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1. Company Snapshot

1.a. Company Description

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide.The company's BD Medical segment offers peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes; and prefillable drug delivery systems.Its BD Life Sciences segment provides specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers.


The company's BD Interventional segment offers hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention, surgical and laparoscopic instrumentation products; peripheral intervention products; and urology and critical care products.The company was founded in 1897 and is based in Franklin Lakes, New Jersey.

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1.b. Last Insights on BDX

Breaking News: Becton Dickinson and Company reported Q1 fiscal 2026 earnings, beating estimates with $2.91 per share versus $2.82 expected. Revenue grew 1.6% to $5.3 billion, with New BD revenue up 2.5% FXN. Margins expanded, but adjusted profit declined year-over-year. The company affirms FY26 revenue growth guidance and provides adjusted diluted EPS guidance for New BD. The combination of BD's Biosciences and Diagnostic Solutions business with Waters Corporation is expected to close soon. Analysts at Zacks recommend a hold.

1.c. Company Highlights

2. Becton, Dickinson and Company Delivers Solid Q1 2026 Earnings

Becton, Dickinson and Company (BDX) reported its Q1 2026 earnings, with revenues of $5.3 billion, up 0.4%, and organic growth of 2.5%. The company delivered an adjusted gross margin of 53.4% and adjusted EPS of $2.91, both ahead of expectations. The adjusted EPS of $2.91 surpassed analyst estimates of $2.81, demonstrating the company's strong execution. The revenue growth was modest, but the company's focus on high-growth areas and commercial excellence is driving margin expansion.

Publication Date: Feb -10

📋 Highlights
  • Revenue Growth and Margins:: Q1 2026 revenue rose 0.4% to $5.3B, with New BD growth at 2.5%; adjusted gross margin hit 53.4%, exceeding expectations.
  • Cash Distribution and Capital Allocation:: $4B from Waters transaction, $2B for buybacks and $2B for debt paydown, alongside $550M returned to shareholders ($250M in share repurchases).
  • EPS Guidance and Free Cash Flow:: Adjusted EPS of $2.91 beat estimates; $548M FCF (66% conversion) supports $12.35–$12.65 2026 EPS guidance (6% mid-point growth).
  • GLP-1 Franchise Momentum:: On track for $1B annual revenue by 2030, with 80+ GLP-1s contracted in devices and injectables maintaining strong growth.
  • Alaris Competitive Gains:: Alaris secured record new wins, gaining ~1 share point, with share nearing 60% despite 100–200 bps headwinds in 2026–2027.

Financial Performance and Guidance

The company expects low single-digit revenue growth for fiscal 2026, with an adjusted EPS guidance of $12.35 to $12.65, reflecting growth of approximately 6% at the midpoint. The guidance is prudent, according to CEO Thomas E. Polen, and the company is well set up for a stable outlook. The company's pricing environment is stable, with pricing generally flat to slightly positive, and they expect positive pricing in the rest of the world.

Segment Performance and Innovation

The company has made significant progress on its commercial initiatives, including planned sales force expansion and accelerating initiatives to make PureWick at home available for veterans. The company also strengthened its innovation pipeline by completing the reallocation of $50 million of central R&D to the businesses to fund multiple new product innovations in high-growth platforms. Alaris is seeing strong competitive momentum, with a record number of new competitive wins in the quarter and a gain of about a full point of share.

Valuation and Return Metrics

With a P/E Ratio of 33.65, the stock appears to be fairly valued, considering the company's expected earnings growth. The EV/EBITDA ratio of 14.98 also suggests a reasonable valuation. The company's return on equity (ROE) is 6.38%, and return on invested capital (ROIC) is 4.22%, indicating a decent return on capital employed. The dividend yield of 2.01% provides a relatively stable source of return.

Outlook and Risks

The company faces some known headwinds, including China VBP, which is expected to impact 80% of the portfolio by 2026, with an expected headwind of 250 basis points for the full year. The vaccine business is also expected to be a headwind in 2026, but its impact will likely decrease in 2027. However, the company's diversified portfolio and focus on high-growth areas are expected to drive long-term growth. Analysts estimate next year's revenue growth at 3.0%, which is relatively modest, but the company's focus on innovation and commercial excellence is expected to drive growth.

3. NewsRoom

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What's Going On With Becton Dickinson Stock Tuesday?

