Becton Dickinson and : Presentation Q2 FY26

Published: 2026-05-07 06:37:11 ET BDX

Published on 05/07/2026 at 06:37 am EDT

Q2 FY26

Earnings Presentation

May 7, 2026

Advancing the world of healthTM

Basis of Presentation

All dollar amounts presented are USD ($) in millions, unless otherwise indicated, except per share figures. FXN denotes currency-neutral basis. Revenue year-over-year change comparisons are on an FXN basis unless otherwise noted.

References to "FY" refer to BD's fiscal year, which ends September 30.

Beginning October 1, 2025, the company began operating under our previously disclosed New BD segment structure that includes Medical Essentials, Connected Care, BioPharma Systems and Interventional, and a 5th Life Sciences segment comprised of Biosciences and Diagnostic Solutions. Subsequent to the spin-off of the company's former Biosciences and Diagnostic Solutions business, which was previously the Life Sciences segment, and the combination of the business with Waters Corporation on February 9, 2026, the Life Sciences segment was eliminated, leaving the Company with four distinct, separately-managed segments. The financials discussed here and included in the earnings release and Form 10-Q have been recast to reflect this reorganization and the historical results of the Life Sciences segment are reflected as discontinued operations for all periods presented.

Financial information presented in this presentation reflects BD's results on a continuing operations basis.

The BioPharma Systems segment is comprised of the Company's former Pharmaceutical Systems organizational unit. New BD refers to BD post the separation of the Biosciences and Diagnostic Solutions business from BD.

Guidance Considerations

The company is providing guidance for fiscal year 2026 for BD which reflects the separation of its Biosciences and Diagnostic Solutions business and combination with Waters Corp., which closed on February 9, 2026. All guidance metrics provided reflect the expected performance of BD only for full year fiscal 2026 as the separated business has been accounted for as discontinued operations. BD's outlook for full year fiscal 2026 reflects numerous assumptions about many factors that could affect its business, based on the information management has reviewed as of this date.

Tariff commentary is based on tariff policies in effect as of May 6, 2026. International trade policies, trade restrictions and tariffs are rapidly evolving and there can be no assurance as to how the landscape may change and what the ultimate impact on our guidance and results of operations will be.

Guidance does not contemplate a more significant escalation of macro complexity. Effective tax rate guidance assumes no major legislative or regulatory changes; it is not unusual for the rate to fluctuate quarterly given timing of discrete items. Estimated full year foreign currency impact reflects actual rates to date and current spot rates for the remainder of the year.

The company's expected adjusted diluted EPS and adjusted operating margin for fiscal 2026 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, separation-related costs, and certain tax matters. BD does not attempt to provide reconciliations of forward-looking adjusted diluted non-GAAP EPS and adjusted operating margin guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of BD's financial performance. We also present our estimated revenue growth for our 2026 fiscal year after adjusting for the illustrative impact of foreign currency translation. BD believes that this adjustment allows investors to better evaluate BD's anticipated underlying revenue performance for our 2026 fiscal year in relation to our underlying 2025 fiscal year performance.

Market and Industry Data

This presentation includes estimates regarding market and industry data that BD prepared based on management's knowledge and experience in the industry in which BD operates, together with information obtained from various sources, including publicly available information, industry reports and publications. In presenting this information, BD has made certain assumptions that BD believes to be reasonable based on such data and other similar sources and on BD's knowledge of, and BD's experience to date in, the industry in which BD operates. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and BD takes no responsibility for such information.

