Becton, Dickinson and Company (BDX) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue reached $5.3 billion, up 1.6% as reported and 0.4% FXN year-over-year, with strong operational execution and broad-based growth in key platforms and end markets.

• Adjusted diluted EPS was $2.91, down 15.2% year-over-year, but ahead of expectations; GAAP diluted EPS was $1.34, with net income of $382 million, up 26.1% year-over-year.

• The combination/spin-off of the Biosciences and Diagnostic Solutions business with Waters closed ahead of schedule, resulting in a $4 billion cash distribution for share repurchases and debt paydown.

• The company is now positioned as a pure-play MedTech firm, focusing on high-growth end markets and innovation, with over 90% of revenues from recurring consumables.

• $550 million was returned to shareholders in Q1 through dividends and share repurchases.

Financial highlights

• Gross margin was 53.4% (down 140 bps YoY), and adjusted operating margin was 21.2% (down 240 bps YoY), both impacted by tariffs but partially offset by productivity gains.

• Free cash flow was $548 million, with conversion improving to 66% from 59% last year.

• Net leverage at quarter-end was 2.9x, with a long-term target of 2.5x.

• Cash and equivalents at quarter-end were $740 million, with total debt at $19.54 billion and a weighted average cost of 3.4%.

• $250 million in share repurchases and $299 million in dividends paid during the quarter.

Outlook and guidance

• FY26 guidance projects low single-digit revenue growth FXN and adjusted EPS of $12.35–$12.65, up 4.7% to 7.2% YoY, with a 16%-17% tax rate.

• Q2 revenue growth expected at ~2% FXN, with Q2 adjusted EPS in the range of $2.72–$2.82.

• $4 billion from the Waters transaction will be split equally between share repurchases and debt paydown.

• No significant ramp expected between quarters; performance is expected to be steady throughout the year.

• Guidance reflects the separation of Biosciences and Diagnostic Solutions, with the disposed business accounted for as discontinued operations.