Becton, Dickinson and Company (BDX) Earnings & Analysis

Latest quarter

BD reported Q3 FY2026 revenue of $5.0 billion, compared with the consensus of $4.9 billion, and adjusted EPS of $3.23, compared with the consensus of $3.14. The company reported that revenue was 1.81% above the consensus and adjusted EPS was 2.87% above the consensus.

The filing shows revenue increased 5.44% from $4.7 billion in Q3 FY2025, with volume and other factors, pricing and foreign currency contributing to the increase. BD attributed growth to U.S. performance in Medication Delivery Solutions and Specimen Management, Advanced Patient Monitoring, Medication Management Solutions, BioPharma Systems and parts of Interventional. The filing said China market dynamics, including volume-based procurement, affected certain businesses, while lower vaccine demand affected BioPharma Systems.

The filing shows gross margin was 46.5%, versus 47.3% a year earlier, and operating margin was 13.3%, versus 15.6%. BD attributed margin pressures to tariffs, labor costs, foreign currency translation and costs associated with actions responding to the El Paso Warning Letter. The company reported free cash flow of $633.0 million, compared with $925.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Tom Polen said BD saw solid utilization across its portfolio in the quarter, citing demand indicators including blood collection tubes, syringes and catheters. He said Specimen Management benefited from share gains, improved supply and customer demand associated with competitors’ backorders, while cautioning that the U.S. growth rate in that business was not necessarily recurring.

Polen said BD’s growth platforms included advanced patient monitoring, biologics, peripheral intervention, tissue regeneration, pharmacy automation and PureWick. He said the company had approximately 100 signed agreements across novel and biosimilar GLP-1 programs, and that Biopharma Systems’ biologics growth was led by GLP-1 delivery products. He also said the company was making commercial investments and pursuing product launches across its growth platforms.

Vitor Roque said adjusted gross margin and adjusted operating margin reflected productivity gains from BD Excellence and favorable mix, while tariffs and continued selling and research-and-development investment offset those benefits. Polen said BD had already begun pricing actions in response to input-cost risks, including oil-related resin and molded-plastic costs.

Analysts asked about fiscal 2027 growth, the outlook for vaccines and China, Alaris, and the quarterly margin profile. Roque said the company continued to characterize fiscal 2027 as a low-single-digit revenue-growth year because the conclusion of Alaris remediation in fiscal 2026 creates a 200-basis-point headwind. Polen said vaccine trends appeared to be stabilizing based on preliminary feedback and order patterns, while stating that BD would provide an update with guidance.

Polen said China was expected to represent about 4% of New BD revenue and could decline into the 3% range as other businesses grow faster. Roque said the company expected sequential margin improvement in Q4 despite the tougher Alaris comparison, supported by productivity gains. Roque said BD would provide formal fiscal 2027 guidance and additional profit-and-loss detail in November.

Guidance

BD said it now expects FY2026 revenue growth toward the high end of its low-single-digit FX-neutral range. Vitor Roque said currency is expected to provide about a 100-basis-point revenue tailwind based on current spot rates. BD raised the midpoint of its FY2026 adjusted EPS guidance and set the range at $12.62–$12.72.