BECTON DICKINSON & CO
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
BDX$211.88-0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0000010795-26-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000010795-26-000035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 191 previous paragraphs and 187 current paragraphs.
95 unchanged; 76 reworded; 16 added; 19 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
The Medical Essentials segment’s income for the three and nine-month periods is provided below.
Current report
•Higher selling and administrative expense as a percentage of revenues in the third quarter of 2026 compared with the third quarter of 2025 primarily reflected higher selling and shipping costs due to inflationary pressures.
Current report
•Research and development expense as a percentage of revenues in the third quarter of 2026 was flat compared with the third quarter of 2025 which primarily reflected the timing of project spending.
Current report
•Strong growth within the Medication Management Solutions unit which was primarily driven by a strong backlog of customer orders, favorable U.S. mix between sales-type and operating leases in the dispensing platform, as well as higher utilization of infusion sets in the current-year period due to a prior-period disruption in fluid supply. Growth within the Medication Management Solutions unit was partially offset by an unfavorable comparison to stronger sales of Alaris systems in the prior-year period that were driven by U.S. return-to-market efforts.
Current report
The Connected Care segment’s income for the three and nine-month periods is provided below.
Current report
•Lower gross profit margin in the third quarter of 2026 compared with the third quarter of 2025 primarily reflected an unfavorable impact from lower sales volumes and higher labor costs, partially offset by favorable product mix and pricing.
Current report
•Higher selling and administrative expense as a percentage of revenues in the third quarter of 2026 compared with the third quarter of 2025 primarily reflected higher selling costs associated with continued investments in strategic growth regions and higher U.S. general and administrative costs due to inflationary pressures.
Current report
•Research and development expense as a percentage of revenues in the third quarter of 2026 was higher compared with the third quarter of 2025, which primarily reflected the timing of project spending.
Current report
BioPharma Systems segment revenues for the nine-month periods were as follows:
Current report
The BioPharma Systems segment’s income for the three and nine-month periods is provided below.
Current report
•Selling and administrative expense as a percentage of revenues in the third quarter of 2026 was flat compared with the third quarter of 2025.
Current report
Interventional segment total revenues for the nine-month periods were as follows:
Current report
•Gross profit margin in the third quarter of 2026 was lower compared with the third quarter of 2025, which primarily reflected costs associated with certain actions required to respond to the El Paso Warning Letter, as further discussed in Note 6 in the Notes to Condensed Consolidated Financial Statements, and an unfavorable impact from tariffs. These unfavorable impacts to gross margin were partially offset by pricing.
Current report
•The amounts in the three and nine-month periods of fiscal years 2026 and 2025 also included pension settlement costs as further discussed in Note 9 in the Notes to Condensed Consolidated Financial Statements.
Current report
Research and development expense as a percentage of revenues in the three-month period of 2026 was higher compared with the prior-year period, primarily reflecting the timing of project spending and increased investments in product development, partially offset by the current-period increase in revenues. Research and development expense as a percentage of revenues in the nine-month period of 2026 was flat compared with the prior-year period, which primarily reflected the timing of project spending, offset by the current-period increase in revenues.
Current report
Lower interest expense in the three and nine-month periods of fiscal year 2026 compared with the prior-year periods primarily reflected lower total debt outstanding during the current year.
Removed paragraphs (19)
Previous report
•Both the Medication Delivery Solutions and Specimen Management units were unfavorably impacted by market dynamics in China, including VoBP.
Previous report
The Medical Essentials segment’s income for the three and six-month periods is provided below.
Previous report
•Higher selling and administrative expense as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 primarily reflected higher selling and general and administrative costs.
Previous report
•Research and development expense as a percentage of revenues in the second quarter of 2026 was flat compared with the second quarter of 2025 which primarily reflected the timing of project spending.
Previous report
•Growth within the Medication Management Solutions unit which was driven by international sales of BD Rowa TM in the Pharmacy Automation portfolio and increased utilization of infusion sets, partially offset by an unfavorable comparison to stronger U.S. placements of infusion systems in the prior-year period.
Previous report
The Connected Care segment’s income for the three and six-month periods is provided below.
Previous report
•Higher gross profit margin in the second quarter of 2026 compared with the second quarter of 2025 primarily reflected lower manufacturing costs, which resulted from continuous improvement projects, supply chain optimization and other productivity initiatives, as well as favorable product mix, partially offset by an unfavorable impact from tariffs as well as higher labor costs.