Broad-Based Execution Drives Raised Full-Year Adjusted EPS Guidance

Revenue

$4.7B

+2.6% FXN

Adjusted Operating Margin

24.2%

(110 bps) YoY

Adjusted Diluted EPS

$2.90

+3.9% YoY

Operating Cash Flow

$1.3B

YTD

Delivered another quarter of consistent execution, reinforcing confidence in New BD strategy

Performance reflected broad-based execution across the portfolio, with more than 90% of the business delivering mid-single-digit revenue growth

Commercial excellence and investments driving double-digit growth in key platforms, including Biologic drug delivery, Advanced Patient Monitoring, PureWick and Advanced Tissue Regeneration

Adjusted operating margin and adjusted diluted EPS exceeded expectations, driven by productivity gains through BD Excellence and the high quality of revenue performance

Returned $2.3B to shareholders; $2B in share repurchases and $0.3B in dividends

Raised full-year 2026 adjusted diluted EPS guidance and reaffirmed revenue growth expectations driven by YTD performance and improved visibility into 2H'26

Compete

Innovate

Deliver

+ APM: delivered nearly 20% growth in Smart Recovery consumables

+ MMS: drove BD Alaris share gains of ~50 bps in Q2 FY26 and ~150 bps YTD

+ BPS: secured several significant long-term customer wins, including two next-gen GLP-1 programs with leading global pharma companies

+ Surgery: continued to build competitive momentum with strength globally from synthetic hernia and Advanced Tissue Regeneration portfolio

+ UCC: drove continued adoption across PureWick portfolio, including expanding PureWick at-home initiative and VA adoption

+ Applied BD Excellence to 5 development programs and on average reduced the time to launch by over 10 months

+ Increasing cadence of high-impact launches that expand out addressable markets and support sustainable long-term growth

+ PI: launched EnCor EnCompass Biopsy System in the U.S.

+ PI: early launch of the Revello Vascular Covered Stent in Europe

+ APM: expanded launch of the HemoSphere Stream Module in the U.S. and Europe

+ ~8% gross productivity improvements in our plants in Q2 FY26

+ Service levels over 90%

+ Strong progress on $200M cost-out program, with a run-rate of $150M already completed

High-Impact Launches Expanding Addressable Markets

Transforming accessibility of continuous noninvasive blood pressure monitoring

New low profile delivery system and flexible covered stent

Streamlining workflow across all image-guided biopsy modalities

HemoSphere Stream Module

Revello Vascular Covered Stent EnCor EnCompass Biopsy System

Launched in the U.S. and Europe in Q2 FY26

Expands addressable market ~10x to approximately 300k monitors

Latest generation of clinically proven technology designed to help clinicians detect hypotension and related risks

Scalable solution that seamlessly integrates with compatible bedside monitors, expanding care to a broader population

Launched the EU iliac in Q2 FY26

Additional planned launches: U.S. iliac in FY27; US SFA in FY28

Offers less invasive delivery and more flexibility for the treatment of peripheral arterial disease targeted for long and heavily calcified iliac and SFA lesions

Launched in the U.S. in Q2 FY26

Strengthens position in $450M global breast biopsy market

Advanced, user-friendly, multi-modality console vacuum assisted biopsy system

Designed to deliver procedural flexibility while streamlining workflow

Q2 FY26 Segment Revenue and Key Highlights

Medical Essentials

$1,647

Connected Care BioPharma Systems Interventional

$1,120

$1,068

FXN

+3.2%

$575

$590

FXN

(1.8%)

$1,357

$1,573

FXN

+1.7%

$1,264

FXN

+5.3%

Q2 FY25 Q2 FY26

MDS: $1,163; +1.4% FXN

Continued share gains in U.S. Vascular Access Management, partially offset by VoBP in China

SM: $484; +2.5% FXN

Solid growth in the U.S. driven by share gains in the BD Vacutainer® portfolio, partially offset by VoBP in China

Q2 FY25 Q2 FY26

MMS: $829M; +0.4% FXN

U.S. Infusion grew modestly with a difficult prior-year comparison in Alaris capital offset by higher infusion set utilization that included Alaris share gain pull-through; OUS growth driven by BD Rowa

APM: $292M; +12.0% FXN

Strong volume growth across the portfolio driven by Smart Recovery, HemoSphere Alta and continued adoption of Acumen IQ Cuff and Acumen IQ Sensor

Q2 FY25 Q2 FY26

Performance reflects expected lower market demand for Vaccine products, partially offset by double-digit growth in Biologics

Q2 FY25 Q2 FY26

PI: $515M; +4.0% FXN

Strength in PVD led by the Rotarex Atherectomy System, along with strength in Oncology, partially offset by VoBP in China

