49B | -1.44B | 8.24B |
Baxter International Technical Analysis
Positive
22.40
Price Trends
23.60
Positive
20.82
Positive
19.94
Positive
Market Momentum
0.87
Positive
56.49
Neutral
31.49
Neutral
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 22.4 is below the 20-day moving average (MA) of 26.55, below the 50-day MA of 23.60, and above the 200-day MA of 19.94, indicating a neutral trend. The MACD of 0.87 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 31.49 is Neutral, 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 | $33.40B | 22.18 | 23.88% | 1.23% | 9.85% | 9.65% | |
78 Outperform | $24.85B | 44.86 | 18.51% | 0.27% | 12.42% | 17.07% | |
65 Neutral | $52.30B | 57.83 | 3.79% | 2.39% | -2.56% | -40.38% | |
57 Neutral | $13.62B | -12.91 | -16.60% | 0.89% | 5.36% | -632.85% | |
57 Neutral | $14.87B | 64.59 | 2.84% | ― | 6.09% | -42.65% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
BAX
Baxter International
26.34
1.99
8.17%
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WST
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43.27%
Baxter International Corporate Events
Business Operations and StrategyExecutive/Board Changes
Baxter International Names New Chief Financial Officer
Positive
Aug 19, 2026
On August 18, 2026, Baxter International appointed John Rogers as executive vice president and chief financial officer, effective October 1, 2026, bringing in a seasoned global finance leader with transformation experience at Smith+Nephew, WPP and...
Business Operations and StrategyPrivate Placements and Financing
Baxter International Amends Credit Agreement, Enhancing Flexibility
Positive
Aug 18, 2026
On August 18, 2026, Baxter International amended its five-year credit agreement, easing its net leverage ratio covenant for five fiscal quarters through September 30, 2027 and removing Baxter World Trade SRL as a borrower. The changes provide Baxt...
Executive/Board ChangesRegulatory Filings and Compliance
Baxter International Announces Upcoming CFO Leadership Transition
Neutral
Aug 4, 2026
On July 31, 2026, Baxter International Inc. disclosed that Anita Zielinski had notified the company of her decision to resign as Interim Chief Financial Officer and Senior Vice President, Chief Accounting Officer and Controller. Her resignation wi...
Business Operations and StrategyPrivate Placements and Financing
Baxter International Launches $500 Million Senior Notes Tender
Positive
Aug 4, 2026
On August 4, 2026, Baxter International Inc. launched cash tender offers to repurchase up to $500 million in aggregate purchase price of four series of outstanding senior notes maturing between 2032 and 2051. The long-dated notes, carrying coupons...
Business Operations and StrategyDividendsFinancial Disclosures
Baxter International Raises Outlook After Strong Second Quarter
Positive
Jul 30, 2026
On July 30, 2026, Baxter reported second-quarter 2026 results showing worldwide sales of $2.96 billion, up 5% on both a reported and organic basis, with growth across all segments and regions and U.S. GAAP diluted EPS of $0.26 versus adjusted EPS ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Baxter International Updates Segment Reporting Structure and Metrics
Neutral
Jul 15, 2026
Effective for the quarter ended June 30, 2026, Baxter International reorganized its reporting structure into two segments, Medical Products Therapies and Healthcare Systems Technologies, folding its former Pharmaceuticals segment into the Infusi...
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.