Baxter International (BAX) has just posted its FY 2025 third quarter numbers, reporting revenue of US$2,835 million and a basic EPS loss of US$0.10. The trailing twelve month EPS stands at a loss of US$0.67 on revenue of US$11.0 billion. The company’s quarterly revenue has moved from US$2,699 million in Q3 2024 to US$2,753 million in Q4 2024, then to US$2,625 million and US$2,810 million in Q1 and Q2 2025. Over the same period, basic EPS shifted from US$0.11 in Q3 2024 to a loss of US$0.94 in Q4 2024, then to US$0.13 and US$0.24 in the first two quarters of 2025 before the latest quarterly loss. Investors may closely watch how the company’s margins develop from here.

See our full analysis for Baxter International.

With the headline figures on the table, the next step is to see how these results compare with the dominant narratives around Baxter, highlighting where the numbers fit the existing story and where they start to challenge it.

TTM losses of US$344 million keep profitability in focus

• On a trailing twelve month basis, Baxter reports net income from continuing operations of a loss of US$344 million and basic EPS of a loss of US$0.67 on US$11.0b of revenue, compared with quarterly Q3 FY 2025 net income from continuing operations of a loss of US$51 million on US$2,835 million of revenue.
• Consensus narrative points to profit margins moving from a current loss position of about 2.3% to 7.5% by around 2028, and this view is tested by:
  • Trailing data showing losses expanding at about 24.3% per year over the past five years, which contrasts with the expectation of earnings turning positive within three years.
  • Quarterly swings from a Q2 FY 2025 profit of US$122 million to a Q3 FY 2025 loss of US$51 million, which suggests earnings are still volatile even as analysts look for smoother profit growth ahead.

Revenue at US$11.0b with 2.5% annual growth

• Trailing twelve month revenue of about US$11.0b compares with US$10.5b to US$10.6b in earlier trailing periods, and is described as growing at roughly 2.5% per year, which is slower than the 10.4% annual rate cited for the broader US market.
• Bulls argue that product rollouts and demographic trends could support stronger sales than this 2.5% pace, and the latest numbers interact with that view in a few ways:
  • The quarterly revenue path from US$2,699 million in Q3 2024 to US$2,835 million in Q3 2025 is consistent with steady rather than rapid top line expansion, which leaves room for upside if hospital demand and new platforms ramp as optimistic scenarios suggest.
  • At the same time, the modest growth rate provides a relatively low base for the bullish case that revenue could grow around 3.7% to 5.0% annually in the coming years if utilization in areas like IV solutions and infusion systems improves.

Have a closer look at how bullish investors are connecting Baxter's earnings swings to a possible multi year recovery story with 🐂 Baxter International Bull Case

Low P/S of 0.9x vs industry and bear concerns on debt

• With a current share price of US$18.71 and trailing revenue of about US$11.0b, Baxter is described as trading on a P/S of 0.9x compared with 2.9x for the US Medical Equipment industry and 4.9x for peers, and the DCF fair value is cited at US$21.95.
• Bears focus on leverage and cash generation, and the latest figures give that cautious stance some backing:
  • The company is currently unprofitable on a trailing basis, with a loss of US$344 million, and losses have grown at about 24.3% per year over five years, which supports worries that operating cash flow may not yet comfortably support debt.
  • Even though the share price sits below the DCF fair value, the flagged risk that debt coverage is weak means some investors may see the low P/S multiple as compensation for balance sheet strain rather than a clear bargain.

Skeptical about how much risk that low P/S is really pricing in? See how cautious investors frame the downside case in 🐻 Baxter International Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Baxter International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Baxter International research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Explore Alternatives

Baxter is still reporting losses on a trailing basis, facing volatile quarterly earnings and debt related concerns that keep its low P/S ratio in question.

If that earnings volatility and balance sheet pressure feels uncomfortable, take a few minutes to size up sturdier candidates in our solid balance sheet and fundamentals stocks screener (45 results) built to highlight companies with stronger financial footing.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.