UCC: $430M; +6.5% FXN

Double-digit growth in PureWick with continued adoption of the Male and Female portfolios and continued expansion in home care settings

SURG: $411M; +5.5% FXN

Double-digit growth in Infection Prevention and Advanced Tissue Regeneration

Q2 FY26 Financial Summary: Revenue, Adjusted Margins and Adjusted EPS

(As adjusted)

$ in millions, except per share data

Q2 FY26

Q2 FY25

Y/Y ∆

Revenues

FXN revenue growth

$4,714

$4,480

5.2%*

2.6%

Gross Profit

$2,579

$2,492

3.5%

Gross margin

54.7%

55.6%

(90 bps)

SSG&A

% of revenues

$1,228

26.0%

$1,126

25.1%

9.0%

90 bps

R&D

% of revenues

$246

5.2%

$230

5.1%

7.0%

10 bps

Other Operating (Income) expense, net

($37)

Operating Income

$1,142

$1,133

0.8%

Operating margin

24.2%

25.3%

(110 bps)

Interest / Other, net

($153)

($156)

(1.9%)

Tax Rate

17.5%

17.7%

(20 bps)

Net Income

$816

$804

1.5%

Average diluted common shares (M)

282

288

Earnings per Share

$2.90

$2.79

3.9%

Q2 FY26 EARNINGS PRESENTATION May 7, 2026

Please see Basis of Presentation on slide 3 and Appendix for non-GAAP reconciliations.

*Growth includes foreign exchange impact.

NM denotes that the percentage change is not meaningful.

Strong Cash Generation and Capital Allocation Strategy Supporting $2.3B in Shareholder Returns

YTD free cash flow improved YoY primarily driven by disciplined working capital management, improved asset utilization, and continued progress reducing non-operational cash items

Returned $2.3B to shareholders in Q2, including

$2B in share repurchases and $0.3B in dividends

Net leverage of 2.9x, remain committed to our 2.5x long-term net leverage target

Free Cash Flow

$1,095 M

$270 M

+305%

Q2 FY25 YTD Q2 FY26 YTD

Q2 FY26 EARNINGS PRESENTATION May 7, 2026

Please see Basis of Presentation on slide 3 and Appendix for non-GAAP reconciliations.

Raising Adjusted EPS Guidance on First-Half Momentum

Guidance as of May 7, 2026

Guidance as of February 9, 2026

Guidance Considerations

Revenue Growth (FXN)

Low single-digit growth

For the full year, expect ~120 bps FX tailwind on revenue(1)

Adjusted Operating Margin

~25.0%

Adjusted Diluted EPS

$12.52 to $12.72

+5.2% to 6.9%

$12.35 to $12.65

+3.8% to 6.3%(2)

Increasing adjusted diluted EPS guidance given 1H performance, breadth of growth across the portfolio and continued productivity through BD Excellence

Adjusted ETR expected to remain between 16.0% and 17.0%

Q2 FY26 EARNINGS PRESENTATION May 7, 2026

(1) FX estimates based on current spot rates and currency mix. (2) Growth rate calculated vs. FY25 restated adjusted diluted EPS of $11.90 after taking into consideration the closing of the transaction with Waters. Note: Please see Basis of Presentation on slide 3 and Appendix for non-GAAP reconciliations. This guidance is only effective as of the date given, May 7, 2026 and will not be updated or affirmed unless and until we publicly announce updated or affirmed guidance. Distribution or reference of this deck following May 7, 2026 does not constitute BD re-affirming guidance.

Summary

Delivered another quarter of consistent execution, reinforcing confidence in New BD strategy

Performance reflected broad-based execution across the portfolio, with more than 90% of the business delivering mid-single-digit revenue growth

Commercial excellence and investments driving double-digit growth in key platforms, including Biologic drug delivery, Advanced Patient Monitoring, PureWick and Advanced Tissue Regeneration

Adjusted operating margin and adjusted diluted EPS exceeded expectations, driven by productivity gains through BD Excellence and the high quality of revenue performance

Returned $2.3B to shareholders; $2B in share repurchases and $0.3B in dividends

Raised full-year 2026 adjusted diluted EPS guidance and reaffirmed revenue growth expectations driven by YTD performance and improved visibility into 2H'26

Q2 FY26 EARNINGS PRESENTATION May 7, 2026

Please see Basis of Presentation on slide 3 and Appendix for non-GAAP reconciliations.

