stockrowWhat it does
Becton, Dickinson and Company, known as BD, develops, manufactures and sells medical supplies, devices and equipment used in healthcare and drug delivery. Its products range from needles, syringes and blood collection tubes to infusion pumps, pharmacy automation and devices used in surgery. Hospitals, clinics, laboratories, pharmaceutical companies, healthcare workers and patients use its products.
BD’s medication delivery products help clinicians access blood vessels and administer medicines. Its infusion systems and pharmacy equipment help healthcare providers deliver, dispense and manage medications. BD also makes prefillable syringes and other delivery systems that pharmaceutical companies use to package injectable drugs. Its patient monitoring products measure heart function and fluid status during surgery and intensive care.
In procedures, BD sells products for vascular disease, urology and surgical repair. Some are used once and discarded; others are implanted temporarily or permanently. BD also sells specimen collection products, including blood collection tubes and associated equipment.
The business that became BD began in 1897. Its headquarters are in Franklin Lakes, New Jersey, and Thomas E. Polen is chairman, chief executive officer and president.
BD completed the separation of its life sciences business in combination with Waters Corporation during fiscal 2026. Specimen Management remains part of BD’s Medical Essentials business.
How it makes money
BD earns revenue by selling medical products and equipment, as well as services and licenses. Its supplies include products used in patient care, while its equipment includes infusion, monitoring and pharmacy systems. In the United States, distributors support demand for disposable products, while BD sells most capital equipment directly to end customers.
In fiscal 2025, BD reported three segments: Medical, Life Sciences and Interventional. Medical included medication delivery, infusion and dispensing systems, drug delivery systems for pharmaceutical companies, and patient monitoring. Life Sciences included specimen collection, diagnostics and cell research products. Interventional included surgical, vascular and urology products. Medical generated $11.5 billion in fiscal 2025 revenue, or 52.5% of the total.
BD reorganized into five segments effective October 1, 2025. Following the life sciences separation, its remaining businesses include Medical Essentials, Connected Care, BioPharma Systems and Interventional. Medical Essentials includes specimen management and medication delivery supplies. Connected Care includes infusion and dispensing systems, pharmacy automation and patient monitoring. BioPharma Systems supplies drug delivery products to pharmaceutical companies, while Interventional sells products used in surgery and vascular and urology care.
Some equipment is used with dedicated disposables, including infusion systems and their administration sets. BD also sells products such as blood collection tubes and syringes that are consumed in care. Its strategy includes building recurring software, analytics and artificial intelligence revenue alongside dispensing equipment. Prices vary with factors including competition, reimbursement and customers’ purchasing arrangements.
Fiscal 2026 revenue was $19.5 billion; fourth-quarter fiscal 2026 revenue was $5.3 billion. The fiscal 2025 segment figures above reflect the earlier portfolio and should not be read as the current segment mix.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Medical | $11.5 billion | 52.5% | 13.7% |
| Interventional | $5.2 billion | 23.9% | 4.76% |
| Life Sciences | $5.2 billion | 23.7% | −0.46% |
Customers and how it sells
BD serves hospitals and clinics, physicians’ offices, laboratories, pharmaceutical and biotechnology companies, researchers, healthcare workers and patients. Its interventional products also reach ambulatory surgery centers, extended care facilities and patients through its homecare business. Pharmaceutical customers use BD’s prefillable delivery systems as containers for injectable medicines.
The company sells both directly and through independent distributors. In the United States, wholesalers help supply disposable products to end users, while capital equipment is mostly sold directly. International distribution varies by country and includes both direct sales and distributors.
The United States accounted for 58.6% of fiscal 2025 revenue. EMEA, covering Europe, the Middle East and Africa, accounted for 21.7%, and Greater Asia accounted for 14.2%. These shares reflect BD’s portfolio before the life sciences separation. BD manufactures and sells products worldwide, with manufacturing operations in the United States and numerous countries across the Americas, Europe and Asia.
Customer purchasing decisions are influenced by healthcare budgets and reimbursement. Public and private payers cover some or all of the costs of certain procedures and products, but BD does not control their coverage or payment decisions.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $12.8 billion | 58.6% | 9.66% |
| EMEA | $4.7 billion | 21.7% | 7.43% |
| Greater Asia | $3.1 billion | 14.2% | 6.43% |
| Other | $1.2 billion | 5.62% | 1.66% |
Suppliers and costs
BD buys plastics, glass, metals, textiles, paper, electronic and mechanical subassemblies, and biological, chemical and petrochemical materials. It seeks multiple sources of supply, but some materials or components come from a single supplier or have only one qualified supplier. No individual supplier is named in the available company descriptions.
Qualifying an alternative source can require regulatory registration and approval. Without clinical trials, BD says the process can take 3-18 months; when trials are required, it may take one to three years. Its contingency plans can include alternative suppliers or manufacturing sites and additional stock.
