Becton, Dickinson and Company (BDX): Business Model Canvas [Dec-2025 Updated]

You're looking at a MedTech giant navigating a major pivot, and honestly, Becton, Dickinson and Company's (BDX) late 2025 Business Model Canvas shows a clear path: shedding non-core assets while doubling down on high-volume essentials and advanced diagnostics to drive margin expansion. This strategy, funded by a $1.265 billion R&D investment against a $21.8 billion revenue target, relies heavily on their installed base of critical equipment and deep ties with over 70 GLP-1 drug makers. So, if you want to see exactly how their key activities-like upgrading 2.2 million Alaris pumps-translate into recurring revenue streams and shareholder value, dive into the nine building blocks below.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Key Partnerships

You're looking at the structure of Becton, Dickinson and Company's alliances as of late 2025, especially around the major portfolio changes. The partnerships are critical for both the remaining 'New BD' and the divested unit.

Strategic Combination with Waters Corporation

The most significant partnership move is the definitive agreement to combine Becton, Dickinson and Company's Biosciences and Diagnostic Solutions business with Waters Corporation. This is structured as a tax-efficient Reverse Morris Trust transaction.

This transaction is valued at approximately $17.5 billion and is expected to close around the end of the first quarter of calendar year 2026. The resulting entity will operate under the Waters name. Becton, Dickinson and Company's shareholders are projected to own approximately 39.2% of the combined company, while existing Waters shareholders will hold about 60.8%. Becton, Dickinson and Company is set to receive an approximate $4 billion cash distribution from this deal.

Collaborations for Drug Delivery Systems

Becton, Dickinson and Company maintains extensive relationships across the pharmaceutical sector, particularly in the rapidly growing area of GLP-1 therapies. The company has established collaborations with over 70 GLP-1 drug manufacturers specifically for drug delivery systems.

The broader market context shows significant activity; as of late 2025, there are 39 new GLP-1 drugs in development from 34 different companies. Becton, Dickinson and Company, which employs over 70,000 people globally, leverages its presence in virtually every country to support these efforts.

Global Partnerships for Public Health

The Global Public Health team at Becton, Dickinson and Company focuses on strengthening health systems and expanding access to care through collaboration. They partner with governments, humanitarian organizations, and development entities in underserved communities worldwide.

These partnerships aim to ensure that healthcare innovations are equitable and accessible, regardless of geography or socioeconomic status.

• Collaborate with governments and ministries of health.
• Partner with humanitarian organizations.
• Leverage global reach for supply chain management and program implementation.
• Advocate for and train healthcare workers.

Technology Integration for Connected Care

Becton, Dickinson and Company is deepening its technology partnerships to power its connected care strategy. A key element is the new BD Incada™ Connected Care Platform, an AI-enabled, cloud-based system.

This platform is built on Amazon Web Services (AWS) infrastructure. It is designed to unify data from the company's installed base of smart connected devices. The existing Pyxis System, for example, handles over 9.8 million transactions daily.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Key Activities

You're looking at the core engine driving Becton, Dickinson and Company's performance as we head into late 2025. The Key Activities section of the Business Model Canvas is where the real work happens-the things Becton, Dickinson and Company must do exceptionally well to deliver its value proposition.

Manufacturing billions of medical devices annually in facilities like Sumter, SC is foundational. The Medication Essentials segment, which remains with New BD post-separation, manufactures tens of billions of devices each year. Specifically, sites like Sumter, South Carolina, and Broken Bow, Nebraska, produce billions of products annually, including critical BD Vacutainer® blood collection products. The company has been actively boosting domestic capacity; for instance, 2024 investments of over $10 million in Connecticut and Nebraska facilities led to new production lines that increase capacity for safety-engineered injection devices by over 40 percent and conventional syringes by over 50 percent, adding hundreds of millions of units annually. Furthermore, Becton, Dickinson and Company planned over $30 million in investments for 2025 to expand IV line capacity in Utah.

