Financial Data and Key Metrics Changes - The company reported a 9.5% EPS growth at the midpoint, driven by margin expansion despite macroeconomic challenges impacting revenue [8][10] - Total return to shareholders for the year is approximately $2.2 billion, with $1 billion through share buybacks and $1.2 billion through dividends [10] Business Line Data and Key Metrics Changes - The new BD grew about 4% in Q3, with expectations for mid-single digit growth for the full year [11][12] - BD Interventional saw double-digit growth in UCC and strong mid-single digit growth across other businesses [30] - Aleris is gaining market share and is expected to continue contributing positively to growth [45][46] Market Data and Key Metrics Changes - The company anticipates a decline in China operations by high single digits this year, stabilizing thereafter as 90% of the portfolio will have gone through value-based procurement (VBP) by the end of next year [42][43] - The Biosciences segment is expected to see sequential growth improvements as it transitions to Waters [37] Company Strategy and Development Direction - The primary focus for the next twelve months includes completing the separation from the Life Science business, executing a commercial strategy, and continuing margin expansion through BD Excellence [6][8] - The company is committed to utilizing at least half of the $4 billion cash from the separation for share buybacks [9][10] - The innovation pipeline is robust, with new products expected to drive growth in biologic drug delivery and AI solutions [12][18] 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 productivity improvements for customers facing tighter funding environments [73][75] - The company is taking a prudent approach to guidance for FY 2026, recognizing the dynamic macro environment while maintaining a mid-single digit growth outlook [58][60] 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 [10] - The new AI-enabled Pyxis Pro system is expected to enhance medication management and improve operational efficiencies [47][50] Q&A Session Summary Question: What is the growth algorithm for the new BD? - The new BD is expected to grow mid-single digits, supported by a strong innovation pipeline and market positioning [11][12] Question: How does the company define similar margin profiles post-separation? - Management indicated that the operating margin post-separation would be similar, within 50 to 100 basis points [23][24] Question: What are the drivers for the acceleration in Q4 guidance? - The acceleration is driven by strong performance in BD Interventional and the organic growth of APM, which is expected to contribute over a point to growth [29][32] Question: How is the company addressing macroeconomic challenges? - The company is focusing on productivity improvements and forming partnerships with customers to navigate tighter funding environments [73][75] Question: What is the expected impact of pricing on growth? - Pricing is currently flattish but is expected to return as a tailwind as the company maintains pricing discipline globally [66]

Summary of Becton, Dickinson and Company (BDX) 2025 Conference Call Company Overview - **Company**: Becton, Dickinson and Company (BDX) - **Conference Date**: May 13, 2025 - **CEO**: Tom Poland Key Points Company Performance and Strategy - Over the past five years, BDX has transformed into a nearly $22 billion company, focusing on innovation and quality improvements [4][5] - The company has achieved a compound annual growth rate (CAGR) of approximately 5.6% in revenue since launching BD 2025 [5] - Current revenue growth is impacted by macroeconomic factors, including China's Value-Based Pricing (VBP) and life sciences funding constraints [5][6] Revenue Growth Challenges - Revenue growth has slowed, with a projected decline in China of high single digits to low double digits for the year [6][16] - Life sciences revenue growth was flat last year and is expected to decline in the low single digits this year due to research funding constraints [6][7] - The farm systems business, which previously saw 12% growth, is recovering after a flat performance last year [7][20] Q2 Performance and Guidance - Q2 growth was only 0.9%, significantly lower than the initial expectation of 2.75% [11][12] - Key factors for the decline included reduced NIH funding impacting instrument spending and increased VBP in China [12][13] - Full-year guidance was lowered by $200 million, reflecting the challenges in China, biosciences spending, and the ramp-up of Bactech [16][17] Actions Taken Post-Q2 - BDX has implemented several actions to address the challenges, including enhancing commercial excellence and increasing R&D investments [18][19] - The company is focusing on key growth catalysts such as PureWick and its peripheral vascular business [19][20] Margin and Cost Management - BDX has seen a gross margin expansion of 190 basis points, attributed to the BD Excellence initiative aimed at driving efficiency [24][25] - The company plans to continue investing in R&D and selling, with a focus on maintaining strong operating margins [24][26] Tariffs and Supply Chain Adjustments - The company is actively managing tariff impacts, with a focus on sourcing changes to mitigate costs [27][29] - Approximately 80% of U.S. revenue is derived from products manufactured domestically or tariff-exempt [32] Life Sciences Separation Update - The separation of the life sciences business is on track, with an announcement expected in summer 2025 [40][43] - The bioscience business is recognized for its innovative assets, including advancements in cancer research technology [41][42] Future Outlook - The RemainCo business is projected to maintain mid-single-digit growth, supported by strong market positions and recurring revenue from consumables [46][48] - BDX is focused on disciplined capital deployment, avoiding large transformational M&A, and prioritizing high-return investments [51][53] Conclusion - BDX is navigating a challenging macro environment while focusing on innovation, operational excellence, and strategic growth initiatives to enhance shareholder value [4][5][19]