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Baxter International BAX Tax holiday income tax benefits

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$14.25M-67.6%
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Other financials

Income statement

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Revenue$2.7B+2.9%
Gross profit$891.0M+3.5%
Operating income$66.0M+13.8%
Net income-$15.0M-112%
EPS (diluted)-$0.03-112%

Balance sheet

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Cash & equivalents$2.0B-12.1%
Total debt$224.0M-8.9%
Total equity$6.0B-14.7%
Total assets$19.8B-6.8%

Cash flow

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Operating cash flow$213.0M+210%
CapEx$128.3M+15.0%
Free cash flow$83.0M-42.1%

Valuation

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Market cap$14.13B+22.3%
Enterprise value$12.33B+22.1%
P/S1.3×+0.2×

Profitability

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Gross margin30.1%-5.9pp
Operating margin-2.7%
Net margin-9.7%+62.5pp
FCF margin3%-2.4pp

Returns & leverage

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Return on equity-16.7%-76.7pp
Debt / equity0.0×
Current ratio1.9×-0.2×

Where this comes from

Reported directly by Baxter International in its filing.

Tagged under the XBRL concept us-gaap:IncomeTaxHolidayAggregateDollarAmount.

The source filing: Baxter International’s 10-K, filed February 12, 2026.

Filed
Feb 12, 2026, 4:46 PM EST
Fiscal year
FY2025
Accession
0001628280-26-007733

We have received tax incentives in Puerto Rico, Dominican Republic, Costa Rica, and Switzerland. The financial impact of the reductions as compared to the statutory tax rates is indicated in the income tax expense (benefit) reconciliation table above. The tax reductions as compared to the local statutory rate favorably impacted earnings (loss) by $57 million in 2025, $176 million in 2024, and $200 million in 2023, and favorably impacted earnings (loss) per diluted share by $0.11 in 2025, $0.34 in 2024 and $0.39 in 2023. The Switzerland incentive program expired at the end of 2024 and therefore did not provide any benefit in 2025, however did contribute to the benefits recognized in 2024 and 2023. The other tax incentives provide that our manufacturing operations are and will be partially exempt from local taxes with varying expirations from 2025 to 2034.

Item 8. Financial Statements and Supplementary Data.

FAQ

What is Baxter International's tax holiday income tax benefits?
Baxter International (BAX) reported tax holiday income tax benefits of $14.25M in Q4 2025.
How has Baxter International's tax holiday income tax benefits changed year-over-year?
Baxter International's tax holiday income tax benefits decreased by 67.6% year-over-year, from $44M to $14.25M.
What is the long-term trend for Baxter International's tax holiday income tax benefits?
Over 2 years (2023 to 2025), Baxter International's tax holiday income tax benefits has grown at a -46.6% compound annual growth rate (CAGR), from $200M to $57M.
What does tax holiday income tax benefits mean?
This metric quantifies the total tax savings realized by the company due to specific tax holiday incentives granted by foreign jurisdictions. These holidays typically provide temporary exemptions or reduced tax rates to encourage investment in specific regions. It highlights the impact of geographic tax planning on the company's overall effective tax rate.

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