Previous report
•Higher selling and administrative expense as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 primarily reflected higher shipping, selling, and general and administrative costs.
Previous report
•Research and development expense as a percentage of revenues in the second quarter of 2026 was higher compared with the second quarter of 2025, which primarily reflected the timing of project spending.
Previous report
BioPharma segment revenues for the six-month periods were as follows:
Previous report
The BioPharma Systems segment’s income for the three and six-month periods is provided below.
Previous report
•Selling and administrative expense as a percentage of revenues in the second quarter of 2026 was higher compared with the second quarter of 2025, which primarily reflected higher general and administrative costs.
Previous report
Interventional segment total revenues for the six-month periods were as follows:
Previous report
•Gross profit margin in the second quarter of 2026 was flat compared with the second quarter of 2025, which primarily reflected lower manufacturing costs resulting from continuous improvement projects, supply chain optimization and other productivity initiatives, offset by unfavorable impacts from tariffs.
Previous report
•The amounts in the three and six months ended March 31, 2026 included pension settlement costs of $25 million, recorded to Other income (expense), net, as further discussed in Note 9 in the Notes to Condensed Consolidated Financial Statements.
Previous report
Research and development expense as a percentage of revenues in the three and six-month periods of 2026 was relatively flat compared with the prior-year periods, which primarily reflected the current-period increases in revenues, offset by the timing of project spending.
Previous report
Interest expense for the three and six-month periods of fiscal year 2026 was flat compared with the prior-year periods.
Previous report
The dilutive impact for the three-month period of fiscal year 2026 represents the impact of share equivalents associated with share-based plans that were excluded from the reported diluted shares outstanding calculation because the result would have been antidilutive.
Previous report
•The risks associated with the separation of our former Biosciences and Diagnostic Solutions business and the combination of the business with Waters, including factors that could diminish our benefits from the transaction.
Reworded paragraphs (76)
Previous wording
Tariffs, sanctions or other trade barriers imposed by the United States, or against the United States from countries in which we do business, could also adversely impact our supply chain costs, results of operations and our financial condition. Tariffs have adversely impacted our second quarter fiscal year 2026 operating expense and we continue to monitor international trade policy-related developments, including developments regarding refunds of certain tariffs, to assess their potential future impacts to our operations. Based upon the latest published tariffs that are currently in effect, we expect a continued adverse impact to operating expense for fiscal year 2026 and potentially beyond, primarily relating to any products (or components) imported from countries across our global supply chain which have no exemption opportunities. The ultimate impact of any existing or new tariffs or other changes in international trade policies is subject to a number of factors including, but not limited to, the duration of such tariffs, changes in tariff rates, the amount, scope and nature of the tariffs, any countermeasures that target countries may take, or any mitigating actions that may become available. While sourcing optimization and tariff exemptions for qualifying products are key aspects of our mitigation strategy, the timing of such or the ultimate results we will realize from these efforts are uncertain. In addition, our tariff mitigation strategies have been, and may be further challenged, rejected or eliminated through legislation or other challenges, or may otherwise not be effective, which may impact the collectability of the receivable we have recorded for exemption claims.
Current wording
Tariffs, sanctions or other trade barriers imposed by the United States, or against the United States from countries in which we do business, could also adversely impact our supply chain costs, results of operations and our financial condition. Tariffs have adversely impacted our third quarter fiscal year 2026 operating expense and we continue to monitor international trade policy-related developments, including developments regarding refunds of certain tariffs, to assess their potential future impacts to our operations. Based upon the latest published tariffs that are currently in effect, we expect a continued adverse impact to operating expense for fiscal year 2026 and potentially beyond, primarily relating to any products (or components) imported from countries across our global supply chain which have no exemption opportunities. The ultimate impact of any existing or new tariffs or other changes in international trade policies is subject to a number of factors including, but not limited to, the duration of such tariffs, changes in tariff rates, the amount, scope and nature of the tariffs, any countermeasures that target countries may take, or any mitigating actions that may become available. While sourcing optimization and tariff exemptions for qualifying products are key aspects of our mitigation strategy, the timing of such or the ultimate results we will realize from these efforts are uncertain. In addition, while we have received refunds of certain tariffs, our tariff mitigation strategies have been, and may be further challenged, rejected or eliminated through legislation or other challenges, or may otherwise not be effective, which may impact the collectability of the remaining receivable we have recorded for exemption claims.
