Becton, Dickinson and Company (BDX) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue reached $5.3B, up 4.5% reported, 6.0% currency-neutral, and 0.9% organic year-over-year, with growth led by the Medical segment and Advanced Patient Monitoring acquisition.

• Adjusted diluted EPS was $3.35, up 5.7% YoY, driven by margin expansion and operational excellence, while GAAP EPS declined due to higher costs and remediation charges.

• The planned separation of Biosciences and Diagnostics is progressing on schedule, with completion targeted for FY2026 and strong interest in the assets.

• Announced $2.5B investment in U.S. manufacturing over five years to strengthen supply chain resilience.

• Advanced supply chain and regionalized manufacturing helped mitigate tariff impacts.

Financial highlights

• Q2 operating income was $546M, down 25.5% YoY; net income was $308M, down 42.7% YoY, impacted by purchase accounting and remediation charges.

• Adjusted gross margin reached 54.9%, up 190 bps YoY; adjusted operating margin was 24.9%, up 60 bps YoY.

• Free cash flow YTD was $623M, down 44% due to planned one-time payments; operating cash flow for six months was $857M.

• Net leverage ended the quarter at 2.9x, progressing toward a 2.5x target.

• Cash and equivalents at March 31, 2025: $667M.

Outlook and guidance

• FY2025 revenue expected between $21.8B and $21.9B, with organic growth of 3.0%–3.5% and adjusted EPS guidance (including tariffs) of $14.06–$14.34, up 7.0%–9.1% YoY.

• Tariff expense of $90M expected in FY25, with ongoing mitigation efforts and a $0.25 per share impact.

• Q3 organic growth expected to be ~3%, with Q4 accelerating to just over 5% due to easier comps and new product launches.

• Medical and Interventional segments expected to grow above company average; Life Sciences below.

• Guidance excludes potential charges/gains such as acquisition, separation, and certain legal or regulatory costs.