Slides
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Third-Quarter 2025 Earnings Baxter International Inc. October 30, 2025 1
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Forward-Looking Statements 2 This presentation includes forward-looking statements concerning the company's financial results (including the outlook for fourth-quarter and full-year 2025) and operational, business development and regulatory activities. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the company's ability to achieve the intended benefits of its recent strategic actions, including the sale of the Kidney Care business, business strategy and development activities (including the acquisition Hill-Rom Holdings, Inc. and completion of related integration activities) and cost saving initiatives, or of future long-term financial improvement goals; the impact of global economic conditions (including, among other things, changes in tariffs, taxation, trade policies and treaties, sanctions, embargos, export control restrictions, the potential for a recession, supply chain disruptions, inflation levels and interest rates, financial market volatility, banking crises, the war in Ukraine, the conflict in the Middle East and other geopolitical events, and the potential for escalation of these and other conflicts, the related economic sanctions being imposed globally in response to the conflicts and potential trade wars, global public health crises, pandemics and epidemics, or the anticipation of any of the foregoing, on the company's operations and on the company's employees, customers, suppliers, and foreign governments in countries in which the company operates and the company’s ability to identify actions to mitigate the impact of those conditions (or to realize the anticipated benefits of any such mitigating actions); demand and market acceptance risks for, and competitive pressures (including pricing) related to, new and existing products and services (including customer response to recent Novum IQ Large Volume Pump (Novum LVP) field actions and the related voluntary ship and installation hold, which may include additional returns or exchanges), challenges and reputational risks associated with converting customers to new or alternative products and challenges with accurately predicting changing customer preferences and future expenditures and inventory levels (including with respect to the impact of the Novum LVP ship and installation hold and what the company believes to be continuing fluid conservation practices) and with being able to monetize new and existing products and services, the impact of those products and services on quality and patient safety concerns, and the need for ongoing training and support for the company’s products and services; product development risks, including satisfactory clinical performance and obtaining and maintaining required regulatory approvals (including as a result of evolving regulatory requirements or the withdrawal or resubmission of any pending applications), the ability to manufacture at appropriate scale, and the general unpredictability associated with the product development cycle (which may result in monetary penalties owed to the company’s suppliers in the event the company does not place orders at levels contemplated in its contractual arrangements); future actions of, or failures to act or delays in acting by the U.S. Food and Drug Administration, the European Medicines Agency, or any other regulatory body or government authority (including the U.S. Securities and Exchange Commission, Department of Justice, Health Canada or the Attorney General of any state), or any product quality or patient safety issues (including those related to the company’s infusion pump category) that could delay, limit or suspend product development, manufacturing, or sale or otherwise lead to product recalls (either voluntary or required by governmental authorities), adverse regulatory site inspection reports, voluntary or official action indicated classifications, labeling changes, launch delays, warning letters, import bans, refusal of a government to grant or the government withdrawal of approvals, clearances, licenses or other marketing authorizations, denial of import certifications, sanctions, seizures, injunctions (including to halt manufacture or distribution), monetary sanctions, criminal or civil liabilities or litigation; the continuity, availability, and pricing of acceptable raw materials and component parts, the company's ability to pass some or all of any increased costs to its customers through price increases or otherwise, and the related continuity of the company's manufacturing, sterilization, supply and distribution and those of the company’s suppliers; failure to accurately forecast or achieve the company’s short- and long-term financial performance and goals, market and category growth rates, growth rates for the company's segments, customer demand and related impacts on the company’s liquidity (including with respect to increased inventory levels); the company's ability to execute on its capital allocation plans, including the company's debt repayment plans, the timing and amount of any dividends, share repurchases and divestiture proceeds; future downgrades to the company's credit ratings or ratings outlooks, or withdrawals by rating agencies from rating the company and its indebtedness, and the related impact on the company’s funding costs and liquidity; the company’s ability to finance and develop new products or services, or enhancements thereto, on commercially acceptable terms or at all; actions by tax authorities in connection with ongoing tax audits (including with respect to transfer pricing matters and the potential issuance of one or more Notice of Proposed Adjustments), the outcome of pending or future litigation (including as a result of customer or supplier disputes) and the sufficiency of any related reserves; fluctuations in foreign exchange and interest rates; the impact of any accounting estimates and assumptions, including with respect to goodwill, intangible assets, or other long-lived asset impairments on the company's operating results; failures with respect to the company's quality, compliance or ethics programs; our ability to attract, develop, retain and engage key employees, including as a result of organizational or other corporate changes and strategic initiatives, and the occurrence of labor disruptions resulting from labor disagreements under bargaining agreements or national trade union agreements, disputes with works councils or otherwise); inability to create additional production capacity in a timely manner or the occurrence of other manufacturing, sterilization, or supply difficulties, including as a result of natural disaster or severe weather event (such as Hurricane Helene), war, terrorism, global public health crises and epidemics/pandemics, regulatory actions, or otherwise; future actions of third parties, including third-party payors and the company’s customers and distributors (including group purchasing organizations and integrated delivery networks); breaches and breakdowns affecting the company's information technology systems or protected information, including by cyber-attack, data leakage, unauthorized access or theft, or failures of or vulnerabilities in the company's information technology systems or products; the company’s ability to effectively develop, integrate or deploy artificial intelligence, machine learning and other emerging technologies into the company’s products, services and operations in a manner that is compliant with existing and emerging regulations and consistent with evolving customer preferences; the impact of physical effects of climate change, severe storms (including Hurricane Helene) and storm-related events; changes to legislation and regulation and other governmental pressures in the United States and globally, including the cost of compliance and potential penalties for purported noncompliance thereof, including new or amended laws, rules and regulations as well as the impact of healthcare reform and its implementation, suspension, repeal, replacement, amendment, modification and other similar actions undertaken by the United States or foreign governments, including with respect to pricing, reimbursement, taxation (including taxation of income, whether with respect to current or future tax reform) and rebate policies; the company's ability to meet evolving and varied corporate responsibility expectations of the company's stakeholders, including compliance with emerging and potentially contradictory global sustainability regulations; the ability to protect or enforce the company's patents or other proprietary rights (including trademarks, copyrights, trade secrets, and know-how) or where the patents of third parties prevent or restrict the company's manufacture, sale, or use of affected products or technology; and other factors discussed in Baxter's most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter’s website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws.