Previous wording
For the three months ended March 31, 2026, worldwide revenues of $4.714 billion increased 5.2% from the prior-year period. This increase reflected the following impacts:
Current wording
For the three months ended June 30, 2026, worldwide revenues of $4.983 billion increased 5.4% from the prior-year period. This increase reflected the following impacts:
Previous wording
Cash flows from continuing operating activities were $1.328 billion in the first six months of fiscal year 2026. At March 31, 2026, we had $1.018 billion in cash and equivalents and short-term investments, including restricted cash. We continued to return value to our shareholders in the form of dividends and during the first six months of fiscal year 2026, we paid cash dividends to common shareholders of $589 million. We also paid cash to repurchase approximately $2.250 billion of our common stock during the six-month period. In connection with the Transaction, we received a $4 billion cash distribution which was used to fund our second quarter share repurchases and debt repayments, as further discussed in Notes 4 and 14 in the Notes to Condensed Consolidated Financial Statements.
Current wording
Cash flows from continuing operating activities were $2.104 billion in the first nine months of fiscal year 2026. At June 30, 2026, we had $864 million in cash and equivalents and short-term investments, including restricted cash. We continued to return value to our shareholders in the form of dividends and during the first nine months of fiscal year 2026, we paid cash dividends to common shareholders of $875 million. We also paid cash to repurchase approximately $2.250 billion of our common stock during the nine-month period. In connection with the Transaction, we received a $4 billion cash distribution which was used to fund our second quarter share repurchases and debt repayments, as further discussed in Notes 4 and 14 in the Notes to Condensed Consolidated Financial Statements.
Previous wording
Each reporting period and given our worldwide operations, we face exposure to our results of operations from changes in foreign currencies. We calculate translational foreign currency impacts by converting our current-period local currency financial results using the prior-period foreign currency exchange rates and comparing these adjusted amounts to our current-period results, which allows us to compare results between periods as if exchange rates had remained constant period-over-period. The second quarter fiscal year 2026 impact of foreign currency on our revenues, which is primarily translational, is provided above. The translational impact on our earnings is provided further below. We evaluate our results of operations on both a reported and a foreign currency-neutral basis. As exchange rates are an important factor in understanding period-to-period comparisons, we believe the presentation of results on a foreign currency-neutral basis, excluding translational foreign currency impacts, in addition to reported results helps improve investors’ ability to understand our operating results and evaluate our performance in comparison to prior periods. We use results on a foreign currency-neutral basis as one measure to evaluate our performance. These results should be considered in addition to, not as a substitute for, results reported in accordance with U.S. generally accepted accounting principles (“GAAP”). Results on a foreign currency-neutral basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with U.S. GAAP.
Current wording
Each reporting period and given our worldwide operations, we face exposure to our results of operations from changes in foreign currencies. We calculate translational foreign currency impacts by converting our current-period local currency financial results using the prior-period foreign currency exchange rates and comparing these adjusted amounts to our current-period results, which allows us to compare results between periods as if exchange rates had remained constant period-over-period. The third quarter fiscal year 2026 impact of foreign currency on our revenues, which is primarily translational, is provided above. The translational impact on our earnings is provided further below. We evaluate our results of operations on both a reported and a foreign currency-neutral basis. As exchange rates are an important factor in understanding period-to-period comparisons, we believe the presentation of results on a foreign currency-neutral basis, excluding translational foreign currency impacts, in addition to reported results helps improve investors’ ability to understand our operating results and evaluate our performance in comparison to prior periods. We use results on a foreign currency-neutral basis as one measure to evaluate our performance. These results should be considered in addition to, not as a substitute for, results reported in accordance with U.S. generally accepted accounting principles (“GAAP”). Results on a foreign currency-neutral basis, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with U.S. GAAP.
Previous wording
The following summarizes second quarter Medical Essentials revenues by organizational unit:
Current wording
The following summarizes third quarter Medical Essentials revenues by organizational unit:
Previous wording
The Medical Essentials segment’s revenue growth in the second quarter of 2026 primarily reflected the following:
Current wording
The Medical Essentials segment’s revenue growth in the third quarter of 2026 primarily reflected the following:
Previous wording
•Strong U.S. performance in the Medication Delivery Solutions unit’s Vascular Access Management portfolio.
