Financial Analysis

Acquisitions Advanced Patient Monitoring On September 3, 2024, the Company completed its acquisition of Edwards Lifesciences Critical Care product group, which was renamed as BD Advanced Patient Monitoring (Advanced Patient Monitoring). Since the acquisition date, financial results for Advanced Patient Monitorings product offerings are reported as a separate organizational unit within the Medical segment. Advanced Patient Monitoring is a global leader in advanced monitoring solutions that expands the Companys portfolio of smart connected care solutions with its growing set of leading monitoring technologies, advanced AI-enabled clinical decision tools and robust innovation pipeline that complement the Company's existing technologies serving operating rooms and intensive care units. The Company funded the transaction with cash on hand, using net proceeds raised through debt issuances in the third quarter of fiscal year 2024, as further discussed in Note 16, and borrowings under its commercial paper program. The acquisition was accounted for under the acquisition method of accounting for business combinations. The fair value of consideration transferred in connection with the acquisition was $3.914 billion. The assets acquired and the liabilities assumed in this acquisition included developed technology intangible assets of $722 million, customer relationships intangible assets of $657 million and $635 million of other net assets, which are primarily inventory. The goodwill rec …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Commitments The Company has certain future purchase commitments entered in the normal course of business to meet operational and capital requirements. As of September 30, 2025, these commitments aggregated to approximately $1.751 billion and will largely be expended within the next year. Contingencies The Company is involved, both as a plaintiff and a defendant, in various legal proceedings that arise in the ordinary course of business, including, without limitation, product liability and environmental matters in certain U.S. and international locations. Given the uncertain nature of litigation generally, the Company is not able, in all cases, to reasonably estimate the amount or range of loss that could result from an unfavorable outcome of litigation in which the Company is a party. Even if the Company believes it has meritorious defenses, from time to time the Company engages in settlement discussions and mediation and considers settlements, taking into account various factors including, among other things, developments in such legal proceedings and the resulting risks and uncertainties. These activities have resulted in settlements for certain matters and going forward could result in further settlements, which may be confidential and could be significant and result in charges in excess of accruals. In accordance with U.S. GAAP, the Company establishes accruals to the extent losses are probable and reasonably estimable. With respect to putati …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Current debt obligations The carrying value of Current debt obligations , net of unamortized debt issuance costs, at September 30 consisted of: (Millions of dollars) 2025 2024 Commercial paper borrowings $ 855 $ 400 Current portion of long-term debt 3.734% Notes due December 15, 2024 (a) 875 3.020% Notes due May 24, 2025 (a) 335 0.034% Notes due August 13, 2025 (a) 559 1.208% Notes due June 4, 2026 704 Other 1 1 Total current debt obligations $ 1,560 $ 2,170 (a) All of the aggregate principal amount outstanding was retired upon maturity during fiscal 2025, as further discussed below. The weighted average interest rates for current debt obligations were 2.89% and 2.91% at September 30, 2025 and 2024, respectively. From time to time, the Company may access the commercial paper market as it manages working capital over the normal course of its business activities. The Companys U.S. and multicurrency euro commercial paper programs provide for a maximum amount of unsecured borrowings under the two programs, in aggregate, of $2.750 billion. Proceeds from these programs may be used for working capital purposes and general corporate purposes, which may include acquisitions, share repurchases, and repayments of debt. The Company utilized commercial paper borrowings in the fourth quarter of fiscal year 2024 to partially fund the Advanced Patient Monitoring acquisition, as further discussed in Note 11. Long-term debt The carrying value of Long-Term Debt , net of unamortized debt is …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Share-Based Compensation The Company grants share-based awards under the 2004 Employee and Director Equity-Based Compensation Plan (2004 Plan), which provides long-term incentive compensation to employees and directors consisting of: stock appreciation