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 [11][12] - The company achieved 9.5% EPS growth at the midpoint, driven by margin expansion despite macroeconomic challenges [8][10] - Total capital return to shareholders for the year is projected to be about $2.2 billion, split between share buybacks and dividends [10] Business Line Data and Key Metrics Changes - BD Alaris has regained market share and is on track to complete the upgrade of its fleet within the three-year commitment made to the FDA [4][5] - The APM business saw a strong 13% growth in Q3, with expectations for continued strong performance as it becomes organic [28][30] - BD Interventional experienced double-digit growth, contributing to overall strong performance across the portfolio [27] Market Data and Key Metrics Changes - The company anticipates a decline in the China market due to value-based procurement, expecting high single-digit declines this year and mid to high single-digit declines next year [35][36] - BD Biosciences is expected to see sequential growth improvements as it transitions to Waters Corporation, with a strong win rate in the clinical reagent business [33][34] Company Strategy and Development Direction - The primary focus for the next 12 months includes completing the separation from the life sciences business 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 [9][10] - The innovation pipeline is robust, with new products expected to drive growth in attractive markets such as biologic drug delivery and AI solutions [11][12] 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 [65][66] - The company is taking a prudent approach to guidance for fiscal 2026, acknowledging the dynamic macro environment while maintaining a long-term growth outlook [52][53] Other Important Information - The company has completed a $1 billion share buyback for the year, with plans for continued buybacks in the future [9][10] - The new AI-enabled Pyxis Pro platform is expected to enhance medication management and drive market share growth [41][45] 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 [11][12] Question: How does the company plan to allocate capital post-separation? - The company plans to allocate at least half of the $4 billion cash from the separation to share buybacks, with a focus on creating shareholder value [9][10] Question: What is the outlook for the China market? - The company expects high single-digit declines in the China market this year, with stabilization anticipated by the end of next year [35][36] Question: How is the company addressing macroeconomic challenges? - Management highlighted the importance of productivity improvements and scale for customers to navigate tighter funding environments [65][66]

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]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 grew by 6% or 0.9% organically, which was below expectations, primarily due to market dynamics in Life Sciences and a slower return to normal levels in diagnostics [7][25] - Adjusted gross margins increased to 54.9%, up by 190 basis points year over year, reflecting strong margin performance driven by BD Excellence initiatives [9][28] - Adjusted diluted EPS for Q2 was $3.35, representing a growth of 5.7% [28] Business Line Data and Key Metrics Changes - Biosciences faced challenges due to reduced global research funding, impacting instrument sales, while reagent sales continued to grow [11][12] - Diagnostics experienced softness in the Bactech Blood Culture business, with a slower than expected return to prior testing levels [13][14] - The MedTech business saw organic growth of 1.9%, with strong performance in biologics and the PureWick product line [26][27] Market Data and Key Metrics Changes - Total company organic growth was led by the U.S., Greater Asia (excluding China), and Latin America, while EMEA experienced a decline and China saw a double-digit decrease [28] - The company adjusted its full-year revenue guidance to expect 3% to 3.5% organic growth due to market pressures [14] Company Strategy and Development Direction - The company is focused on reaccelerating organic sales growth through strategic investments and initiatives like BD Excellence, which aims to drive gross margin expansion and support growth investments [9][10][24] - The separation process for the Biosciences and Diagnostics business is on track, with strong interest in the assets [21][88] - The company plans to invest $2.5 billion in U.S. manufacturing over the next five years to strengthen its position in the medtech sector [17] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with the current quarter's top-line growth, which does not reflect the mid-single-digit growth achieved in previous years [8] - The operating environment remains dynamic, with ongoing adjustments to revenue guidance reflecting changes in research funding and market conditions [14][80] - Management remains confident in the company's ability to navigate macro challenges and deliver strong earnings growth despite external pressures [84] Other Important Information - The company expects total revenues for fiscal 2025 to be in the range of $21.8 billion to $21.9 billion, with an adjusted effective tax rate between 14% and 14.5% [31] - Tariff expenses are estimated at $90 million for FY 2025, with mitigation actions already in place to reduce near-term