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Use Of Non-GAAP Financial Measures 3 To supplement Baxter’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. A reconciliation of the non-GAAP financial measures included in this document to the corresponding U.S. GAAP measures follows in the section titled Non-GAAP Reconciliations. In addition, an explanation of the ways in which Baxter management uses these supplemental non-GAAP measures to evaluate its business and the substantive reasons why Baxter management believes that these non-GAAP measures provide useful information to investors is included in the company’s most recent earnings release filed with the SEC on Form 8-K on October 30, 2025. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP. Baxter strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP financial measures used in this presentation include sales growth (on an operational basis), adjusted gross margin, adjusted selling, general, and administrative expenses, adjusted research and development expenses, adjusted other operating income, net, adjusted operating income, adjusted other income (expense), net, adjusted income (loss) from continuing operations before income taxes, adjusted income tax expense (benefit), adjusted income (loss) from continuing operations, adjusted income (loss) from discontinued operations, adjusted net income (loss), adjusted net income (loss) attributable to Baxter stockholders, adjusted diluted earnings per share from continuing operations, adjusted diluted earnings per share from discontinued operations and adjusted diluted earnings per share. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com.
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Table of Contents 4 12Financial Results 232025 Outlook 27Non-GAAP Reconciliations 5Performance Summary
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Performance Summary Third- Quarter 2025 Earnings October 30, 2025 5
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Executing On Our Strategy For Value Creation 6 Q3 2025 Results1 Worldwide sales from continuing operations grew 5% on a reported basis and 2% on an operational basis Adjusted earnings per share from continuing operations totaled $0.69 per diluted share, increasing 41% as compared to the prior year period Recent Highlights Launched Welch Allyn Connex 360 Vital Signs Monitor, a next generation patient monitoring device and the latest innovation in Baxter’s connected monitoring portfolio. Connex 360 offers an advanced connectivity and security platform, customizable configurations based on a hospital’s clinical routines, and upgrade capabilities that set the stage for future functionality and enhancements Announced Baxter was awarded a Gold Level Resiliency Badge from the Healthcare Industry Resilience Collaborative (HIRC) in the categories of IV Solutions, Nutrition Solutions and Premix Drugs, becoming the first manufacturer to earn this distinction across these categories Highlighted the actions that supported an expedited recovery following the impact of Hurricane Helene at Baxter’s North Cove, N.C. site, and how the company is further strengthening resiliency across its supply chain 1Non-GAAP financial metrics referenced in this slide include operational sales growth and adjusted earnings per share from continuing operations. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com.
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Performance Highlights 7 Continuing Operations1 Third-Quarter 2025 Year-To-Date 2025 $2.8B Sales +5% Reported +2% Operational2 Key Metrics GAAP Adjusted3 Key Metrics GAAP Adjusted3 Gross Margin 33.5% 39.4% Gross Margin 33.9% 40.6% YOY Change (480 bps) (430 bps) YOY Change (450 bps) (260 bps) Operating Margin 6.1% 14.9% Operating Margin 5.1% 15.0% YOY Change +40 bps +40 bps YOY Change (60 bps) +160 bps Diluted EPS ($0.10) $0.69 Diluted EPS $0.26 $1.83 YOY Change (183%) +41% YOY Change (19%) +40% $8.3B Sales +5% Reported +2% Operational2 1Continuing operations excludes the results of the Kidney Care business, which are reported as discontinued operations. 2Operational sales growth excludes the impact of the Kidney Care manufacturing and supply agreement (MSA) not reflected in reportable segments, reflects the previously announced exit of IV s olutions in China in the Medical Products & Therapies reportable segment, and is calculated at constant currency rates. 3Non-GAAP financial metrics referenced in this slide include operational sales growth, adjusted gross margin, adjusted operating margin, and adjusted diluted EPS from continuing operations. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com.
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Key Financial Metrics 8 Third-Quarter 2025 Snapshot (Continuing Operations)1 1Non-GAAP financial metrics referenced in this slide include operational sales growth, adjusted operating margin, and adjusted diluted EPS from continuing operations. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Operational sales growth excludes the impact of the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV solutions in China in the Medical Products & Therapies reportable segment, and is calculated at constant currency rates. Q3 2024 Q3 2025 Global Reported Sales $2.7B $2.8B +2% Q3 2024 Q3 2025 Adjusted Operating Margin +40 bps 14.5% 14.9% Q3 2024 Q3 2025 Adjusted Diluted EPS $0.49 $0.69 +41%Operational Growth2
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Key Financial Metrics 9 Year-To-Date 2025 Snapshot (Continuing Operations)1 1Non-GAAP financial metrics referenced in this slide include operational sales growth, adjusted operating margin, and adjusted diluted EPS from continuing operations. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Operational sales growth excludes the impact of the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV solutions in China in the Medical Products & Therapies reportable segment, and is calculated at constant currency rates. Global Reported Sales YTD 2024 YTD 2025 Adjusted Operating Margin +160 bps 13.4% 15.0% YTD 2024 YTD 2025 Adjusted Diluted EPS $1.31 $1.83 +40% YTD 2024 YTD 2025 $7.9B $8.3B +2% Operational Growth2
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Third-Quarter 2025 Adjusted Financial Results1 10 (Continuing Operations) 1Non-GAAP financial metrics referenced in this slide include adjusted gross margin, adjusted SG&A expense, adjusted R&D expense, adjusted operating margin, and adjusted diluted EPS from continuing operations. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. Q3 2024 Q3 2025 Change Adjusted Gross Margin 43.7% 39.4% (430 bps) Adjusted SG&A Expense (% of Sales) 24.6% 22.2% (240 bps) Adjusted R&D Expense (% of Sales) 4.8% 4.1% (70 bps) Adjusted Operating Margin 14.5% 14.9% +40 bps Adjusted Diluted EPS $0.49 $0.69 +41%
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Third-Quarter 2025 Performance1 11 (Continuing Operations) Metric Q3 2025 Guidance Q3 2025 Actual Sales Growth Reported 6% - 7% +5% Sales Growth Operational Growth 3% - 4% +2% GAAP Diluted EPS Growth vs. Prior-Year Period N/A ($0.10) (183%) Adjusted Diluted EPS Growth vs. Prior-Year Period $0.58 - $0.62 $0.69 +41% 1Non-GAAP financial metrics referenced in this slide include operational sales growth and adjusted diluted EPS from continuing operations. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com.