Appendix

Q2 FY26 EARNINGS PRESENTATION May 7, 2026 12

Advancing a Stronger, More Focused Pipeline of High-Impact Solutions

Medical Essentials

Connected Care

BioPharma Systems

Interventional

SiteRite 9 Ultrasound

BD® Intraosseous Vascular Access System

BD Alaris Infusion System

BD Pyxis Pro Dispensing Solution

BD Incada Connected Care Platform

BD Neopak XtraFlow Glass Prefillable Syringe

BD Vystra Disposable Pen

BD Physioject Disposable Autoinjector

PureWick Male and Flex Female External Catheter

PureWick Portable

Surgiphor Pulse

PIVO Pro + BD Nexiva with NearPort IV Access

CentroVena One Insertion System

HemoSphere Alta Monitor

Swan-Ganz IQ Catheter and ForeSight IQ Sensor

HemoSphere Stream Module with VitaWave Plus Cuff

BD Libertas 5mL

BD Duel Injection Prefillable Syringe System

Avitene Flowable

BD EnCor EnCompass

BD Liverty TIPS Stent Graft

BD MiniDraw

BD Vacutainer® AccuSTAT

Parata Max 2 Central Fill

BD Pyxis MedBank 2.0

U.S. NextGen Infusion Pump

BD Neopak XtraFlow 5.5mL Glass Prefillable

Syringe

BD Evolve

BD Libertas 10mL

GalaFLEX Breast

Revello Vascular

Covered Stent

Phasix Parastomal

Scionix Sirolimus

DCB

Q2 FY26 EARNINGS PRESENTATION May 7, 2026 Key: Recent innovation driving growth / Near and mid-term catalysts / Select pipeline products 13

Corporate Sustainability: Together We Advance

Named among

America's Best Large Employers

by Forbes in 2026

Named among America's Climate Leaders

by USA TODAY in 2026

Named among Best Employers for Company Culture by Forbes in 2026

Named

Top Performer on Just 100 Rankings

by Just Capital in 2026

Received 2026 HIRC

Member Choice Awards for Transparency, Resilience and Partnership

Glossary

F i rs t Hal f

GL P - 1

G l uc a go n - L ik e P ep tid e - 1

SF A

Se c o n d H a l f

I n t r a ve n o us

A PM

A d v a n c e d P a tien t M o n ito r in g

T ho u s a nd

SSG & A

Bi l l i on

M i lli o n

SU R G

BP S

B i o P h arma S y s t e ms

MDS

M ed ic a t io n D el iv e r y S o l u tio n s

T IP S

bps

B a si s P o i n t s

M i lli li t e r

T SA / L SA

D CB

D r u g C oa t e d Ba l l oon

MMS

M ed ic a t io n M a n a g em e n t S o l u tio n s

U CC

S u p e rf i c i a l F e mo ral A rt e r y

E BIT D A

E a r n in g s B ef o r e I n ter e s t , T a x es , D ep r ec i a t i o n , A m o r tiz a t io n

S p e c i me n Man ag e me n t

Sh i p p i n g, Se l l in g, G e n e r a l a n d A d m in is tr a ti v e

Sur ge r y

T r a n s jugul a r I n t r a h e p a t ic P o r t o s y s t e m ic Sh un t

T r a n s it io n a l Se r vi c e A gr e e m e n t / L o gis t ic s S e r v i ces A g r e em en t

U ro l o g y & C ri t i c a l C are

O US O u ts id e th e U n ited S ta tes U . S. U n ited S ta tes

E PS E arn i n g s P e r S h are PI P er ip h er a l I n ter v e n ti o n U SD U n ited S ta tes D o l l a r E TR E f f e cti v e T a x R a t e PV D P er ip h er a l V a s c u l a r D is ea s e VA Ve t e r a n s A ffa i r s