Manufacturing, labor, raw materials, freight, tariffs, research and development, and selling and administrative activities all affect costs. In fiscal 2025, productivity projects and supply-chain changes reduced manufacturing costs in the reported segments, while tariffs and higher labor costs offset part of those benefits. BD said tariffs affected fiscal 2026 adjusted operating margin by 90 basis points.
Under a U.S. government partnership, BD committed to invest $19 billion in the United States over several years, including $3 billion for manufacturing expansion. BD says this redirects planned investment rather than adding incremental investment.
- Revenue$19.5B
- Cost of revenue−$10.2B
- Research and development−$988.0M
- Selling, general and administrative−$5.0B
- Other operating costs−$1.0B
- Operating income$2.3B
Competitive position
BD competes across its product lines with large medical device companies, more specialized manufacturers and new entrants. Some competitors have more financial resources, while others focus on particular markets. Distributors also manufacture devices, and low-cost manufacturers have added pricing pressure. The company competes on factors including price, quality, innovation, service, reputation and distribution. No individual competitor is named in the supplied company descriptions.
BD owns patents, technology, trade secrets, know-how and other intellectual property, and licenses some rights from others. It considers these assets important in aggregate, but does not consider any single patent, technology, trademark or license material to the company or a segment as a whole.
Its product range includes capital equipment and related disposables, such as infusion pumps and infusion sets. BD also sells through distributors and directly to healthcare institutions, and it operates manufacturing and distribution facilities internationally. In fiscal 2026, BD said its Alaris infusion system gained more than 250 basis points of market share.
Our reading: The combination of installed equipment and related disposables can support continuing customer relationships, although the available evidence does not establish how difficult it is for customers to switch. Our reading: Intellectual property and distribution reach support BD’s competitive position, but neither eliminates competition on price or innovation, and BD does not rely on one material patent.
Growth opportunities
BD invests in research and development, new products, manufacturing productivity and acquisitions to support growth. Its stated areas of investment include patient monitoring, biologic drug delivery, pharmacy automation, PureWick urinary products and advanced tissue regeneration. BD said each of those platforms delivered double-digit growth in both the fourth quarter and the full fiscal year 2026.
In drug delivery, BD supplies prefillable systems to pharmaceutical companies and has expanded its work with biologic medicines. In Connected Care, it is adding software, analytics and artificial intelligence capabilities to dispensing equipment and pursuing pharmacy automation. BD also reported growth in specimen management from new capacity, share gains and additional demand associated with competitor disruptions.
In Interventional, BD received FDA approval for its Liverty TIPS Stent Graft and clearance for Phasix ST Parastomal mesh. The company sizes the global venous market at approximately $2 billion and the served market for the hernia repair mesh at $1.8 billion. BD expects to launch the mesh in the first half of fiscal 2027.
For fiscal 2027, BD expects low single-digit revenue growth. It expects an approximate 200 basis points impact from the Alaris capital comparison and, excluding that impact, mid-single-digit growth at the midpoint of its guidance. BD also expects adjusted operating margins to be roughly flat year over year.
- $18.9BFY2022
- $19.4BFY2023
- $20.2BFY2024
- $21.8BFY2025
- $19.5BFY2026
Structural risks
- Product quality and regulation: BD’s products and operations are subject to regulatory oversight. Its U.S. infusion pump unit operates under an FDA consent decree, and the FDA may order manufacturing or distribution to stop, or products to be recalled, following violations. BD has also received a warning letter concerning its dispensing quality system and Pyxis products.
- Supply and manufacturing: Some materials and components have only one qualified source. A supply interruption could affect BD’s ability to manufacture and sell products, and qualifying an alternative can require regulatory approval.
- Pricing and reimbursement: Hospital and payer consolidation, cost-containment programs and changes in reimbursement can affect demand and the prices customers pay. Government procurement programs in China have also affected BD’s results.
- Trade and input costs: Tariffs and countermeasures can increase supply-chain costs or affect component availability and demand. BD’s future tariff relief under its government partnership depends on the scope and implementation of future actions and on meeting agreed milestones.
- Technology and cybersecurity: BD relies on information systems and connected products. Cyberattacks or system disruptions can compromise information, interrupt operations, create product safety concerns or result in regulatory action and litigation.
- Innovation: New products require investment, regulatory approvals and customer acceptance. Competitors’ products or changing standards can make BD’s offerings less competitive or obsolete.
Bottom line
Our reading
BD combines frequently used medical supplies with equipment, implanted products and drug delivery systems sold to healthcare providers and pharmaceutical companies. Its equipment-and-disposables relationships and global distribution support the business, but pricing pressure and product competition limit the protection they provide. After the life sciences separation, growth depends in part on expanding its remaining platforms, while quality oversight, tariffs and supply continuity remain important exposures.