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Financial Results By Operating Segment Third- Quarter 2025 Earnings October 30, 2025 12
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Third-Quarter 2025 Sales By Product Category1 13 1Non-GAAP financial metrics referenced in this slide include operational sales growth. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Manufacturing and supply agreement (MSA). 3Not meaningful. Q3 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $555 $468 $1,023 (4%) (4%) Advanced Surgery $168 $138 $306 +13% +11% Medical Products & Therapies $723 $606 $1,329 (1%) (1%) Care & Connectivity Solutions $348 $125 $473 +4% +3% Front Line Care $229 $71 $300 +1% +1% Healthcare Systems & Technologies $577 $196 $773 +3% +2% Injectables & Anesthesia $177 $156 $333 +4% +3% Drug Compounding $0 $299 $299 +12% +11% Pharmaceuticals $177 $455 $632 +7% +7% MSA Baxter/Vantive2 $59 $26 $85 NM3 NM3 Other $8 $8 $16 (6%) 0% Total Other $67 $34 $101 NM3 NM3 Baxter Continuing Operations $1,544 $1,291 $2,835 +5% +2%
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Year-To-Date 2025 Sales By Product Category1 14 1Non-GAAP financial metrics referenced in this slide include operational sales growth. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Manufacturing and supply agreement (MSA). 3Not meaningful. YTD 2025 Revenue Total Growth $ In Millions U.S. International Total Reported Operational Infusion Therapies & Technologies $1,693 $1,348 $3,041 (1%) +0% Advanced Surgery $471 $399 $870 +7% +7% Medical Products & Therapies $2,164 $1,747 $3,911 +0% +2% Care & Connectivity Solutions $1,005 $369 $1,374 +5% +4% Front Line Care $652 $218 $870 +2% +2% Healthcare Systems & Technologies $1,657 $587 $2,244 +4% +3% Injectables & Anesthesia $559 $441 $1,000 +1% +1% Drug Compounding $0 $825 $825 +6% +6% Pharmaceuticals $559 $1,266 $1,825 +3% +3% MSA Baxter/Vantive2 $163 $83 $246 NM3 NM3 Other $27 $17 $44 (20%) (16%) Total Other $190 $100 $290 NM3 NM3 Baxter Continuing Operations $4,570 $3,700 $8,270 +5% +2%
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Third-Quarter 2025 Sales By Product Category1 15 Product Category Sales Operational2 Quarterly Performance Drivers Infusion Therapies & Technologies $1,023M (4%) Results in the quarter reflect lower infusion pump sales due to the previously discussed ship and installation hold of Novum LVP and ongoing softness in U.S. hospital IV solutions, believed to be due to continuing post Hurricane Helene fluid conservation efforts Advanced Surgery $306M +11% Results in the quarter reflect solid demand for hemostats and sealants, strong commercial execution across all regions and steady procedure volumes Care & Connectivity Solutions $473M +3% Performance in the quarter was driven by mid-single-digit growth in the U.S. for Care and Connectivity Solutions reflecting double-digit growth in Surgical Solutions and continued momentum across Patient Support Systems and Care Communications portfolios Front Line Care $300M +1% Performance in the quarter reflects increased demand in the cardiology portfolio Injectables & Anesthesia $333M +3% Performance in the quarter reflects high-single-digit growth in anesthesia driven by increased volumes in certain markets outside the U.S. Injectables growth benefited from a favorable comparison to the prior-year period which was negatively impacted by the timing of certain sales and supply constraints impacting international sales Drug Compounding $299M +11% Results for this business reflect strong demand for services outside the U.S. Other3 $16M 0% Sales growth reflects increased demand for certain contract manufacturing volumes 1Non-GAAP financial metrics referenced in this slide include operational sales growth. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Represents operational sales growth. 3Excludes sales from the Kidney Care MSA.
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Medical Products & Therapies 16 Q3 2025 Results Increase / (Decrease) $ In Millions Q3 2025 Q3 2024 $ Change % Change Net Sales $1,329 $1,342 ($13) (1%) Cost of Sales $752 $734 $18 +2% Gross Margin $577 $608 ($31) (5%) % of Sales 43.4% 45.3% (190 bps) Selling, General and Administrative Expenses $286 $291 ($5) (2%) % of Sales 21.5% 21.7% (20 bps) Research and Development Expenses $41 $53 ($12) (23%) % of Sales 3.1% 3.9% (80 bps) Other ($23) ($4) ($19) NM1 Operating Income (Loss) $273 $268 $5 +2% % of Sales 20.5% 20.0% +50 bps 1Not meaningful.
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Medical Products & Therapies 17 YTD 2025 Results Increase / (Decrease) $ In Millions YTD 2025 YTD 2024 $ Change % Change Net Sales $3,911 $3,893 $18 0% Cost of Sales $2,201 $2,136 $65 +3% Gross Margin $1,710 $1,757 ($47) (3%) % of Sales 43.7% 45.1% (140 bps) Selling, General and Administrative Expenses $867 $868 ($1) (0%) % of Sales 22.2% 22.3% (10 bps) Research and Development Expenses $163 $160 $3 +2% % of Sales 4.2% 4.1% +10 bps Other ($76) ($4) ($72) NM1 Operating Income (Loss) $756 $733 $23 +3% % of Sales 19.3% 18.8% +50 bps 1Not meaningful.
