Baxter International Inc. stock research
FY2025 Q4
Baxter International (BAX) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, yet gross profit declined sharply, causing gross margin to weaken significantly. The cost of revenue rose at a faster rate than revenue, compressing profitability.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, yet gross profit declined sharply, causing gross margin to weaken significantly. The cost of revenue rose at a faster rate than revenue, compressing profitability.
- The strongest observable margin driver is the disproportionate increase in cost of revenue relative to revenue, which directly reduced gross profit and gross margin.
- Compared to the immediately preceding quarter, gross margin weakened as revenue rose modestly while cost of revenue increased more substantially. Versus the same quarter one year earlier, gross margin also weakened, with revenue higher but gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.4%
Gross profit
$577.0M
Revenue
$3.0B
Cost of revenue
$2.4B
Quarter-over-quarter change
-14.1 pts
Year-over-year change
-15.4 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $3.0B | $577.0M | $2.4B | 19.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-14.1 pts
Year-over-year change
Dec 31, 2024
-15.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the disproportionate increase in cost of revenue relative to revenue, which directly reduced gross profit and gross margin.
Compared to the immediately preceding quarter, gross margin weakened as revenue rose modestly while cost of revenue increased more substantially. Versus the same quarter one year earlier, gross margin also weakened, with revenue higher but gross profit lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming periods to assess whether margin pressure persists.