rights (SARs), performance-based restricted stock units, time-vested restricted stock units and other stock awards. The fair value of share-based payments is recognized as compensation expense in net income. BD estimates forfeitures based on experience at the time of grant and adjusts expense to reflect actual forfeiture s. The amounts and location of compensation cost relating to share-based payments included in the consolidated statements of income is as follows: (Millions of dollars) 2025 2024 2023 Cost of products sold $ 53 $ 51 $ 50 Selling and administrative expense 160 156 170 Research and development expense 44 42 41 Integration, restructuring and transaction expense 5 Total share-based compensation cost $ 262 $ 249 $ 261 Tax benefit associated with share-based compensation costs recognized $ 60 $ 58 $ 58 Stock Appreciation Rights SARs represent the right to receive, upon exercise, shares of common stock having a value equal to the difference between the market price of common stock on the date of exercise and the exercise price on the date of grant. SARs generally vest over a period of four years and have a term of ten years. The fair value of awards was estimated on the date of grant using a lattice-based binomial opt …

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Financial Instruments and Fair Value Measurements The following reconciles cash and equivalents and restricted cash reported within the Company's consolidated balance sheets at September 30, 2025 and 2024 to the total of these amounts shown on the Company's consolidated statements of cash flows: (Millions of dollars) 2025 2024 Cash and equivalents $ 641 $ 1,717 Restricted cash 210 139 Cash and equivalents and restricted cash $ 851 $ 1,856 The fair values of the Companys financial instruments are as follows: (Millions of dollars) Basis of fair value measurement (See Note 1) 2025 2024 Institutional money market accounts (a) Level 1 $ 18 $ 285 Current portion of long-term debt (b) Level 2 700 1,748 Long-term debt (b) Level 2 16,745 17,199 (a) These financial instruments are recorded within Cash and equivalents on the consolidated balance sheets. The institutional money market accounts permit daily redemption. (b) Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active markets for similar instruments. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The short-term investments primarily consist of time deposits with maturities greater than three months and less than one year. All other instruments measured by the Company at fair value, including derivatives, contingent consideration liabilities and available-for-sale debt securities, are immaterial to th …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible Assets Intangible assets at September 30 consisted of: 2025 2024 (Millions of dollars) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Developed technology $ 15,876 $ (9,225) $ 6,651 $ 15,827 $ (8,094) $ 7,733 Customer relationships 5,522 (3,291) 2,231 5,513 (2,878) 2,635 Patents, trademarks and other 1,251 (745) 507 1,185 (682) 503 Amortized intangible assets $ 22,649 $ (13,261) $ 9,389 $ 22,525 $ (11,654) $ 10,871 Unamortized intangible assets Acquired in-process research and development $ 14 $ 44 Trademarks 2 2 Unamortized intangible assets $ 16 $ 46 Intangible amortization expense was $1.586 billion, $1.468 billion, and $1.465 billion in 2025, 2024 and 2023, respectively. The estimated aggregate amortization expense for the fiscal years ending September 30, 2026 to 2030 are as follows: 2026 $1.538 billion; 2027 $1.462 billion; 2028 $1.370 billion; 2029 $1.257 billion; 2030 $904 million. The following is a reconciliation of goodwill by business segment: (Millions of dollars) Medical Life Sciences Interventional Total Goodwill as of September 30, 2023 $ 10,955 $ 897 $ 12,670 $ 24,522 Acquisitions (a) 1,833 1,833 Currency translation 43 7 59 109 Goodwill as of September 30, 2024 $ 12,832 $ 904 $ 12,729 $ 26,465 Acquisitions (b) 4 4 Purchase price allocation adjustments 67 67 Currency translation 34 6 35 75 Goodwill as of September 30, 2025 $ 12,934 $ 9 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Provision for Income Taxes The provision (benefit) for income taxes for the years ended September 30 consisted of: (Millions of dollars) 2025 2024 2023 Current: Federal $ 152 $ 132 $ 364 State and local, including Puerto Rico 55 17 87 Foreign 471 362 303 $ 677 $ 511 $ 754 Deferred: Domestic $ (343) $ (169) $ (644) Foreign (131) (42) 22 (474) (211) (622) Income tax provision $ 203 $ 300 $ 132 The components of Income from Continuing Operations Before Income Taxes for the years ended September 30 consisted of: (Millions of dollars) 2025 2024 2023 Domestic, including Puerto Rico $ (11) $ 336 $ 358 Foreign 1,892 1,669 1,304 Income from Continuing Operations Before Income Taxes $ 1,881 $ 2,005 $ 1,662 Unrecognized Tax