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BD Stock Up in Pre-Market Post Q3 Earnings & Revenue Beat, Margins Down
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Key Takeaways
BD's adjusted earnings and revenues surpassed estimates, supported by growth across all four segments.
BDX's BioPharma Systems led reported segment growth, followed closely by BD Interventional.
BD narrowed its fiscal-year earnings outlook as gross and operating margins contracted.
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, delivered adjusted earnings per share (EPS) of $3.23 in the third quarter of fiscal 2026, up 4.9% year over year. The figure topped the Zacks Consensus Estimate by 2.9%.
The adjustments include expenses related to purchase accounting adjustments and restructuring costs, among others.
GAAP EPS for the quarter was $1.64, up 4.5% year over year.
BDX’s Revenues in Detail
BD registered revenues of $4.98 billion in the fiscal third quarter, up 5.4% year over year on a reported basis. The figure surpassed the Zacks Consensus Estimate by 1.8%.
At constant exchange rate (CER), revenues climbed 4.4% year over year.
Robust performances by all the segments drove the top-line improvement.
Shares of this company gained nearly 1.8% in today’s pre-market trading.
BD’s Segment Details
Effective Oct. 1, 2025, BD reorganized its organizational units into five distinct, separately-managed segments, which are based on the nature of its product and service offerings. However, subsequent to the spin-off of BDX's former Biosciences and Diagnostic Solutions business and the combination of the business with Waters, the Life Sciences segment was eliminated, leaving the company with four distinct, separately-managed segments.
In the quarter under review, the Medical Essentials segment reported revenues of $1.68 billion, up 4.5% and 3.2% from the year-ago quarter on a reported basis and at CER, respectively.
Revenues in the Connected Care segment totaled $1.22 billion, up 4.9% year over year on a reported basis and 4.4% at CER.
BioPharma Systems segment generated revenues of $670 million, up 6.6% year over year on a reported basis and 5.2% at CER.
BD Interventional segment generated revenues of $1.41 billion, up 6.4% from the year-ago quarter on a reported basis and 5.5% at CER.
BDX’s Geographic Results
In the third quarter of fiscal 2026, revenues in the United States improved 6.9% year over year to $3.08 billion.
International revenues grossed $1.90 billion, up 3.2% from the year-ago quarter on a reported basis and 0.6% at CER.
Becton, Dickinson and Company Price, Consensus and EPS Surprise
In the quarter under review, BD’s gross profit increased 3.6% year over year to $2.32 billion. However, the gross margin contracted 83 basis points (bps) to 46.5%.
Selling and administrative expenses increased 8.4% year over year to $1.26 billion. Research and development expenses increased 12.2% year over year to $258 million. Adjusted operating expenses of $1.52 billion rose 9% year over year.
Adjusted operating profit totaled $796 million, reflecting a 5.5% decrease from the year-ago quarter. The adjusted operating margin in the fiscal third quarter contracted 184 bps to 15.9%.
BDX’s Financial Position
BD exited third-quarter fiscal 2026 with cash and cash equivalents and short-term investments of $709 million compared with $816 million at the fiscal second-quarter end. Total debt (including current debt obligations) at the end of the fiscal third quarter was $16.81 billion compared with $17.28 billion at the fiscal second-quarter end.
Cumulative net cash provided by continuing operating activities at the end of third-quarter fiscal 2026 was $2.10 billion compared with $1.58 billion a year ago.
Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 5.32%.
BD’s Fiscal 2026 Guidance
BD has revised guidance for fiscal 2026 for New BD.
BD continues to project its full fiscal year revenues to grow above low single-digit on a reported basis, while it continues to expect them to grow at low single-digit at CER.
For the full fiscal year, adjusted EPS is now anticipated to be in the range of $12.62-$12.72, narrowed from the prior outlook of $12.52-$12.72. The Zacks Consensus Estimate is pegged at $12.53.
Our Take on BD
BD exited the third quarter of fiscal 2026 with better-than-expected results and solid top- and bottom-line results. Robust performances by all segments and both geographic regions were encouraging.
Apart from these, there were a few other developments during the recent period. BDX was awarded a Vizient Innovative Technology contract for the BD CentroVena One Insertion System. The company launched the Elyra Thulium Fiber Laser System, thus expanding its kidney stone care portfolio. BD also announced a collaboration with Brazil-based pharmaceutical company, EMS, to expand access to GLP-1 therapies through a semaglutide launch utilizing BD's Vystra Injection Pen platform to support consistent, reliable self-injection for patients with obesity and type 2 diabetes. These raise our optimism about the stock.
However, the contraction of both margins does not bode well.
BD’s Zacks Rank and Stocks to Consider
BDX currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are BrightSpring Health Services, Inc. (BTSG - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and Avantor, Inc. (AVTR - Free Report) .
BrightSpring, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2026 adjusted EPS of 45 cents, beating the Zacks Consensus Estimate by 21.6%. Revenues of $3.87 billion outpaced the consensus mark by 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BrightSpring has a long-term estimated growth rate of 46%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 16.1%.
Quest Diagnostics reported second-quarter 2026 adjusted EPS of $3.12, beating the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion surpassed the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2 (Buy).
Quest Diagnostics has a long-term estimated growth rate of 9.7%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.
Avantor reported second-quarter 2026 adjusted EPS of 21 cents, beating the Zacks Consensus Estimate by 10.5%. Revenues of $1.69 billion surpassed the Zacks Consensus Estimate by 4.2%. It currently carries a Zacks Rank #2.
Avantor has a long-term estimated growth rate of 1.6%. AVTR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.3%.
