v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
In the second quarter of 2026, as part of our new operating model to better align decision-making, cost structure, and execution across our businesses, we have changed our reportable segments to reflect the way our chief operating decision maker (CODM), who has been identified as our President and Chief Executive Officer, allocates resources and assesses our performance. Starting in the second quarter of 2026, our business is now comprised of two reportable segments under this new operating model: Medical Products & Therapies and Healthcare Systems & Technologies. Previously, our business was comprised of three segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals. Our former Pharmaceuticals segment is now reported within the Infusion Therapies & Platforms division of the Medical Products & Therapies segment. Additionally, sales of products and services provided directly through certain of our manufacturing facilities related to Infusion Therapies & Platforms that were previously reported in Other are now reported in our Infusion Therapies & Platforms division of the Medical Products & Therapies segment. In addition, we updated our approach to our corporate cost allocations. Certain shared corporate expenses will now remain unallocated, rather than being fully allocated to the segments (as they had been previously). Prior period segment disclosures have been recast to reflect the new segment presentation.
The Medical Products & Therapies segment includes sales of our sterile IV solutions, infusion systems, administration sets, parenteral nutrition therapies and surgical hemostat, sealant and adhesion prevention products, specialty injectable pharmaceuticals, inhaled anesthesia, drug compounding and sales of products and services provided directly through certain of our manufacturing facilities. The Healthcare Systems & Technologies segment includes sales of our connected care solutions and collaboration tools, including smart bed systems, patient monitoring systems and diagnostic technologies, respiratory health devices, and advanced equipment for the surgical space, including operating room integration technologies, precision positioning devices, and other accessories. Other sales not allocated to a segment includes sales to Vantive, pursuant to the Kidney Care MSA.
Disaggregation of Net Sales
The following table presents our U.S. and international disaggregated net sales.
Three Months Ended June 30,
20262025
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies & Platforms
$769 $976 $1,745 $753 $896 $1,649 
Advanced Surgery
182 149 331 158 138 296 
Medical Products & Therapies951 1,125 2,076 911 1,034 1,945 
Care & Connectivity Solutions
361 141 502 341 133 474 
Front Line Care
226 73 299 221 72 293 
Healthcare Systems & Technologies
587 214 801 562 205 767 
Other57 26 83 63 35 98 
Total Baxter$1,595 $1,365 $2,960 $1,536 $1,274 $2,810 
Six Months Ended June 30,
20262025
(in millions)U.S.InternationalTotalU.S.InternationalTotal
Infusion Therapies & Platforms
$1,480 $1,881 $3,361 $1,539 $1,700 $3,239 
Advanced Surgery
347 288 635 303 261 564 
Medical Products & Therapies1,827 2,169 3,996 1,842 1,961 3,803 
Care & Connectivity Solutions
676 261 937 657 244 901 
Front Line Care
424 145 569 423 147 570 
Healthcare Systems & Technologies
1,100 406 1,506 1,080 391 1,471 
Other103 56 159 104 57 161 
Total Baxter$3,030 $2,631 $5,661 $3,026 $2,409 $5,435 

Segment Operating Income
Our CODM reviews the financial information presented for purposes of evaluating the performance of our segments and to make resource allocation decisions.
Segment operating income is the measure of segment profitability and represents income before income taxes, interest and other non-operating income or expense, unallocated corporate costs, intangible asset amortization, and other special items. Special items, which are presented below in our reconciliations of reportable segment operating income to income (loss) from continuing operations before income taxes, are excluded from segment operating income because they are highly variable, difficult to predict and of a size that may substantially impact our reported results of operations for the period.
Corporate costs, inclusive of global functional support costs, overhead costs and other shared costs that benefit our segments are allocated to those segments. Corporate costs that do not benefit our segments are presented as unallocated corporate costs.
Segment results include net sales, cost of sales, selling, general and administrative expenses, R&D expenses, and other segment items which are directly allocated to each segment. Billings by us under the Kidney Care TSA are
included in segment operating income. The following table presents our segment information of net sales, significant expenses and operating income during the periods presented.
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesMedical Products & TherapiesHealthcare Systems & Technologies
Net sales$2,076 $801 $1,945 $767 
Cost of sales1,331 402 1,157 375 
Selling, general and administrative expenses310 202 299 195 
Research and development expenses74 44 83 49 
Other segment items(39)(10)(38)(8)
Segment operating income$400 $163 $444 $156 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
(in millions)Medical Products & TherapiesHealthcare Systems & TechnologiesMedical Products & TherapiesHealthcare Systems & Technologies
Net sales$3,996 $1,506 $3,803 $1,471 
Cost of sales2,568 787 2,256 729 
Selling, general and administrative expenses605 384 601 385 
Research and development expenses145 92 166 95 
Other segment items(72)(19)(67)(16)
Segment operating income$750 $262 $847 $278 
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 June 30,Six Months Ended June 30,
(in millions)2026202520262025
Medical Products & Therapies$400 $444 $750 $847 
Healthcare Systems & Technologies163 156 262 278 
Total reportable segment operating income563 600 1,012 1,125 
Other6 6 13 12 
Unallocated corporate costs(148)(183)(307)(322)
Intangible asset amortization expense(145)(151)(291)(306)
Legal matters— — — (11)
Business optimization items(7)(17)(75)(62)
Acquisition and integration items— (5)— (6)
Separation-related costs(22)(14)(33)(27)
European Medical Devices Regulation(4)(5)(8)(10)
Business transformation(23)— (34)— 
Hurricane Helene costs(3)(17)(6)(115)
Product-related items— (23)12 (29)
Total operating income 217 191 283 249 
Interest expense, net64 58 130 122 
Other (income) expense, net(5)— 1 (3)
Income (loss) from continuing operations before income taxes$158 $133 $152 $130 
Additional financial information for our segments is as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2026202520262025
Depreciation Expense
Medical Products & Therapies$72 $80 $143 $149 
Healthcare Systems & Technologies15 19 30 35 
Total segment depreciation expense 87 99 173 184 
  Unallocated corporate depreciation expense7 7 12 14 
Total depreciation expense$94 $106 $185 $198 
Our CODM does not receive asset information by reportable segment and, accordingly, we do not report that information for our segments.