$BAX

BAXTER INTERNATIONAL INC

CIK:0000010456|SEC Filings

Condensed Consolidated Statements of Income (Loss) (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 2,960	$ 2,810	$ 5,661	$ 5,435
Cost of sales	1,928	1,819	3,738	3,583
Gross margin	1,032	991	1,923	1,852
Selling, general and administrative expenses	735	718	1,463	1,421
Research and development expenses	129	134	268	274
Other operating income, net	(49)	(52)	(91)	(92)
Operating income	217	191	283	249
Interest expense, net	64	58	130	122
Other (income) expense, net	(5)	0	1	(3)
Income (loss) from continuing operations before income taxes	158	133	152	130
Income tax expense (benefit)	23	11	34	(56)
Income (loss) from continuing operations	135	122	118	186
Income (loss) from discontinued operations, net of tax	(9)	(31)	(7)	31
Net income (loss)	126	91	111	217
Net income attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to Baxter stockholders	$ 126	$ 91	$ 111	$ 217
Income (loss) from continuing operations per common share
Income from continuing operations per common share, basic (in dollars per share)	$ 0.26	$ 0.24	$ 0.23	$ 0.36
Income from continuing operations per common share, diluted (in dollars per share)	0.26	0.24	0.23	0.36
Income (loss) from discontinued operations per common share
Income from discontinued operations per common share, basic (in dollars per share)	(0.02)	(0.06)	(0.01)	0.06
Income from discontinued operations per common share, diluted (in dollars per share)	(0.02)	(0.06)	(0.02)	0.06
Income (loss) per common share
Basic (in dollars per share)	0.24	0.18	0.22	0.42
Diluted (in dollars per share)	$ 0.24	$ 0.18	$ 0.21	$ 0.42
Weighted-average number of shares outstanding
Basic (in shares)	517	513	516	512
Diluted (in shares)	518	514	517	514

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Cash flows from operations

Net income (loss)

$ 111

$ 217

Less: Income (loss) from discontinued operations, net of tax

(7)

Income (loss) from continuing operations

118

186

Adjustments to reconcile net income (loss) to cash flows from operations:

Depreciation and amortization

476

504

Deferred income taxes

(5)

(165)

Stock compensation

Net periodic pension and other postretirement costs

(8)

(16)

Other long-lived asset impairments

Other

Changes in balance sheet items:

Accounts receivable, net

(4)

(40)

Inventories

(36)

(279)

Prepaid expenses and other current assets

Accounts payable

Accrued expenses and other current liabilities

(232)

(151)

Other

(41)

Cash flows from (used in) operations - continuing operations

510

118

Cash flows from (used in) operations - discontinued operations

(12)

(94)

Cash flows from (used in) operations

498

Cash flows from investing activities

Capital expenditures

(253)

(262)

Acquisitions of developed technology and investments

(3)

(9)

Other investing activities, net

Cash flows from (used in) investing activities - continuing operations

(250)

(239)

Cash flows from (used in) investing activities - discontinued operations

3,389

Cash flows from (used in) investing activities

(250)

3,150

Cash flows from financing activities

Repayments of debt

(3,505)

Repayments of debt with original maturities of three months or less

(300)

Cash dividends on common stock

(10)

(174)

Proceeds from stock issued under employee benefit plans

Payments of contingent liabilities

(31)

Other financing activities, net

(14)

(25)

Cash flows from (used in) financing activities

(42)

(3,988)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash - continuing operations

(18)

Increase (decrease) in cash, cash equivalents and restricted cash

188

(726)

Cash, cash equivalents and restricted cash at beginning of period

^[1]

1,968

2,414

Cash, cash equivalents and restricted cash at end of period

^[1]

$ 2,156

$ 1,688

[1]

The following table provides a reconciliation of cash, cash equivalents and restricted cash shown above to the amounts reported within the condensed consolidated balance sheet as of June 30, 2026, December 31, 2025, and June 30, 2025 (in millions):


	June 30, 2026		December 31, 2025		June 30, 2025
Cash and cash equivalents	$	2,150	$	1,966	$	1,686
Restricted cash included in other non-current assets	6		2		2

Cash, cash equivalents and restricted cash	$	2,156	$	1,968	$	1,688

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 2,150	$ 1,966
Accounts receivable, net of allowances of $56 in 2026 and $63 in 2025	1,856	1,861
Inventories	2,259	2,232
Prepaid expenses and other current assets	724	813
Total current assets	6,989	6,872
Property, plant and equipment, net	2,913	2,910
Goodwill	4,886	4,929
Other intangible assets, net	4,073	4,369
Operating lease right-of-use assets	261	276
Other non-current assets	669	699
Total assets	19,791	20,055
Current liabilities:
Short-term debt	0	1
Current maturities of long-term debt and finance lease obligations	844	2
Accounts payable	1,034	999
Accrued expenses and other current liabilities	1,713	1,968
Total current liabilities	3,591	2,970
Long-term debt and finance lease obligations, less current portion	8,615	9,473
Operating lease liabilities	208	223
Other non-current liabilities	1,198	1,287
Total liabilities	13,612	13,953
Commitments and contingencies
Equity:
Common stock, $1 par value, authorized 2,000,000,000 shares, issued 683,494,944 shares in 2026 and 2025	683	683
Common stock in treasury, at cost, 166,499,043 shares in 2026 and 169,213,617 shares in 2025	(10,705)	(10,873)
Additional contributed capital	6,241	6,368
Retained earnings	13,806	13,705
Accumulated other comprehensive loss	(3,819)	(3,754)
Total Baxter stockholders’ equity	6,206	6,129
Noncontrolling interests	(27)	(27)
Total equity	6,179	6,102
Total liabilities and equity	$ 19,791	$ 20,055