Baxter International(NYSE) BAX

Baxter makes medical tools and supplies used in hospitals and clinics around the world. These products help doctors and nurses treat patients with kidney disease, lung problems, and surgical needs. The company also creates connected technology to track patient health from home or a hospital bed.

What is in the Portfolio?

• Medical Products and Therapies: Sterile intravenous solutions, infusion systems, and surgical sealants that stop bleeding; covers products used to deliver fluids and medication to patients.
• Healthcare Systems and Technologies: Connected care tools including smart beds, patient monitoring screens, and respiratory health devices; includes advanced equipment used to integrate data in operating rooms.
• Pharmaceuticals: Specialty injectable medicines, inhaled anesthetics for surgery, and pharmacy compounding services where medications are mixed for specific patient needs.

Strategic Changes and New Directions

• Sold the Kidney Care business, now known as Vantive Health LLC, to Carlyle Group Inc. for $3.8 billion in January 2025.
• Completed the sale of the BioPharma Solutions business in September 2023 for $3.96 billion to reduce company debt.
• Acquired Hill-Rom Holdings, Inc. in 2021 to add smart hospital beds and diagnostic tools to the company lineup.
• Launched the Baxter Growth and Performance system in October 2025 to focus on continuous business improvement and efficiency.

Where the Company Stands Out

Baxter operates a global network that manufactures products in over 20 countries and distributes them to more than 100 countries. The company uses a direct sales force and independent wholesalers to supply essential medical goods to almost every level of patient care.

Baxter by the Numbers

• Revenue reached $3 billion in Q4 2025, an 8% increase compared to Q4 2024.
• Free cash flow grew to $444 million in Q4 2025, up 26.5% from the $351 million reported in the prior year.
• Operating cash flow was $584 million in Q4 2025, a 19.7% rise over the same period in 2024.
• The company repaid $3.81 billion of legacy debt during 2025 using proceeds from its recent business divestitures.

Evolution of the Business

Baxter is transitioning into a leaner organization by divesting its kidney care and biopharma segments to focus on connected hospital technology and specialized pharmaceuticals. The company has simplified its operating model to align its global supply chain more closely with its commercial sales activities.