BAXTER REPORTS FIRST-QUARTER 2026 RESULTS (Form 8-K)

BAXTER REPORTS FIRST-QUARTER 2026 RESULTS

•Sales from continuing operations of $2.7 billion increased 3% on a reported basis and declined 1% on an organic basis1,2

•U.S. GAAP3 diluted earnings per share (EPS) (loss) from continuing operations of ($0.03); adjusted diluted EPS from continuing operations of $0.36

•Reiterates full-year 2026 financial outlook

DEERFIELD, Ill., APRIL 30, 2026 - Baxter International Inc. (NYSE:BAX), a global medtech leader, today reported results for the first quarter of 2026.

"Financial results for the quarter overall were in line with our expectations, and we are making progress to stabilize the business, embed a culture of continuous improvement, and strengthen execution," said Andrew Hider, president and CEO. "Although more work remains to achieve our full potential, Baxter continues to take the decisive steps necessary to fulfill our commitment to delivering better and more consistent results for our shareholders. I want to thank our colleagues for their resilience, dedication and mission-driven focus to support the more than 350 million patients around the world who rely on us annually."

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1 Sales growth on an organic basis and adjusted diluted EPS are non-GAAP financial measures. See the "Non-GAAP Financial Measures" section below for information about the non-GAAP financial measures included in this release and see the accompanying tables to this press release for reconciliations of those non-GAAP measures to the corresponding U.S. GAAP measures.

2 Organic sales growth excludes the impact of the Kidney Care manufacturing and supply agreement (MSA) not reflected in reportable segments, impacts associated with business acquisitions or divestitures, and is calculated at constant currency rates.

3 Generally Accepted Accounting Principles

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First-Quarter 2026 Companywide Financial Results

Note that continuing operations exclude Baxter's Kidney Care business, which was divested in January 2025, and is reported as discontinued operations. Results are compared to the prior-year period unless otherwise noted.

•Worldwide sales from continuing operations totaled approximately $2.7 billion, increasing 3% on a reported basis and declining 1% on an organic basis.

•U.S. sales from continuing operations totaled approximately $1.44 billion, declining 4% on a reported basis and 4% on an organic basis.

•International sales from continuing operations in the first quarter totaled approximately $1.27 billion, increasing 12% on a reported basis and 3% on an organic basis.

•On a U.S. GAAP basis, net income (loss) from continuing operations was ($17) million, or ($0.03) per diluted share.

•On an adjusted basis, net income from continuing operations was $0.36 per diluted share, decreasing 35% due to the expected unfavorable comparison to the prior year, which benefited from a timing shift in expense recognition related to an updated estimate which resulted in the reclassification of certain functional costs from SG&A to cost of sales. Additionally, higher costs related to tariffs and higher manufacturing costs, including lower absorption, impacted results in the quarter.

Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxter's segments.

First-Quarter 2026 Segment Results

Results are compared to the prior-year period unless otherwise noted.

Medical Products & Therapies

•Sales totaled approximately $1.3 billion, increasing 2% on a reported basis and declining 2% on an organic basis.

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•Performance in the quarter reflected reduced sales within the Infusion Therapies & Technologies division, driven by lower infusion pump sales due to the previously disclosed shipment and installation hold of the Novum IQ LVP, and an unfavorable comparison to the prior year, which included a one-time distributor build following Hurricane Helene. Continued strong global demand for Advanced Surgery products partially offset the decline.

Healthcare Systems & Technologies

•Sales totaled approximately $705 million, remaining flat on a reported basis and declining 2% on an organic basis.

•Performance in the quarter reflected reduced sales within the Front Line Care division, driven by the timing of orders and the impact of planned global portfolio exits. Sales in the Care & Connectivity Solutions division were approximately flat.

Pharmaceuticals

•Sales totaled approximately $621 million, increasing 7% on a reported basis and 1% on an organic basis.

•Performance in the quarter reflected continued strength in Drug Compounding, which was partially offset by reduced sales within Injectables & Anesthesia.

Recent Strategic Highlights4

Baxter continues to advance key strategic priorities in pursuit of its Mission to Save and Sustain Lives. Recent highlights include:

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4 See links to original press releases for additional product information.

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•Introduced the IV Verify Line Labeling System, an automated solution offering a standardized and simplified alternative to traditional handwritten line labeling that supports safer medication administration.

•Showcased recent innovations at the Association of periOperative Registered Nurses (AORN) Global Surgical Conference & Expo, including the AAT XR spine surgical table and the Dynamo Series smart stretcher.