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Healthcare Systems & Technologies 18 Q3 2025 Results Increase / (Decrease) $ In Millions Q3 2025 Q3 2024 $ Change % Change Net Sales $773 $752 $21 +3% Cost of Sales $410 $368 $42 +11% Gross Margin $363 $384 ($21) (5%) % of Sales 47.0% 51.1% (410 bps) Selling, General and Administrative Expenses $219 $203 $16 +8% % of Sales 28.3% 27.0% +130 bps Research and Development Expenses $48 $45 $3 +7% % of Sales 6.2% 6.0% +20 bps Other ($8) $0 ($8) NM1 Operating Income (Loss) $104 $136 ($32) (24%) % of Sales 13.5% 18.1% (460 bps) 1Not meaningful.
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Healthcare Systems & Technologies 19 YTD 2025 Results Increase / (Decrease) $ In Millions YTD 2025 YTD 2024 $ Change % Change Net Sales $2,244 $2,167 $77 +4% Cost of Sales $1,154 $1,094 $60 +5% Gross Margin $1,090 $1,073 $17 +2% % of Sales 48.6% 49.5% (90 bps) Selling, General and Administrative Expenses $658 $612 $46 +8% % of Sales 29.3% 28.2% +110 bps Research and Development Expenses $142 $138 $4 +3% % of Sales 6.3% 6.4% (10 bps) Other ($25) $0 ($25) NM1 Operating Income (Loss) $315 $323 ($8) (2%) % of Sales 14.0% 14.9% (90 bps) 1Not meaningful.
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Pharmaceuticals 20 Q3 2025 Results Increase / (Decrease) $ In Millions Q3 2025 Q3 2024 $ Change % Change Net Sales $632 $588 $44 +7% Cost of Sales $450 $408 $42 +10% Gross Margin $182 $180 $2 +1% % of Sales 28.8% 30.6% (180 bps) Selling, General and Administrative Expenses $107 $95 $12 +13% % of Sales 16.9% 16.2% +70 bps Research and Development Expenses $26 $23 $3 +13% % of Sales 4.1% 3.9% +20 bps Other ($7) $4 ($11) NM1 Operating Income (Loss) $56 $58 ($2) (3%) % of Sales 8.9% 9.9% (100 bps) 1Not meaningful.
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Pharmaceuticals 21 YTD 2025 Results Increase / (Decrease) $ In Millions YTD 2025 YTD 2024 $ Change % Change Net Sales $1,825 $1,768 $57 +3% Cost of Sales $1,274 $1,197 $77 +6% Gross Margin $551 $571 ($20) (4%) % of Sales 30.2% 32.3% (210 bps) Selling, General and Administrative Expenses $316 $289 $27 +9% % of Sales 17.3% 16.3% +100 bps Research and Development Expenses $77 $67 $10 +15% % of Sales 4.2% 3.8% +40 bps Other ($25) $4 ($29) NM1 Operating Income (Loss) $183 $211 ($28) (13%) % of Sales 10.0% 11.9% (190 bps) 1Not meaningful.
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Third-Quarter & Year-To-Date 2025 Results1 22 Q3 2025 Results $ In Millions Reported Revenue Reported Growth Operational Growth Adjusted Operating Income Adjusted Operating Margin YoY Margin Change2 Baxter Continuing Operations $2,835 +5% +2% $423 14.9% +40 bps YTD 2025 Results $ In Millions Reported Revenue Reported Growth Operational Growth Adjusted Operating Income Adjusted Operating Margin YoY Margin Change2 Baxter Continuing Operations $8,270 +5% +2% $1,238 15.0% +160 bps 1Non-GAAP financial metrics referenced in this slide include operational sales growth, adjusted operating income and adjusted operating margin. A reconciliation to comparable U.S. GAAP measures can be found herein and is available at www.baxter.com. 2Year over year (YoY).
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2025 Outlook Third- Quarter 2025 Earnings October 30, 2025 23
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Fourth-Quarter 2025 Guidance1 24 Q4 2025 Guidance Sales Growth Reported (Continuing Operations) ~2% Kidney Care MSA (~300 bps) Exit of IV Solutions in China NM2 Foreign Exchange (~100 bps) Sales Growth Operational Growth (Continuing Operations)3 ~ (~2%) Adjusted Diluted EPS Continuing Operations $0.52 - $0.57 1Non-GAAP financial metrics referenced in this slide include operational sales growth and adjusted diluted EPS from continuing operations. Information about our use of non GAAP measures can be found herein and is available at www.baxter.com. 2Not meaningful. 3Operational sales growth excludes the impact of the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV solutions in China in the Medical Products & Therapies reportable segment, and is calculated at constant currency rates.
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Full-Year 2025 Guidance1 25 FY 2025 Guidance Sales Growth Reported (Continuing Operations) 4% - 5% Kidney Care MSA (~300 bps) Exit of IV Solutions in China ~50 bps Foreign Exchange (~50 bps) Sales Growth Operational Growth (Continuing Operations)2 1% - 2% Adjusted Diluted EPS Continuing Operations $2.35 - $2.40 1Non-GAAP financial metrics referenced in this slide include operational sales growth and adjusted diluted EPS from continuing operations. Information about our use of non- GAAP measures can be found herein and is available at www.baxter.com. 2Operational sales growth excludes the impact of the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV solutions in China in the Medical Products & Therapies reportable segment, and is calculated at constant currency rates.