EU E u r o p e a n U ni o n Q Q u art e r V oBP V o l um e - b as e d p ro c u re me n t FC F Fr e e C a s h Fl o w R &D R es ea r c h a n d D ev el o p m e n t YoY or Y/ Y Y e ar o v e r Y e ar

FX F o r e i g n E x c ha ng e SE C Se c ur it ie s a n d E x c h a n ge C o m m i s s i o n YT D Y e ar T o Dat e FY F i s c al Y e ar

Supplemental Reconciliation - Revenues by Business Segments and Units

For the Three Months Ended March 31, (Unaudited; $ in millions)

Effective October 1, 2025, the Company reorganized its organizational units into five distinct, separately-managed segments, which were based on the nature of the Company's product and service offerings. Subsequent to the spin-off of the company's former Biosciences and Diagnostic Solutions business (which was previously the Life Sciences segment) and the combination of the business with Waters on February 9, 2026, the Life Sciences segment was eliminated, leaving the Company with four distinct, separately-managed segments. Prior period amounts have been recast to reflect the reorganization on a continuing operations basis.

The BioPharma Systems segment is comprised of the Company's former Pharmaceutical Systems organizational unit.

Supplemental Revenue Information - Revenues by Geographic Regions

For the Three Months Ended March 31, (Unaudited; $ in millions)

A B C

D=(A-B)/B E=(A-B-C)/B

% Change

2026

2025

FX Impact

Reported

FXN

DEVELOPED MARKETS REVENUES

$ 4,121

$ 3,933

$ 90

4.8

2.5

EMERGING MARKETS REVENUES

592

547

8.3

3.5

TOTAL REVENUES FROM CONTINUING OPERATIONS

$ 4,714

$ 4,480

$ 116

5.2

2.6

China

$ 209

$ 222

$ 8

(6.2)

(9.8)

Supplemental Reconciliation - Reported Diluted EPS to Adjusted Diluted EPS

For the Three Months Ended March 31,

(Unaudited)

Includes amortization and other adjustments related to the purchase accounting for acquisitions.

Represents costs associated with integration and restructuring activities. Restructuring costs for the three months ended March 31, 2026 reflect non-cash asset impairment charges of $450 million across all reportable segments based upon the Company's commitment to exit certain operational activities and projects which no longer align with and facilitate its current operational strategy, Excellence Unleashed. These exit actions are aimed at simplifying the Company's operations and aligning resources behind its most value-creating platforms. The impairment charges are primarily reflected as decreases of $238 million within Property, plant and equipment, net, and $134 million within Goodwill and other intangibles, net, on the Company's March 31, 2026 condensed consolidated balance sheet.

Represents costs recorded to Other operating expense, net, incurred in connection with the separation of our former Biosciences and Diagnostic Solutions business and the combination of the business with Waters.

Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount for the three months ended March 31, 2026 reflects charges of $42 million recorded to Cost of products sold to adjust the estimate of future product remediation costs, charges of $52 million recorded to Other operating expense, net, related to various legal matters, and a charge of $25 million to Other expense, net related to pension settlement costs. The amount for the three months ended March 31, 2025 reflects a charge of $76 million recorded to Cost of products sold to adjust the estimate of future product remediation costs and charges of $32 million recorded to Other operating expense, net, related to various legal matters.

The amount in 2026 represents the exclusion of share equivalents associated with share-based plans from the reported diluted shares outstanding calculation because such equivalents would have been antidilutive due to the net loss incurred during the period. The adjusted diluted average shares outstanding (in thousands) were 281,674.

