Baxter International Inc. stock research
FY2026 Q1
Baxter International (BAX) Gross Margin & Quarterly History
Explore Baxter International Inc. (BAX) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue was lower than the prior quarter, but cost of revenue declined even more, resulting in higher gross profit and an improved gross margin. Compared to the same quarter a year ago, revenue was higher, cost of revenue was similar, and gross profit and gross margin were also higher.
- The most significant observable driver of the gross margin change was the reduction in cost of revenue relative to revenue. The cost of revenue fell more sharply than revenue when compared with the previous quarter, which directly lifted the gross margin.
- Compared with the immediately preceding quarter, revenue decreased while cost of revenue decreased more, leading to a higher gross profit and a higher gross margin. Compared with the same quarter one year earlier, revenue increased, cost of revenue was stable, and gross profit and gross margin were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.0%
Gross profit
$891.0M
Revenue
$2.7B
Cost of revenue
$1.8B
Quarter-over-quarter change
+13.6 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $2.8B | $991.0M | $1.8B | 35.3% |
| Sep 30, 2025 | $2.8B | $950.0M | $1.9B | 33.5% |
| Dec 31, 2025 | $3.0B | $577.0M | $2.4B | 19.4% |
| Mar 31, 2026 | $2.7B | $891.0M | $1.8B | 33.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+13.6 pts
Year-over-year change
Mar 31, 2025
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant observable driver of the gross margin change was the reduction in cost of revenue relative to revenue. The cost of revenue fell more sharply than revenue when compared with the previous quarter, which directly lifted the gross margin.
Compared with the immediately preceding quarter, revenue decreased while cost of revenue decreased more, leading to a higher gross profit and a higher gross margin. Compared with the same quarter one year earlier, revenue increased, cost of revenue was stable, and gross profit and gross margin were higher.
Monitor the ratio of cost of revenue to revenue, as its decline was the primary observable factor in the gross margin improvement.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Baxter International Inc. (BAX) | 33.0% |