Becton, Dickinson and Company Q1 FY2026 earnings call

• Q1 performance: Delivered stronger-than-expected results with revenues of $5.3 billion increasing 0.4%. New Becton, Dickinson and Company grew 2.5% with broad-based growth in various areas. • Segment growth: Medical Essentials had mixed performance, Connected Care had solid growth, Biopharma systems had low single-digit growth, Interventional had solid mid-single-digit growth, Surgery had mid-single-digit growth, Life sciences declined. • Commercial initiatives: Made progress in commercial initiatives like sales force expansion in APM, PI, and advanced tissue regeneration, and initiatives for PureWick at home for veterans. Saw broad-based commercial success with Pyxis Pro launch, Alaris competitive wins, medical essentials share gain, Pharma Systems GLP-one wins, and BDI strength. • Innovation: Strengthened innovation pipeline by reallocating $50 million of central R&D to businesses, scaled Becton, Dickinson and Company excellence into R&D, reduced development times, entered new markets in surgery, advanced wound irrigation portfolio, and had targeted market release of HemoSphere Stream. • Operational excellence: Created simpler manufacturing network, achieved 8% productivity improvements, and made progress on $200 million cost-out program with $150 million or 75% of target executed.

Total company revenue was $5.3 billion, growing 0.4%. New Becton, Dickinson and Company grew 2.5%. Medical Essentials: MDS performance had expected order timing dynamics and volume-based procurement in China, but had share gains in U.S. Vascular Access Management; specimen management had solid growth in U.S. vacutainer portfolio offset by China market dynamics, order timing, and tough prior year comp. Connected Care: Delivered solid mid-single-digit growth, led by APM with high single-digit growth and pharmacy automation with double-digit growth in LoRa platform; infusion business growth driven by sets due to increased utilization; Alaris pumps slightly ahead of expectations despite revenue decline. Biopharma systems grew low single digits, with double-digit growth in biologics led by GLP-one, offset by lower vaccine demand. Interventional: Delivered solid mid-single-digit growth, including high single-digit growth in UCC due to PureWick. Surgery: Mid-single-digit growth led by advanced tissue regeneration and infection prevention portfolios; low single-digit growth in PI partially offset by China market dynamics. Life sciences declined due to U.S. point-of-care headwinds, difficult prior year comp, China market dynamics, lower life science research funding, and prior year licensing revenue.

• Fiscal 2026: Expect new Becton, Dickinson and Company to deliver low single-digit revenue growth, with currency estimated to be a tailwind of about 120 basis points. Adjusted operating margin expected to be about 25% inclusive of tariffs. Interest other net expected to be between $600 million and $620 million. Adjusted effective tax rate expected to be between 16-17%. Weighted shares outstanding for full year expected to be approximately 282 million shares. Adjusted EPS guidance for new Becton, Dickinson and Company in range of $12.35 to $12.65. • Q2: Expect revenue growth of approximately 2%, consistent with full-year guidance assumption, with Q2 adjusted EPS expected to be in range of $2.72 to $2.82.

Q: Travis Steed with Bank of America asked about guidance, Q2 revenue guide, step down in Q2, EPS guide, and cadence of year on revenue and earnings.

A: Thomas E. Polen said they are pleased with Q1 performance, Q2 outlook has core growth drivers intact, no ramp in year.

Q: Patrick Wood with Morgan Stanley asked about categories and structural change precluding mid-single-digit growth.

A: Thomas E. Polen said portfolio is reshaped with divestitures and tuck-in acquisitions, 90% of portfolio performs well, investing behind growth areas.

Q: Larry Biegelsen with Wells Fargo asked about 10% portfolio not growing mid-single digits, China VBP impact, vaccine headwinds lap, and Alaris expectation.

A: Thomas E. Polen said China VBP expected to go through 80% of portfolio by 2026, vaccines and Alaris playing out as expected, Alaris had strong competitive wins.

Q: Robbie Marcus with JPMorgan asked about Q2 being easiest comps, 2% revenue guide, and 25% operating margin.

A: Vitor Roach said Q2 has core drivers continuing, margin no one-timers, focused on innovation pipeline and Becton, Dickinson and Company Excellence.

Q: Joanne Wuensch with Citibank asked about macro factors and GLP-1 contracts.

A: Thomas E. Polen said utilization steady, CapEx solid, GLP-1s have high win rate with over 80 contracted molecules.

Q: Matt Taylor with Jefferies asked about GLP-1 franchise trajectory.

A: Thomas E. Polen said still on track with strong growth, broad biosimilar portfolio.

Q: Matt Miksic with Barclays asked about R&D investments and pipeline.

A: Thomas E. Polen said launches happening, $50 million shifted to R&D, new programs started, Kaizens accelerating innovation timelines.

Q: Shagun Singh with RBC Capital Markets asked about Alaris beyond this year and M&A.

A: Thomas E. Polen said Alaris expected to step up in 2027, focused on focused tuck-in M&A.

Q: Rick Wise with Stifel asked about upside to guidance and CFO search.

A: Thomas E. Polen said CFO search underway, upsides from invested growth areas and commercial excellence.

Q: Josh Jennings with T.P. Cowen asked about pricing environment and innovation pricing.

A: Thomas E. Polen said stable pricing, positive pricing in rest of world, new products entering new spaces.

Q: Jason Bedford with Raymond James asked about Alaris share position and expectation.

A: Thomas E. Polen said Alaris share position nearing 60%, expect to continue gaining share with strong funnel and innovation.