Financial Data and Key Metrics Changes - The new BD reported approximately 4% growth in Q3, with expectations for mid-single-digit growth for the full year [10][11] - The company achieved 9.5% EPS growth at the midpoint, despite macroeconomic challenges [7][12] - Total return to shareholders for the year is projected to be about $2.2 billion, including $1 billion from share buybacks and $1 billion from dividends [9] Business Line Data and Key Metrics Changes - BD Alaris is gaining market share and has a strong commercial execution post-return to market, with a commitment to upgrade the entire fleet within three years [4][5] - The APM business showed a strong 13% growth in Q3, and this growth will become organic moving forward [27][29] - BD Interventional experienced double-digit growth, contributing to overall strong performance across the portfolio [26] Market Data and Key Metrics Changes - The company anticipates a decline in the China market by high single digits this year, with expectations for stabilization post-2026 [33][34] - BD Biosciences is expected to see sequential growth improvements, driven by recovery in research spending [31][32] - Pharma systems are projected to recover in the back half of fiscal 2026, following a period of destocking [32] Company Strategy and Development Direction - The primary focus for the next 12 months includes completing the separation from Waters Corporation and executing a commercial strategy [6][8] - The company is committed to a capital allocation strategy that prioritizes share buybacks, with at least half of the $4 billion cash from the separation allocated to this purpose [8][9] - The new BD is positioned in attractive markets, including biologic drug delivery and AI solutions, supporting a mid-single-digit growth profile [10][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges, emphasizing the importance of scale and productivity improvements for customers [64][65] - The company is taking a prudent approach to guidance for fiscal 2026, acknowledging the dynamic macro environment while maintaining a long-term growth outlook [50][51] - Management highlighted the importance of innovation and customer engagement in driving future growth, particularly with new product launches like Pyxis Pro [38][46] Other Important Information - The company has completed a $1 billion share buyback for the year, contributing to a total capital return of $2.2 billion to shareholders [9] - The introduction of AI-enabled platforms like Pyxis Pro is expected to enhance operational efficiency and customer satisfaction [39][41] Q&A Session Summary Question: What are the growth expectations for the new BD? - The new BD is expected to grow at a mid-single-digit rate, supported by a strong innovation pipeline and market positioning [10][11] Question: How does the company plan to allocate capital post-separation? - The company plans to allocate at least 50% of the $4 billion cash from the separation to share buybacks, with a focus on maximizing shareholder value [8][9] Question: What is the outlook for the China market? - The company expects a decline in the China market by high single digits this year, with stabilization anticipated after 2026 [33][34] Question: How is the company addressing macroeconomic challenges? - Management emphasized the importance of scale and productivity improvements, as well as strategic partnerships with customers to navigate the changing environment [64][65]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore top ideas within exclusive income-focused portfolios [1] Group 2 - The article emphasizes that successful investing is about purchasing good stocks at favorable prices rather than popularity [2] - It highlights the importance of individual due diligence in making investment decisions [3]

Group 1 - BD (Becton, Dickinson and Company) will present at the Wells Fargo 2025 Healthcare Conference on September 3, 2025, at 8:00 a.m. Eastern Time [1] - A live webcast of the presentation will be available on BD's investor relations website, with a replay accessible after the event [1] Group 2 - BD is one of the largest global medical technology companies, focusing on improving medical discovery, diagnostics, and care delivery [2] - The company employs over 70,000 individuals and is committed to enhancing the safety and efficiency of healthcare delivery [2] - BD collaborates with organizations worldwide to tackle significant global health challenges, aiming to improve outcomes, reduce costs, and expand healthcare access [2]

