EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2025


EARNINGS (LOSS) PER SHARE

The numerator for both basic and diluted earnings (loss) per share (EPS) is net income (loss) attributable to Baxter stockholders. The denominator for basic EPS is the weighted-average number of shares outstanding during the period. The dilutive effect of outstanding stock options, RSUs and PSUs is reflected in the denominator for diluted EPS using the treasury stock method.

The following table is a reconciliation of net income (loss) attributable to Baxter stockholders.


years ended December 31(in millions)	2025		2024		2023
Income (loss) from continuing operations	$	(900)	$	(326)	$	181
Less: Net income attributable to noncontrolling interests included in continuing operations	—		—		—
Income (loss) from continuing operations attributable to Baxter stockholders	(900)		(326)		181
Income (loss) from discontinued operations	(57)		(312)		2,482
Less: Net income attributable to noncontrolling interests included in discontinued operations	—		11		7
Income (loss) from discontinued operations attributable to Baxter stockholders	(57)		(323)		2,475
Net income (loss) attributable to Baxter stockholders	$	(957)	$	(649)	$	2,656

The following table is a reconciliation of basic shares to diluted shares.


years ended December 31(in millions)	2025	2024	2023
Basic shares	513	510	506
Effect of dilutive securities	—	—	2
Diluted shares	513	510	508

Basic and diluted shares are the same for the years ended December 31, 2025 and 2024 due to our loss from continuing operations attributable to Baxter stockholders. The effect of dilutive securities includes unexercised stock options, unvested RSUs and contingently issuable shares related to granted PSUs. The computation of diluted EPS excludes 22 million, 25 million, and 19 million equity awards in 2025, 2024 and 2023, respectively, because their inclusion would have had an anti-dilutive effect on diluted EPS. Refer to Note 8 for additional information regarding items impacting basic shares.