A major activity has been executing the strategic separation of the Biosciences and Diagnostic Solutions business. The board authorized this plan on February 6, 2025, following an evaluation started in early 2024. This move splits the company into 'New BD' and the Biosciences and Diagnostic Solutions business, which had proforma revenue of about $3.4 billion in Fiscal 2024. New BD, the remaining MedTech entity, was expected to have Fiscal 2024 revenue of approximately $17.8 billion. The final transaction for this separation is expected to occur around the end of the first quarter of calendar year 2026, involving a combination with Waters Corporation.

Driving operational efficiency and margin expansion via the BD Excellence program is clearly paying off. This business system is key to margin improvement. For the full Fiscal 2025, this program drove GAAP and adjusted gross margin up by 20 basis points and 140 basis points, respectively. The adjusted operating margin for FY2025 reached 25.0%, an increase of 80 basis points. The original BD 2025 strategy targeted a total margin expansion of 560 basis points, aiming for margins of 25-plus%.

The continuous activity of Research and development (R&D) of new instruments, reagents, and informatics solutions is fueling future growth. Becton, Dickinson and Company's annual R&D expenses for 2025 were reported at $1.265B, marking a 6.3% increase from 2024. The company is on track to meet its BD 2025 goal of launching 100 new products by the end of the year. An example of this innovation is the launch of the BD Incada™ Connected Care Platform, a new scalable, AI-enabled, cloud-based system.

Finally, a critical, ongoing activity involves upgrading the 2.2 million unit Alaris infusion pump fleet per FDA commitment. Following FDA 510(k) clearance received in July 2023, the company began remediation and replacement efforts for its installed base. The initial recall in 2020 affected nearly 800,000 units. The updated Alaris system is designed to address all open recalls.

Here's a quick look at the scale of some of these operational metrics:

You can see the focus is split between streamlining the core MedTech business and managing the complex separation process. The BD Excellence program is directly translating into tangible margin gains, which is what you want to see when a company is undergoing structural change. The Alaris remediation is a necessary, high-stakes activity to secure that segment's future revenue stream.

• BD US Manufacturing Facilities: 30+
• US Manufacturing Employees: Over 10,000
• BD Excellence Margin Expansion Target: 560 basis points total
• Separation Transaction Target Completion: 2026

Finance: draft 13-week cash view by Friday.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Key Resources

You're looking at the core assets Becton, Dickinson and Company (BDX) relies on to run its global operation as of late 2025. These aren't just line items on a balance sheet; they are the engines driving their value proposition.

First, consider the physical footprint. Becton, Dickinson and Company (BDX) has an extensive global manufacturing and distribution network. To be specific about the US footprint, Becton, Dickinson and Company (BDX) is the largest US manufacturer in medtech, operating a US network of 28 plants that produce over 10 billion devices annually. They are doubling down on this, having announced an intent to invest $2.5 billion in US manufacturing over the next five years.

Next up is the intangible value locked in their research. The intellectual property portfolio is critical, covering areas like flow cytometry and drug delivery systems. While I can't give you a precise patent count right now, this portfolio is what protects their innovation moat.

Then there's the installed base of high-value equipment. The installed base of critical capital equipment like the BD MAX™ and BD COR™ systems represents a significant recurring revenue driver. As of the fourth quarter of fiscal 2025, utilization for the BD MAX™ IVD and BD COR™ systems in the U.S. recovered and exceeded 85% of historical levels. For context on the COR system's capacity, a dual BD COR™ MX configuration can process 1,872 sample results in less than 24 hours.

The financial muscle supporting all this is substantial. Becton, Dickinson and Company (BDX) maintains strong cash flow and capital, which they actively deploy for shareholder returns and strategic growth. Here's the quick math on their capital deployment activities through the first quarter of fiscal 2025:

That dedicated investment in innovation is key. The dedicated R&D investment of $1.265 billion in fiscal year 2025 shows a clear commitment to fueling the pipeline beyond the current portfolio. Still, you should note that management expected planned increases in selling and R&D investments to keep Q3 margins about flat year-over-year.