Feb -10

Source: benzinga.com

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Becton, Dickinson and Company Announces Tender Offers for Outstanding Debt Securities

Feb -10

Source: prnewswire.com

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Becton, Dickinson and Company (BDX) Q1 2026 Earnings Call Transcript

Feb -09

Source: seekingalpha.com

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BD Stock Dips in Pre-Market Despite Q1 Earnings Beat, Margins Up

Feb -09

Source: zacks.com

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Dow Falls 250 Points; Becton Dickinson Posts Upbeat Earnings

Feb -09

Source: benzinga.com

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Becton Dickinson cuts annual profit forecast to reflect sale of biosciences and diagnostics unit

Feb -09

Source: reuters.com

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Becton Dickinson (BDX) Beats Q1 Earnings and Revenue Estimates

Feb -09

Source: zacks.com

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BD Completes Combination of Biosciences & Diagnostic Solutions Business with Waters Corporation

Feb -09

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.90%)

6. Segments

BD Medical (Excl. of BD Interventional)

Expected Growth: 5.2%

The segment's steady growth is driven by increasing demand for diabetes care and medication delivery products, as well as expanding into emerging markets. Additionally, the segment's innovative product portfolio and strategic partnerships will contribute to its growth.

BD Life Sciences

Expected Growth: 4.5%

The segment's growth is driven by increasing demand for molecular diagnostics and biosciences research products. The segment's strong portfolio of products and services, as well as its strategic partnerships with research institutions and pharmaceutical companies, will contribute to its growth.

BD Interventional

Expected Growth: 5.5%

The segment's growth is driven by increasing demand for minimally invasive procedures and innovative products. The segment's strong portfolio of products, as well as its expanding presence in emerging markets, will contribute to its growth.

Other

Expected Growth: 3.8%

The segment's growth is driven by increasing demand for niche medical products and services. The segment's growth will be driven by its focused product portfolio and targeted investments in emerging markets.

7. Detailed Products

Syringes

Single-use syringes for injecting medications, vaccines, and other fluids

Needles

Hypodermic needles for injecting medications, vaccines, and other fluids

Infusion Therapy

Devices and systems for delivering medications, fluids, and nutrients through infusion

Pharmaceutical Diagnostics

Diagnostic systems and tests for detecting and monitoring diseases

Microbiology

Systems and tests for detecting and identifying microorganisms

Molecular Diagnostics

Molecular diagnostic systems and tests for detecting and monitoring diseases

Biosciences

Research and discovery tools for life science research

Infection Prevention

Devices and systems for preventing and controlling infections

Surgical Instruments

Surgical instruments and systems for minimally invasive and open surgical procedures

Anesthesia Systems

Anesthesia delivery systems and accessories

8. Becton, Dickinson and Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Becton, Dickinson and Company is medium due to the presence of alternative medical technologies and products that can replace their offerings.

Bargaining Power Of Customers

The bargaining power of customers for Becton, Dickinson and Company is low due to the company's strong brand reputation and the lack of buyer concentration in the medical technology industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Becton, Dickinson and Company is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Becton, Dickinson and Company is low due to the high barriers to entry in the medical technology industry, including regulatory hurdles and high research and development costs.

Intensity Of Rivalry

The intensity of rivalry for Becton, Dickinson and Company is high due to the presence of several established competitors in the medical technology industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.10%
Debt Cost 3.95%
Equity Weight 61.90%
Equity Cost 6.29%
WACC 5.40%
Leverage 61.56%

11. Quality Control: Becton, Dickinson and Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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ResMed

A-Score: 5.7/10

Value: 2.1

Growth: 8.1

Quality: 8.7

Yield: 1.0

Momentum: 6.0

Volatility: 8.3

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Thermo Fisher

A-Score: 4.8/10

Value: 1.7

Growth: 6.1

Quality: 6.2

Yield: 0.0

Momentum: 7.0

Volatility: 7.7

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Becton Dickinson

A-Score: 4.6/10

Value: 3.3

Growth: 4.6

Quality: 5.2

Yield: 4.0

Momentum: 2.5

Volatility: 8.3

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Value: 0.0

Growth: 6.7

Quality: 7.4

Yield: 0.0

Momentum: 7.0

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UnitedHealth

A-Score: 4.3/10

Value: 5.3

Growth: 6.1

Quality: 5.2

Yield: 4.0

Momentum: 0.5

Volatility: 5.0

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West Pharma

A-Score: 3.7/10

Value: 1.0

Growth: 6.1

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

171.68$

Current Price

171.68$

Potential

-0.00%

Expected Cash-Flows