Free cash flow generation remains highly inconsistent, evidenced by a swing from a negative 12.0% margin in 2025Q1 to a positive 14.9% margin in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.04B | 845M | 1.02B | 1.73B | 1.21B | 2.22B | 1.87B | 2.1B | 2.02B | 1.71B | 1.65B | 1.77B | 3.21B | 3.2B | 3.11B | 2.82B | 3B | 2.91B | 2.52B | 2.31B | 2.18B | 1.55B | 1.38B | 1.43B | 1.19B | 1.09B | 1.18B | 1.08B | 939M | 558M | 793M |
| Operating CF Margin % | - | 7.52% | 9.58% | 16.66% | 12.04% | 18.29% | 16% | 18.52% | 18.17% | 16.19% | 16.27% | 17.77% | 29.99% | 33.97% | 22.29% | 20.28% | 23.38% | 23.16% | 20.37% | 20.47% | 21.03% | 15.74% | 14.51% | 16% | 14.73% | 14.76% | 17.56% | 16.97% | 16.46% | 10.61% | 14.58% |
| Operating CF Growth % | 202.04% | -17.08% | -40.96% | 42.53% | -45.5% | 18.95% | -11.22% | 4.31% | 17.68% | 3.63% | -6.61% | -44.91% | 0.53% | 2.96% | 10.26% | -6.19% | 3.23% | 15.67% | 9.11% | 5.59% | 40.84% | 12.32% | -3.16% | 19.45% | 9.85% | -7.65% | 8.59% | 15.34% | 68.28% | -29.63% | -40.64% |
| Net Income | -1.1B | -957M | -326M | 181M | -3.11B | 1.03B | 1.11B | 1.01B | 1.55B | 609M | 4.97B | 393M | 457M | 315M | 2.33B | 2.26B | 1.43B | 2.21B | 2.02B | 1.71B | 1.4B | 956M | 388M | 922M | 1.03B | 675M | 754M | 824M | 315M | 300M | 669M |
| Depreciation & Amortization | 971M | 981M | 997M | 984M | 1.07B | 867M | 823M | 789M | 771M | 750M | 800M | 759M | 792M | 635M | 712M | 670M | 685M | 638M | 631M | 581M | 575M | 580M | 601M | 545M | 439M | 427M | 394M | 372M | 344M | 318M | 348M |
| Stock-Based Compensation | 117M | 117M | 114M | 115M | 140M | 146M | 130M | 122M | 115M | 107M | 115M | 126M | 126M | 122M | 130M | 119M | 120M | 140M | 146M | 136M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 248M | 77M | -262M | -256M | -260M | -161M | -88M | -310M | -263M | 211M | -302M | -50M | -117M | -185M | -17M | 172M | 76M | 267M | 280M | 126M | 8M | 201M | -141M | 106M | 72M | 116M | -171M | 92M | -56M | 3M | 74M |
| Other Non-Cash Items | 491M | 735M | 732M | 541M | 3.98B | 394M | 165M | 917M | 96M | 147M | -3.75B | 882M | 2.37B | 2.29B | 561M | 640M | 1.06B | 65M | 103M | 182M | 204M | 124M | 981M | 338M | 197M | 361M | 234M | 94M | 457M | 337M | 7M |
| Working Capital Changes | 190M | -108M | -236M | 161M | -606M | -57M | -272M | -425M | -248M | -110M | -176M | -339M | -414M | 22M | -606M | -1.04B | -368M | -416M | -670M | -427M | -1M | -311M | -449M | -486M | -548M | -493M | -35M | -299M | -121M | -400M | -305M |
| Change in Receivables | -6M | -132M | -35M | -38M | -48M | -170M | -119M | -52M | -12M | 30M | 15M | -4M | -93M | 16M | -41M | -229M | -122M | -167M | -98M | -278M | -16M | 178M | -189M | 4M | -276M | -114M | 58M | -103M | -153M | -59M | -258M |
| Change in Inventory | -92M | -119M | -201M | -128M | -198M | -27M | -162M | 4M | -197M | 76M | 80M | -118M | -143M | -49M | -129M | -315M | 20M | -60M | -163M | -211M | -35M | 88M | 33M | -151M | -269M | -177M | -113M | 17M | -79M | -112M | 59M |
| Change in Payables | 89M | 3M | 112M | 92M | -67M | 105M | 57M | -23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -557M | 2.84B | -626M | 3.21B | -931M | -11.2B | -1.18B | -1.1B | -916M | -1.29B | -715M | -1.81B | -1.54B | -5.36B | -1.57B | -1.43B | -1.26B | -1.15B | -993M | -305M | -342M | -367M | -552M | -886M | -1.31B | -1.53B | -1.01B | -735M | -872M | -1.08B | -707M |
| Capital Expenditures | -537M | -513M | -460M | -436M | -635M | -691M | -709M | -696M | -659M | -616M | -719M | -911M | -925M | -706M | -1.16B | -960M | -963M | -1.01B | -954M | -692M | -526M | -444M | -558M | -789M | -848M | -759M | -685M | -631M | -556M | -454M | -398M |
