BDQ3 2025 Earnings Call Transcript

Becton, Dickinson and Company (BDX) Q3 2025 earnings call transcript reveals key points from the company's latest financial performance. CEO Tom Polen and CFO Chris DelOrefice discussed the company's growth, led by strong performance in the Medical segment. Q&A session was joined by segment presidents, covering topics such as revenue growth, R&D investments, and future outlook.

Becton, Dickinson and Company (BDX) reported its third-quarter fiscal year 2025 earnings on August 7, 2025, showcasing significant improvements in financial performance. The company's CEO, Tom Polen, and CFO, Chris DelOrefice, discussed the company's growth, led by strong performance in the Medical segment. The earnings call also included a Q&A session with segment presidents, covering key topics such as revenue growth, R&D investments, and future outlook.

Key Financial Highlights

- Revenue for the quarter reached $5.5 billion, an increase of 10.4% year-over-year [3].
- Adjusted revenue growth was 8.5% on a currency-neutral basis, while organic revenue growth was 3.0% [2].
- Adjusted diluted earnings per share (EPS) grew to $3.68, a 5.1% increase compared to the same period last year [2].
- Gross margin improved by 160 basis points, while adjusted gross margin increased by 50 basis points, driven by the BD Excellence program [3].
- Operating income increased by 11.3% to $1.42 billion [2].

Segment Performance

- BD Medical: Generated $2.93 billion in revenue, growing 14.0% on a currency-neutral basis and 3.2% organically. This growth was driven by increased volumes in Medication Delivery Solutions and strong performance in Medication Management Solutions [2].
- BD Life Sciences: Reported revenue of $1.25 billion, declining 1.1% compared to the prior year. The segment faced challenges in the research market but saw growth in Specimen Management [2].
- BD Interventional: Delivered $1.33 billion in revenue, growing 6.8% on a currency-neutral basis, with particularly strong performance in Peripheral Intervention and Surgery [2].

Strategic Initiatives and Innovation

- The company announced a value-creating transaction combining BD's Biosciences and Diagnostic Solutions businesses with Waters Corporation (NYSE:WAT). This strategic move is expected to enhance the company's focus on its core businesses while creating shareholder value [2].
- Several new product launches were highlighted, including the CentroVena One™ Insertion System, Phasix™ Incisional Hernia Prevention system, and FACSDiscover™ A8 Cell Analyzer [2].

Financial Analysis

- Despite strong revenue and earnings performance, BDX reported a 25% year-over-year decline in free cash flow for the first nine months of fiscal year 2025. The company attributed this decline to increased working capital and tariff impacts, though it noted benefits from its BD Excellence program [2].
- The company's balance sheet remains solid, providing flexibility for strategic investments and shareholder returns. The operating cash flow for the year-to-date period reached $2.1 billion [2].

Future Outlook

- BDX raised its full-year guidance based on the strong third-quarter performance. The company now expects total revenue of approximately $21.8 billion to $21.9 billion for fiscal year 2025, with adjusted revenue growth of 7.8% to 8.3% on a currency-neutral basis and organic revenue growth of 3.0% to 3.5% [2].
- Adjusted diluted EPS guidance was increased to $14.30 to $14.45, representing growth of 8.8% to 10.0% year-over-year [2].

References

[1] https://www.marketscreener.com/news/transcript-becton-dickinson-and-company-q3-2025-earnings-call-aug-07-2025-ce7c5edfdf8af52c
[2] https://www.investing.com/news/company-news/becton-dickinson-q3-fy25-presentation-organic-growth-accelerates-guidance-raised-93CH-4176362
[3] https://news.bd.com/2025-08-07-BD-Reports-Third-Quarter-Fiscal-2025-Financial-Results