EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2026

The numerator for both basic and diluted earnings 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, restricted stock units (RSUs) and performance share units (PSUs) is reflected in the denominator for diluted EPS using the treasury stock method.

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


	Three Months Ended March 31,
(in millions)	2026		2025
Income (loss) from continuing operations	$	(17)	$	64
Less: Net income attributable to noncontrolling interests included in continuing operations	—		—
Income (loss) from continuing operations attributable to Baxter stockholders	(17)		64
Income (loss) from discontinued operations	2		62
Less: Net income attributable to noncontrolling interests included in discontinued operations	—		—
Income (loss) from discontinued operations attributable to Baxter stockholders	2		62
Net income (loss) attributable to Baxter stockholders	$	(15)	$	126

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


	Three Months Ended March 31,
(in millions)	2026	2025
Basic shares	515	512
Effect of dilutive securities	—	2
Diluted shares	515	514

Basic and diluted shares are the same for three months ended March 31, 2026 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 25 million and 20 million shares issuable under equity awards for the three months ended March 31, 2026 and 2025, respectively, because their inclusion would have had an anti-dilutive effect on diluted EPS.