Company Overview - Becton, Dickinson and Company (BDX) is based in Franklin Lakes, New Jersey, with a market capitalization of $48.9 billion, focusing on the development, manufacturing, and sale of medical supplies, devices, laboratory equipment, and diagnostic products for various healthcare sectors worldwide [1] Stock Performance - BDX shares have underperformed the broader market, declining 25.2% over the past 52 weeks and 11.5% year-to-date (YTD), while the S&P 500 Index has returned 14.4% over the past year and increased by 1.4% in 2026 [2] - The stock has also lagged behind the State Street Healthcare Select Sector SPDR ETF (XLV), which rose by 6.2% over the past 52 weeks [3] Earnings Report - Following the Q4 2025 earnings release on February 9, BDX shares fell by 1.3%. The company's revenue increased by 1.6% year-over-year to $5.3 billion, surpassing consensus estimates. Adjusted EPS was $2.91, beating estimates by 3.2%. However, life sciences revenue of $766 million fell significantly short of the consensus estimate of $1.3 billion [4] Future Earnings Expectations - For the fiscal year ending in September 2026, analysts project BDX's EPS to grow by 2.9% year-over-year to $14.82 on a diluted basis. The company has a strong earnings surprise history, having exceeded consensus estimates in each of the last four quarters [5] Analyst Ratings - Among 14 analysts covering BDX stock, the consensus rating is a "Moderate Buy," consisting of six "Strong Buy" ratings and eight "Holds." This rating configuration has become more bullish over the past month, with "Strong Buy" ratings increasing from four to six [6] Price Target - JP Morgan analyst Robert Marcus maintained a "Neutral" rating for BDX and lowered the price target from $190 to $175. The mean price target of $204 indicates an upside potential of 18.8% from current market prices, while the highest target of $232 suggests a potential rally of up to 35.1% [8]

Financial Performance - The company reported sales of $5.25 billion, slightly above the consensus of $5.15 billion [1] - For the second quarter, the company expects adjusted earnings of $2.72 to $2.82 per share [4] Guidance - Becton Dickinson lowers fiscal 2026 adjusted earnings guidance from $14.75-$15.05 per share to $12.35-$12.65 per share compared to the consensus of $14.72 [2] - Analyst Shagun Singh noted that despite the lower-than-expected fiscal second quarter guide, the fiscal 2026 guide was kept intact as business trends are playing out as expected [4] Analyst Ratings and Price Targets - RBC Capital Markets lowered its price forecast for Becton Dickinson from $210 to $172, citing FY26 as a transition year and reflecting the Waters deal dynamics [3] - Wells Fargo maintains Becton Dickinson with an Equal-Weight and lowers the price target from $184 to $157 [6] - Piper Sandler reiterates BD with a Neutral and lowers the price target from $205 to $170 [6] - Citigroup maintains BD with a Buy and lowers the price target from $233 to $232 [6] Business Outlook - RBC models organic revenue growth of 2.5% in fiscal 2026 and 2.4% in fiscal 2027, with EPS growth of 6.0% in fiscal 2026 and 6.9% in fiscal 2027 [3] - Approximately 90% of the company's business is currently delivering mid-single digits growth [5] - The company's management is focused on tuck-in M&A, with a robust pipeline aimed at accretive M&A [5]

Core Viewpoint - Becton, Dickinson and Company (BD) has initiated tender offers to purchase outstanding debt securities for a total aggregate purchase price of up to $1,600,000,000, aimed at optimizing its capital structure and managing debt obligations [1][2]. Group 1: Tender Offer Details - The tender offers include various series of securities, with specific principal amounts outstanding and acceptance priority levels outlined [1]. - The securities eligible for purchase include 6.700% Senior Notes due 2026, 7.000% Senior Debentures due 2027, and others, with the total consideration for each series determined by a fixed spread plus the yield based on U.S. Treasury Reference Securities [2]. - The offers will expire on March 11, 2026, with an early tender date of February 24, 2026, where holders can receive an early tender payment in addition to accrued interest [1][2]. Group 2: Financial Implications - The total consideration for each series of securities validly tendered will be calculated based on the applicable fixed spread and the bid-side price of U.S. Treasury Reference Securities as of February 25, 2026 [2]. - Holders who tender securities after the early tender date will receive a lower late tender offer consideration [2]. - Payment for validly tendered securities is expected to occur shortly after the expiration date, with an anticipated settlement date of March 13, 2026 [2]. Group 3: Company Overview - BD is recognized as one of the largest pure-play medical technology companies globally, focusing on advancing healthcare through innovative technologies and solutions [2]. - The company operates with over 60,000 employees and delivers billions of products annually, aiming to enhance clinical efficiency and improve patient care [2].

