BD — Fiscal 2026 Earnings Summary

Financial Performance:

• Q4 2026 revenue was $5.3 billion, a 5.4% increase as reported and 5.6% foreign currency neutral (FXN) compared to Q4 2025.
• Full Year 2026 revenue was $19.5 billion, a 4.9% increase as reported and 3.9% FXN compared to FY 2025.
• Q4 2026 GAAP diluted EPS was $2.52 (vs. $1.20 in Q4 2025, a 110.0% increase); Adjusted diluted EPS was $4.15 (vs. $3.26 in Q4 2025, a 27.3% increase).
• Full Year 2026 GAAP diluted EPS was $5.06 (vs. $3.81 in FY 2025, a 32.8% increase); Adjusted diluted EPS was $12.70 (vs. $11.90 in FY 2025, a 6.7% increase).
• Cash from continuing operations for FY 2026 increased 30.0% to $3.6 billion.
• Free cash flow for FY 2026 increased 42.5% to $2.9 billion.
• Operating income for Q4 2026 was $1.0 billion, a 92.5% increase from $536 million in Q4 2025.
• Operating income for FY 2026 was $2.3 billion, a 16.3% increase from $1.9 billion in FY 2025.
• Net income from continuing operations for FY 2026 was $1.4 billion, a 28.7% increase from $1.1 billion in FY 2025.
• Total assets as of September 30, 2026, were $50.8 billion (down from $55.3 billion in FY 2025).
• Long-term debt as of September 30, 2026, was $13.4 billion (down from $17.6 billion in FY 2025).
• Current debt obligations as of September 30, 2026, were $2.9 billion (up from $1.6 billion in FY 2025).

Guidance and Future Outlook:

• FY 2027 GAAP revenue growth is guided to be low single-digit.
• FY 2027 revenue growth on a foreign currency neutral basis is guided to be low single-digit.
• FY 2027 Adjusted Diluted EPS is guided to be between $13.10 and $13.30.
• The illustrative foreign currency impact for FY 2027 revenue growth is approximately 70 basis points.
• Management states the company enters FY 2027 from a position of strength with a portfolio built for durable performance and confidence in long-term growth, earnings, and cash-flow potential.

Business Segments and Product Lines:

• Medical Essentials: Q4 2026 revenue was $1.8 billion, a 5.9% reported increase; FY 2026 revenue was $6.7 billion, a 4.0% reported increase.
• Connected Care: Q4 2026 revenue was $1.3 billion, a 1.6% reported increase; FY 2026 revenue was $4.7 billion, a 4.1% reported increase.
• BioPharma Systems: Q4 2026 revenue was $748 million, a 6.5% reported increase; FY 2026 revenue was $2.4 billion, a 4.8% reported increase.
• Interventional: Q4 2026 revenue was $1.5 billion, a 7.6% reported increase; FY 2026 revenue was $5.6 billion, a 6.8% reported increase.
• Product Launches: Launched the BD® Liverty™ TIPS Stent Graft in the U.S. for portal hypertension care.
• Clinical Milestones: Announced positive nine-month results from the iliac cohort of the AGILITY clinical trial for the BD® Revello™ Vascular Covered Stent; surpassed the first enrollment milestone in the STANCE clinical trial for BD® GalaFLEX LITE™ Scaffold; completed enrollment in the PREVENT clinical trial for BD® Phasix™ Mesh.
• Customer Agreements: Fairview Health Services deployed the BD® Vmax™ 160 Pharmacy Automation Robot.
• Corporate Restructuring: Completed the spin-off of the former Biosciences and Diagnostic Solutions business (Life Sciences segment) and its combination with Waters Corporation on February 9, 2026.
• Segment Reorganization: Effective October 1, 2025, reorganized into four distinct, separately-managed segments: Medical Essentials, Connected Care, BioPharma Systems, and Interventional.

Market and Competitive Landscape:

• BD is a leading global medical technology company operating across the globe with more than 60,000 employees.
• The company strengthened its leadership in peripheral vascular innovation with new product launches and clinical data.
• The company announced a landmark partnership with the U.S. Government to expand domestic manufacturing and strengthen supply chain resilience for essential medical consumables.
• The partnership includes an intent to invest $19 billion in the U.S. over several years, with $3 billion directed toward manufacturing expansion.
• The agreement provides relief from future tariffs imposed under Section 232 on covered BD products and inputs, subject to final scope and implementation.

Risks and Challenges:

• Risks include macroeconomic conditions, volatility from tariffs, import/export licensing requirements, and supply chain disruptions.
• Potential impacts from inflationary pressures, currency fluctuations, and increased borrowing costs.
• Geopolitical developments in the Middle East, Ukraine, and Asia affecting transportation routes and energy supplies.
• Competitive factors including changing customer preferences, new technologies (AI), and competitor product introductions.
• Regulatory risks including product efficacy/safety concerns, recalls, and changes in reimbursement practices or government funding.
• Cybersecurity risks, including cyberattacks and ransom attacks.
• Risks related to the execution of the "Excellence Unleashed" strategy and integration of acquired businesses.
• Non-cash asset impairment charges of $450 million recorded in FY 2026 related to exiting operational activities that no longer align with the current strategy.

Management Commentary and Tone:

• Tom Polen, Chairman, CEO, and President, stated the company delivered a strong fourth quarter with broad-based performance led by key growth platforms.
• Management described FY 2026 as a defining year for the transformation to a more focused MedTech company following the Life Sciences separation.
• Management highlighted the expansion of "BD Excellence" to elevate commercial capabilities, accelerate innovation, and drive productivity.
• The tone is confident, emphasizing a position of strength entering FY 2027 with a portfolio built for durable performance.

Other Key Points:

• The company will hold its 2026 Investor Day on December 10th at the New York Stock Exchange.
• FY 2026 included non-cash asset impairment charges of $450 million ($238 million in PP&E and $134 million in Goodwill/Intangibles) as part of the "Excellence Unleashed" strategy.
• FY 2026 included separation-related costs of $105 million pre-tax related to the spin-off of the Life Sciences business.
• FY 2026 included restructuring costs of $642 million pre-tax, which included the aforementioned impairment charges.
• The company repurchased $2.4 billion of common stock in FY 2026.
• Dividends paid in FY 2026 were $1.2 billion.
• The company received a benefit of $66 million related to refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in FY 2026.
• Net cash provided by continuing operating activities was $3.6 billion in FY 2026, up from $2.8 billion in FY 2025.
• Capital expenditures were $672 million in FY 2026, down from $715 million in FY 2025.