Core Insights - The article highlights the ongoing high activity in mergers and acquisitions (M&A) within the global medical device sector in 2025, driven by technology, cross-regional expansion, and supply chain integration [2][5][56] Group 1: M&A Trends and Key Transactions - In 2025, significant M&A activities are observed, including a $17.5 billion acquisition by Waters of BD Life Sciences, which aims to create a comprehensive diagnostic platform [29][32] - Alcon has been particularly active in the ophthalmology sector, completing multiple acquisitions to strengthen its full-chain capabilities from surgical to non-surgical solutions [5][6][11] - The cardiovascular and neuro-interventional sectors are seeing a shift towards less invasive treatments and diversified therapeutic approaches, including non-drug solutions [12][30] Group 2: Sector-Specific Insights - The ophthalmology market is experiencing increased concentration, with Alcon's strategy focusing on a comprehensive technology loop covering refractive surgery, cataracts, retinal diseases, and corneal regeneration [5][11] - The cardiovascular and neuro-interventional M&A activities are characterized by a focus on reducing trauma and recovery time, with innovations like ultrasound renal denervation and non-drug thrombectomy gaining traction [12][30] - The production and supply chain capabilities are being enhanced through acquisitions of key components and materials, which are crucial for maintaining delivery reliability and optimizing profit structures [20][31] Group 3: AI and Precision Diagnostics - The AI and precision diagnostics segment is witnessing strategic acquisitions that enhance high-margin business lines and clinical authority, with notable transactions like Waters acquiring BD [28][32] - The integration of AI technologies into clinical applications is progressing, with companies focusing on data assets and algorithm platforms to enhance diagnostic accuracy and market competitiveness [44][55] Group 4: Women's Health and Specialty Surgery - The women's health and specialty surgery sectors are characterized by high margins and strong brand reliance, with acquisitions focusing on specific surgical pathways that are difficult to replace [37][43] - Companies like Hologic are expanding their portfolios to cover the entire patient journey from diagnosis to treatment, enhancing customer loyalty and repeat business [42][56] Group 5: Future Outlook and Strategic Implications - The M&A landscape in 2025 reflects a strategic repositioning of companies to adapt to clinical trends and market demands, with a focus on comprehensive coverage of treatment pathways and supply chain security [53][55] - The article emphasizes the importance of aligning technology and market positioning early to capitalize on potential acquisition opportunities and achieve high valuations [55][56]

Core Viewpoint - The localization of the BD FACS-Lyric flow cytometer marks a significant milestone for BD Medical in its 45-year journey alongside the development of flow cytometry technology in China, transitioning from technology leadership to ecosystem building [2][5]. Group 1: Localization Strategy - The first domestically produced BD FACS-Lyric flow cytometer officially began mass production on August 8, 2025, representing a key achievement in BD Medical's strategy of "rooting in China and serving China" [3]. - The localization project is seen as a strategic upgrade following the localization of consumables, aiming to establish a comprehensive local production system that facilitates the introduction of world-class flow cytometry products and technologies in China [5]. Group 2: Industry Collaboration - BD Medical's localization strategy emphasizes deep collaboration within the industry chain, integrating international flow cytometry technology with local practical needs through technical guidance and shared experiences [6]. - This collaboration enhances the technical capabilities of local teams and activates the synergy across the industry chain, from reagent production to equipment maintenance and technical services, thereby laying a solid foundation for improving local innovation capabilities [6]. Group 3: Service System - The core of the localization strategy is the establishment of a comprehensive local service system focused on customization and responsiveness to meet the demands of the Chinese market [7]. - BD Medical provides tailored local services for the BD FACS-Lyric flow cytometer, including precise instrument installation, scenario-based operational training, and professional application support, aimed at maximizing equipment performance and enhancing clinical testing efficiency and research innovation [7].

Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents unaudited condensed consolidated financial statements, highlighting a **10.4%** revenue increase to **$5.5 billion** and **$2.08 billion** in operating cash flow [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2025 revenues increased **10.4%** to **$5.51 billion**, with net income rising to **$574 million**, while nine-month net income decreased Q3 & Nine Months Financial Performance (YoY) | Metric | Q3 2025 | Q3 2024 | YoY Change | Nine Months 2025 | Nine Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $5,509M | $4,990M | +10.4% | $15,949M | $14,741M | +8.2% | | **Operating Income** | $882M | $602M | +46.5% | $1,882M | $1,775M | +6.0% | | **Net Income** | $574M | $487M | +17.9% | $1,185M | $1,305M | -9.2% | | **Diluted EPS** | $2.00 | $1.68 | +19.0% | $4.10 | $4.49 | -8.7% | | **Dividends per Share** | $1.04 | $0.95 | +9.5% | $3.12 | $2.85 | +9.5% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$54.9 billion** as of June 30, 2025, with total debt at **$19.34 billion** Balance Sheet Summary | Account | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $8,997M | $10,468M | | Cash and equivalents | $735M | $1,717M | | **Total Assets** | **$54,902M** | **$57,286M** | | **Total Current Liabilities** | $8,160M | $8,956M | | Long-Term Debt | $17,531M | $17,940M | | **Total Liabilities** | **$29,430M** | **$31,396M** | | **Total Shareholders' Equity** | $25,472M | $25,890M | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow decreased to **$2.08 billion**, with **$2.81 billion** used in financing activities Nine-Month Cash Flow Summary (YoY) | Activity | Nine Months 2025 | Nine Months 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $2,076M | $2,666M | | **Net Cash Used for Investing Activities** | ($324M) | ($1,577M) | | **Net Cash (Used for) from Financing Activities** | ($2,808M) | $1,963M | | **Net (Decrease) Increase in Cash** | ($1,058M) | $3,006M | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the proposed Reverse Morris Trust transaction, **$750 million** share repurchase, and **$1.5 billion** product liability accruals - The company entered a definitive agreement to combine its Biosciences and Diagnostic Solutions business with Waters Corporation via a Reverse Morris Trust transaction. BD shareholders will own **~39.2%** of the new entity, and BD will receive a **~$4 billion** cash distribution[19](index=19&type=chunk)[20](index=20&type=chunk) - In Q1 2025, the company executed a **$750 million** accelerated share repurchase (ASR) agreement. As of June 30, 2025, **13 million** shares remained available for repurchase under authorized programs[26](index=26&type=chunk)[28](index=28&type=chunk) - Product liability accruals, primarily for hernia repair devices, stood at approximately **$1.5 billion** as of June 30, 2025, down from **$1.7 billion** at the start of the fiscal year due to settlement payments[48](index=48&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2025 financial results, highlighting **10.4%** revenue growth driven by segment performance and regulatory matters [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q3 2025 revenue growth was driven by Medical and Interventional segments, while Life Sciences saw a slight decline Q3 2025 Revenue by Segment (YoY) | Segment | Q3 2025 Revenue | Q3 2024 Revenue | Total Change | FXN Change | | :--- | :--- | :--- | :--- | :--- | | **Medical** | $2,927M | $2,558M | +14.4% | +14.0% | | **Life Sciences** | $1,254M | $1,260M | -0.5% | -1.1% | | **Interventional** | $1,328M | $1,240M | +7.2% | +6.8% | | **Total Company** | **$5,509M** | **$4,990M** | **+10.4%** | **+9.9%** | - The Medical segment's growth was primarily driven by the acquisition of Advanced Patient Monitoring, which contributed **$278 million** in revenue for the quarter[110](index=110&type=chunk)[113](index=113&type=chunk) - The Interventional segment's **7.2%** growth was led by a **12.5%** increase in the Urology and Critical Care unit, fueled by double-digit growth in PureWick™ offerings[119](index=119&type=chunk)[121](index=121&type=chunk) - The Life Sciences segment's slight decline was due to lower sales of point-of-care products in Diagnostic Solutions and market dynamics impacting instrument sales in Biosciences[115](index=115&type=chunk)[117](index=117&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$2.08 billion** in operating cash flow and **$1.65 billion** returned to shareholders Capital Allocation (Nine Months Ended June 30, 2025) | Item | Amount | | :--- | :--- | | Net Cash from Operations | $2,076M | | Capital Expenditures | ($408M) | | Dividends Paid | ($899M) | | Repurchases of Common Stock | ($750M) | - Total debt stood at **$19.34 billion** with a weighted average cost of **3.3%**. The total debt as a percentage of total capital