To summarize the tangible assets supporting the business, you can look at these operational highlights:

• US Manufacturing Footprint: 28 plants
• Annual Device Production (US): Over 10 billion devices
• BDX US Manufacturing Investment Plan: $2.5 billion over five years
• BDX Employee Count: More than 70,000 employees
• BD COR™ System Throughput (Dual MX): 1,872 results/less than 24 hours

Finance: draft 13-week cash view by Friday.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Becton, Dickinson and Company (BDX) provides to the market, the things customers pay for. Here are the hard numbers reflecting the scale and performance of those value propositions as of late 2025.

Essential, high-volume medical supplies forming the backbone of healthcare delivery.

The overall scale of Becton, Dickinson and Company's business in Fiscal Year 2025 was substantial, with total revenue reaching $21.8 billion, representing an 8.2% increase as reported over the prior year, with organic growth at 2.9%. Adjusted diluted Earnings Per Share (EPS) for FY2025 grew 9.6% to $14.40.

Advanced diagnostics for infectious disease and microbiology automation (BD MAX™, BD BACTEC™).

Utilization for key diagnostic platforms showed significant recovery and strength through the end of Fiscal 2025. For the fourth quarter of FY2025, utilization for BD MAX™ IVD, BD COR™, and BD BACTEC™ systems in the U.S. recovered and exceeded 85% of historical levels. This follows a trend where, exiting the third quarter of FY2025, BD BACTEC™ utilization was over 80% of historical levels. In the first quarter of FY2025, BD MAX™ IVD demonstrated continued double-digit growth.

• Utilization of BD MAX™ IVD, BD COR™, and BD BACTEC™ in U.S. (Q4 FY2025): Exceeded 85% of historical levels.
• BD MAX™ IVD Growth (Q1 FY2025): Continued double-digit growth.

AI-enabled connected care platforms (e.g., BD Incada, HemoSphere Alta) for clinical workflow efficiency.

Becton, Dickinson and Company launched new solutions aimed at unifying device data. The BD Medical segment announced the launch of the BD Incada™ Connected Care Platform, described as a new scalable, AI-enabled, cloud-based platform. The company also saw strong growth in its Medication Management Solutions business unit.

• BD Medical segment growth driver: Strong performance in Advanced Patient Monitoring following an acquisition.

Drug delivery systems for complex biologics, including GLP-1 therapies.

The focus on biologics is a major growth area for the Pharmaceutical Systems business. Biologic medications now account for more than 40% of the company's total pharmaceutical systems revenue. Becton, Dickinson and Company has established significant partnerships in this space.

The company views GLP-1 drug delivery as a potential $1 billion product category by 2030. They hold more than 40 agreements for biosimilars, spanning pens, auto-injectors, and syringes.

Minimally invasive interventional and surgical products (e.g., Phasix™ Hernia Patch).

The BD Interventional segment showed solid performance across its units. Specifically within the Surgery (SURG) business unit, the Phasix™ hernia resorbable scaffold contributed to double-digit growth in Q1 of Fiscal 2025. The Urology & Critical Care (UCC) business unit within Interventional also reflected double-digit growth.

• BD Interventional UCC Growth (FY2025): Double-digit growth.
• Phasix™ hernia resorbable scaffold Growth (Q1 FY2025): Double-digit growth.

Finance: review Q4 segment revenue breakdown against these growth drivers by next Tuesday.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Customer Relationships

You're looking at how Becton, Dickinson and Company (BDX) locks in its vast customer base, which spans over 190 countries and relies on more than 34 billion devices delivered annually. The relationship strategy centers on deep integration, especially as the company executes its BD 2025 strategy focused on 'smart connected care'.

Long-term contracts and service agreements for capital equipment maintenance and upgrades.