Supplemental Non-GAAP Reconciliation

For the Three Months Ended March 31, 2026 (Unaudited; $ in millions, except per share data)

Reported (GAAP)

Purchase accounting adjustments

Integration costs

Restructuring costs

Impacts of debt extinguishment

Separation-related items

Product, litigation, and

other items TSA / LSA total Dilutive Impact

Income tax benefit of special items

Adjusted (Non-GAAP)

Notes for Non-GAAP

Adjustment (1)

Revenues

$ 4,714

- -

- $ 4,714

Gross Profit

% Revenues

$ 2,154

45.7%

$ 376

- -

$ 49

- $ 2,579

54.7%

1, 4

SSG&A

% Revenues

$ 1,213

25.7%

$ 8

- -

$ 6

- $ 1,228

26.0%

1, 4

R&D

% Revenues

$ 249

5.3%

- -

$ (3)

- $ 246

5.2%

Integration, restructuring and transaction expense

% Revenues

$ 533

11.3%

$ (46)

$ (487)

- -

Other Operating Expense (Income), net

% Revenues

$ 66

1.4%

- $ (40)

$ (53)

$ (11)

- $ (37)

-0.8%

3, 4

Operating Income

Operating Margin

$ 93

2.0%

$ 368

$ 46

$ 487

- $ 40

$ 98

$ 11

- $ 1,142

24.2%

1, 2, 3, 4

Net interest expense

$ (140)

Other Income (Expense), Net

$ 86

$ (122)

$ 34

$ (11)

$ (13)

Income Tax Provision

$ 76

$ 97

$ 173

Effective Tax Rate

193.1%

17.5%

Net Income

$ (37)

$ 368

$ 46

$ 487

$ (122)

$ 40

$ 132

$ (97)

$ 816

1, 2, 3, 4

% Revenues

-0.8%

17.3%

Diluted Earnings per Share from Continuing Operations

$ (0.13)

$ 1.31

$ 0.16

$ 1.73

$ (0.43)

$ 0.14

$ 0.47

$ (0.01)

$ (0.35)

$ 2.90

1, 2, 3, 4, 5

Refers to footnotes on slide 18.

Supplemental Non-GAAP Reconciliation

For the Three Months Ended March 31, 2025 (Unaudited; $ in millions, except per share data)

Reported (GAAP)

Purchase accounting adjustments

Integration costs

Restructuring costs

Product, litigation, and

other items TSA / LSA total

Income tax benefit of special items

Adjusted (Non-GAAP)

Notes for Non-GAAP

Adjustment(1)

Revenues

$ 4,480

- - - -

- $ 4,480

Gross Profit

$ 1,861

$ 544 - - $ 87

- $ 2,492

1,4

% Revenues

41.5%

55.6%

SSG&A

$ 1,117

- - - $ 9

- $ 1,126

% Revenues

24.9%

25.1%

R&D

$ 232

- - - $ (2)

- $ 230

% Revenues

5.2%

5.1%

Integration, restructuring and transaction expense

$ 93

- $ (26) $ (66) -

- -

% Revenues

2.1%

Other Operating Expense (Income), net

$ 35

- - - $ (35)

$ 3 $ 3

% Revenues 0.8%

0.1%

Operating Income $ 383 $ 544 $ 26 $ 66 $ 115 $ (3)

$ 1,133

1, 2, 4

Operating Margin 8.6%

25.3%

Net interest expense $ (146) $ (1) - - - -

$ (147)

Other Income (Expense), Net

$ (36)

$ 24

$ 3

$ (9)

Income Tax Provision

$ 43

$ 129

$ 173

Effective Tax Rate

21.5%

17.7%

Net Income

$ 158

$ 543

$ 26

$ 66

$ 139

$ (129)

$ 804

1, 2, 4

% Revenues

3.5%

17.9%

Diluted Earnings per Share from Continuing Operations

$ 0.55

$ 1.89

$ 0.09

$ 0.23

$ 0.48

$ (0.45)

$ 2.79

1, 2, 4

(1) Refers to footnotes on slide 18.

