Becton Dickinson Raises Profit Outlook as Revenue Grows
Adjusted earnings from continuing operations increased to $3.23 a share.
Becton, Dickinson and Co. (BDX), the medical-technology company, reported a 5.4% increase in third-quarter revenue, while higher costs weighed on operating profit.
The period was BD’s first full quarter after the February spin-off of its Biosciences and Diagnostic Solutions businesses into Waters. The company now reports four continuing-operations segments, with prior periods recast to remove the former Life Sciences segment.
Revenue rose to $4.983 billion from $4.726 billion a year earlier, or 4.4% on a foreign-currency-neutral basis. Adjusted diluted earnings from continuing operations increased 4.9%, while GAAP diluted earnings rose 4.5% to $1.64 a share.
The U.S. business drove the quarter, with revenue rising 6.9% to $3.081 billion. International revenue increased 3.2% to $1.902 billion, though the gain slowed to 0.6% after adjusting for currency.
BioPharma Systems led the company’s segments with currency-neutral growth of 5.2%, followed by Interventional at 5.5%. Within Interventional, Peripheral Intervention revenue rose 7.8% to $552 million and Surgery increased 7% to $422 million, offsetting slower growth in Urology and Critical Care.
Operating income fell 10.3% to $663 million as operating costs rose faster than revenue. The operating margin narrowed to about 13.3% from 15.6%, with selling and administrative expense up 8.4% and research-and-development spending up 12%.
BD raised the lower end of its fiscal-2026 adjusted earnings guidance by 10 cents and now expects $12.62 to $12.72 a share. It continues to expect reported revenue growth toward the high end of its unchanged low-single-digit-plus range.
Cash from continuing operations increased 33.3% to $2.1 billion in the first nine months, and free cash flow rose 44.6% to $1.7 billion. BD recorded $450 million of noncash impairment charges tied to activities and projects being exited under its Excellence Unleashed restructuring program, lifting nine-month restructuring costs to $605 million.