| CapEx % of Revenue | 4.74% | 4.56% | 4.32% | 4.21% | 6.31% | 5.69% | 6.07% | 6.13% | 5.94% | 5.82% | 7.07% | 9.14% | 8.63% | 7.5% | 8.33% | 6.91% | 7.5% | 8.07% | 7.73% | 6.14% | 5.07% | 4.51% | 5.87% | 8.86% | 10.47% | 10.32% | 10.23% | 9.89% | 9.74% | 8.63% | 7.32% |
| Acquisitions | 0 | 0 | 0 | -6M | -263M | -10.5B | -494M | -418M | -268M | -686M | -11M | 50M | 4M | -3.64B | -408M | -467M | -301M | -156M | -99M | -112M | 184M | -47M | -20M | -184M | -492M | -805M | -330M | -179M | -319M | -606M | -294M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -20M | 3.35B | -200M | 3.65B | -33M | -7M | 24M | 14M | 11M | 10M | 63M | -946M | -621M | -1.01B | 0 | 0 | 0 | 24M | 60M | 499M | 0 | 124M | 26M | 87M | 34M | 35M | 0 | 75M | 3M | -23M | -15M |
| Cash from Financing | -1B | -4.22B | -1.08B | -3.49B | -1.44B | 8.24B | -345M | 498M | -2.6B | 93M | -324M | -481M | -1.4B | 1.65B | -1.11B | -1.14B | -1.72B | -1.01B | -1.93B | -1.97B | -123M | -1.45B | -576M | -751M | 670M | 469M | -120M | -445M | 173M | 265M | 216M |
| Debt Issued (Net) | -666M | -3.79B | -531M | -2.94B | -899M | 9.33B | 478M | 1.88B | 0 | 665M | -56M | 2.39B | -113M | 3.1B | 765M | 733M | 91M | 473M | -79M | -51M | -543M | -1.26B | -378M | -440M | 1.59B | 406M | 106M | -269M | 386M | 471M | 610M |
| Equity Issued (Net) | 20M | 30M | 71M | 95M | 95M | -413M | -500M | -1.27B | -2.45B | -564M | -292M | 0 | -550M | -913M | -1.48B | -1.58B | -1.45B | -1.22B | -1.99B | -1.85B | 784M | 176M | 163M | 35M | -575M | 404M | -142M | 162M | 118M | 110M | -74M |
| Dividends Paid | -266M | -348M | -590M | -586M | -573M | -530M | -473M | -423M | -376M | -315M | -268M | -910M | -1.09B | -1.02B | -804M | -709M | -688M | -632M | -546M | -704M | -364M | -359M | -361M | -346M | -349M | -341M | -84M | -338M | -331M | -316M | -320M |
| Share Repurchases | 0 | 0 | 0 | 0 | -32M | -600M | -500M | -1.27B | -2.45B | -564M | -292M | 0 | -550M | -913M | -1.48B | -1.58B | -1.45B | -1.22B | -1.99B | -1.85B | -737M | 0 | -18M | -714M | -1.17B | -288M | -375M | -184M | 0 | 0 | -267M |
| Other Financing | -89M | -107M | -31M | -63M | -61M | -138M | 150M | 308M | 225M | 307M | 292M | -1.96B | 356M | 485M | 404M | 422M | 334M | 363M | 680M | 639M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | -277M | -446M | -784M | 1.48B | -1.23B | -780M | 401M | 1.5B | -1.56B | 617M | 588M | -712M | 192M | -537M | 365M | 220M | -101M | 655M | -408M | 54M | 1.64B | -268M | 184M | -242M | 587M | 3M | -27M | -103M | 244M | -296M | 285M |
| Free Cash Flow | 501M | 323M | 559M | 1.29B | 576M | 1.53B | 1.16B | 1.41B | 1.36B | 1.1B | 935M | 860M | 2.29B | 2.49B | 1.95B | 1.86B | 2.04B | 1.9B | 1.56B | 1.61B | 1.66B | 1.11B | 822M | 636M | 345M | 327M | 491M | 452M | 383M | 104M | 395M |
| FCF Margin % | 4.43% | 2.87% | 5.26% | 12.45% | 5.73% | 12.61% | 9.93% | 12.39% | 12.24% | 10.37% | 9.2% | 8.63% | 21.36% | 26.47% | 13.96% | 13.37% | 15.88% | 15.09% | 12.64% | 14.32% | 15.97% | 11.23% | 8.64% | 7.14% | 4.26% | 4.45% | 7.33% | 7.08% | 6.71% | 1.98% | 7.26% |
| FCF Growth % | 162.3% | -42.22% | -56.67% | 123.96% | -62.38% | 32.1% | -17.68% | 3.68% | 23.68% | 17.43% | 8.72% | -62.45% | -8.11% | 28.12% | 4.74% | -8.97% | 7.65% | 21.4% | -3.22% | -2.66% | 49.82% | 34.55% | 29.25% | 84.35% | 5.5% | -33.4% | 8.63% | 18.02% | 268.27% | -73.67% | -57.84% |
| FCF per Share | 0.97 | 0.63 | 1.10 | 2.55 | 1.14 | 3.01 | 2.24 | 2.71 | 2.49 | 1.98 | 1.70 | 1.57 | 4.19 | 4.54 | 3.50 | 3.24 | 3.43 | 3.09 | 2.45 | 2.47 | 2.53 | 1.76 | 1.33 | 1.10 | 0.74 | 0.58 | 0.83 | 0.77 | 0.66 | 0.18 | 0.72 |