Benefits The table below summarizes the gross amounts of unrecognized tax benefits without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such unrecognized tax benefits were settled. The Company believes it is reasonably possible that the amount of unrecognized benefits will change during the next twelve months due to one or more of the following events: expiring statutes, audit activity, tax payments, other activity, or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate. However, the Company does not expect changes to have a significant effect on its results of operations, financial condition, or cash flows. (Millions of dollars) 2025 2024 2023 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company leases real estate, vehicles, and other equipment which are used in the Companys manufacturing, administrative and research and development activities. The Company identifies a contract that contains a lease as one which conveys a right, either explicitly or implicitly, to control the use of an identified asset in exchange for consideration. The Companys lease arrangements are generally classified as operating leases. These arrangements have remaining terms ranging from less than one year to approximately 25 years and the weighted-average remaining lease term of the Companys leases is approximately 8.3 years. An option to renew or terminate the current term of a lease arrangement is included in the lease term if the Company is reasonably certain to exercise that option. The Company does not recognize a right-of-use asset and lease liability for short-term leases, which have terms of 12 months or less, on its consolidated balance sheet. For the longer-term lease arrangements that are recognized on the Companys consolidated balance sheet, the right-of-use asset and lease liability is initially measured at the commencement date based upon the present value of the lease payments due under the lease. These payments represent the combination of the fixed lease and fixed non-lease components that are due under the arrangement. The costs associated with the Companys short-term leases, as well as variable costs relating to the Companys lease arrangements, are not ma …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Accounting Changes New Accounting Principles Adopted In November 2023, the Financial Accounting Standards Board (FASB) issued a new accounting standard update that requires more disaggregated expense information about a public entitys reportable segments on an annual and interim basis. This standard became effective for the Company, on a retrospective basis, for its fiscal year 2025 reporting and for interim periods beginning in its fiscal year 2026. Disclosures regarding the Companys reportable segments are provided in Note 8. In September 2022, the FASB issued an accounting standard update that requires additional qualitative and quantitative disclosures regarding supplier finance programs. The new disclosure requirements are intended to help investors better consider the effect of these programs on a companys working capital, liquidity, and cash flows. The Company adopted this accounting standard on October 1, 2023. Disclosures regarding the Companys supplier finance programs are provided in Note 15. New Accounting Principles Not Yet Adopted In September 2025, the FASB issued an accounting standard update to amend the criteria for capitalizing internal-use software costs. This update is intended to modernize the accounting for software costs by replacing the legacy guidance under which capitalization is based on the nature of costs and the project development stage. This update requires software capitalization to begin when (1) management has authorized and committed fundi …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Benefit Plans The Company has defined benefit pension plans covering certain employees in the United States and in certain international locations. Postretirement healthcare and life insurance benefits provided to qualifying domestic retirees as well as other postretirement benefit plans in international countries are not material. The measurement date used for the Companys employee benefit plans is September 30. Effective September 30, 2024, the Company froze its U.S. Plan, and its plan participants, which include legacy Bard U.S. pension plan participants, no longer accrue benefits under the plan subsequent to this date. Both the legacy BD U.S. pension and legacy Bard U.S. pension plans had already been frozen to new participants effective January 1, 2018 and January 1, 2011, respectively. Generally, all components of the Companys net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other expense, net on its consolidated statements of income. Net pension cost for the years ended September 30 included the following components: Pension Plans (Millions of dollars) 2025 2024 2023 Service cost $ 34 $ 88 $ 91 Interest cost 123 139 129 Expected return on plan assets (163) (150) (141) Amortization of prior service credit (4) (7) Amortization of loss 31 57 58 Settlement and curtailment loss, net 44 1 44 Net pension cost $ 68 $ 131 $ 174 Net pension cost included in the preceding table that is attributable to international plans $ 33 $ 28 $ …