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Full-Year 2025 Guidance By Segment1 26 1Non-GAAP financial metrics referenced in this slide include operational sales growth. Information about our use of non-GAAP measures can be found herein and is available at www.baxter.com. 2Operational sales growth excludes the impact of the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV solutions in China in the Medical Products & Therapies reportable segment, and is calculated at constant currency rates. Sales Growth Operational Growth FY 2025 Guidance Medical Products & Therapies 0% - 1% Healthcare Systems & Technologies 3% - 4% Pharmaceuticals ~2%
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Non-GAAP Reconciliations Third- Quarter 2025 Earnings October 30, 2025 27
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NON-GAAP RECONCILIATIONS AS OF October 30, 2025 Non-GAAP Reconciliations: As part of its Q3 2025 earnings announcement on October 30, 2025, Baxter presented its financial results for the third quarter of 2025. Baxter also presented guidance for the fourth quarter and full year of 2025. In these presentations, Baxter used non-GAAP financial measures of sales growth (on an operational basis), adjusted gross margin, adjusted selling, general, and administrative expenses, adjusted research and development expenses, adjusted other operating income, net, adjusted operating income, adjusted other (income) expense, net, adjusted income (loss) from continuing operations before income taxes, adjusted income tax expense (benefit), adjusted income (loss) from continuing operations, adjusted income (loss) from discontinued operations, adjusted net income (loss), adjusted net income (loss) attributable to Baxter stockholders, adjusted diluted earnings per share from continuing operations, adjusted diluted earnings per share from discontinued operations and adjusted diluted earnings per share. The reconciliations set forth below reconcile the non-GAAP measures set forth in this presentation for historical periods to the most directly comparable U.S. GAAP measures. 28
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DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended September 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended September 30, 2025 included special items which impacted the U.S. GAAP measures as follows: Gross Margin Selling, General and Administrative Expenses Research and Development Expenses Other Operating Income, Net Operating Income Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income (Loss) From Discontinued Operations, Net of Tax Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share from Continuing Operations Diluted Earnings Per Share from Discontinued Operations Diluted Earnings Per Share Reported $ 950 $ 708 $ 118 $ (48) $ 172 $ 121 $ 172 $ (51) $ 5 $ (46) $ (46) $ (0.10) $ 0.01 $ (0.09) Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 33.5 % 25.0 % 4.2 % (1.7) % 6.1 % 4.3 % 142.1 % (1.8) % 0.2 % (1.6) % (1.6) % Intangible asset amortization 96 (51) — — 147 147 34 113 — 113 113 0.22 0.00 0.22 Business optimization items1 25 (10) (3) — 38 38 10 28 — 28 28 0.05 0.00 0.05 Acquisition and integration items2 — (6) — (2) 8 8 2 6 — 6 6 0.01 0.00 0.01 European medical devices regulation3 5 — — — 5 5 1 4 — 4 4 0.01 0.00 0.01 Product related reserves4 32 — — 32 32 8 24 — 24 24 0.05 0.00 0.05 Hurricane Helene costs5 8 — — 8 8 2 6 — 6 6 0.01 0.00 0.01 Separation-related costs6 1 (12) — — 13 13 3 10 — 10 10 0.02 0.00 0.02 Gain on Kidney Care sale8 — — — — — — — — 37 37 37 0.00 0.07 0.07 Tax matters9 — — — — — — (213) 213 (40) 173 173 0.41 (0.07) 0.34 Adjusted $ 1,117 $ 629 $ 115 $ (50) $ 423 $ 372 $ 19 $ 353 $ 2 $ 355 $ 355 $ 0.69 $ 0.00 $ 0.69 Adjusted percent of net sales (or effective tax rate for income tax expense (benefit)) 39.4 % 22.2 % 4.1 % (1.8) % 14.9 % 13.1 % 5.1 % 12.5 % 0.1 % 12.5 % 12.5 % Weighted-average diluted shares as reported 514 Effect of dilutive securities that were anti-dilutive to dilutive EPS as reported 1 Weighted-average diluted shares as adjusted 515 29
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Gross Margin Selling, General and Administrative Expenses Operating Income Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income (Loss) From Discontinued Operations, Net of Tax Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share from Continuing Operations Diluted Earnings Per Share from Discontinued Operations Diluted Earnings Per Share Reported $ 1,033 $ 754 $ 155 $ 69 $ 8 $ 61 $ 83 $ 144 $ 140 $ 0.12 $ 0.15 $ 0.27 Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 38.3 % 27.9 % 5.7 % 2.6 % 11.6 % 2.3 % 3.1 % 5.3 % 5.2 % Intangible asset amortization 108 (51) 159 159 38 121 3 124 124 0.24 0.00 0.24 Business optimization items1 2 (16) 18 18 5 13 18 31 31 0.03 0.03 0.06 Acquisition and integration items2 — (5) 5 5 1 4 — 4 4 0.01 0.00 0.01 European medical devices regulation3 9 — 9 9 2 7 1 8 8 0.01 0.01 0.02 Product related reserves4 3 — 3 3 — 3 — 3 3 0.01 0.00 0.01 Hurricane Helene costs5 25 — 25 25 6 19 — 19 19 0.04 0.00 0.04 Legal matters7 — (17) 17 17 4 13 — 13 13 0.03 0.00 0.03 Separation-related costs6 — — — — — — 46 46 46 0.00 0.09 0.09 Tax matters9 — — — — (11) 11 12 23 23 0.02 0.02 0.04 Adjusted $ 1,180 $ 665 $ 391 $ 305 $ 53 $ 252 $ 163 $ 415 $ 411 $ 0.49 $ 0.31 $ 0.80 Adjusted percent of net sales (or effective tax rate for income tax expense (benefit)) 43.7 % 24.6 % 14.5 % 11.3 % 17.4 % 9.3 % 6.0 % 15.4 % 15.2 % Reported Adjusted Income (loss) from discontinued operations, net of tax $ 83 $ 163 Less: Net income attributable to noncontrolling interests included in discontinued operations 4 4 Income (loss) from discontinued operations, net of tax attributable to Baxter stockholders $ 79 $ 159 Reported Adjusted Net income (loss) $ 144 $ 415 Less: Net income attributable to noncontrolling interests 4 4 Net income (loss) attributable to Baxter stockholders $ 140 $ 411 DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended September 30, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the three months ended September 30, 2024 included special items which impacted the U.S. GAAP measures as follows: 30
