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Here's Why You Should Retain BDX Stock in Your Portfolio for Now
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Key Takeaways
BDX is advancing its pure-play MedTech strategy around execution, innovation and efficiency.
BDX has achieved $150M of its $200M cost-out program, supporting profitability and cash flow generation.
Becton, Dickinson faces reimbursement uncertainty, macroeconomic pressure, competition and FX exposure.
Becton, Dickinson and Company (BDX - Free Report) is benefiting from its focused transformation into a pure-play MedTech company, supported by strong execution of its BD 2025 strategy. The company’s continued emphasis on innovation, strategic partnerships and solid third-quarter fiscal 2026 results are driving optimism. However, persistent reimbursement uncertainties, macroeconomic headwinds and stiff competition remain key concerns.
This Zacks Rank #3 (Hold) stock has lost 5.3% in the year-to-date period against the industry’s 2% growth. The S&P 500 Composite has returned 12.7% during the same time frame.
The renowned medical technology player, with a market capitalization of $50.65 billion, remains focused on delivering durable growth and margin expansion. It projects 5.2% growth for the next fiscal year and expects to maintain a strong performance in the future. BDX’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 2.9%.
Image Source: Zacks Investment Research
Reasons Favoring BDX’s Growth
Strategic Execution Under the New BD Framework: Following the separation of its Biosciences and Diagnostic Solutions business and combination with Waters, the company is executing its New BD strategy as a focused MedTech company. The company’s priorities — Compete, Innovate and Deliver — are aimed at strengthening commercial execution, accelerating innovation and improving operational efficiency. Management remains focused on driving sustainable growth, margin expansion and long-term shareholder value.
The strategy is already yielding results. In second-quarter fiscal 2026, more than 90% of Becton, Dickinson’s portfolio delivered mid-single-digit growth, while key growth platforms such as biologic drug delivery, Advanced Patient Monitoring, PureWick and advanced tissue regeneration posted double-digit gains. The company has also achieved $150 million of its $200-million cost-out program, supporting profitability and cash flow generation.
Continued Focus on Innovation and R&D: BD's long-term growth strategy is driven by innovation and new product development, backed by investments in R&D, clinical trials and regulatory approvals. The company conducts R&D through its operating units and global centers of excellence across the United States, India, China, Singapore and Ireland while collaborating with academic and clinical institutions to accelerate innovation. In August, BD completed enrollment in the 477-patient PREVENT clinical trial across 32 sites in the United States and Europe, evaluating Phasix Mesh for preventing incisional hernias, with the primary endpoint set at 24 months and follow-up extending to five years.
Strategic Partnerships: BD continues to advance its portfolio transformation through strategic collaborations and transactions aimed at expanding its presence in higher-growth MedTech markets. In July, the company partnered with Brazilian pharmaceutical firm EMS to launch a semaglutide therapy in Brazil using BD's Vystra Injection Pen platform, strengthening its exposure to the growing GLP-1 drug-delivery market.
Earlier in February, BD completed the spin-off of its Biosciences and Diagnostic Solutions business and its combination with Waters Corporation through a Reverse Morris Trust transaction, retaining a 39.2% stake in the combined company while receiving a $4 billion cash distribution, half of which funded share repurchases and the remainder reduced debt. The transaction also streamlined BD's portfolio into four core operating segments: Medical Essentials, Connected Care, BioPharma Systems and Interventional.
Factors That May Offset BDX’s Gains
Macroeconomic Headwinds: BDX faces risks from inflation, tariffs, supply-chain disruptions and geopolitical uncertainties. Persistent cost pressures and changes in global trade policies could increase operating expenses, disrupt production and weigh on healthcare spending.
Reimbursement Challenges: Demand for the company’s products depends partly on reimbursement policies and insurance coverage. Increasing pricing scrutiny, value-based payment reforms and healthcare budget constraints may limit product adoption, pressure pricing and reduce procedure volumes.
Intense Competition & Foreign Exchange Exposure: Becton, Dickinson operates in a highly competitive medical technology market characterized by rapid innovation, industry consolidation and pricing pressure from low-cost manufacturers. Significant international operations expose the company to foreign currency fluctuations, which can adversely impact revenues, profitability and cash flows despite hedging efforts.
Estimate Trend
Becton, Dickinson is witnessing a stable estimate revision trend for fiscal 2026. In the past 30 days, the Zacks Consensus Estimate for its earnings has been unchanged at $12.59 per share.