Group 1 - Becton, Dickinson and Company (NYSE: BDX) is highlighted in Jim Cramer's game plan, showing bullish sentiment towards the company amid significant movements in the medical devices distribution space [1] - The company offers a wide range of medical supplies, diagnostic tools, and lab equipment utilized by healthcare professionals and researchers [2] - Despite the potential of BDX as an investment, certain AI stocks are considered to have greater upside potential and less downside risk [3]

Core Viewpoint - The article discusses Becton, Dickinson and Company (BDX) following their Q4 earnings report for 2025, highlighting the stock's trading price and the author's background in investment analysis [1]. Group 1 - Becton, Dickinson and Company (BDX) stock was trading at approximately $177 per share at the time of the earnings report [1]. - The author has a master's degree in Analytics and a bachelor's degree in Accounting, with over 10 years of experience in the investment field [1].

Core Insights - The article discusses Becton, Dickinson and Company (BDX) following their Q4 earnings report for 2025, highlighting that the stock was trading at approximately $177 per share at that time [1]. Company Overview - Becton, Dickinson and Company is a significant player in the healthcare sector, focusing on medical technology and devices [1]. Analyst Background - The author has a master's degree in Analytics and a bachelor's degree in Accounting, with over 10 years of experience in the investment field, starting as an analyst and advancing to a management role [1].

Core Insights - Becton Dickinson reported first-quarter results that exceeded expectations, but the full-year profit outlook was significantly below analyst forecasts, leading to a more than 3% decline in shares [1] Financial Performance - The company posted adjusted earnings of $2.91 per share for the first quarter, surpassing analyst estimates of $2.81 [2] - Revenue increased by 1.6% year over year to $5.3 billion, exceeding the consensus estimate of $5.15 billion [2] - On a foreign-currency-neutral basis, revenue rose 0.4%, with New BD revenue growing 2.5% [2] Future Guidance - The fiscal 2026 adjusted earnings guidance is set at $12.35 to $12.65 per share, which is well below the analyst consensus of $14.94 [3] - This outlook reflects the impact of the combination of BD's Biosciences and Diagnostic Solutions business with Waters Corporation, which closed on the earnings release date [3] Segment Performance - The Connected Care segment led performance with a reported growth of 5.5%, or 4.7% on a foreign-currency-neutral basis [4] - The BD Interventional segment grew by 5.8% reported, or 5.1% FX-neutral [4] - The Life Sciences segment, which is being separated, declined by 8.3% reported and 10.5% on an FX-neutral basis [4] Revenue Outlook - Becton Dickinson reaffirmed its fiscal 2026 revenue growth outlook, expecting low-single-digit growth on a foreign-currency-neutral basis, with reported revenue growth anticipated in the "low single-digit plus" range [5]