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DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Three Months Ended September 30, 2025 and 2024 (unaudited) For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8 -K filed with the Securities and Exchange Commission on the date of this presentation. 1. The company’s results of continuing operations in 2025 and 2024 included costs related to programs to optimize its organization and cost structure. These restructuring and business optimization costs in 2025 included costs primarily related to its initiatives to reduce its cost structure following the sale of its former Kidney Care segment and the exit of a product line at one of its manufacturing facilities. These restructuring and business optimization costs in 2024 included costs which were primarily related to its implementation of a new operating model intended to simplify and streamline its operations and better align its manufacturing and supply chain to its commercial activities and initiatives within its Healthcare Systems & Technologies segment. The company's results of discontinued operations in 2024 included costs primarily related to inventory write-offs due to the exit of a product line and the decision to cease production of dialyzers at one of its U.S.-based manufacturing facilities. 2. The company’s results of continuing operations in 2025 and 2024 included integration-related items comprised of Hill-Rom Holdings, Inc. (Hillrom) acquisition and integration expenses. 3. The company’s results in 2025 and 2024 included incremental costs to comply with the European Union’s medical device regulations for previously registered products, which primarily consisted of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results. 4. The company's results of continuing operations in 2025 included charges related to estimates of warranty and remediation activities arising from field corrective actions across its infusion pump category and a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022. The company results of continuing operations in 2024 included charges related to a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022. 5. The company's results of continuing operations in 2025 and 2024 included charges related to Hurricane Helene. In 2025 this amount consisted of remediation, air freight and other costs. In 2024 this amount consisted of a charge related to damaged inventory and fixed assets, partially offset by a benefit related to insurance recoveries as a result of those asset write-offs. 6. The company’s results of continuing operations in 2025 and discontinued operations in 2024 included separation-related costs primarily related to external advisors supporting its activities related to the sale of its former Kidney Care segment. 7. The company’s results in 2024 included charges related to environmental reserves for remediation actions associated with historic operations at certain of our facilities. 8. The company's results of discontinued operations in 2025 included the final settlement of certain net working capital adjustments reducing the gain on sale of its former Kidney Care segment made in accordance with the terms of the related Equity Purchase Agreement (Kidney Care EPA). 9. The company's results of continuing operations in 2025 included an income tax expense primarily related to an increase in reserves for uncertain tax positions and a step-up in Swiss valuation allowances, partially offset by the release of valuation allowances on foreign tax credits. The company's results of discontinued operations in 2025 included an income tax benefit attributable to the allocation of reserves for uncertain tax positions to discontinued operations and indirect impacts of the carryback of the tax benefits generated by the sale of its former Kidney Care business to prior years. The company's results of continuing operations in 2024 included tax items consisting of a valuation allowance recorded to reduce the carrying amount of a tax attributable carryforward in the U.S. related to the sale of its former Kidney Care segment, partially offset by application of the intraperiod tax allocation between continuing operations and discontinued operations. 31
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DESCRIPTIONS OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Nine Months Ended September 30, 2025 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the nine months ended September 30, 2025 included special items which impacted the U.S. GAAP measures as follows: Gross Margin Selling, General and Administrative Expenses Research and Development Expenses Operating Income Other (Income) Expense, Net Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income (Loss) From Discontinued Operations, Net of Tax Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share From Continuing Operations Diluted Earnings Per Share from Discontinued Operations Diluted Earnings Per Share Reported $ 2,802 $ 2,129 $ 392 $ 421 $ (10) $ 251 $ 116 $ 135 $ 36 $ 171 $ 171 $ 0.26 $ 0.07 $ 0.33 Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 33.9 % 25.7 % 4.7 % 5.1 % (0.1) % 3.0 % 46.2 % 1.6 % 0.4 % 2.1 % 2.1 % Intangible asset amortization 301 (152) — 453 — 453 106 347 — 347 347 0.68 0.00 0.68 Business optimization items1 44 (51) (5) 100 — 100 25 75 — 75 75 0.15 0.00 0.15 Acquisition and integration items2 — (12) — 14 (5) 19 4 15 — 15 15 0.03 0.00 0.03 European medical devices regulation3 15 — — 15 — 15 3 12 — 12 12 0.02 0.00 0.02 Product-related reserves4 61 — — 61 — 61 16 45 — 45 45 0.09 0.00 0.09 Hurricane Helene costs5 123 — — 123 — 123 31 92 6 98 98 0.18 0.01 0.19 Legal matters6 11 — — 11 — 11 2 9 — 9 9 0.02 0.00 0.02 Investment impairments7 — — — — (9) 9 2 7 — 7 7 0.01 0.00 0.01 Separation-related costs8 2 (38) — 40 — 40 9 31 31 62 62 0.06 0.06 0.12 Gain on Kidney Care Sale 9 — — — — — — — — (74) (74) (74) 0.00 (0.14) (0.14) Tax Matters11 — — — — — — (174) 174 10 184 184 0.34 0.02 0.36 Adjusted $ 3,359 $ 1,876 $ 387 $ 1,238 $ (24) $ 1,082 $ 140 $ 942 $ 9 $ 951 $ 951 $ 1.83 $ 0.02 $ 1.85 Adjusted percent of net sales (or effective tax rate for income tax expense (benefit)) 40.6 % 22.7 % 4.7 % 15.0 % (0.3) % 13.1 % 12.9 % 11.4 % 0.1 % 11.5 % 11.5 % 32
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DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Nine Months Ended September 30, 2024 (unaudited) (in millions, except per share and percentage data) The company’s U.S. GAAP results for the nine months ended September 30, 2024 included special items which impacted the U.S. GAAP measures as follows: Gross Margin Selling, General and Administrative Expenses Operating Income Income (Loss) From Continuing Operations Before Income Taxes Income Tax Expense (Benefit) Income (Loss) From Continuing Operations Income (Loss) From Discontinued Operations, Net of Tax Net Income (Loss) Net Income (Loss) Attributable to Baxter Stockholders Diluted Earnings Per Share From Continuing Operations Diluted Earnings Per Share From Discontinued Operations Diluted Earnings Per Share Reported $3,025 $ 2,206 $ 449 $ 232 $ 70 $ 162 $ (290) $ (128) $ (137) $ 0.32 $ (0.59) $ (0.27) Reported percent of net sales (or effective tax rate for income tax expense (benefit)) 38.4 % 28.0 % 5.7 % 2.9 % 30.2 % 2.1 % (3.7) % (1.6) % (1.7) % Intangible asset amortization 316 (155) 471 471 111 360 19 379 379 0.70 0.04 0.74 Business optimization items1 8 (41) 49 49 14 35 53 88 88 0.07 0.10 0.17 Acquisition and integration items2 1 (15) 16 16 3 13 — 13 13 0.03 0.00 0.03 European medical devices regulation3 25 — 25 25 6 19 3 22 22 0.04 0.00 0.04 Product-related items4 3 — 3 3 — 3 — 3 3 0.01 0.00 0.01 Hurricane Helene Costs5 25 — 25 25 6 19 — 19 19 0.04 0.00 0.04 Legal matters6 — (17) 17 17 4 13 — 13 13 0.03 0.00 0.03 Separation-related costs8 — — — — — — 193 193 193 0.00 0.38 0.38 Goodwill impairment10 — — — — — — 430 430 430 0.00 0.84 0.84 Tax matters11 — — — — (45) 45 19 64 64 0.09 0.04 0.13 Adjusted $3,403 $ 1,978 $ 1,055 $ 838 $ 169 $ 669 $ 427 $1,096 $ 1,087 $ 1.31 $ 0.82 $ 2.13 Adjusted percent of net sales (or effective tax rate for income tax expense (benefit)) 43.2 % 25.1 % 13.4 % 10.6 % 20.2 % 8.5 % 5.4 % 13.9 % 13.8 % Reported Adjusted Income (loss) from discontinued operations, net of tax $ (290) $ 427 Less: Net income attributable to noncontrolling interests included in discontinued operations 9 9 Income (loss) from discontinued operations, net of tax attributable to Baxter stockholders $ (299) $ 418 Reported Adjusted Net income (loss) $ (128) $ 1,096 Less: Net income attributable to noncontrolling interests 9 9 Net income (loss) attributable to Baxter stockholders $ (137) $ 1,087 33