| FCF Conversion (FCF/Net Income) | -0.46x | -0.88x | -1.57x | 0.65x | -0.50x | 1.73x | 1.70x | 2.10x | 1.30x | 2.85x | 0.33x | 1.83x | 1.29x | 1.59x | 1.34x | 1.27x | 2.11x | 1.32x | 1.25x | 1.35x | 1.56x | 1.62x | 3.56x | 1.65x | 1.55x | 1.77x | 1.59x | 1.36x | 2.98x | 1.86x | 1.19x |
| Interest Paid | 0 | 0 | 401M | 484M | 355M | 0 | 0 | 103M | 94M | 80M | 99M | 178M | 208M | 200M | 135M | 88M | 112M | 113M | 159M | 119M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 223M | 174M | 168M | 0 | 0 | 294M | 302M | 253M | 500M | 466M | 726M | 648M | 415M | 357M | 353M | 246M | 247M | 304M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Execution risk in divestiture
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a negative 5.15 in 2025Q3 to a positive 2.38 in 2025Q2, highlighting significant disconnects between accounting profits and actual cash generation.
The frequent divergence between net income and operating cash flow suggests that non-cash charges and restructuring costs are heavily distorting the company's reported earnings. Investors should monitor whether this volatility persists as the Vantive separation progresses, as it complicates the assessment of the firm's underlying cash-generating capacity.
According to quarterly cash flow data, Baxter's free cash flow margins have exhibited extreme fluctuations, ranging from a negative 12.0% in 2025Q1 to a positive 14.9% in 2025Q4, indicating that the company's ability to convert revenue into discretionary cash remains highly sensitive to operational disruptions.
The inconsistency in FCF margins reflects the ongoing challenges in managing a complex portfolio during a major transformation. The inability to maintain a stable FCF trajectory suggests that the company's cash flow profile is currently more reflective of one-time integration costs than sustainable operational performance.
Based on reported figures, working capital changes have been a primary driver of cash flow volatility, with a significant $298 million outflow in 2025Q1 followed by a $400 million inflow in 2025Q4, suggesting inconsistent efficiency in managing inventory and accounts receivable during the restructuring period.
These sharp swings in working capital indicate that the company is struggling to normalize its cash conversion cycle amidst the ongoing portfolio realignment. Such instability warrants further investigation into whether these movements are temporary timing differences or indicative of deeper inefficiencies in the supply chain and collection processes.
As evidenced by historical filings, Baxter's capital expenditure as a percentage of revenue has fluctuated between 0.9% and 7.0% over the last ten quarters, reflecting a lack of consistent investment strategy as the firm balances maintenance requirements with the demands of its ongoing business transformation.
The variability in capital intensity suggests that management is likely prioritizing essential maintenance over growth-oriented projects while navigating the Vantive spin-off. Analysts should monitor whether this reduced capital spending is a sustainable efficiency measure or a potential risk to the long-term competitiveness of the core medical device portfolio.
Quick answers to the most common questions about buying BAX stock.
Baxter International Inc. (BAX) generated $845.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Baxter International Inc. (BAX) generated $323.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Baxter International Inc. (BAX) spent $513.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Baxter International Inc. (BAX) returned $348.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.