View the Zacks #1 Rank List
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BD Stock Up in Pre-Market Post Q3 Earnings & Revenue Beat, Margins Down
Key Takeaways
Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, delivered adjusted earnings per share (EPS) of $3.23 in the third quarter of fiscal 2026, up 4.9% year over year. The figure topped the Zacks Consensus Estimate by 2.9%.
The adjustments include expenses related to purchase accounting adjustments and restructuring costs, among others.
GAAP EPS for the quarter was $1.64, up 4.5% year over year.
BDX’s Revenues in Detail
BD registered revenues of $4.98 billion in the fiscal third quarter, up 5.4% year over year on a reported basis. The figure surpassed the Zacks Consensus Estimate by 1.8%.
At constant exchange rate (CER), revenues climbed 4.4% year over year.
Robust performances by all the segments drove the top-line improvement.
Shares of this company gained nearly 1.8% in today’s pre-market trading.
BD’s Segment Details
Effective Oct. 1, 2025, BD reorganized its organizational units into five distinct, separately-managed segments, which are based on the nature of its product and service offerings. However, subsequent to the spin-off of BDX's former Biosciences and Diagnostic Solutions business and the combination of the business with Waters, the Life Sciences segment was eliminated, leaving the company with four distinct, separately-managed segments.
In the quarter under review, the Medical Essentials segment reported revenues of $1.68 billion, up 4.5% and 3.2% from the year-ago quarter on a reported basis and at CER, respectively.
Revenues in the Connected Care segment totaled $1.22 billion, up 4.9% year over year on a reported basis and 4.4% at CER.
BioPharma Systems segment generated revenues of $670 million, up 6.6% year over year on a reported basis and 5.2% at CER.
BD Interventional segment generated revenues of $1.41 billion, up 6.4% from the year-ago quarter on a reported basis and 5.5% at CER.
BDX’s Geographic Results
In the third quarter of fiscal 2026, revenues in the United States improved 6.9% year over year to $3.08 billion.
International revenues grossed $1.90 billion, up 3.2% from the year-ago quarter on a reported basis and 0.6% at CER.
Becton, Dickinson and Company Price, Consensus and EPS Surprise
Becton, Dickinson and Company price-consensus-eps-surprise-chart | Becton, Dickinson and Company Quote
BD’s Margin Analysis
In the quarter under review, BD’s gross profit increased 3.6% year over year to $2.32 billion. However, the gross margin contracted 83 basis points (bps) to 46.5%.
Selling and administrative expenses increased 8.4% year over year to $1.26 billion. Research and development expenses increased 12.2% year over year to $258 million. Adjusted operating expenses of $1.52 billion rose 9% year over year.
Adjusted operating profit totaled $796 million, reflecting a 5.5% decrease from the year-ago quarter. The adjusted operating margin in the fiscal third quarter contracted 184 bps to 15.9%.
BDX’s Financial Position
BD exited third-quarter fiscal 2026 with cash and cash equivalents and short-term investments of $709 million compared with $816 million at the fiscal second-quarter end. Total debt (including current debt obligations) at the end of the fiscal third quarter was $16.81 billion compared with $17.28 billion at the fiscal second-quarter end.
Cumulative net cash provided by continuing operating activities at the end of third-quarter fiscal 2026 was $2.10 billion compared with $1.58 billion a year ago.
Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 5.32%.
BD’s Fiscal 2026 Guidance
BD has revised guidance for fiscal 2026 for New BD.
BD continues to project its full fiscal year revenues to grow above low single-digit on a reported basis, while it continues to expect them to grow at low single-digit at CER.
For the full fiscal year, adjusted EPS is now anticipated to be in the range of $12.62-$12.72, narrowed from the prior outlook of $12.52-$12.72. The Zacks Consensus Estimate is pegged at $12.53.
Our Take on BD
BD exited the third quarter of fiscal 2026 with better-than-expected results and solid top- and bottom-line results. Robust performances by all segments and both geographic regions were encouraging.
Apart from these, there were a few other developments during the recent period. BDX was awarded a Vizient Innovative Technology contract for the BD CentroVena One Insertion System. The company launched the Elyra Thulium Fiber Laser System, thus expanding its kidney stone care portfolio. BD also announced a collaboration with Brazil-based pharmaceutical company, EMS, to expand access to GLP-1 therapies through a semaglutide launch utilizing BD's Vystra Injection Pen platform to support consistent, reliable self-injection for patients with obesity and type 2 diabetes. These raise our optimism about the stock.
However, the contraction of both margins does not bode well.
BD’s Zacks Rank and Stocks to Consider
BDX currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are BrightSpring Health Services, Inc. (BTSG - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and Avantor, Inc. (AVTR - Free Report) .
BrightSpring, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2026 adjusted EPS of 45 cents, beating the Zacks Consensus Estimate by 21.6%. Revenues of $3.87 billion outpaced the consensus mark by 6.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BrightSpring has a long-term estimated growth rate of 46%. BTSG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 16.1%.
Quest Diagnostics reported second-quarter 2026 adjusted EPS of $3.12, beating the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion surpassed the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2 (Buy).
Quest Diagnostics has a long-term estimated growth rate of 9.7%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.
Avantor reported second-quarter 2026 adjusted EPS of 21 cents, beating the Zacks Consensus Estimate by 10.5%. Revenues of $1.69 billion surpassed the Zacks Consensus Estimate by 4.2%. It currently carries a Zacks Rank #2.
Avantor has a long-term estimated growth rate of 1.6%. AVTR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.3%.