was **42.7%**[146](index=146&type=chunk) - The company has a **$2.75 billion** senior unsecured revolving credit facility expiring in September 2027, with no borrowings outstanding as of June 30, 2025[148](index=148&type=chunk) [Regulatory Matters](index=34&type=section&id=Regulatory%20Matters) The company addresses ongoing FDA Consent Decree for Alaris pumps, a Warning Letter for BD Pyxis, and EtO emission regulations - The U.S. infusion pump unit (CareFusion 303, Inc.) continues to operate under an amended FDA Consent Decree. The company is addressing observations from a May 2024 Form 483 notice related to its Infusion quality management system[156](index=156&type=chunk)[159](index=159&type=chunk) - A Warning Letter was received in November 2024 for the Dispensing quality management system (BD Pyxis™ products). The company has accrued costs for remediation efforts[164](index=164&type=chunk) - BD's ethylene oxide (EtO) sterilization facilities received a **two-year** Presidential compliance exemption from the EPA's revised NESHAP to allow time to install new control technology[165](index=165&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk disclosures were reported since September 30, 2024 - No material changes in market risk information were reported since the fiscal year-end of September 30, 2024[176](index=176&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were effective as of June 30, 2025, excluding the Advanced Patient Monitoring business from evaluation - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[177](index=177&type=chunk) - The evaluation of internal control over financial reporting excluded the recently acquired Advanced Patient Monitoring business, which will be incorporated into the annual assessment for fiscal year 2025[178](index=178&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, including product liability and environmental matters, is referenced from Note 5 - Information regarding legal proceedings is incorporated by reference from Note 5 of the Notes to Condensed Consolidated Financial Statements[180](index=180&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) New risk factors relate to the proposed combination with Waters Corporation, including completion, disruption, and benefit realization - A new risk factor highlights that the proposed combination with Waters is subject to closing conditions and may not be completed on the expected timeline, or at all[182](index=182&type=chunk) - The announcement and pendency of the transaction could divert management attention and disrupt relationships with customers and employees[183](index=183&type=chunk) - There is a risk that the anticipated operational, financial, and strategic benefits of the transaction may not be achieved if it is completed[184](index=184&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No public share repurchases occurred in Q3 2025, with **13,426,039** shares remaining available for repurchase Issuer Purchases of Equity Securities (Q3 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Programs | | :--- | :--- | :--- | :--- | | **April 2025** | 1,268 | $202.80 | — | | **May 2025** | 174 | $167.95 | — | | **June 2025** | — | — | — | | **Total** | **1,442** | **$198.60** | **—** | - As of June 30, 2025, the company had authorization to repurchase up to **13,426,039** additional shares under its programs[186](index=186&type=chunk)[188](index=188&type=chunk)

Core Insights - Becton, Dickinson and Company (BDX) reported adjusted earnings per share (EPS) of $3.68 for Q3 fiscal 2025, marking a 5.1% increase year over year and exceeding the Zacks Consensus Estimate by 7.6% [1][9] - Total revenues reached $5.51 billion, reflecting a 10.4% year-over-year growth and surpassing the Zacks Consensus Estimate by 0.5% [2][9] - The company experienced a gross margin expansion of 158 basis points to 47.8% and an adjusted operating profit increase of 25.2% to $1.02 billion [9][12] Revenue Breakdown - Adjusted revenues for Q3 fiscal 2025 were $5.51 billion, up 8.9% year over year on a reported basis, with 3% organic growth [3] - BD Medical segment revenues were $2.93 billion, up 14.4% year over year, driven by growth in Medication Management Solutions and Pharmaceutical Systems [5] - BD Life Sciences segment revenues totaled $1.25 billion, down 0.5% year over year, impacted by declines in Diagnostic Solutions and Biosciences [6] - BD Interventional segment generated revenues of $1.33 billion, up 7.2% year over year, supported by growth in Urology & Critical Care [7] Geographic Performance - U.S. revenues improved by 10% year over year to $3.18 billion, slightly below projections [10] - International revenues reached $2.33 billion, up 10.9% year over year, exceeding expectations [11] Margin and Expense Analysis - Gross profit increased by 14.2% year over year to $2.63 billion, with selling and administrative expenses rising by 10.4% [12][13] - Adjusted operating margin expanded by 219 basis points to 18.5% [13] Financial Position - Cash and cash equivalents at the end of Q3 fiscal 2025 were $757 million, up from $683 million in the previous quarter [14] - Total debt increased slightly to $19.34 billion from $19.27 billion [14] - Cumulative net cash from operating activities was $2.08 billion, down from $2.67 billion a year ago [15] Fiscal Guidance - BDX revised its full fiscal year revenue projection to between $21.8 billion and $21.9 billion, with an expected growth rate of 8.2-8.7% [16] - Adjusted EPS for fiscal 2025 is anticipated to be in the range of $14.30-$14.45, reflecting growth of 8.8-10% [18] Strategic Developments - BDX announced a definitive agreement to combine its BDB and DS business units with Waters Corporation, aiming to enhance its position in life sciences and diagnostics [20] - The BD Medical segment plans to invest $35 million in a Nebraska facility to support new production lines and operational efficiencies [20]

Core Insights - The healthcare industry is rebounding, with companies like Becton, Dickinson, and Company (BDX) showing strong financial performance, particularly in Q3 2025 [1] - BDX reported adjusted earnings per share of $3.68, exceeding the consensus estimate of $3.41, and sales of $5.51 billion, slightly above the consensus of $5.49 billion [1][2] Financial Performance - Revenues increased by 10.4% as reported, 8.5% adjusted for foreign exchange, and 3.0% organically [3] - GAAP gross margin improved by 160 basis points, while adjusted gross margin increased by 50 basis points [3] - GAAP operating income rose by 46.6%, and adjusted operating income increased by 11.3% [3] Segment Performance - **Medical Segment**: Sales increased by 14.4% to $2.93 billion, with strong performance in Medication Delivery Solutions, although impacted by an IV fluid shortage [4] - **Pharmaceutical Systems**: Continued growth driven by double-digit gains in Biologics, despite weaker demand for non-biologic products [5] - **Life Sciences**: Sales reached $1.25 billion, down 0.5%, with growth in Specimen Management but declines in Diagnostic Solutions [6][7] - **Interventional**: Sales increased by 7.2% to $1.33 billion, driven by strong growth in Advanced Tissue Regeneration and Peripheral Intervention [8][9] Guidance - BDX raised its fiscal 2025 adjusted earnings guidance to $14.30-$14.45, compared to the previous range of $14.06-$14.34, reflecting strong Q3 performance [11] - The company reaffirmed its organic revenue growth guidance of 3.0%-3.5%, with sales guidance of $21.8 billion-$21.9 billion [11] Stock Performance - BDX shares rose by 7.81% to $185.87 following the earnings report [12]

Financial Data and Key Metrics Changes - Revenue grew 8.5% to $5.5 billion, with 3% organic growth and new BD organic growth at 4% [7][24] - Adjusted gross margin reached 54.8%, up 50 basis points year over year, while adjusted operating margin increased to 25.8%, up 60 basis points year over year [7][31] - Adjusted diluted EPS was $3.68, exceeding expectations with a growth of 5.1% [7][31] Business Line Data and Key Metrics Changes - Pharm Systems improved sequentially to nearly 5% growth, with double-digit growth in Biologics [9][25] - APM delivered 13% pro forma growth, driven by strong commercial execution and new product innovation [26] - BD Life Sciences saw a low single-digit decrease in Biosciences and Diagnostic Solutions, but significant sequential positive momentum of approximately 250 basis points [28][30] Market Data and Key Metrics Changes - Total company organic growth was led by performance in the U.S. and Greater Asia outside of China, partially offset by challenges in China [24] - Research instruments improved in the U.S. and EMEA by approximately 40-80%, driven by the launch of FaxDiscover 88 [29] - BackTech utilization increased over 20 percentage points sequentially, exiting the quarter at over 80% of historic levels [30] Company Strategy and Development Direction - The company announced a definitive agreement to separate its Biosciences and Diagnostics business, which is expected to unlock significant shareholder value [6][11] - Focus on enhancing capital allocation with an emphasis on share buybacks and competitive dividends [12] - Continued investment in innovation and commercial execution, particularly in areas like UCC and new product launches [40][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market headwinds and maintain organic growth [6][33] - Anticipated continued positive momentum in Q4, driven by APM's organic growth and improvements in BackTech [33] - The company expects to achieve its goal of a 25% operating margin by 2025, despite ongoing tariff impacts [34][60] Other Important