Becton, Dickinson and Company Q1 Earnings Call Highlights

Core Insights - Becton, Dickinson and Company (BD) reported stronger than expected first fiscal quarter 2026 results, highlighting the completion of its Life Sciences business combination with Waters through a Reverse Morris Trust transaction [2] Quarterly Results - BD posted total revenue of $5.3 billion, reflecting a 0.4% year-over-year increase on an FX-neutral basis; "new BD" grew 2.5% with broad-based growth across most of the portfolio, partially offset by challenges in approximately 10% of the business, including Alaris, vaccines in China, and market dynamics in China [3] - The quarter demonstrated "disciplined execution" with accelerated commercial initiatives and strength in several growth platforms, including double-digit growth in biologic drug delivery, PureWick, advanced tissue regeneration, pharmacy automation, and high single-digit growth in advanced patient monitoring [3] Profitability - BD reported an adjusted gross margin of 53.4% and adjusted EPS of $2.91, both exceeding management's expectations; however, adjusted EPS was down 15.2% year-over-year, primarily due to tariffs [4] Segment Performance - Growth was led by Connected Care and Interventional, with details provided on performance across the company's recast segment structure, which includes Medical Essentials, Connected Care, Biopharma Systems, Interventional, and Life Sciences [5] Transaction and Financial Strategy - BD closed the Waters transaction, receiving a $4 billion cash distribution, which will be allocated as $2 billion for accelerated share repurchases and $2 billion to pay down debt; net leverage ended the quarter at 2.9x, with a long-term target of 2.5x [6] - Management maintained fiscal 2026 guidance for low single-digit revenue growth and adjusted EPS of $12.35 to $12.65, while cautioning about ongoing headwinds from China, vaccines, Alaris, and a multi-hundred-basis-point tariff impact [6]