Baxter International Inc. reported fourth‑quarter 2025 revenue of $2.97 billion, an 8% increase from the same period a year earlier, and a beat of the consensus estimate of $2.79 billion. The company’s adjusted diluted earnings per share from continuing operations were $0.44, falling short of the consensus estimate of $0.53 by $0.09 and marking a 24% decline from the prior year’s $0.58.
Operating margin compressed to 11.8% in Q4 2025, down 340 basis points from the prior year, as the Novum IQ infusion‑pump recall and a shift toward lower‑margin product mix weighed on profitability. The company’s gross margin fell 900 basis points, reflecting higher raw‑material costs and inventory write‑downs. The EPS miss was driven by the recall‑related inventory adjustments, higher tax rates, and a less favorable product mix, which together offset the revenue growth.
Management guided 2026 sales growth to flat to 1% and adjusted diluted EPS to $1.85–$2.05, signaling cautious confidence amid ongoing headwinds. The company also announced a sharply reduced quarterly cash dividend of $0.01 per share, payable April 1, 2026, to free capital for deleveraging. Board changes included the appointment of Michael R. McDonnell and the resignations of Cathy R. Smith and Stephen H. Rusckowski.
CEO Andrew Hider said, "We are early in our journey, but we're making progress," and added, "I joined Baxter because it's a global healthcare leader—an iconic brand with an essential portfolio that touches more than 350 million patients every year. In my first weeks, I've seen firsthand the passion and expertise that are at the heart of this company. Following this work, we have already taken decisive steps, including the launch of a new enterprise‑wide continuous improvement system to sharpen execution and strengthen future results. There is clearly work ahead of us, but I'm energized by the team's commitment, motivated by our potential, and confident we've begun taking the right steps to build a future of growth and enhanced performance." The company also highlighted the impact of Hurricane Helene, which disrupted its North Cove manufacturing site and reduced IV‑solution demand, and the ongoing pressure from the Novum IQ recall.
Investors reacted negatively, citing the EPS miss and margin compression as key concerns, and the cautious 2026 guidance further dampened sentiment.
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