Information - The company plans to use at least half of the $4 billion cash distribution from Waters for share buybacks [12] - BD Excellence operating system has significantly improved manufacturing productivity and reduced waste by over 35% [22] - The company is on track to complete a $1 billion share buyback by September, ahead of the original commitment [32] Q&A Session Summary Question: Growth outlook for RemainCo business - Management is pleased with performance across various segments and expects continued growth in mid-single digits for RemainCo [36][38] Question: Operating margin guidance for Q4 - Management indicated a slight sequential step down in operating margins due to timing of investments, but overall performance remains strong [44][46] Question: Insights on fiscal 2026 margins and EPS growth - Management expects healthy margins post-separation and anticipates a better outlook for tariffs in 2026, with a projected impact of around $275 million [60][62] Question: Trends in urology and interventional business - Urology growth is driven by ongoing trends and innovation, with no one-time factors affecting performance [78][80] Question: Increased SG&A investment in Q4 - Management confirmed that increased investments are aimed at supporting innovation and commercial execution, setting up for future growth [84][86]

Financial Data and Key Metrics Changes - Revenue grew 8.5% to $5.5 billion, with 3% organic growth and new BD organic growth at 4% [6][22] - Adjusted gross margin reached 54.8%, up 50 basis points year over year, and adjusted operating margin was 25.8%, up 60 basis points year over year [6][30] - Adjusted diluted EPS was $3.68, exceeding expectations with a growth of 5.1% [6][30] Business Line Data and Key Metrics Changes - BD Medical's Pharm Systems showed sequential improvement with 4.8% growth, driven by double-digit growth in Biologics [23] - APM delivered 13% pro forma growth, supported by strong commercial execution and new product innovation [24] - BD Life Sciences experienced low single-digit decline in Biosciences and Diagnostic Solutions, but showed significant sequential positive momentum [27] Market Data and Key Metrics Changes - Total company organic growth was led by the U.S. and Greater Asia outside of China, partially offset by challenges in China [23] - Research instruments improved by approximately 40-80% sequentially in the U.S. and EMEA, driven by the launch of FaxDiscover 88 [28] - BackTech utilization increased over 20 percentage points sequentially, exiting the quarter at over 80% of historic levels [29] Company Strategy and Development Direction - The company announced a definitive agreement to separate its Biosciences and Diagnostics business, which is expected to unlock significant shareholder value [5][9] - Focus on enhancing capital allocation with an emphasis on share buybacks and competitive dividends post-separation [10] - Continued investment in innovation and commercial execution to drive growth, particularly in areas like UCC and new product launches [39][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth despite market headwinds, particularly in China and certain sub-segments [8][32] - The company reaffirmed its organic revenue guidance for the year and raised its earnings guidance by $0.18 at the midpoint [8][33] - Management highlighted the importance of BD Excellence in driving margin expansion and operational efficiency [21][60] Other Important Information - The company plans to use at least half of the $4 billion cash distribution from Waters for share buybacks, with the remainder for debt repayment [10] - The company expects a full-year 2026 tariff impact of around $275 million, an improvement from previous expectations [34][60] Q&A Session Summary Question: Growth outlook for RemainCo business - Management indicated that they expect stable mid-single-digit growth for RemainCo, driven by strong performance across various segments and continued investments in innovation [36][38] Question: Operating margin guidance for Q4 - Management acknowledged a slight sequential step down in operating margins due to timing of investments, but emphasized strong overall performance and margin management [44][46] Question: Fiscal 2026 margin outlook - Management stated that post-separation operating margins would remain healthy, with continued benefits from BD Excellence and a favorable tariff outlook [52][56] Question: Capital deployment strategy post-separation - Management highlighted a focus on reinvesting in growth opportunities and maintaining strong capital allocation strategies, including share buybacks [63][66] Question: Trends in urology business - Management confirmed that the double-digit growth in urology is a continuation of strong momentum, driven by ongoing innovation and market expansion [75][78]