Baxter International Inc. stock research
FY2025 Q3
Baxter International (BAX) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin both weakened sequentially and declined from the year-ago period, as cost of revenue increased relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin both weakened sequentially and declined from the year-ago period, as cost of revenue increased relative to revenue.
- The strongest observable margin driver is the increase in cost of revenue relative to revenue, which compressed gross profit and margin in both comparisons.
- Compared to the immediately preceding quarter, gross margin weakened as gross profit declined while revenue was unchanged. Versus the same quarter one year earlier, gross margin also weakened, with gross profit lower despite higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.5%
Gross profit
$950.0M
Revenue
$2.8B
Cost of revenue
$1.9B
Quarter-over-quarter change
-1.8 pts
Year-over-year change
-4.8 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $2.7B | $1.0B | $1.7B | 38.3% |
| Mar 31, 2025 | $2.6B | $861.0M | $1.8B | 32.8% |
| Jun 30, 2025 | $2.8B | $991.0M | $1.8B | 35.3% |
| Sep 30, 2025 | $2.8B | $950.0M | $1.9B | 33.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1.8 pts
Year-over-year change
Sep 30, 2024
-4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue relative to revenue, which compressed gross profit and margin in both comparisons.
Compared to the immediately preceding quarter, gross margin weakened as gross profit declined while revenue was unchanged. Versus the same quarter one year earlier, gross margin also weakened, with gross profit lower despite higher revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters for further margin pressure.