Becton Dickinson And Company Stock Earnings Reports

Becton, Dickinson and Company (New Becton, Dickinson and Company after the Life Sciences separation) reported a stronger-than-expected Q1 FY2026: revenue $5.3B (+0.4% year-over-year; New BD +2.5%), adjusted EPS $2.91 (ahead of expectations), and adjusted gross margin 53.4%. Management closed the Life Sciences combination with Waters (Reverse Morris Trust) nearly two months early and will receive a $4.0B cash distribution, which they plan to deploy $2.0B to an ASR share repurchase program and $2.0B to debt reduction. The company reaffirmed its FY26 outlook for New BD: low single-digit revenue growth and adjusted EPS guidance of $12.35–$12.65 (≈6% growth at midpoint), with an adjusted operating margin target of about 25% (inclusive of tariff impacts). Key growth drivers called out include biologic drug delivery (GLP-1 exposure: >80 contracted molecules), PureWick (urinary incontinence), pharmacy automation (Pyxis Pro and Parata/LoRa), advanced patient monitoring (APM, HemoSphere Stream), advanced tissue regeneration, and recurring consumables (over 90% of revenue). Management highlighted operational progress (Becton, Dickinson and Company Excellence) with 8% productivity improvement in the quarter, reallocated $50M of central R&D into businesses, and execution of $200M cost-out program (75% complete). Known headwinds are concentrated in ~10% of the portfolio: Alaris pump remediation/comparisons, vaccine-related demand normalization, and China volume-based procurement (VBP) pricing pressure; tariffs trimmed margins (approx. 170 bps gross margin headwind). Cash flow remained healthy (free cash flow $548M; conversion 66%), net leverage 2.9x with a long-term target of 2.5x, and capital allocation priorities are share repurchases, growing dividends, and focused tuck-in M&A rather than transformational deals.