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DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES Nine Months Ended September 30, 2025 and 2024 (unaudited) For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8 -K filed with the Securities and Exchange Commission on the date of this presentation. 1. The company’s results of continuing operations in 2025 and 2024 included costs related to programs to optimize its organization and cost structure. These restructuring and business optimization costs in 2025 included costs primarily related to its initiatives to reduce its cost structure following the sale of its former Kidney Care segment and the exit of a product line at one of its manufacturing facilities. These restructuring and business optimization costs in 2024 included costs related to its implementation of a new operating model intended to simplify and streamline its operations and better align its manufacturing and supply chain to its commercial activities and initiatives within its Healthcare Systems & Technologies segment. The company's results of discontinued operations in 2024 included costs primarily related to a program to centralize certain of its research and development activities into a new location and property plant and equipment impairments in connection with the transfer of a manufacturing production line as part of its initiatives to optimize its global manufacturing and supply chain organization. 2. The company’s results of continuing operations in 2025 and 2024 included integration-related items comprised of Hillrom acquisition and integration expenses. In 2025 these expenses reflected third-party consulting costs and the recognition of a noncash impairment of property, plant and equipment related to integration activities. In 2024 these expenses related to third- party consulting costs related to its integration of Hillrom. 3. The company’s results in 2025 and 2024 included incremental costs to comply with the European Union’s medical device regulations for previously registered products, which primarily consist of contractor costs and other direct third-party costs. The company considers the adoption of these regulations to be a significant one-time regulatory change and believes that the costs of initial compliance for previously registered products over the implementation period are not indicative of its core operating results. 4. The company's results of continuing operations in 2025 included charges related to estimates of warranty and remediation activities arising from field corrective actions across its infusion pump category and a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022. The company results of continuing operations in 2024 included charges related to a revised estimate of warranty and remediation activities arising from a field corrective action on certain of its infusion pumps initially recorded in 2022. 5. The company's results of continuing operations in 2025 included charges related to Hurricane Helene, which consisted of remediation, air freight and other costs. The company's results of discontinued operations in 2025 included charges related to Hurricane Helene, which consisted of air freight and other costs. The company's results of continuing operations in 2024 included net charges related to Hurricane Helene. This amount consisted of a charge related to damaged inventory and fixed assets, partially offset by a benefit related to insurance recoveries as a result of those asset write-offs. 6. The company’s results of continuing operations in 2025 included charges related to matters involving alleged injury from environmental exposure. The company's results from continuing operations in 2024 included charges related to environmental reserves for remediation actions associated with historic operations at certain of our facilities. 7. The company's results of continuing operations in 2025 included losses from a noncash impairment write-down in an equity method investment. 8. The company's results of continuing operations in 2025 included separation-related costs primarily related to external advisors supporting its activities related to the sale of its former Kidney Care segment. The company's results of discontinued operations in 2025 and 2024 included separation-related costs related to external advisors supporting its activities related to the sale of its former Kidney Care segment. 34
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DESCRIPTION OF ADJUSTMENTS AND RECONCILIATIONS OF U.S. GAAP TO NON-GAAP MEASURES, Continued Nine Months Ended September 30, 2025 and 2024 (unaudited) For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8 -K filed with the Securities and Exchange Commission on the date of this presentation. 9. The company's results of discontinued operations in 2025 included a gain from the sale of its former Kidney Care segment, partially offset by the final settlement of certain net working capital adjustments made in accordance with the Kidney Care EPA. 10. The company's results of discontinued operations in 2024 included a charge related to a goodwill impairment of the company's former Chronic Therapies reporting unit within its former Kidney Care segment. 11. The company's results of continuing operations in 2025 included an income tax expense primarily related to an increase in reserves for uncertain tax positions and a step-up in Swiss valuation allowances, partially offset by the release of valuation allowances on foreign tax credits and a tax benefit primarily driven by an entity classification election that it made for U.S. tax purposes, which resulted in a capital loss. The company's results of discontinued operations in 2025 included indirect impacts of the carryback of tax benefits generated by the sale of its former Kidney Care business to prior years and an income tax benefit attributable to the allocation of reserves for uncertain tax positions to discontinued operations. The company's results in 2024 included income tax items consisting of a valuation allowance recorded to reduce the carrying amount of a tax attribute carryforward in the U.S. and internal reorganization transactions related to the sale of its former Kidney Care segment. 35
