Baxter International Inc. (BAX Quick QuoteBAX - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of 69 cents, which beat the Zacks Consensus Estimate of 60 cents by 15%. The bottom line declined 14% from the year-ago quarter’s level.

On a GAAP basis, the company reported a loss per share of 10 cents against EPS of 12 cents in the prior-year quarter.

Baxter’s Revenue Details

Revenues from continued operations totaled $2.84 billion, up 5% on a reported basis and 2% on an operational basis. The figure missed the Zacks Consensus Estimate by 1%.

Shares of BAX declined 16.2% in pre-market trading following lower-than-expected quarterly sales. The company’s shares have lost 3.8% in the year-to-date period against the industry’s growth of 6%. The broader S&P 500 Index has increased 7.9% in the same period.

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BAX’s Segmental Details

Medical Products & Therapies

The segment includes Advanced Surgery and a new category — Infusion Therapies & Technologies. Sales in this segment totaled $1.33 billion, down 1% on both reported and operational basis. Decline in the quarter reduced sales within the Infusion Therapies & Technologies division, caused by lower infusion pump sales and softness in IV solutions. This decline was partially offset by continued strong global demand for Advanced Surgery products.

Infusion Therapies and Technologies’ sales totaled $1.02 billion, down 4% year over year reportedly as well as on an operational basis. Advanced Surgery category sales amounted to $306 million, up 13% year over year reportedly and up 11% on an operational basis.

Healthcare Systems and Technologies

The segment includes the Front Line Care category. It also consists of the Patient Support Systems and Surgical Solutions categories, which are clubbed as Care & Connectivity Solutions. Total sales in this segment were $773 million, up 3% year over year reportedly and 2% on an operational basis. The performance reflected solid global growth for the Care & Connectivity Solutions division along with growth in the Front Line Care.

Front Line Care category sales totaled $300 million, up 1% year over year reportedly as well as on an operational basis. Care & Connectivity Solutions category sales amounted to $473 million, up 4% year over year reportedly and 3% on an operational basis.

Pharmaceuticals

The segment presently includes two product categories — Injectables & Anesthesia and Drug Compounding. Total sales during the third quarter were $632 million, up 7% year over year reportedly as well as on an operational basis. The strong quarterly performance was primarily due to strength in Drug Compounding and Injectables & Anesthesia.

Injectables and Anesthesia category sales totaled $333 million, up 4% year over year reportedly and up 3% on an operational basis. The Drug Compounding category sales amounted to $299 million, up 12% year over year reportedly and 11% on an operational basis.

Other

Revenues in the segment amounted to $101 million, up 494% on a year-over-year basis.

Margin Analysis

Baxter reported an adjusted gross profit of $1.12 billion, down 5.3% year over year. As a percentage of revenues, the adjusted gross margin contracted 430 basis points (bps) to 39.4%.

Selling, general and administrative expenses amounted to $708 million, down 6% from the year-ago quarter’s figure. Research and development expenses totaled $118 million, down 9% on a year-over-year basis.

Adjusted operating income from continuing operations totaled $423 million, up 8% year over year. As a percentage of revenues, the adjusted operating margin improved 40 bps to 14.9%.

Baxter International Inc. Price, Consensus and EPS Surprise

Baxter International Inc. price-consensus-eps-surprise-chart | Baxter International Inc. Quote

2025 Guidance

Baxter’s guidance for fourth-quarter and full-year 2025 was issued and updated, respectively.

For the fourth quarter, Baxter anticipates sales from continuing operations to grow 2% reportedly and decline 2% on an operational basis. The adjusted EPS for the period is expected to be in the range of 52-57 cents. The Zacks Consensus Estimate for sales and EPS is pegged at $3 billion and 71 cents, respectively.

For full-year 2025, continuing operational sales growth is now expected to be 4-5% reportedly and 1-2% on an operational basis. The Zacks Consensus Estimate for the metric is pegged at $11.31 billion, implying a year-over-year decline of 12.1% reportedly. Adjusted EPS is now projected to be in the band of $2.35-$2.40 compared with the previous guidance of $2.42- $2.52. The Zacks Consensus Estimate is pegged at $2.45.

Zacks Rank and Stocks to Consider

Currently, Baxter carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Solventum Corporation (SOLV Quick QuoteSOLV - Free Report) , Boston Scientific Corporation (BSX Quick QuoteBSX - Free Report) and HealthEquity (HQY Quick QuoteHQY - Free Report) .

Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.

Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.

HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.

HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.