On Thursday, Baxter International Inc. (NYSE:BAX) reported a first-quarter 2025 adjusted EPS of 62 cents, beating the management guidance of 47 to 50 cents and the Wall Street estimate of 48 cents.

The medical device company reported sales of $2.63 billion. That’s up 5% year over year on both a reported and operational basis, beating the consensus of $2.59 billion.

The management expected Q1 sales growth of 3%-4% on a reported basis and approximately 4% on an operational basis.

Companywide top-line performance on both a reported and operational basis exceeded Baxter’s previously announced guidance. The company credits its better-than-expected sales in the Medical Products & Therapies and Healthcare Systems & Technologies segments.

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Medical Products & Therapies sales increased 3% (+6% on constant currency) at $1.26 billion.

• Growth in the quarter reflected strength in the Infusion Therapies & Technologies division, driven by strong demand for IV infusion pumps and nutrition therapies, particularly in the United States; and solid performance in the Advanced Surgery division, driven by robust growth internationally.

Healthcare Systems & Technologies sales for the first quarter totaled approximately $704 million. That’s an increase of 6% on both a reported and operational basis.

• Growth was fueled by strong U.S. sales for Patient Support Systems products within the segment's Care and Connectivity Solutions division. Positive performance in the Front Line Care division reflected a favorable year-over-year comparison as well as further stabilization in the primary care markets in the United States. 

Pharmaceutical sales reached $581 million, an increase of 1% on a reported basis and 3% on an operational basis.

• Positive performance in the quarter was driven by mid-single-digit growth globally for specialty injectables, which was partially offset by a low single-digit decline in anesthesia and low single-digit growth in Drug Compounding, which reflected a difficult comparison to the prior-year period. 

“Our solid performance in the first quarter of 2025 reflects the ongoing impact of our transformation journey,” said Brent Shafer, chair and interim chief executive officer…While today’s global macroeconomic factors are creating a greater degree of uncertainty in the market, we remain confident in our overarching trajectory.”

Guidance: Baxter raises 2025 adjusted EPS from $2.45-$2.55 to $2.47-$2.55 versus consensus of $2.49, with sales growth of 7%-8% compared to prior guidance of 5%-6% on a reported basis and 4%-5% on an operational basis.

Baxter expects Q2 2025 adjusted EPS of 59 to 63 cents. The consensus was 61 cents, with sales growth of 4%-5% on a reported basis and 1%-2% on an operational basis.

Price Action: BAX stock is up 4.38% at $32.54 at the last check on Thursday.

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