SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2026

Summary of Financial Information for Our Segments

The following table presents our U.S. and international disaggregated net sales.


	Three Months Ended March 31,
	2026						2025
(in millions)	U.S.		International		Total		U.S.		International		Total
Infusion Therapies & Technologies	$	526	$	455	$	981	$	584	$	410	$	994
Advanced Surgery	165		139		304		145		123		268
Medical Products & Therapies	691		594		1,285		729		533		1,262
Care & Connectivity Solutions	315		120		435		316		111		427
Front Line Care	198		72		270		202		75		277
Healthcare Systems & Technologies	513		192		705		518		186		704
Injectables & Anesthesia	180		121		301		195		140		335
Drug Compounding	—		320		320		—		246		246
Pharmaceuticals	180		441		621		195		386		581
Other	51		39		90		48		30		78
Total Baxter	$	1,435	$	1,266	$	2,701	$	1,490	$	1,135	$	2,625

The following table presents our segment information of net sales, significant expenses and operating income during the periods presented.


	Three Months Ended March 31, 2026						Three Months Ended March 31, 2025
(in millions)	Medical Products & Therapies		Healthcare Systems & Technologies		Pharmaceuticals		Medical Products & Therapies		Healthcare Systems & Technologies		Pharmaceuticals
Net sales	$	1,285	$	705	$	621	$	1,262	$	704	$	581
Cost of sales	781		390		458		694		356		396
Selling, general and administrative expenses	290		209		102		286		217		103
Research and development expenses	54		49		22		59		45		26
Other segment items	(26)		(9)		(7)		(21)		(7)		(7)
Segment operating income	$	186	$	66	$	46	$	244	$	93	$	63

Revenue from External Customers by Geographic Areas

Operating Income to Income Before Income Taxes Reconciliation

The following table presents our reportable segment operating income and reconciliations of reportable segment operating income to income (loss) from continuing operations before income taxes.


	Three Months Ended March 31,
(in millions)	2026		2025
Medical Products & Therapies	$	186	$	244
Healthcare Systems & Technologies	66		93
Pharmaceuticals	46		63
Total reportable segment operating income	298		400
Other	11		9
Unallocated corporate costs	(12)		(17)
Intangible asset amortization expense	(146)		(155)

Legal matters	—		(11)

Business optimization items	(68)		(45)
Acquisition and integration items	—		(1)

Separation-related costs	(11)		(13)
European Medical Devices Regulation	(4)		(5)
Business transformation	(11)		—
Hurricane Helene costs	(3)		(98)
Product-related items	12		(6)
Total operating income	66		58
Interest expense, net	66		64
Other (income) expense, net	6		(3)
Income (loss) from continuing operations before income taxes	$	(6)	$	(3)

Additional financial information for our segments is as follows:


	Three Months Ended March 31,
(in millions)	2026		2025
Depreciation Expense1
Medical Products & Therapies	$	51	$	49
Healthcare Systems & Technologies	24		27
Pharmaceuticals	16		16
Total depreciation expense	$	91	$	92

1Depreciation expense related to Corporate property, plant and equipment has been fully allocated to our segments and those segment allocations are reflected in the depreciation amounts presented herein.