Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Baxter International Inc. (BAX) Halal?

FAIL

Baxter International Inc. · NYSE: BAX · Healthcare

The short answer

Baxter International fails this Shariah screener on the debt gate: about $9.48 billion of interest-bearing debt is about 78.3% of its ~$12.10 billion market cap, far over the 33% ceiling. Its business (medical products) passes the activity gate, and interest income of $52 million (0.46% of revenue) is under its 5% ceiling, but the debt result decides the outcome.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Baxter International Inc., per its FY2025 Form 10-K (fiscal year ended December 31, 2025, filed February 12, 2026), describes itself as a provider of 'a broad portfolio of essential healthcare products': sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; surgical hemostat and sealant products; advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, used by hospitals, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors' offices, dialysis centers, and patients at home.

The company reports three segments — Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals — and after the January 2025 sale of its Kidney Care business to Carlyle ($3.80 billion) it manufactured in over 20 countries and sold in over 100. It is not an interest-based lender and is not involved in tobacco, gambling, pork, or conventional banking or insurance. For transparency, the company voluntarily paused shipments of its Novum LVP infusion pump in July 2025 over device-malfunction concerns and faces a related securities class action — a product-safety matter, not a prohibited business line. The business passes gate 1.

Gate 2 — Debt and cash: FAIL

Gate 2 — interest-bearing debt: FAIL (78.3%, ceiling 33%). Baxter International's FY2025 Form 10-K balance sheet (December 31, 2025) reports long-term debt of $9.5 billion plus a $2 million current portion of long-term debt and $1 million of short-term debt; MarketBeat reports total debt of $9.48 billion at end of 2025 (down 27.8% from 2024, but still elevated).

$9.48 billion of interest-bearing debt against a market capitalization of about $12.10 billion (Finnhub, October 2, 2026) is about 78.3% — more than twice the 33% ceiling. The company did repay $3.81 billion of legacy indebtedness during 2025, primarily with the after-tax proceeds from the sale of its Kidney Care business to Carlyle, and it raised $2.0 billion through a new notes offering, but the remaining debt load remains far over the threshold. Cash and cash equivalents of about $2.15 billion at the end of Q2 2026 (MarketBeat) represent roughly 17.8% of market cap.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.46%, ceiling 5%) — moot after gate 2. Baxter International's FY2025 Form 10-K separately discloses interest income in its debt note: $52 million of interest income in 2025 (versus $67 million in 2024 and $69 million in 2023) against net sales of $11,244 million is about 0.46% — under the 5% ceiling. Interest expense, net was $238 million.

The most recent annual figure (0.46%) is used for this gate. Because the company already failed the debt gate, this passing result does not change the overall screener result.

Key figures used

Frequently asked questions

What does Baxter International do?

Baxter International Inc. (NYSE: BAX) is a US healthcare products company founded in 1931 and headquartered in Deerfield, Illinois. Per its FY2025 Form 10-K (fiscal year ended December 31, 2025, filed February 12, 2026), its portfolio includes sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; surgical hemostat and sealant products; advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices. It reports three segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals, and sells in over 100 countries. Recent strategic actions include the sale of its Kidney Care business (Vantive) to Carlyle for $3.80 billion, completed January 31, 2025, and the sale of its BioPharma Solutions business in September 2023.

Is Baxter International's business Shariah compliant?

Baxter International makes medical products - IV solutions, infusion pumps and systems, parenteral nutrition, inhaled anesthetics, generic injectables, surgical hemostats and sealants, smart beds, and patient monitoring devices - and is not an interest-based lender. It is not involved in tobacco, gambling, pork, or conventional banking or insurance. For transparency: in July 2025 the company voluntarily paused shipments and planned installations of its Novum LVP infusion pump over device-malfunction concerns, and it faces a securities class action tied to that disclosure - a product-safety matter, not a prohibited business line. Assessed on the filed business description, the business passes this screener's first gate.

How much interest-bearing debt does Baxter International have?

Baxter International carries about $9.48 billion of total debt at December 31, 2025 (MarketBeat; its FY2025 Form 10-K balance sheet shows long-term debt of $9.5 billion plus $2 million current portion of long-term debt and $1 million short-term debt). Against a market capitalization of about $12.10 billion (Finnhub, October 2, 2026), that is about 78.3% - far over the 33% ceiling. The company did repay $3.81 billion of legacy indebtedness during 2025, primarily with the after-tax proceeds from the sale of its Kidney Care business, but the remaining debt load is still more than twice the threshold. The company fails this gate.

How much interest income does Baxter International earn?

Baxter International's FY2025 Form 10-K separately discloses interest income in its debt note: $52 million of interest income in 2025 (versus $67 million in 2024 and $69 million in 2023), against net sales of $11,244 million - about 0.46%, under the 5% non-compliant income ceiling. Interest expense, net was $238 million. Cash and cash equivalents were about $2.15 billion at the end of Q2 2026 (MarketBeat), roughly 17.8% of market capitalization. This gate passes, but it is moot because the company already failed the debt gate.

What do third-party Shariah screeners say about Baxter International?

Zoya publishes a BAX page citing the same FY2025 figures ($52,000,000 of interest income against $11,244,000,000 of revenue, about 0.46%) under its AAOIFI methodology, but the compliance rating on the page rendered contradictorily in a text fetch, so its current rating could not be verified from public sources. I could not verify a Musaffa rating page for BAX or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).