Current wording
•Strong U.S. performance in the Medication Delivery Solutions unit’s Vascular Access Management portfolio attributable to share gains and higher utilization of infusion sets in the current-year period due to a prior-period disruption in fluid supply, partially offset by unfavorable impacts of market dynamics in China, including VoBP.
Previous wording
•Growth in U.S. sales of the Specimen Management unit’s BD Vacutainer TM portfolio.
Current wording
•Strong growth in U.S. sales of the Specimen Management unit’s BD Vacutainer TM portfolio that reflected share gains, as well as a benefit from improved supply and increased demand due to competitors’ backorders.
Previous wording
Medical Essentials segment total revenues for the six-month periods were as follows:
Current wording
Medical Essentials segment total revenues for the nine-month periods were as follows:
Previous wording
The Medical Essentials segment's operating income as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 reflected the following:
Current wording
The Medical Essentials segment's operating income as a percentage of revenues in the third quarter of 2026 compared with the third quarter of 2025 reflected the following:
Previous wording
•Lower gross profit margin in the second quarter of 2026 compared with the second quarter of 2025 primarily reflected unfavorable impacts from tariffs, foreign currency translation, and higher labor costs, partially offset by lower manufacturing costs, which resulted from continuous improvement projects, supply chain optimization and other productivity initiatives.
Current wording
•Lower gross profit margin in the third quarter of 2026 compared with the third quarter of 2025 primarily reflected unfavorable impacts from tariffs, higher labor costs, and foreign currency translation, partially offset by lower manufacturing costs, which resulted from continuous improvement projects in connection with our BD Excellence operating model.
Previous wording
The following summarizes second quarter Connected Care revenues by organizational unit:
Current wording
The following summarizes third quarter Connected Care revenues by organizational unit:
Previous wording
The Connected Care segment’s revenue growth in the second quarter of 2026 primarily reflected the following:
Current wording
The Connected Care segment’s revenue growth in the third quarter of 2026 primarily reflected the following:
Previous wording
•The Advanced Patient Monitoring unit experienced strong volume growth across its portfolio, specifically driven by Smart Recovery, HemoSphere Alta TM and the continued adoption of Acumen IQTM Cuff and Acumen IQTM Sensor.
Current wording
•The Advanced Patient Monitoring unit experienced strong volume growth across its portfolio, specifically driven by the continued adoption of Acumen IQTM Cuff and Acumen IQTM Sensor, as well as growth in sales of consumables.
Previous wording
Connected Care segment total revenues for the six-month periods were as follows:
Current wording
Connected Care segment total revenues for the nine-month periods were as follows:
Previous wording
The Connected Care segment's operating income as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 reflected the following:
Current wording
The Connected Care segment's operating income as a percentage of revenues in the third quarter of 2026 compared with the third quarter of 2025 reflected the following:
Previous wording
The following summarizes second quarter BioPharma Systems revenues:
Current wording
The following summarizes third quarter BioPharma Systems revenues:
Previous wording
The BioPharma Systems segment’s revenues in the second quarter of 2026 reflected a decline primarily driven by lower market demand for vaccines products, partially offset by double-digit growth of prefillable solutions in the biologic drug category, led by sales of GLP-1 delivery products.
Current wording
The BioPharma Systems segment’s revenue growth in the third quarter of 2026 primarily reflected double-digit growth of prefillable solutions in the biologic drug category, led by sales of GLP-1 delivery products, partially offset by lower market demand for vaccine products.
Previous wording
The BioPharma Systems segment's operating income as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 reflected the following:
Current wording
The BioPharma Systems segment's operating income as a percentage of revenues in the third quarter of 2026 compared with the third quarter of 2025 reflected the following:
Previous wording
•Gross profit margin in the second quarter of 2026 was lower compared with the second quarter of 2025 and primarily reflected unfavorable impacts from foreign currency translation, product mix, higher labor costs, and tariffs, partially offset by lower manufacturing costs, which resulted from continuous improvement projects, supply chain optimization and other productivity initiatives.
Current wording
•Gross profit margin in the third quarter of 2026 was higher compared with the third quarter of 2025 and primarily reflected lower manufacturing costs, which resulted from continuous improvement projects in connection with our BD Excellence operating model, partially offset by unfavorable impacts from higher raw materials and labor costs due to inflationary pressures, tariffs, and pricing.
Previous wording
•Research and development expense as a percentage of revenues in the second quarter of 2026 was lower compared with the second quarter of 2025, which primarily reflected the timing of project spending.