The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2026 revenues is pegged at $5.12 billion, indicating a 13% decline from the year-ago quarter’s reported number.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.
View the Zacks #1 Rank List
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Here's Why You Should Retain BDX Stock in Your Portfolio for Now
Key Takeaways
Becton, Dickinson and Company (BDX - Free Report) is benefiting from its focused transformation into a pure-play MedTech company, supported by strong execution of its BD 2025 strategy. The company’s continued emphasis on innovation, strategic partnerships and solid third-quarter fiscal 2026 results are driving optimism. However, persistent reimbursement uncertainties, macroeconomic headwinds and stiff competition remain key concerns.
This Zacks Rank #3 (Hold) stock has lost 5.3% in the year-to-date period against the industry’s 2% growth. The S&P 500 Composite has returned 12.7% during the same time frame.
The renowned medical technology player, with a market capitalization of $50.65 billion, remains focused on delivering durable growth and margin expansion. It projects 5.2% growth for the next fiscal year and expects to maintain a strong performance in the future. BDX’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 2.9%.
Image Source: Zacks Investment Research
Reasons Favoring BDX’s Growth
Strategic Execution Under the New BD Framework: Following the separation of its Biosciences and Diagnostic Solutions business and combination with Waters, the company is executing its New BD strategy as a focused MedTech company. The company’s priorities — Compete, Innovate and Deliver — are aimed at strengthening commercial execution, accelerating innovation and improving operational efficiency. Management remains focused on driving sustainable growth, margin expansion and long-term shareholder value.
The strategy is already yielding results. In second-quarter fiscal 2026, more than 90% of Becton, Dickinson’s portfolio delivered mid-single-digit growth, while key growth platforms such as biologic drug delivery, Advanced Patient Monitoring, PureWick and advanced tissue regeneration posted double-digit gains. The company has also achieved $150 million of its $200-million cost-out program, supporting profitability and cash flow generation.
Continued Focus on Innovation and R&D: BD's long-term growth strategy is driven by innovation and new product development, backed by investments in R&D, clinical trials and regulatory approvals. The company conducts R&D through its operating units and global centers of excellence across the United States, India, China, Singapore and Ireland while collaborating with academic and clinical institutions to accelerate innovation. In August, BD completed enrollment in the 477-patient PREVENT clinical trial across 32 sites in the United States and Europe, evaluating Phasix Mesh for preventing incisional hernias, with the primary endpoint set at 24 months and follow-up extending to five years.
Strategic Partnerships: BD continues to advance its portfolio transformation through strategic collaborations and transactions aimed at expanding its presence in higher-growth MedTech markets. In July, the company partnered with Brazilian pharmaceutical firm EMS to launch a semaglutide therapy in Brazil using BD's Vystra Injection Pen platform, strengthening its exposure to the growing GLP-1 drug-delivery market.
Earlier in February, BD completed the spin-off of its Biosciences and Diagnostic Solutions business and its combination with Waters Corporation through a Reverse Morris Trust transaction, retaining a 39.2% stake in the combined company while receiving a $4 billion cash distribution, half of which funded share repurchases and the remainder reduced debt. The transaction also streamlined BD's portfolio into four core operating segments: Medical Essentials, Connected Care, BioPharma Systems and Interventional.
Factors That May Offset BDX’s Gains
Macroeconomic Headwinds: BDX faces risks from inflation, tariffs, supply-chain disruptions and geopolitical uncertainties. Persistent cost pressures and changes in global trade policies could increase operating expenses, disrupt production and weigh on healthcare spending.
Reimbursement Challenges: Demand for the company’s products depends partly on reimbursement policies and insurance coverage. Increasing pricing scrutiny, value-based payment reforms and healthcare budget constraints may limit product adoption, pressure pricing and reduce procedure volumes.
Intense Competition & Foreign Exchange Exposure: Becton, Dickinson operates in a highly competitive medical technology market characterized by rapid innovation, industry consolidation and pricing pressure from low-cost manufacturers. Significant international operations expose the company to foreign currency fluctuations, which can adversely impact revenues, profitability and cash flows despite hedging efforts.
Estimate Trend
Becton, Dickinson is witnessing a stable estimate revision trend for fiscal 2026. In the past 30 days, the Zacks Consensus Estimate for its earnings has been unchanged at $12.59 per share.
The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2026 revenues is pegged at $5.12 billion, indicating a 13% decline from the year-ago quarter’s reported number.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and West Pharmaceutical (WST - Free Report) .
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.