NYSE:BAX
BAXTER INTERNATIONAL INC
BAXTER International provides essential medical technologies for renal and cardiovascular care alongside home health services.
Key Metrics
Investment Thesis
Bull Case
Investors may view BAX as an opportunity if the company successfully executes its cost reduction initiatives to reverse the multi-year revenue decline and stabilizes its renal care market share against competitors.
Bear Case
The stock faces severe bearish concerns due to a net loss of $957M, a sharp 24% revenue drop in 2024, negative accumulated other comprehensive income of $3.75B, and significant retained earnings deficits that suggest fundamental business model challenges.
About BAXTER INTERNATIONAL INC
Baxter International Inc. is a global medical technology and services provider specializing in renal care, cardiovascular products, and home health services, serving hospitals, clinics, and patients worldwide. The company operates through its Renal Care and Medical Technologies segments, delivering dialysis systems, infusion therapies, and integrated healthcare solutions to diverse markets including the US, Europe, and Asia.
Analysis
Management Discussion
The company reported a net loss of $957M in 2025 following a revenue decline from $14.81B in 2023 to $11.24B, indicating substantial margin compression or one-time charges offsetting operational cash flow of $845M.
Industry Overview
The medical device and home health industry is highly regulated with intense competition from established players like Fresenius Medical Care and DaVita, requiring companies to innovate constantly while managing complex reimbursement landscapes across different geographies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $15.11B | $14.81B | $10.64B | $11.24B |
| Cost of Revenue | $9.72B | $9.84B | $6.65B | $7.87B |
| Gross Profit | $5.40B | $4.97B | $3.98B | $3.38B |
| Operating Expenses | $7.34B | $4.58B | $3.97B | $3.69B |
| Operating Income | $-1.94B | $390.0M | $14.0M | $-308.0M |
| R&D | $605.0M | $667.0M | $590.0M | $518.0M |
| G&A | $3.89B | $3.95B | $2.97B | $2.89B |
| Stock-Based Comp | $154.0M | $133.0M | $114.0M | $117.0M |
| D&A | $1.40B | $1.26B | $997.0M | $981.0M |
| Depreciation | $650.0M | $611.0M | $372.0M | $383.0M |
| Amortization | $753.0M | $652.0M | $625.0M | $598.0M |
| Other OpEx | $2.85B | $-28.0M | $413.0M | $279.0M |
| Non-Operating Income | $-410.0M | $-493.0M | $-303.0M | $-197.0M |
| Interest Expense | $415.0M | $512.0M | $408.0M | $290.0M |
| Interest Income | $20.0M | $70.0M | $67.0M | $52.0M |
| Pre-Tax Income | $-2.35B | $-103.0M | $-289.0M | $-505.0M |
| Income Tax | $68.0M | $-34.0M | $37.0M | $395.0M |
| Continuing Ops | $-2.42B | $-69.0M | $-326.0M | $-900.0M |
| Discontinued Ops | $0 | $2.73B | $-312.0M | $-57.0M |
| Net Income | $-2.42B | $2.66B | $-638.0M | $-957.0M |
| Minority Interest | $12.0M | $7.0M | $11.0M | $0 |
| Net to Common | $-2.43B | $2.66B | $-649.0M | $-957.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $8.01B | $9.60B | $8.85B | $6.87B |
| Cash & Equivalents | $1.72B | $3.19B | $1.76B | $1.97B |
| Accounts Receivable | $2.66B | $2.69B | $1.68B | $1.86B |
| Inventory | $2.72B | $2.82B | $2.05B | $2.23B |
| Prepaid Expenses | $916.0M | $892.0M | $753.0M | $813.0M |
| Other Current Assets | $0 | $0 | $2.61B | $0 |
| Long-Term Assets | $20.28B | $18.68B | $16.93B | $13.18B |
| PP&E (Net) | $4.98B | $4.43B | $2.87B | $2.91B |
| Intangibles | $6.79B | $6.08B | $5.22B | $4.37B |
| Goodwill | $6.84B | $6.51B | $5.28B | $4.93B |
| Operating Leases | $550.0M | $524.0M | $306.0M | $276.0M |
| Other LT Assets | $1.11B | $1.13B | $3.25B | $699.0M |
| Total Assets | $28.29B | $28.28B | $25.78B | $20.05B |
| Current Liabilities | $4.75B | $6.50B | $6.51B | $2.97B |
| Accounts Payable | $1.14B | $1.24B | $968.0M | $999.0M |
| Current Leases | $121.0M | $128.0M | $80.0M | $81.0M |
| Deferred Revenue | $164.0M | $148.0M | $131.0M | $141.0M |
| Taxes Payable | $91.0M | $268.0M | $121.0M | $83.0M |
| Other Current Liab | $882.0M | $1.98B | $3.26B | $-307.0M |
| Long-Term Liabilities | $17.65B | $13.30B | $12.25B | $10.98B |
| LT Operating Leases | $456.0M | $438.0M | $243.0M | $223.0M |
| Other LT Liab | $17.11B | $12.82B | $11.96B | $10.72B |
| Total Liabilities | $22.39B | $19.81B | $18.76B | $13.95B |
| Shareholders' Equity | $5.89B | $8.47B | $7.02B | $6.10B |
| Retained Earnings | $14.05B | $16.11B | $14.93B | $13.71B |
| AOCI | $-3.83B | $-3.55B | $-4.01B | $-3.75B |
| Treasury Stock | $11.39B | — | — | — |
| Total L&E | $28.29B | $28.28B | $25.78B | $20.05B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-2.42B | $2.66B | $-638.0M | $-957.0M |
| Non-Cash Adjustments | $3.44B | $-1.26B | $1.18B | $1.62B |
| Working Capital Changes | $197.0M | $327.0M | $473.0M | $182.0M |
| Cash from Operations | $1.21B | $1.73B | $1.02B | $845.0M |
| Cash from Investing | $-931.0M | $3.21B | $-626.0M | $2.84B |
| Debt Issuances | $0 | $0 | — | $2.00B |
| Debt Repayments | $954.0M | — | — | — |
| Share Buybacks | $32.0M | $0 | $0 | — |
| Dividends Paid | $573.0M | $586.0M | $590.0M | $348.0M |
| Cash from Financing | $-1.44B | $-3.49B | $-1.08B | $-4.22B |
| FX Effect | $-76.0M | $26.0M | $-96.0M | $84.0M |
| Net Change in Cash | $-1.23B | $1.48B | $-784.0M | $-446.0M |
| Beginning Cash | $2.96B | $1.72B | $3.08B | $1.77B |
| Ending Cash | $1.72B | $3.20B | $1.77B | $1.97B |
Frequently Asked Questions
How does BAXTER INTERNATIONAL INC make money?
The company's revenue is primarily driven by its Renal Care segment offering dialysis systems and consumables, a Medical Technologies segment supplying infusion and monitoring devices, and a Home Health Services segment providing integrated clinical care solutions to hospitals and patients.
What are the main risks for BAX?
Significant headwinds include persistent macroeconomic pressure reducing demand for elective procedures, ongoing geopolitical instability affecting global supply chains, potential regulatory changes impacting reimbursement rates for dialysis, and the company's historical exposure to fraud allegations that could impact reputation and operations.
What is BAX's competitive advantage?
Baxter leverages its extensive global footprint in the high-volume renal care market, strong brand recognition for life-saving technologies like the RenalCare system, and deep expertise in home health services that creates recurring revenue streams and high switching costs for healthcare providers.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.