Current wording
•Research and development expense as a percentage of revenues in the third quarter of 2026 was lower compared with the third quarter of 2025, which primarily reflected certain cost containment efforts and the timing of project spending.
Previous wording
The following summarizes second quarter Interventional revenues by organizational unit:
Current wording
The following summarizes third quarter Interventional revenues by organizational unit:
Previous wording
The Interventional segment’s revenue growth in the second quarter of 2026 primarily reflected the following:
Current wording
The Interventional segment’s revenue growth in the third quarter of 2026 primarily reflected the following:
Previous wording
•Strength in sales of the Peripheral Intervention unit’s Rotarex TM Atherectomy System and oncology products, partially offset by a VoBP impact in China.
Current wording
•Strength in sales of the Peripheral Intervention unit’s oncology products and Rotarex TM Atherectomy System, partially offset by a VoBP impact in China.
Previous wording
Interventional segment income for the three and six-month periods is provided below.
Current wording
Interventional segment income for the three and nine-month periods is provided below.
Previous wording
The Interventional segment's operating income as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 reflected the following:
Current wording
The Interventional segment's operating income as a percentage of revenues in the third quarter of 2026 compared with the third quarter of 2025 reflected the following:
Previous wording
•Higher selling and administrative expense as a percentage of revenues in the second quarter of 2026 compared with the second quarter of 2025 primarily reflected higher selling costs attributable to growth-accelerating initiatives.
Current wording
•Lower selling and administrative expense as a percentage of revenues in the third quarter of 2026 compared with the third quarter of 2025 primarily reflected lower general and administrative costs, partially offset by higher selling costs attributable to growth-accelerating initiatives.
Previous wording
•Research and development expense as a percentage of revenues in the second quarter of 2026 was higher compared with the second quarter of 2025, which primarily reflected an increase in investment to support product development.
Current wording
•Research and development expense as a percentage of revenues in the third quarter of 2026 was higher compared with the third quarter of 2025, which primarily reflected an increase in investment to support product development.
Previous wording
BD’s worldwide second quarter revenues by geography were as follows:
Current wording
BD’s worldwide third quarter revenues by geography were as follows:
Previous wording
U.S. revenue growth in the second quarter of 2026 reflected strong sales in the Medical Essentials segment’s Medication Delivery Solutions unit, the Connected Care segment’s Advanced Patient Monitoring unit, the BioPharma Systems segment, and the Interventional segment’s Urology and Critical Care unit.
Current wording
U.S. revenue growth in the third quarter of 2026 reflected strong sales in both the Medical Essentials segment’s units, the Connected Care segment’s Medication Management Solutions unit, the BioPharma Systems segment, and the Interventional segment’s Peripheral Intervention and Urology and Critical Care units.
Previous wording
International revenues in the second quarter of 2026 primarily reflected a decline in the BioPharma Systems segment, as further discussed above, which was partially offset by growth in the Interventional segment’s Peripheral Intervention and Surgery units. Current-period revenues in emerging markets primarily reflected strong sales in Latin America and certain countries within Greater Asia, partially offset by a decline in China, as further discussed above.
Current wording
International revenues in the third quarter of 2026 primarily reflected growth in the Connected Care segment’s Advanced Patient Monitoring unit and the Interventional segment’s Peripheral Intervention and Surgery units, partially offset by a decline in the Medical Essentials segment’s Medication Delivery Solutions unit primarily due to unfavorable impacts of market dynamics in China, including VoBP, as discussed above. Current-period revenues in emerging markets primarily reflected a decline in China, as further discussed above, and in META, partially offset by strong sales in Latin America.
Previous wording
Reflected in the financial results for the three and six-month periods of fiscal years 2026 and 2025 were the following specified items:
Current wording
Reflected in the financial results for the three and nine-month periods of fiscal years 2026 and 2025 were the following specified items:
Previous wording
(a)Represents amounts associated with restructuring and acquisition integration activities, which are recorded in Integration, restructuring and transaction expense and are further discussed below. Restructuring costs in the three and six months ended March 31, 2026 include non-cash asset impairment charges of $450 million recorded upon our commitment to exit certain operational activities and projects which no longer align with and facilitate our current operational strategy, “Excellence Unleashed”, as further discussed in Notes 10 and 13 in the Notes to Condensed Consolidated Financial Statements.