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Business Restructuring Charges The Company incurred restructuring costs, primarily in connection with the Company's simplification and other cost-saving initiatives that are part of its strategic objectives, which were largely recorded within Integration, restructuring and transaction expense on its consolidated statements of income. These simplification and other cost-saving initiatives are focused on reducing complexity, optimizing the Companys supply chain efficiency, streamlining its global manufacturing footprint, enhancing product quality, refining customer experience, and improving cost efficiency across all of the Companys segments. Restructuring liability activity in 2025, 2024 and 2023 was as follows: (Millions of dollars) Employee Termination Other (a) Total Balance at September 30, 2022 $ 24 $ 11 $ 35 Charged to expense 117 122 239 Cash payments (62) (103) (165) Non-cash settlements (30) (30) Other adjustments 1 1 Balance at September 30, 2023 $ 79 $ 1 $ 80 Charged to expense 80 307 387 Cash payments (103) (202) (305) Non-cash settlements (104) (104) Other adjustments 2 2 Balance at September 30, 2024 $ 58 $ 2 $ 60 Charged to expense 45 230 275 Cash payments (72) (159) (231) Non-cash settlements (43) (43) Other adjustments 2 2 Balance at September 30, 2025 $ 33 $ 30 $ 63 (a) Primarily consists of non-employee-related costs associated with the execution of the Companys cost efficiency and restructuring programs, such as incremental project management costs, facilit …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenues The Company sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products which are distributed through independent distribution channels and directly by BD through sales representatives. End-users of the Company's products include healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry, and the general public. In the current and prior-year periods, the Company generated revenues attributable to licensing, which includes consideration received in exchange for the use of BD intellectual property by third parties. Timing of Revenue Recognition The Companys revenues are primarily recognized when the customer obtains control of the product sold, which is generally upon shipment or delivery, depending on the delivery terms specified in the sales agreement. Revenues associated with certain instruments and equipment for which installation is complex, and therefore significantly affects the customers ability to use and benefit from the product, are recognized when customer acceptance of these installed products has been confirmed. For certain service arrangements, including extended warranty and software maintenance contracts, revenue is recognized ratably over the contract term. The majority of revenues relating to extended warranty contracts associated with certain instruments and equipment is generally recognized within a few years whereas deferred revenue relating to software maint …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Data The Company's organizational structure is based upon three worldwide business segments: BD Medical (Medical), BD Life Sciences (Life Sciences) and BD Interventional (Interventional). The Companys segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. The Companys Chairman, Chief Executive Officer and President is its chief operating decision maker (CODM). Medical Medical produces a broad array of medical technologies and devices that are used to help improve healthcare delivery in a wide range of settings. The primary customers served by Medical are hospitals and clinics, physicians office practices, consumers and retail pharmacies, governmental and nonprofit public health agencies, pharmaceutical companies, and healthcare workers. Medical consists of the following organizational units: Medication Delivery Solutions, Medication Management Solutions, Pharmaceutical Systems, and Advanced Patient Monitoring. Life Sciences Life Sciences provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections and cancers. In addition, Life Sciences produces research and clinical tools that facilitate the study of cells, and the components of cells, to gain a better understanding of normal and disease processes. That information is used to aid the discover …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Shareholders Equity Changes in certain components of shareholders equity were as follows: Common Stock Issued at Par Value