Baxter International Reports First-Quarter 2025 Results, Driven by Strategic Focus and Solid Operational Execution
Baxter International Inc. (NYSE: BAX), a global leader in medical technology, today announced its financial results for the first quarter of 2025. The results reflect continued progress on the company’s transformation strategy, which aims to streamline operations, sharpen focus on core competencies, and deliver sustainable long-term value to patients, providers, and shareholders.
“Our solid performance in the first quarter of 2025 reflects the ongoing impact of our transformation journey,” said Brent Shafer, Chair and Interim Chief Executive Officer of Baxter. “Baxter today is a more focused and agile organization, well positioned to drive enhanced value for patients, healthcare providers, customers, and shareholders through our reinvigorated emphasis on execution, innovation, and profitable growth.”
Shafer also acknowledged the current macroeconomic challenges impacting the global healthcare landscape. “While today’s global macroeconomic factors are creating a greater degree of uncertainty in the market, we remain confident in our overarching trajectory. The benefits of our operating model, in combination with our durable portfolio of medically essential products, create a strong foundation to leverage our potential and pursue opportunities to help address our customers’ most pressing needs in the pursuit of our life-sustaining mission.”
Financial Overview – First Quarter 2025
For the three months ended March 31, 2025, Baxter reported worldwide sales from continuing operations totaling approximately $2.63 billion, representing a 5% increase both on a reported and operational basis. These results exceeded the company’s previously communicated guidance and were bolstered by strong sales performance across all core business segments, including Medical Products & Therapies and Healthcare Systems & Technologies.
It’s important to note that the reported financials for continuing operations exclude the Kidney Care business, which was acquired by global investment firm Carlyle in a transaction that closed on January 31, 2025. As a result, Kidney Care is classified under discontinued operations for this and future reporting periods.
Regional Performance
From a geographic perspective, U.S. sales from continuing operations for the first quarter reached approximately $1.49 billion, representing an 11% year-over-year increase on a reported basis and 7% growth on an operational basis. This surge reflects robust demand across key product lines, particularly in hospital-based therapies and connected care technologies.
Meanwhile, international sales from continuing operations totaled approximately $1.14 billion. Although reported figures showed a 1% decline, the company achieved 3% growth on an operational basis when adjusting for the impact of foreign exchange. This performance highlights steady demand and market resilience in regions outside the U.S., particularly in Europe and Asia-Pacific.
Earnings and Profitability
On a U.S. GAAP basis, Baxter reported net income from continuing operations of $64 million, or $0.13 per diluted share, for the first quarter of 2025.
On an adjusted basis, which excludes special items such as intangible amortization, restructuring charges, and certain other one-time costs, net income from continuing operations totaled $0.55 per diluted share. This result exceeded Baxter’s initial guidance range of $0.47 to $0.50 per share, driven by stronger-than-expected revenue, disciplined cost management, and favorable non-operating items, including currency gains and interest income.
Segment Performance Highlights
Baxter operates across three principal business segments, all of which delivered positive performance in the first quarter, reflecting the company’s focused execution and ability to meet evolving clinical needs across its markets.
Medical Products & Therapies
The Medical Products & Therapies segment recorded sales of approximately $1.26 billion in Q1 2025, representing 3% growth on a reported basis and 6% on an operational basis. Key contributors to this growth included:
- Infusion Therapies & Technologies: Demonstrated particularly strong demand for IV infusion pumps and related equipment, especially in the U.S., as hospitals continue to modernize and expand their acute care infrastructure.
- Nutrition Therapies: Benefited from ongoing emphasis on clinical nutrition, with rising demand for parenteral nutrition therapies driven by a growing patient population with complex care needs.
- Advanced Surgery: Experienced robust growth internationally, fueled by demand for hemostats, sealants, and other advanced surgical solutions used in minimally invasive procedures.
Healthcare Systems & Technologies
The Healthcare Systems & Technologies segment delivered sales of approximately $704 million, marking a 6% increase on both reported and operational bases. Growth in this segment was led by:
- Patient Support Systems (Care and Connectivity Solutions Division): U.S. sales were particularly strong, driven by increased hospital spending on smart beds, monitoring systems, and digital connectivity solutions that enhance patient safety and streamline clinical workflows.
- Front Line Care Division: Benefited from a favorable year-over-year comparison due to pandemic-related disruptions in the prior-year period. Additionally, primary care markets in the U.S. showed signs of continued stabilization and recovery, contributing to higher sales.
Pharmaceuticals
The Pharmaceuticals segment posted first-quarter sales of approximately $581 million, translating to 1% growth on a reported basis and 3% operational growth. Performance drivers included:
- Specialty Injectables: Delivered mid-single-digit global growth, supported by strong demand for anti-infectives, analgesics, and critical care drugs.
- Anesthesia: Sales saw a slight decline, reflecting market headwinds and lower procedural volumes in certain geographies.
- Drug Compounding: Recorded low single-digit growth, though year-over-year comparisons were challenging due to strong performance in the same period last year.
Strategic Transformation
The first-quarter performance affirms the effectiveness of Baxter’s ongoing transformation strategy, which includes divestitures, cost-optimization initiatives, and renewed focus on innovation. With the Kidney Care business now fully divested, Baxter is better positioned to sharpen its operational focus and capitalize on its core competencies.
The company continues to invest in new product development, digital health capabilities, and next-generation technologies that aim to improve patient outcomes and streamline clinical care delivery.
Despite the broader macroeconomic pressures—ranging from inflation and supply chain disruptions to regulatory complexity—Baxter’s leadership remains confident in the company’s ability to deliver consistent and sustainable growth through its differentiated portfolio and disciplined operating model.
Baxter expects to maintain its current trajectory as it advances through 2025, with a continued emphasis on performance execution, margin improvement, and strategic investment. The company plans to issue updated full-year guidance during its next earnings call, incorporating any additional developments in the macroeconomic environment or operational progress.
“We are energized by the momentum we’ve built in the early part of the year,” said Shafer. “We look forward to building on this progress as we continue to deliver on our mission to save and sustain lives.”
Baxter International Inc. is a global medtech innovator committed to transforming healthcare and advancing patient care worldwide. With a diverse portfolio that spans medical devices, pharmaceuticals, and digital health solutions, Baxter serves hospitals, clinics, and healthcare providers in over 100 countries. The company’s mission is to save and sustain lives by enabling healthcare professionals to deliver efficient, high-quality car.