Current wording
(a)Represents amounts associated with restructuring and acquisition integration activities, which are recorded in Integration, restructuring and transaction expense and are further discussed below. Restructuring costs in the nine months ended June 30, 2026 include non-cash asset impairment charges of $450 million, which were recorded during the second quarter, upon our commitment to exit certain operational activities and projects which no longer align with and facilitate our current operational strategy, “Excellence Unleashed”, as further discussed in Notes 10 and 13 in the Notes to Condensed Consolidated Financial Statements.
Previous wording
(d)Includes amortization and other adjustments related to the purchase accounting for acquisitions. BD’s amortization expense is recorded in Cost of products sold. The amounts in the three and six-month periods of 2025 include
Current wording
(d)Includes amortization and other adjustments related to the purchase accounting for acquisitions. BD’s amortization expense is recorded in Cost of products sold. The amount in the nine-month period of 2025 includes charges of $336 million recorded due to a fair value step-up adjustment relating to Advanced Patient Monitoring's inventory on the acquisition date.
Previous wording
(e)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, amounts related to certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amounts presented include the following:
Current wording
(e)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, amounts related to certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amounts presented included the following:
Previous wording
•The amounts in the three and six months ended March 31, 2026 included charges of $42 million and the amounts in the three and six months ended March 31, 2025 included charges of $76 million and $98 million, respectively, recorded to Cost of products sold, to adjust future costs estimated for product remediation efforts.
Current wording
•Charges recorded to Cost of products soldto adjust future costs estimated for certain product remediation efforts. These charges were $57 million and $98 million in the nine-month periods of fiscal years 2026 and 2025, respectively.
Previous wording
•The amounts in the three and six months ended March 31, 2026 included charges of $52 million and $63 million, respectively, and the amounts in the three and six months ended March 31, 2025 included charges of $32 million and $60 million, respectively, recorded to Other operating expense, net, related to various legal matters. Additional disclosures regarding legislative and legal matters are provided in Note 6 in the Notes to Condensed Consolidated Financial Statements.
Current wording
•Charges recorded to Other operating expense, net, related to various legal matters. These charges were $75 million and $64 million in the nine-month periods of fiscal years 2026 and 2025, respectively. Additional disclosures regarding legislative and legal matters are provided in Note 6 in the Notes to Condensed Consolidated Financial Statements.
Previous wording
The comparison of gross profit margin for the three and six-month periods of fiscal years 2026 and 2025 reflected the following impacts:
Current wording
The comparison of gross profit margin for the three and nine-month periods of fiscal years 2026 and 2025 reflected the following impacts:
Previous wording
The favorable impact on gross margin for the three and six-month periods of 2026 from specified items reflected a favorable comparison to specified items recorded in the prior-year periods, which included impacts of $162 million and $342 million, respectively, resulting from a fair value step-up adjustment relating to Advanced Patient Monitoring's inventory on the acquisition date. Additionally, specified items in the three and six-month-periods of 2026 included $42 million of charges recorded to adjust the estimate of future product remediation costs as compared to $76 million and $98 million, respectively, in the prior-year three and six-month-periods.
Current wording
The impact from specified items on gross margin for the nine-month period of 2026 reflected a favorable comparison to specified items recorded in the prior-year period, which included an impact of $336 million resulting from a fair value step-up adjustment relating to Advanced Patient Monitoring's inventory on the acquisition date. Additionally, specified items in the nine-month period of 2026 included $57 million of charges recorded to adjust the estimate of future product remediation costs as compared to $98 million in the prior-year nine-month-period.
Previous wording
Operating performance in the three and six-month periods of 2026 compared with the prior-year period primarily reflected tariffs and higher labor costs, partially offset by lower manufacturing costs resulting from our ongoing continuous improvement projects, supply chain optimization, and other productivity initiatives.
Current wording
Operating performance in the three and nine-month periods of 2026 compared with the prior-year periods primarily reflected tariffs and higher labor costs, as well as charges recorded in the Interventional segment to recognize costs associated with certain actions required to respond to the El Paso Warning Letter, as further discussed in Note 6 in the Notes to Condensed Consolidated Financial Statements. These impacts were partially offset by lower manufacturing costs resulting from our ongoing continuous improvement projects in connection with our BD Excellence operating model.
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Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
$162 million and $342 million, respectively, recorded due to a fair value step-up adjustment relating to Advanced Patient Monitoring's inventory on the acquisition date.