Aug 6, 2026 earnings call — New BD momentum and strategy update
BD updated fiscal 2026 guidance and set adjusted EPS range to $12.62 to $12.72.
Revenue $5.0B (est $4.9B) · EPS $3.23 (est $3.14)
Key quotes
"This includes double-digit growth across biologic drug delivery, advanced patient monitoring, PureWick and advanced tissue regeneration, along with strong performance in peripheral vascular disease and Rowa pharmacy automation."
"Again, this quarter, we delivered approximately 8% gross productivity in our plants with service levels above 90%."
"Year-to-date, we returned $3.1 billion to shareholders, including approximately $2.3 billion in share repurchases and $0.9 billion in dividends."
Analyst Q&A 9
quarter strength and guidance
Q (Travis Steed · BofA): Analyst asked why the quarter was so strong, whether any onetime items affected results, and how that strength affected moving revenue guidance to the high end and whether it carries into fiscal '27.
A: Management said the strength comes from momentum in the company’s growth platforms they built over the last 5 years. Four growth platforms grew double digits and the rest grew high single digits in the quarter. They are reinvesting in commercial and R&D into these faster growth areas to sustain momentum and help margins.
"Those growth platforms, we had actually 4 of them growing double digits, the rest all growing high single digits in the quarter." — Thomas Polen (CEO·CHAIR)
share gains: innovation or sales
Q (Patrick Wood · UBS): Analyst asked whether share gains were driven by the innovation pipeline or by changes to the commercial approach, since BD already has high share in many categories.
A: Management said it is a combination of both innovation and changes to the commercial approach under their Excellence Unleashed program. They changed comp and tools, began deploying AI, reallocated headcount to growth areas and made about a $35 million incremental investment in targeted areas. Early results include APM growth helped by sales hires and other gains described on the call.
"We've been reallocating our commercial headcount into the highest growth spaces, and you saw us at the beginning of the year, discuss making about a $35 million incremental investment in very targeted areas." — Thomas Polen (CEO·CHAIR)
fiscal 2027 growth and margins
Q (Larry Biegelsen · Wells Fargo): Analyst asked if fiscal '27 revenue growth could be nearer the high end of low single digits and what to expect for P&L puts and takes and operating margins next year.
A: Management reiterated they view FY '27 as low single-digit revenue growth and noted a 200 basis points headwind from the Alaris remediation. They said a reasonable starting point for earnings is modest EPS leverage off that low single-digit revenue baseline, supported by pricing, BD Excellence productivity and capital allocation. Formal guidance will be provided on the November call.
"But I think important, our philosophy remains focused on establishing executable commitments and creating the opportunities for the consistent delivery against them." — Vitor Roque (CFO)
hospital use and capital spending
Q (Vijay Kumar · Evercore): Analyst asked about the broader hospital utilization and capital spending outlook given APM is growing double digits.
A: Management said they watch hospital utilization closely and saw solid utilization across the portfolio in Q3. They pointed to U.S. MDS up 6% in the quarter as evidence of strong catheter and syringe use. They also noted specimen management had U.S. growth of 14% this quarter but cautioned that rate may not fully recur.
"You can see in our results, U.S. MDS up 6% in the quarter, indicative with strong catheter utilization, syringe, et cetera." — Thomas Polen (CEO·CHAIR)
parts weighing on growth
Q (Robert Marcus · JPMorgan): Analyst asked about the roughly 10% of the business that weighed on organic growth, other line items beyond Alaris, trends, and visibility to an end to those headwinds.
A: Management said they have been focused on three headwinds all year: Alaris, China and vaccines, and each is playing out as expected. Vaccines are showing signs of stabilization and they will begin lapping that headwind next quarter. China is a much smaller portion now at about 4% of New BD revenue and will be less significant, while Alaris is a defined remediation that creates a 200 basis points headwind next year and then ends.
"So obviously, we've been talking consistently throughout the year on 3 specific headwinds: Alaris, which is extremely defined, China and vaccines." — Thomas Polen (CEO·CHAIR)
modest EPS leverage and product drivers
Q (Joanne Wuensch · Citibank): Analyst asked how management defines 'modest' EPS leverage in 2027 and what product drivers to watch over the next 12 to 18 months.
A: On products, management said product drivers will come from their growth platforms with launches and continued momentum in APM, tissue regeneration, pharmacy automation, biologics (including GLP-1 deals and biosimilar pen launch), and Connected Care. On EPS, management said the modest leverage reference is an EPS starting assumption off a single-digit revenue baseline, reflecting Alaris flow-through, pricing, mix benefits and BD Excellence productivity while they continue to invest in commercial and innovation.
"As we think about product drivers, expect those to be in our growth platforms continuing down the line." — Thomas Polen (CEO·CHAIR)
Q4 growth and inflation assumptions
Q (Matthew Taylor · Jefferies): Analyst asked if implied Q4 growth (lower than Q3) reflects conservatism and what inflation or input-cost headwinds management is assuming for next year, especially oil-related resin costs and how they are hedging.
A: Management said they are taking a conservative posture on macro and have been proactive when inputs rose, using pricing actions to offset higher costs. Resin and molded plastic components are about 5% of COGS and they took actions when oil was higher. For Q4, management said the main driver of a step-down is the tougher Alaris compare, which increases the Alaris-related pressure from 100 basis points in Q3 to 200 basis points in Q4.
"So the calculation implies a step down in Q4 compared to Q3." — Vitor Roque (CFO)
productivity gains and long-term margins
Q (Frederick Wise · Stifel): Analyst asked how much more productivity improvement remains and the implications for operating margins toward the end of the decade, noting recent margin gains and new AI initiatives.
A: Management said continued revenue growth and positive mix from growth platforms will help gross margin and that BD Excellence has driven substantial productivity gains, including many Kaizens and about 8% productivity improvements each quarter this year. They said they have a multiyear roadmap, more runway in procurement and material changes, and are applying AI to improve gross margin and reduce inventory. They did not give a long-term operating margin target now and will share more at Analyst Day.
"And of course, all of that ultimately flows through to a combination of margin expansion as well as driving to our cash flow goals that we've got." — Thomas Polen (CEO·CHAIR)
Alaris effect on margins
Q (Joshua Jennings · TD Cowen): Analyst asked how Alaris revenue decline affected margins during the recall and remediation, and how management will offset margin impact from the Alaris flow-through starting in Q4 and through fiscal '27.
A: Management said they have clear line of sight to deliver Q4 margin enhancements based on productivity gains already realized during the year. For FY '27, they said the Alaris revenue decline naturally drops through to the bottom line and they are factoring that into assumptions, while taking actions such as pricing, BD Excellence productivity, and targeted investments to offset impacts where possible. The modest EPS starting assumption for '27 reflects those dynamics.
"Now if we go into '27, the pressure from Alaris is just the fact that the revenue is coming down significantly on Alaris and there is a natural drop-through on the bottom line that we are factoring into our assumptions." — Vitor Roque (CFO)