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Operating Cash Flow to Free Cash Flow (unaudited) (in millions) Free cash flow is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed with the Securities Exchange Commission on the date of this presentation. Nine Months Ended September 30, 2025 2024 Cash flows from (used in) operations – continuing operations $ 355 $ 376 Cash flows from (used in) investing activities - continuing operations (350) (281) Cash flows from (used in) financing activities - continuing operations (4,069) (1,222) Cash flows from (used in) operations - continuing operations $ 355 $ 376 Capital expenditures - continuing operations (373) (314) Free cash flow - continuing operations $ (18) $ 62 Three Months Ended September 30, 2025 2025 Cash flows from (used in) operations – continuing operations $ 237 Cash flows from (used in) investing activities - continuing operations (111) Cash flows from (used in) financing activities - continuing operations (81) Cash flows from (used in) operations - continuing operations $ 237 Capital expenditures - continuing operations (111) Free cash flow - continuing operations $ 126 36
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Sales By Product Category: RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Operational Sales Growth From the Three Months Ended September 30, 2024 to the Three Months Ended September 30, 2025 (unaudited) Net Sales Growth As Reported Kidney Care MSA Exit of IV Solutions in China FX Operational Sales Growth* Infusion Therapies & Technologies (4)% 0% 1% (1)% (4)% Advanced Surgery 13% 0% 0% (2)% 11% Medical Products & Therapies (1)% 0% 1% (1)% (1)% Care & Connectivity Solutions 4% 0% 0% (1)% 3% Front Line Care 1% 0% 0% 0% 1% Healthcare Systems & Technologies 3% 0% 0% (1)% 2% Injectables & Anesthesia 4% 0% 0% (1)% 3% Drug Compounding 12% 0% 0% (1)% 11% Pharmaceuticals 7% 0% 0% (0)% 7% Other 494% (500)% 0% 6% 0% Total - Continuing Operations 5% (3)% 1% (1)% 2% *Totals may not add across due to rounding Change in operational sales growth is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed with the Securities Exchange Commission on the date of this presentation. 37
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Sales By Product Category: RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Change in Net Sales Growth As Reported to Operational Sales Growth From the Nine Months Ended September 30, 2024 to the Nine Months Ended September 30, 2025 (unaudited) Net Sales Growth As Reported Kidney Care MSA Exit of IV Solutions in China FX Operational Sales Growth* Infusion Therapies & Technologies (1)% 0% 1% 0% 0% Advanced Surgery 7% 0% 0% 0% 7% Medical Products & Therapies 0% 0% 1% 1% 2% Care & Connectivity Solutions 5% 0% 0% (1)% 4% Front Line Care 2% 0% 0% 0% 2% Healthcare Systems & Technologies 4% 0% 0% (1)% 3% Injectables & Anesthesia 1% 0% 0% 0% 1% Drug Compounding 6% 0% 0% 0% 6% Pharmaceuticals 3% 0% 0% 0% 3% Other 427% (447)% 0% 4% (16)% Total - Continuing Operations 5% (3)% 0% 0% 2% *Totals may not add across due to rounding Change in operational sales growth is a non-GAAP measure. For more information on the company's use of non-GAAP financial measures in this presentation, please see the company's Current Report on Form 8-K filed with the Securities Exchange Commission on the date of this presentation. 38
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Fourth Quarter and Full Year 2025 U.S. GAAP Sales Growth to Projected Operational Sales Growth and Full Year 2025 U.S. GAAP Sales Growth to Projected Operational Sales Growth by Segment (unaudited) Sales Growth Guidance Q4 2025* FY 2025* Sales growth - U.S. GAAP ~2% 4% - 5% Kidney Care MSA (~300 bps) (~300 bps) Exit of IV Solutions in China NM ~50 bps Foreign Exchange (~100 bps) (~50 bps) Operational sales growth (~2%) 1% - 2% *Totals may not foot due to rounding Sales Growth Guidance by Segment FY 2025* Medical Products & Therapies Sales growth - U.S. GAAP ~0% Exit of IV Solutions in China ~100 bps Foreign Exchange (~50 bps) Operational Sales growth 0% - 1% Healthcare Systems & Technologies Sales growth - U.S. GAAP ~4% Foreign Exchange (~50 bps) Operational Sales growth 3% - 4% Pharmaceuticals Sales growth - U.S. GAAP 2% - 3% Foreign Exchange (~50 bps) Operational Sales growth ~2% NM - Not Meaningful NM - Not meaningful. 39
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURE Projected Full Year 2025 Projected Adjusted Operating Margin, Projected Full Year 2025 Projected Adjusted Tax Rate and Projected Fourth Quarter and Full Year 2025 Projected Adjusted Earnings Per Share (unaudited) Adjusted Tax Rate Guidance FY 2025 Adjusted tax rate ~15% Adjusted Earnings Per Share Guidance Q3 2025 FY 2025 Adjusted diluted EPS $0.52 - $0.57 $2.35 - $2.40 Baxter calculates forward-looking non-GAAP financial measures based on forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking operational sales growth represents the company’s targeted future sales growth excluding sales to Vantive under the Kidney Care MSA not reflected in reportable segments, reflects the previously announced exit of IV Solutions in China in the Medical Products & Therapies reportable segment, and assumes foreign currency exchange rates remain constant in future periods. Additionally, forward-looking adjusted operating margin guidance, adjusted tax rate guidance, and adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking operational sales growth guidance, adjusted operating margin, adjusted tax rate guidance and adjusted diluted EPS guidance because it believes that these measures provide useful information for the reasons noted above. Baxter has not provided reconciliations of forward-looking adjusted operating margin guidance to forward-looking GAAP operating margin guidance, adjusted tax rate guidance to forward-looking GAAP tax rate guidance and adjusted EPS guidance to forward-looking GAAP EPS guidance because the company is unable to predict with reasonable certainty the impact of legal proceedings, future business optimization actions, separation-related costs, integration-related costs, asset impairments and unusual gains and losses, and the related amounts are unavailable without unreasonable efforts (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). In addition, Baxter believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance. Adjusted Operating Margin Guidance FY 2025 Adjusted operating margin 14.5% - 15% 40
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Third-Quarter 2025 Earnings Baxter International Inc. October 30, 2025 41