Capital in Excess of Par Value Retained Earnings Deferred Compensation Treasury Stock (Millions of dollars) Shares (in thousands) Amount Balance at September 30, 2022 $ 365 $ 19,553 $ 15,157 $ 23 (81,283) $ (8,330) Net income 1,484 Cash dividends: Common ($3.64 per share) (1,046) Preferred (60) Issuance of shares for preferred shares converted to common shares (a) 6 (4) Issuance of shares under employee and other plans, net (88) 1 1,056 24 Share-based compensation 259 Common stock held in trusts, net (b) 24 Balance at September 30, 2023 $ 371 $ 19,720 $ 15,535 $ 24 (80,203) $ (8,305) Net income 1,705 Cash dividends: Common ($3.80 per share) (1,100) Issuance of shares under employee and other plans, net (73) 1 801 2 Share-based compensation 247 Common stock held in trusts, net (b) 27 Repurchase of common stock (c) (2,118) (503) Balance at September 30, 2024 $ 371 $ 19,893 $ 16,139 $ 25 (81,493) $ (8,807) Net income 1,678 Cash dividends: Common ($4.16 per share) (1,196) Issuance of shares under employee and other plans, net (76) 820 5 Share-based compensation 258 Common stock held in trusts, net (b) 14 Repurchase of common stock (c) (4,533) (1,006) Balance at September 30, 2025 $ 371 $ 20,075 $ 16,622 $ 25 (85,192) $ (9,808) (a) Represents the conversion, in accordance with their terms, of 1.500 million mandatory convertible preferred shares that were issue …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies The Company is involved, both as a plaintiff and a defendant, in various legal proceedings that arise in the ordinary course of business, including, without limitation, product liability and environmental matters in certain U.S. and international locations. Given the uncertain nature of litigation generally, the Company is not able, in all cases, to reasonably estimate the amount or range of loss that could result from an unfavorable outcome of litigation in which the Company is a party. Even if the Company believes it has meritorious defenses, from time to time the Company engages in settlement discussions and mediation and considers settlements, taking into account various factors including, among other things, developments in such legal proceedings and the resulting risks and uncertainties. These activities have resulted in settlements for certain matters and going forward could result in further settlements, which may be confidential and could be significant and result in charges in excess of accruals. In accordance with U.S. GAAP, the Company establishes accruals to the extent losses are probable and reasonably estimable. With respect to putative class action lawsuits and certain tort actions in the United States and certain of the Canadian lawsuits described below or in its other Securities and Exchange Commission (SEC) filings, the Company may not be able to determine if a probable loss exists or estimate a range of reasonably possible losses for the foll …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Financial Instruments and Fair Value Measurements The following reconciles cash and equivalents and restricted cash reported within the Company's condensed consolidated balance sheets at December 31, 2025 and September 30, 2025 to the total of these amounts shown on the Company's condensed consolidated statements of cash flows: (Millions of dollars) December 31, 2025 September 30, 2025 Cash and equivalents $ 740 $ 641 Restricted cash 284 210 Cash and equivalents and restricted cash $ 1,025 $ 851 Cash equivalents consist of all highly liquid investments with a maturity of three months or less at time of purchase. Restricted cash consists of cash restricted from withdrawal and usage except for certain product liability matters. The fair values of the Companys financial instruments are as follows: (Millions of dollars) Basis of fair value measurement December 31, 2025 September 30, 2025 Institutional money market accounts (a) Level 1 $ $ 18 Current portion of long-term debt (b) Level 2 1,445 700 Long-term debt (b) Level 2 15,952 16,745 (a) These financial instruments are recorded within Cash and equivalents on the condensed consolidated balance sheets. The institutional money market accounts permit daily redemption. The fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. (b) Long-term debt is recorded at amortized cost. The fair value of long-term debt is measured based upon quoted prices in active m …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Intangible Assets Intangible assets consisted of: December 31, 2025 September 30, 2025 (Millions of dollars) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Developed technology $ 15,883 $ (9,507) $ 6,376 $ 15,876 $ (9,225) $ 6,651 Customer relationships 5,522 (3,395) 2,128 5,522 (3,291) 2,231 Patents, trademarks and other 1,268 (763) 505 1,251 (745) 507 Amortized intangible assets $ 22,673 $ (13,665) $ 9,009 $ 22,649 $ (13,261) $ 9,389 