For capital equipment, the relationship is cemented through ongoing service commitments, which provide a durable revenue stream on top of initial sales. While specific service revenue is bundled, the overall financial scale is large; Becton, Dickinson and Company reported total annual revenue of approximately $21.84 billion for the fiscal year ending September 30, 2025. The focus on biologics also shows deep partnership; Becton, Dickinson and Company is winning about 80% of new biologic drugs that end up in BD devices, and they have secured over 50 plus GLP-1 biosimilar contracts. This level of embeddedness suggests robust, multi-year service and supply agreements are in place to support these critical workflows.

The nature of these long-term ties can be summarized:

• Securing device placement for over 80% of new biologic molecules.
• Maintaining relationships through over 50 active GLP-1 biosimilar contracts.
• Supporting a base of over 34 billion devices delivered yearly.
• Generating a portion of the $5.5 billion in revenue reported for Q3 Fiscal 2025.

Dedicated clinical and technical support teams for complex instrument systems.

For complex instrument systems, Becton, Dickinson and Company relies on specialized support, a necessity in the high-stakes medical technology sector. The company employs over 70,000 people globally to support its operations. While Becton, Dickinson and Company does not publish its internal support team metrics, the industry standard for top-performing hybrid AI-human support models in 2025 suggests aggressive targets. Leading teams aim for a 95% Customer Satisfaction (CSAT) score, a First Response Time (FRT) under 15 minutes, and an 85% First Contact Resolution rate. If onboarding for complex systems takes 14+ days, churn risk rises, so speed and accuracy in technical support are defintely paramount.

Digital connectivity and data services for real-time patient monitoring and analytics.

Digital integration is a core part of the strategy, moving relationships beyond just hardware. New product launches, like the FACSDiscover A8 Cell Analyzer, feature capabilities such as spectral and real-time imaging, with a System Report capturing technical data to help support teams troubleshoot issues. Companies that effectively use data-driven support report a 35% increase in customer lifetime value. This indicates that Becton, Dickinson and Company's digital services are designed to create measurable value, which strengthens the overall customer relationship and justifies ongoing service fees.

The digital relationship is supported by a commitment to operational excellence, which has driven margin expansion, with adjusted gross margin reaching 54.8% in Q1 2025.

Direct, consultative sales approach with hospital and lab administrators.

The sales approach is consultative, focusing on enhancing outcomes, lowering costs, and improving safety for healthcare providers. This requires deep engagement with administrators and clinical leaders. The financial structure supporting this involves significant investment in selling and marketing, as seen by the company absorbing an estimated $0.15 per share impact from incremental translational currency while raising guidance, demonstrating commitment to commercial execution.

Here's a look at the financial context surrounding the customer base as of late 2025:

The consultative sales process is designed to align Becton, Dickinson and Company's portfolio with the three irreversible forces shaping healthcare: smart connected care, transition to new care settings, and improved chronic disease outcomes.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Channels

You're looking at how Becton, Dickinson and Company moves its vast portfolio to the end-user, which is critical given their $21.8 billion in reported revenue for fiscal year 2025. The channel strategy has to be multi-faceted to cover everything from massive hospital systems to individual labs.

Global direct sales force for hospitals and large integrated delivery networks (IDNs) is the primary route for complex capital equipment and high-value solutions. This direct engagement is essential for selling integrated systems, like the newly launched BD Incada™ Connected Care Platform, which requires deep clinical and IT integration support. The success of this channel directly impacts the adjusted operating margin, which reached 25.0% in fiscal 2025.

For broader market access, especially smaller clinics and geographically dispersed customers, Becton, Dickinson and Company relies heavily on third-party distributors and wholesalers. This leverages established logistics networks to ensure wide product availability for their consumable lines. The company sells a broad range of medical supplies, devices, and equipment through these independent distribution channels, as noted in their filings for the period ending March 31, 2025.

Digital platforms are increasingly important for post-sale engagement and recurring revenue. The BD Incada™ Connected Care Platform, an AI-enabled, cloud-based system, unifies device data, supporting software updates and remote monitoring capabilities. This digital layer helps drive utilization, as seen in diagnostic systems where utilization recovered and exceeded 85% of historical levels in the U.S. for certain platforms in fiscal 2025.