•Expanded Baxter Growth and Performance System (GPS) as the enterprise operating system for continuous improvement, launching more than 230 initiatives in the first quarter, with additional efforts underway and planned throughout 2026.

•Announced a partnership between the Baxter Foundation and Pet Partners to expand access to therapy animal programs in healthcare settings across the U.S.

Full-Year 2026 Financial Outlook

The Company reiterated its full-year financial outlook:

•Reported sales growth from continuing operations: flat to 1%

•Organic sales growth from continuing operations: approximately flat

•Adjusted earnings from continuing operations per diluted share: $1.85 to $2.05

See the "Non-GAAP Financial Measures" section for explanations of our non-GAAP financial measures.

Earnings Conference Call

Baxter will host a conference call today, April 30, 2026, at 7:30 a.m. CDT to discuss its first-quarter 2026 results and provide an update on the business. The conference call for investors can be accessed live from a link in the Investor Relations section of the company's website at www.baxter.com. Please see www.baxter.com for more information regarding this and future investor events and webcasts.

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Upcoming Webcasted Investor Events (to be made available on www.baxter.com)

•BofA Securities 2026 Health Care Conference

◦1:20 p.m. CDT May 13, 2026

•Goldman Sachs 47th Annual Global Healthcare Conference

◦10:20 a.m. CDT June 9, 2026

About Baxter

At Baxter, we are everywhere healthcare happens - and everywhere it is going, with essential solutions in the hospital, physician's office and other sites of care. For nearly a century, our customers have counted on us as a vital and trusted partner. And every day, millions of patients and healthcare providers rely on our unmatched portfolio of connected solutions, medical devices, and advanced injectable technologies. Approximately 37,500 Baxter team members live our enduring Mission: to Save and Sustain Lives. Together, we are redefining how care is delivered to make a greater impact today, tomorrow, and beyond. To learn more, visit www.baxter.com and follow us on X, LinkedIn and Facebook.

Non-GAAP Financial Measures

Non-GAAP financial measures may enhance an understanding of the company's operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company's reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this release), may enhance an investor's overall understanding of the company's past financial performance and prospects for the future. Management uses these non-GAAP measures internally in financial planning, to monitor business unit performance, and, in some cases, for purposes of determining incentive compensation. This information should be considered in addition to, and not as a substitute for, information prepared in accordance with U.S. GAAP.

Organic sales growth is a non-GAAP measure that excludes the impact of the Kidney Care MSA not reflected in reportable segments, impacts associated with business acquisitions or divestitures, and is calculated on a constant currency basis, as if foreign currency exchange rates had remained constant between the prior and current periods.

Other non-GAAP financial measures included in this release and the accompanying tables (including within the tables that provide the company's detailed reconciliations to the corresponding U.S. GAAP financial measures) are: adjusted gross margin, adjusted selling, general, and administrative expenses, adjusted research and development expenses, adjusted operating income (loss), adjusted other income (expense), net, adjusted income (loss) from

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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. Those non-GAAP financial measures exclude the impact of special items. For the quarters ended March 31, 2026 and 2025, special items for one or more periods included intangible asset amortization, business optimization charges, acquisition and integration costs, separation-related costs, expenses related to European medical devices regulation, certain legal matters, business transformation costs, investment impairments, product-related reserves, the gain on the sale of the Kidney Care business, Hurricane Helene costs, and certain tax matters. These items are excluded because they are highly variable or unusual and of a size that may substantially impact the company's reported operations for a period. Additionally, intangible asset amortization is excluded as a special item to facilitate an evaluation of current and past operating performance and is consistent with how management and the company's Board of Directors assess performance.

This release and the accompanying tables also include free cash flow, a non-GAAP financial measure that Baxter defines as operating cash flow less capital expenditures. Free cash flow is used by management and the company's Board of Directors to evaluate the cash generated from Baxter's operating activities each period after deducting its capital spending.

This release also includes forecasts of certain of the aforementioned non-GAAP measures on a forward-looking basis as part of the company's financial outlook for upcoming periods. 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 organic 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 impacts associated with business acquisitions or divestitures, and assumes foreign currency exchange rates remain constant in future periods. Additionally, forward-looking adjusted diluted EPS guidance excludes potential charges or gains that would be reflected as non-GAAP adjustments to earnings. Baxter provides forward-looking organic sales growth 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 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, business transformation 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.

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