Unamortized intangible assets Acquired in-process research and development $ 14 $ 14 Trademarks 2 2 Unamortized intangible assets $ 16 $ 16 Intangible amortization expense was $397 million and $395 million for the three months ended December 31, 2025 and 2024, respectively. The following is a reconciliation of goodwill by business segment: (Millions of dollars) Medical Essentials (a) Connected Care (a) BioPharma Systems (a) Interventional (a) Life Sciences (a) Total Goodwill as of September 30, 2025 $ 7,011 $ 6,093 $ 96 $ 12,764 $ 648 $ 26,612 Currency translation 4 1 3 1 9 Goodwill as of December 31, 2025 $ 7,015 $ 6,093 $ 96 $ 12,767 $ 648 $ 26,620 (a) Effective October 1, 2025, the Company reorganized its organizational units into five distinct, separately-managed segments, based on the nature of its product and service offerings, as further discussed in Note 7. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Income Tax Expense The Companys effective income tax rates were 2.8% and 0.9% for the three months ended December 31, 2025 and 2024, respectively. The effective income tax rate for the three months ended December 31, 2025 reflected a less favorable net impact from discrete items compared with the prior-year period. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New Accounting Principles Not Yet Adopted In September 2025, the Financial Accounting Standards Board (FASB) issued an accounting standard update to amend the criteria for capitalizing internal-use software costs. This update is intended to modernize the accounting for software costs by replacing the legacy guidance under which capitalization is based on the nature of costs and the project development stage. This update requires software capitalization to begin when (1) management has authorized and committed funding to the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The update is effective for the Company beginning in its fiscal year 2029, with early adoption permitted. The Company is currently assessing the potential impact of this update on its consolidated financial statements. In November 2024, the FASB issued an accounting standard update that requires the Company to disclose more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, and amortization) included in each relevant income statement expense caption. The update is effective for the Company beginning with its fiscal year 2028 reporting and for interim reporting beginning with its fiscal year 2029. Early adoption is permitted. The Company is currently evaluating the impact that this update will have on its disclosures. In December 2023, the FASB issued …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Benefit Plans The Company has defined benefit pension plans covering certain employees in the United States and certain international locations. The measurement date used for these plans is September 30. Net pension cost included the following components for the three-month periods: Three Months Ended December 31, (Millions of dollars) 2025 2024 Service cost $ 9 $ 12 Interest cost 31 42 Expected return on plan assets (40) (56) Amortization of loss 8 10 Net pension cost $ 7 $ 8 The amounts provided above for amortization of loss represent the reclassifications of net actuarial losses that were recognized in Accumulated other comprehensive income (loss) in prior periods. All components of the Companys net periodic pension and postretirement benefit costs, aside from service cost, are recorded to Other expense, net on its condensed consolidated statements of income. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Business Restructuring Charges The Company incurred restructuring costs during the three months ended December 31, 2025, primarily in connection with the Company's simplification and other cost-saving initiatives, which were recorded within Integration, restructuring and transaction expense . These simplification and other cost-saving initiatives are focused on reducing complexity, organizational realignment related to the separation of the Companys Biosciences and Diagnostic Solutions business, optimizing the Companys supply chain efficiency, streamlining its global manufacturing footprint, enhancing product quality, refining customer experience, and improving cost efficiency across all of the Companys segments. Restructuring liability activity for the three months ended December 31, 2025 was as follows: (Millions of dollars) Employee Termination Other (a) Total Balance at September 30, 2025 $ 33 $ 30 $ 63 Charged to expense 41 33 75 Cash payments (27) (31) (58) Non-cash settlements (3) (3) Balance at December 31, 2025 $ 47 $ 29 $ 76 (a) Primarily consists of non-employee-related costs associated with the execution of the Companys cost efficiency and restructuring programs, such as incremental project management costs. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenues The Companys policies for recognizing sales have not changed from those described in the Companys 2025 Annual Report on Form 10-K. The Company sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products, which are distributed through independent distribution channels and directly by BD through sales representatives. End-users of the Company's products include healthcare institutions, physicians, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. Periodically, the Company generates revenues attributable to licensing, which includes consideration received in exchange for the use of BD intellectual property by third parties. Measurement of Revenues The Companys allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of its trade receivables. Such estimated credit losses are determined based on historical loss experiences, customer-specific credit risk, and reasonable and supportable forward-looking information, such as country or regional risks that are not captured in the historical loss information. The allowance for doubtful accounts for trade receivables is not material to the Company's consolidated financial results. The Company's gross revenues are subject to a variety of deductions, which are recorded in the same period that the underlying revenues are recognized. Such variable consideration includes rebates, sales disc …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Data Effective October 1, 2025, the Company reorganized its organizational units into five worldwide business segments: BD Medical Essentials (Medical Essentials), BD Connected Care (Connected Care), BD BioPharma Systems (BioPharma Systems), BD Interventional (Interventional) and BD Life Sciences (Life Sciences). The Company's segments are strategic businesses that are managed separately because each one develops, manufactures and markets distinct products and services. The segment reorganization did not affect the principal product lines of any organizational unit. The following table provides an overview of the Companys reportable segments and their respective organizational units. Reportable Segment: Organizational Units: Medical Essentials Medication Delivery Solutions, Specimen Management Connected Care Medication Management Solutions, Advanced Patient Monitoring BioPharma Systems BioPharma Systems (formerly Pharmaceutical Systems) Interventional Urology and Critical Care, Peripheral Intervention, Surgery Life Sciences (a) Diagnostic Solutions and Biosciences (a) The Companys Biosciences and Diagnostic Solutions business was separated from the Company and combined with Waters on February 9, 2026, as further discussed in Note 1. Subsequent to the separation and combination, the Life Sciences segment will be eliminated from the Companys segment reporting, which will consist of the remaining four reportable segments. The Companys Chairman, Chief Executive Officer an …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Shareholders' Equity Changes in certain components of shareholders' equity for the first quarter of fiscal years 2026 and 2025 were as follows: Common Stock Issued at Par Value Capital in Excess of Par Value Retained Earnings Deferred Compensation Treasury Stock (Millions of dollars) Shares (in thousands) Amount Balance at September 30, 2025 $ 371 $ 20,075 $ 16,622 $ 25 (85,192) $ (9,808) Net income 382 Common dividends ($1.05 per share) (299) Issuance of shares under employee and other plans, net (63) 660 (2) Share-based compensation 91 Common stock held in trusts, net (a) (5) Repurchase of common stock (b) (1,315) (254) Balance at December 31, 2025 $ 371 $ 20,103 $ 16,704 $ 25 (85,853) $ (10,064) Common Stock Issued at Par Value Capital in Excess of Par Value Retained Earnings Deferred Compensation Treasury Stock (Millions of dollars) Shares (in thousands) Amount Balance at September 30, 2024 $ 371 $ 19,893 $ 16,139 $ 25 (81,493) $ (8,807) Net income 303 Common dividends ($1.04 per share) (302) Issuance of shares under employee and other plans, net (65) 679 (12) Share-based compensation 90 Common stock held in trusts, net (a) (8) Repurchase of common stock (b) (150) (2,637) (606) Balance at December 31, 2024 $ 371 $ 19,768 $ 16,141 $ 25 (83,459) $ (9,425) (a) Common stock held in trusts consists of the Companys shares held in rabbi trusts in connection with deferred compensation under the Companys employee salary and bonus deferral plan and directors deferral plan. (b) Amou …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Event Combination of Biosciences and Diagnostic Solutions Business with Waters On February 9, 2026, the Company completed the spin-off of its Biosciences and Diagnostic Solutions business and the combination of the business with Waters. Additional disclosures regarding this transaction are provided in Note 1.

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