The direct-to-customer supply chain is the backbone for high-volume, recurring consumable products, such as the BD Vacutainer™ blood collection products. Manufacturing sites like those in Broken Bow, Nebraska, and Sumter, South Carolina, produce billions of products each year to feed this channel. This consistent flow supports the company's overall revenue base, which was $5.9 billion in the fourth quarter of fiscal 2025.

Here's a look at the financial scale these channels supported in fiscal 2025:

The channels facilitate the delivery of products across Becton, Dickinson and Company's segments, which is reflected in the quarterly performance:

• Q1 2025 Revenue: Approximately $5.17 billion.
• Q2 2025 Revenue: $5.3 billion, with BD Medical segment showing a 12.7% increase.
• Q3 2025 Revenue: $5.5 billion, with reported revenue increasing 10.4%.
• BD plans to invest approximately $30 million in its Sumter facility in FY26 to support consumable production.

The company is executing a strategy where direct sales support complex solutions, while distributors handle scale for widely used items. Finance: draft next quarter's inventory-to-sales ratio by Monday.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Customer Segments

You're looking at the core groups Becton, Dickinson and Company (BDX) serves, which directly map to their reported business segments. For Fiscal Year 2025 (FY25), Becton, Dickinson and Company generated total revenue of approximately $21.8 billion. The company's customer base is segmented across its primary operational areas, which are currently structured around BD Medical, BD Interventional, and BD Life Sciences, though a major portfolio change is underway with the planned combination of the Biosciences and Diagnostic Solutions business with Waters Corporation around the end of the first quarter of calendar year 2026.

The customer segments are served through these structures, with the BD Medical segment historically representing the largest revenue share, at 49.05% of total revenue in FY2024. Here's a breakdown of the key customer groups:

• Hospitals and Integrated Delivery Networks (IDNs) globally.
• Clinical and reference laboratories (microbiology, molecular diagnostics).
• Pharmaceutical and biotechnology companies (biologics, pre-fillable syringes).
• Academic and government research institutions (flow cytometry, life sciences tools).

The Hospitals and IDNs globally are primary consumers of the BD Medical segment's offerings, which include Medication Delivery Solutions (MDS), Medication Management Solutions (MMS), Pharmaceutical Systems (PS), and the newly integrated Advanced Patient Monitoring (APM) business unit. For instance, the Medication Management Solutions unit saw the BD Pyxis™ MedStation ES win a 2025 Best in KLAS award. In FY2024, the Medical segment generated $10.07 billion in revenue.

Clinical and reference laboratories are served by the Diagnostic Solutions part of the business, which is slated for separation. Growth in this area in FY25 was noted in areas like BD MAX™ IVD and BD COR™, with utilization exceeding 85% of historical levels in the U.S. The Life Sciences segment, which is part of the separation, generated $5.19 billion in revenue in FY2024.

Pharmaceutical and biotechnology companies are a key focus for the Pharmaceutical Systems (PS) business unit within BD Medical, which supplies products like pre-fillable syringes. The BD Interventional segment also serves this group with products like those for biologics, which contributed to strong organic growth in FY25. The Pharmaceutical Systems unit is part of the larger BD Medical segment.

Academic and government research institutions are core to the Life Sciences segment, though this area faced headwinds from reduced research funding in the period leading up to FY2025. The segment saw traction with the FACSDiscover™ platform. In FY2024, the Interventional segment, which includes surgical and intervention tools, brought in $4.98 billion.

The overall customer base supports a company with 72,000 employees as of FY2025 and a market capitalization around $55.54 billion as of early December 2025. The company's adjusted operating margin reached 25.0% in FY25.

The planned separation of the Biosciences unit is expected to reduce Becton, Dickinson and Company's revenue exposure from China to about 4% of total revenue post-split. The company returned $2.2 billion to shareholders in FY25 via dividends and share repurchases.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Cost Structure

You're looking at the major expenses Becton, Dickinson and Company (BDX) faces to run its global medical technology operations as of late 2025. Honestly, the cost base is dominated by the infrastructure needed to support a worldwide footprint.

