Becton, Dickinson and Company (BDX) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $5.0 billion, up 5.4% as reported and 4.4% FX-neutral, with adjusted diluted EPS of $3.23, up 4.9% year-over-year; this marks the first full quarter post-spin-off as a focused med tech company.

• Over 90% of the portfolio delivered high-single-digit growth, driven by commercial momentum, operational execution, and investments in key platforms.

• Completed spin-off of Biosciences and Diagnostic Solutions business, now reflected as discontinued operations; proceeds used for share repurchases and debt reduction.

• Year-to-date free cash flow increased 45% to $1.7 billion, reflecting improved working capital and lower non-operational cash items.

• Launched new products including Liverty TIPS Stent Graft, Elyra Thulium Fiber Laser System, Acumen IQ Plus Finger Cuff, and CentroVena One Insertion System.

Financial highlights

• Q3 revenue was $5.0 billion, up 5.4% as reported and 4.4% FX-neutral year-over-year; adjusted diluted EPS was $3.23, up 4.9% year-over-year.

• Adjusted operating margin was 24.9%; adjusted gross margin was 54.3%, both down year-over-year due to tariffs and higher costs.

• Net income from continuing operations was $451 million, flat year-over-year; operating income for the quarter was $663 million, down 10.3%.

• Year-to-date free cash flow reached $1.73 billion, up 44.6% versus prior year.

• Returned $3.1 billion to shareholders year-to-date ($2.3B in share repurchases, $0.9B in dividends).

Outlook and guidance

• Full-year 2026 revenue growth expected toward the high end of the low-single-digit range, with a ~100 basis point FX tailwind.

• Adjusted operating margin guidance maintained at approximately 25%; adjusted EPS guidance raised to $12.62–$12.72.

• Fiscal 2027 expected to see low-single-digit revenue growth due to a 200 basis point Alaris headwind, with modest EPS leverage anticipated.

• Guidance excludes potential charges/gains from non-cash amortization, acquisitions, separation costs, and certain tax matters.

• Ongoing investments in R&D, acquisitions, and operational efficiency to drive long-term growth.