Becton, Dickinson and Company

Q3 performance (first full quarter as “New BD”) beat expectations - Revenue: $5.0B, +4.4% YoY (FX-neutral) with >90% of the portfolio delivering high single-digit growth. - Profitability: Adjusted operating margin 24.9% (down ~100 bps) but supported by productivity/mix; Adjusted EPS $3.23, +4.9% YoY (ahead of expectations). - Segment highlights (growth drivers): BioPharma Systems +5.2% (GLP-1s double-digit growth; vaccines in China pressured), Interventional +5.5% (PI growth; China mixed), Connected Care +4.4% (APM + consumables; MMS/dispensing + Rowa), Medical Essentials +3.2% (MDS strong in US; specimen management aided by share + supply normalization).

Guidance update for FY2026: modest growth, higher EPS midpoint - Revenue: now expected toward the high end of the low single-digit range (and currency ~+100 bps tailwind based on current spot rates). - Margin: still targeting ~25% adjusted operating margin (inclusive of tariffs). - EPS: updated adjusted EPS range $12.62–$12.72, with the midpoint raised (Q3 strength + YTD execution + BD Excellence productivity). - Key structural callout: New BD growth platforms are scaling faster than the rest of the portfolio, increasingly driving top and bottom line.

What drove the strength (good + surprising) - Growth platforms are accelerating: management emphasized double-digit growth in areas like biologic drug delivery, advanced patient monitoring (APM), PureWick, advanced tissue regeneration, plus strong peripheral vascular disease and Rowa pharmacy automation. - Commercial + innovation + delivery (“BD Excellence”) all working together: - Commercial investments credited with early payback (example: APM sales team up ~15% in the US, contributing ~100–150 bps to APM growth in the quarter). - Innovation cadence improving with faster launches; pipeline shifting toward “growth vectors” (connected care, enabling lower-cost settings, chronic disease focus). - Delivery excellence: ~8% gross productivity in plants, service levels above 90%, backorders at record lows.