High fixed costs stem from global manufacturing and supply chain operations. This isn't just about running factories; it's about maintaining a massive, regulated network. To give you a sense of the scale of investment supporting this, Becton, Dickinson and Company announced its intention to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years, which started in fiscal year 2025.

Research and Development (R&D) is a substantial, non-negotiable outlay for a company in this sector. The significant R&D investment totaled $1.265 billion in FY2025. This spending fuels the innovation pipeline, which Becton, Dickinson and Company aims to use to meet its goal of launching 100 new products by the end of 2025.

Selling, General, and Administrative (SG&A) expenses are necessary to support a global sales force serving over 70,000 associates worldwide. For the fourth quarter of fiscal year 2025, Becton, Dickinson and Company reported Selling, General, and Administrative Expenses of $1.37B.

Operational costs are also tied to continuous improvement programs. The BD Excellence margin expansion program is a key driver for improving gross margins, with FY25 GAAP and adjusted gross margin up 20 basis points and 140 basis points, respectively, driven by this program. While the program aims to reduce costs, there are associated operational costs for restructuring, such as incremental project management costs and facility exit costs mentioned in prior filings.

External factors also impact the cost base. The estimated tariff expense for fiscal year 2025 was approximately $90 million. Even with this headwind, strong operational performance, driven by margin improvement, enabled the company to offset the earnings impact from updated organic revenue expectations in the first half of the year.

Here's a quick look at some key financial metrics from the full fiscal year 2025 results:

The cost structure is heavily influenced by these large, necessary expenditures:

• High fixed costs from global manufacturing infrastructure.
• R&D investment of $1.265 billion in FY2025.
• SG&A to support a global commercial team.
• Costs related to the BD Excellence program execution.
• Estimated tariff expense of $90 million in FY2025.

Finance: draft the full-year cost of goods sold breakdown for the upcoming board review by Tuesday.

Becton, Dickinson and Company (BDX) - Canvas Business Model: Revenue Streams

You're looking at Becton, Dickinson and Company's revenue architecture as of late 2025. It's built on a foundation of high-volume disposables feeding a steady stream of recurring revenue from installed systems, supplemented by larger capital purchases.

The total fiscal year 2025 revenue reached $21.8 billion. This top-line number is the result of execution across its core segments, which, for the third quarter of fiscal 2025, totaled $5.509 billion in reported revenues.

The revenue streams are diversified, but the recurring nature of consumables and services provides stability. Here's a look at the components that make up the whole:

• Sales of high-volume, recurring medical consumables (e.g., BD Vacutainer®, syringes).
• Sales of capital equipment (e.g., Alaris pumps, BD MAX™ systems).
• Reagent and assay sales, which are recurring revenue from the installed base of instruments.
• Service and maintenance revenue from instrument fleet support.

The BD Medical segment, which houses many of these consumable and capital streams, showed strong performance in fiscal 2025, with its Medication Management Solutions (MMS) business unit reflecting strength in Infusion Systems driven by a record quarter for BD Alaris™ capital installations. Furthermore, the company is pushing new recurring revenue through digital offerings, such as the launch of the BD Incada™ Connected Care Platform, an AI-enabled, cloud-based system.

To give you a sense of the revenue base supporting these streams, here is a breakdown of the reported revenue by segment for the third quarter of fiscal 2025:

The recurring revenue component, often tied to the installed base of diagnostic and infusion equipment, is critical. Think of it this way: once a hospital buys a BD MAX™ system, they need the specific reagents and assays to run tests, creating a predictable, high-margin revenue loop. This model is further supported by service contracts for the installed fleet of capital equipment, ensuring ongoing support revenue.

The company's focus on operational execution, termed BD Excellence, is aimed at driving margin expansion across these revenue sources. For the full fiscal year 2025, the adjusted operating margin improved to 25.0%, up 80 basis points, which directly benefits the profitability of these sales.