risks [19][32] Q&A Session Summary Question: Clarification on tariff impact - The $0.25 impact from tariffs is a net number after mitigation efforts, and while it cannot be simply annualized, some form of annualization is reasonable for fiscal 2026 [35][40] Question: Improvement in second half organic growth - The company expects Q3 organic growth to be around 3% and Q4 to improve further, driven by several key growth drivers and easier comparisons [41][51] Question: Breakdown of organic sales growth adjustments - The adjustment in organic sales growth guidance reflects market-driven impacts, particularly in China and the diagnostics business, with a significant portion attributed to changes in research funding [55][61] Question: Actions regarding tariffs and mitigation - The company is actively managing inventory positioning, exploring global sourcing options, and considering selective pricing to mitigate tariff impacts [66][72] Question: Confidence in guidance and execution - Management acknowledges the challenges in revenue guidance but emphasizes strong execution on earnings and the ability to navigate macro challenges effectively [76][84] Question: Status of Life Sciences separation - The separation process remains on schedule, with strong interest in the assets, and the company aims to maximize shareholder value through this process [87][88] Question: Internal optimization and employee capacity - The company is focused on balancing efficiency initiatives with employee engagement, ensuring that continuous improvement efforts enhance productivity without overwhelming staff [92][100] Question: Market intelligence and competitive analysis - The company has a central strategy group that gathers market intelligence, and it continuously evaluates its assumptions to stay ahead of market dynamics [105][106]

Financial Data and Key Metrics Changes - Revenues grew 6% or 0.9% organically, which was below expectations, primarily due to market dynamics in Life Sciences and a slower return to normal levels in blood culture testing [6][12] - Adjusted gross margins increased to 54.9%, up 190 basis points year over year, driven by BD Excellence initiatives [7][26] - Adjusted diluted EPS was $3.35, reflecting a growth of 5.7% [26][30] Business Line Data and Key Metrics Changes - Biosciences faced challenges due to reduced global research funding, impacting instrument sales, while reagent sales continued to grow [9][11] - Diagnostics experienced softness in the Bactech Blood Culture business, with a slower recovery in testing levels [11][12] - Farm Systems returned to growth in Q2, driven by biologics and increased orders for GLP-1s [13][24] Market Data and Key Metrics Changes - Total company organic growth was led by the U.S., Greater Asia (excluding China), and Latin America, while EMEA declined and China saw a double-digit decrease [24] - The company adjusted its full-year revenue guidance to expect 3% to 3.5% organic growth due to market dynamics [12][29] Company Strategy and Development Direction - The company is focused on navigating the near-term environment while positioning itself for long-term value through strategic investments [6][19] - BD plans to invest $2.5 billion in U.S. manufacturing over the next five years to strengthen its position in the healthcare system [15][18] - The separation process for the Biosciences and Diagnostics business is on track, with strong interest in the assets [19][85] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the volatility in research funding and its impact on sales, particularly in the Life Sciences segment [6][77] - The company remains committed to mitigating tariff impacts and expects to absorb $90 million in tariff expenses for FY 2025 [17][30] - Future guidance includes total revenue growth of 7.8% to 8.3% and organic growth of 3% to 3.5% for the remainder of the fiscal year [29][30] Other Important Information - BD Excellence initiatives are seen as a key driver for margin expansion and growth investments in R&D and commercial programs [8][22] - The company is actively managing its supply chain to mitigate tariff impacts and has implemented cost containment measures [18][72] Q&A Session Summary Question: Clarification on tariff impact - The $0.25 EPS impact from tariffs is a net number after mitigation efforts, and the situation remains fluid with ongoing adjustments [33][36] Question: Expectations for organic growth in the second half - The company expects organic growth to improve sequentially, with Q3 around 3% and Q4 expected to exceed 5% due to easier comparisons and key growth drivers [39][51] Question: Breakdown of organic sales growth adjustments - The adjustment reflects known headwinds in China and market-driven factors, with significant impacts from BDB and research spending [54][56] Question: Actions regarding tariffs and mitigation - The company is employing multiple strategies, including inventory positioning and sourcing alternatives, to mitigate tariff impacts [64][66] Question: Confidence in guidance amid market changes - Management acknowledged the challenges but emphasized strong execution on earnings and the ability to navigate macro dynamics effectively [75][82] Question: Update on Life Sciences separation process - The separation remains on schedule with strong interest in the assets, and details will be shared in the summer [85][86]