SHERIDAN, WYOMING – May 7, 2025 – Baxter International Inc. (NYSE: BAX), a leading global medtech company, has announced its first-quarter financial results for 2025, reflecting solid performance driven by strategic transformation initiatives. The company’s results indicate continued growth across its core business segments, positioning Baxter for long-term value creation despite global macroeconomic uncertainty.
Strategic Transformation and Focus on Execution
"Our solid performance in the first quarter of 2025 reflects the ongoing impact of our transformation journey," said Brent Shafer, chair and interim CEO 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."
Baxter's emphasis on operational efficiency and a durable portfolio of life-sustaining medical products continues to support the company’s overarching mission, despite global market challenges. As part of its strategic refocusing, Baxter has seen continued improvements in its operational model, setting the stage for future growth and innovation.
Financial Performance Highlights
For the first quarter of 2025, Baxter reported strong financial results, surpassing initial expectations. Key financial metrics include:
- Worldwide Sales: $2.63 billion, a 5% increase on both a reported and operational basis.
- U.S. Sales: $1.49 billion, marking an 11% increase on a reported basis and 7% on an operational basis.
- International Sales: $1.14 billion, reflecting a 1% decline on a reported basis but a 3% increase on an operational basis.
Despite the challenges posed by global economic conditions, Baxter's diversified portfolio and focused approach to cost management allowed the company to exceed its original earnings guidance.
Segment Performance Breakdown
Baxter's three key business segments all showed growth in the first quarter, underscoring the company's robust market position.
- Medical Products & Therapies: Sales of $1.26 billion, a 3% increase on a reported basis and 6% on an operational basis. This growth was driven by strong demand for IV infusion pumps and nutrition therapies, particularly in the U.S., as well as solid performance in the Advanced Surgery division.
- Healthcare Systems & Technologies: Sales of $704 million, reflecting a 6% increase on both a reported and operational basis. This growth was primarily fueled by strong U.S. sales of Patient Support Systems products and positive performance in the Front Line Care division.
- Pharmaceuticals: Sales of $581 million, up 1% on a reported basis and 3% on an operational basis. The growth was driven by robust global demand for specialty injectables, though it was partially offset by declines in anesthesia and drug compounding.
Strategic Innovation and Product Advancements
Baxter remains committed to advancing its strategic priorities to improve patient care through innovation. In the first quarter, Baxter introduced the Voalte Linq device, the company’s first voice-activated technology, designed to enhance communication efficiency in healthcare settings. Additionally, the company launched Hemopatch Sealing Hemostat, which enables surgeons to control bleeding or prevent leakage during surgeries, now with room temperature storage for improved accessibility in operating rooms.
2025 Financial Outlook and Projections
For the full year of 2025, Baxter has revised its outlook, now expecting:
- Sales Growth: 7% to 8% on a reported basis, and 4% to 5% on an operational basis.
- Adjusted Earnings: $2.47 to $2.55 per diluted share, slightly up from previous guidance of $2.45 to $2.55.
For the second quarter of 2025, Baxter anticipates sales growth of 4% to 5% on a reported basis, with adjusted earnings ranging from $0.59 to $0.63 per diluted share.
Conclusion and Future Outlook
Baxter’s continued focus on innovation, operational discipline, and market expansion provides a strong foundation for its future growth trajectory. The company's solid first-quarter performance sets a positive tone for the remainder of 2025, with strong projections and a clear focus on addressing customer needs. Baxter’s transformative journey and strategic initiatives are poised to position the company for long-term success.
For more information, visit www.baxter.com.