Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $5.3 billion, reflecting a 0.4% increase year-on-year, with new BD growing by 2.5% [5][18] - Adjusted gross margin was 53.4%, down 140 basis points from the previous year, primarily due to tariffs [20] - Adjusted EPS was $2.91, a decrease of 15.2% year-on-year, driven mainly by tariff impacts [21] - Free cash flow for the quarter was $548 million, with a conversion rate of 66%, up from 59% in the prior year [22] Business Line Data and Key Metrics Changes - Medical Essentials experienced mixed performance, with expected order timing dynamics affecting MDS, but continued share gains in the US vascular access management portfolio [18] - Connected Care delivered mid-single-digit growth, led by APM, which grew high single digits [18] - Biopharma Systems grew low single digits, with double-digit growth in biologics, particularly GLP-1s, offset by lower vaccine demand [19] - Interventional and surgery segments both delivered solid mid-single-digit growth, with advanced tissue regeneration and infection prevention portfolios performing well [19] Market Data and Key Metrics Changes - Growth in China was impacted by volume-based procurement (VBP) and market dynamics, but overall volume growth was positive despite price compression [42] - The US market showed strong performance in several categories, including pharmacy automation, which grew double digits [61] Company Strategy and Development Direction - The company is focused on a balanced capital allocation strategy, prioritizing share repurchases, dividends, and targeted tuck-in M&A in high-growth markets [8][80] - The strategic priorities include competing, innovating, and delivering, with significant investments in commercial capabilities and R&D to drive growth [11][73] - The company aims to leverage trends in healthcare, such as the rise of smart devices and the shift towards lower-cost care settings, to position itself for future growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the business, maintaining a prudent approach to guidance for fiscal 2026, with expectations of low single-digit revenue growth [24][25] - The company anticipates that pricing dynamics will improve as VBP in China abates, potentially leading to positive pricing in the future [91] Other Important Information - The completion of the life sciences transaction with Waters is seen as a significant milestone, providing a $4 billion cash distribution, with plans for $2 billion in share repurchases and $2 billion for debt paydown [8][24] - The company has reduced its manufacturing network by nearly half, which is expected to lower costs and improve operational efficiency [16][56] Q&A Session Summary Question: Guidance for Q2 revenue and EPS - Management indicated that Q2 guidance reflects modest timing benefits and that core growth drivers remain intact, with no significant changes expected [27][28] Question: Structural changes affecting mid-single-digit growth - Management confirmed that the fundamentals across the majority of the portfolio remain strong, with ongoing investments in high-growth areas [33][34] Question: Impact of Alaris and vaccines in China - Management expects Alaris to improve in 2027, with vaccines anticipated to be a smaller portion of revenue moving forward [40][42] Question: Pricing environment and innovation impact - Management noted a stable pricing environment with slight positive pricing outside of China, and expects new product innovations to help drive pricing and organic revenue growth [91]

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 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]

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]