Supplemental Non-GAAP Reconciliation

Change in Three Months Ended March 31, 2026 Compared With Three Months Ended March 31, 2025 (Unaudited; $ in millions, except per share data)

(A) (B) (C) = (A) - (B) (D) = (C) / (B)

Adjusted

(Non-GAAP)

Q2 FY26

Q2 FY25

$ Change

% Change

Revenues

$ 4,714

$ 4,480

$ 234

5.2%

Gross Profit

$ 2,579

$ 2,492

$ 87

3.5%

% Revenues

54.7%

55.6%

SSG&A

$ 1,228

$ 1,126

$ 102

9.0%

% Revenues

26.0%

25.1%

R&D

$ 246

$ 230

$ 16

7.0%

% Revenues

5.2%

5.1%

Other Operating Expense (Income), net

$ (37)

$ 3

$ (40)

(1,406.2)%

% Revenues

(0.8%)

0.1%

Operating Income

$ 1,142

$ 1,133

$ 9

0.8%

Operating Margin

24.2%

25.3%

Net interest expense

$ (140)

$ (147)

$ 7

(4.7%)

Other Income (Expense), Net

$ (13)

$ (9)

$ (4)

(43.2%)

Income Tax Provision

$ 173

$ -

0.1%

Effective Tax Rate

17.5%

17.7%

Net Income

$ 816

$ 804

$ 12

1.5%

% Revenues

17.3%

17.9%

Diluted Earnings per Share from Continuing Operations

$ 2.90

$ 2.79

$ 0.11

3.9%

Supplemental Reconciliation - Net Leverage and Free Cash Flow

Last Twelve Months Ended March 31, 2026 (Unaudited; Amounts in millions)

For the Six Months Ended March 31, 2026 (Unaudited; Amounts in millions)

Reported GAAP Net Income from Continuing Operations $ 1,070

Adjusted for:

2026 2025 Change % Change

Depreciation, amortization and other

2,267

Net Cash Provided by Continuing Operating Activities

$ 1,328

$ 489

$ 839

171.6%

Interest expense

610

Less: Capital Expenditures

$ (233)

$ (219)

$ (14)

6.5%

Income taxes

201

Free Cash Flow

$ 1,095

$ 270

$ 825

305.4%

Share-based compensation

244

Integration costs, pre-tax(1)

160

Restructuring costs, pre-tax(1)

700

Transaction costs, pre-tax(2)

Separation-related items, pre-tax(3)

Debt extinguishment

(122)

Product, litigation, and other items, pre-tax(4)

434

Adjusted EBITDA

$ 5,609

A B C=A-B D=C/B

Short-Term Debt

$ 2,573

Long-Term Debt

14,706

Less: Cash, Cash Equivalents and Short-Term Investments

(816)

Net Debt

$ 16,463

Net Leverage(5)

2.9x

Represents costs associated with integration and restructuring activities. Restructuring costs for the three months ended March 31, 2026 reflects non-cash asset impairment charges of $450 million across all reportable segments based upon the Company's commitment to exit certain operational activities and projects which no longer align with and facilitate its current operational strategy, Excellence Unleashed. These exit actions are aimed at simplifying the Company's operations and aligning resources behind its most value-creating platforms.

Represents transaction costs associated with the Advanced Patient Monitoring acquisition.

Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount for the three months ended March 31, 2026 reflects charges of $42 million recorded to Cost of products sold to adjust the estimate of future product remediation costs, charges of $52 million recorded to Other operating expense, net, related to various legal matters, and a charge of $25 million to Other expense, net, related to pension settlement costs. The amount for the three months ended September 30, 2025 reflects charges of $232 million to Other operating expense, net, related to product liability and certain other legal matters, and a charge of $8 million to Other expense, net, related to pension settlement costs. The amount for the three months ended June 30, 2025 reflects a charge of $30 million related to pension settlement costs to Other expense, net.

Net Leverage is calculated by dividing Net Debt by Adjusted EBITDA.

Amounts may not add due to rounding.

FY2026 Guidance Reconciliation

Includes amortization and other adjustments related to the purchase accounting for acquisitions.

Represents costs associated with integration and restructuring activities.

Represents transaction costs incurred in connection with the Advanced Patient Monitoring acquisition.

$297 million to Other operating expense, net, related to product liability and certain other legal matters, and charges of $38 million to Other expense, net, related to pension settlement costs.

Disclaimer

BD - Becton, Dickinson and Company published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 10:36 UTC.