Financial Performance - For the three months ended December 31, 2025, worldwide revenues were $5.252 billion, reflecting a 1.6% increase from the prior-year period[121]. - Cash flows from operating activities were $657 million, with $1.035 billion in cash and equivalents at the end of the period[121]. - The Medical Essentials segment reported revenues of $1.595 billion, a 0.6% increase, with segment income at $569 million, representing 35.6% of revenues[124]. - The Connected Care segment achieved revenues of $1.131 billion, a 5.5% increase, with segment income at $352 million, or 31.1% of revenues[129]. - The BioPharma Systems segment generated revenues of $429 million, a 2.7% increase, with segment income at $140 million, or 32.6% of revenues[131]. - The Interventional segment reported total revenues of $1,330 million for the three months ended December 31, 2025, representing a 5.8% increase compared to $1,257 million in the prior year[133]. - The Urology and Critical Care unit achieved a revenue growth of 9.8%, with sales reaching $427 million, while the Surgery unit's revenues increased by 5.9% to $418 million[133]. - Life Sciences segment revenues declined by 8.3% to $766 million, down from $836 million in the previous year, primarily due to a 7.4% drop in Diagnostic Solutions[137]. - The Life Sciences segment income decreased to $159 million, representing 20.8% of revenues, compared to $240 million and 28.7% in the prior year[138]. - Net income for the three months ended December 31, 2025, was $382 million, with diluted earnings per share of $1.34, compared to $303 million and $1.04 in the prior year[156]. Expenses and Margins - Gross profit margin for the first quarter of 2026 was 45.9%, down from 43.3% in the prior year, impacted by higher tariffs and labor costs[144]. - Selling and administrative expenses increased to $1,393 million, accounting for 26.5% of revenues, up from 25.5% in the previous year[146]. - Research and development expenses decreased to $306 million, representing 5.8% of revenues, compared to 6.6% in the prior year[146]. Cash Flow and Debt - Operating cash flows for the first three months of fiscal year 2026 were $657 million, a decrease from $693 million in the same period of 2025[158]. - Cash flows from investing activities included capital expenditures of $108 million in Q1 2026, compared to $105 million in Q1 2025[161]. - Total debt as of December 31, 2025, was $19.54 billion, with a weighted average cost of 3.4% and total debt representing 43.1% of total capital[162]. - Cash and equivalents, including short-term investments, totaled approximately $1.035 billion as of December 31, 2025[163]. - The company has a revolving credit facility of up to $2.75 billion, with no borrowings outstanding as of December 31, 2025[164]. - Commercial paper borrowings amounted to $1.172 billion as of December 31, 2025[166]. Regulatory and Compliance Issues - The company received FDA 510(k) clearance for the updated BD Alaris™ Infusion System on July 21, 2023, which includes enhanced cybersecurity features[179]. - The company is under a consent decree with the FDA regarding its infusion pumps, with potential penalties of $15,000 per day for violations[177]. - The FDA issued a Form 483 Notice following an inspection of the El Paso facility in October 2025, which is classified as "Official Action Indicated"[183]. - The company recorded a liability for estimated future costs associated with actions required to respond to the Dispensing Warning Letter, with potential for the liability to exceed currently accrued amounts[182]. - The U.S. EPA has increased focus on ethylene oxide emissions, potentially leading to new regulatory requirements that could impact sterilization operations and increase costs for the company[184]. - The final National Emission Standards for Hazardous Air Pollutants for ethylene oxide became effective on April 5, 2024, with a two-year compliance period for companies[184]. - The company has proactively installed emissions controls at facilities in East Columbus, NE, and Sandy, UT, to comply with new regulations[184]. - On January 14, 2025, the EPA published a decision regulating ethylene oxide as a sterilant, with certain requirements becoming effective in January 2026[186]. - Business continuity plans are in place to mitigate potential disruptions from regulatory changes, although full offset may not be achievable[187]. - The company is investing in new technologies and operational changes to comply with revised pesticide use requirements for ethylene oxide[186]. - Regulatory changes could lead to interruptions in sterilization operations, adversely impacting production and potentially resulting in civil litigation[187]. - Increased regulatory scrutiny on ethylene oxide could lead to additional operational costs and impact the availability of sterilization capacity[193]. Strategic Focus and Risks - The company continues to face adverse impacts from market dynamics in China, including volume-based procurement programs and reduced demand for vaccines[116]. - The company is focused on geographic expansion and innovation as part of its growth strategy, emphasizing operational excellence and customer experience[114]. - The company is investing in research and development and strategic acquisitions to drive revenue and profit growth, with a focus on improving operating efficiency[119]. - The company faces risks from global economic downturns, inflation, and supply chain disruptions that could negatively affect demand for its products[191]. - The company is focused on technological innovation and compliance with evolving regulations to maintain its competitive position in the market[191]. - The company is facing pending and potential future litigation concerning alleged violations of law, including healthcare programs and product liability matters[196]. - New laws and regulations may affect the company's operations, particularly regarding environmental protection and product marketing, potentially increasing operational costs[196]. - Adverse media exposure could impact the company's reputation and demand for its products[196]. - Market fluctuations may affect the value of assets in the company's pension plans, potentially requiring additional contributions[196]. - The company is assessing the anticipated benefits of any restructuring programs it may undertake[196]. - There have been no material changes in market risk information since the end of the fiscal year on September 30, 2025[197].

Core Insights - BD reported earnings per share (EPS) of $2.91, exceeding estimates of $2.82, indicating strong financial performance in fiscal 2026 [2] - Revenue increased by 1.6% to $5.3 billion, surpassing the estimated $5.15 billion, with a foreign exchange-neutral revenue rise of 0.4% [2] - The merger with Waters Corporation aims to enhance shareholder value and is expected to contribute to gross margin expansion [3] Financial Performance - BD's price-to-earnings (P/E) ratio is approximately 35.87, indicating a premium investors are willing to pay for earnings [5] - The price-to-sales ratio stands at about 2.74, while the enterprise value to sales ratio is 3.58, reflecting the value placed on its sales [5] - The debt-to-equity ratio is approximately 0.76, suggesting a balanced approach to financing assets [5] Strategic Initiatives - The merger with Waters Corporation combines BD's Biosciences and Diagnostic Solutions business, focusing on innovation and productivity [3] - Tom Polen, BD's chairman and CEO, expressed confidence in the company's future prospects and affirmed revenue growth guidance for fiscal year 2026 [4]

Core Insights - Becton, Dickinson and Company (BDX) reported adjusted earnings per share (EPS) of $2.91 for Q1 fiscal 2026, a decrease of 15.2% year over year, but exceeding the Zacks Consensus Estimate by 3.4% [1] - The company’s revenues for the same quarter were $5.25 billion, reflecting a 1.6% year-over-year increase and surpassing the Zacks Consensus Estimate by 2% [2] - BDX's GAAP EPS was $1.34, showing a significant increase of 28.8% from the previous year [1] Revenue Analysis - BDX's new revenue, post-separation of its Biosciences and Diagnostic Solutions business, was $4.49 billion, marking a 3.5% increase on a reported basis [3] - The Medical Essentials segment generated revenues of $1.59 billion, up 0.6% year over year, while the Connected Care segment saw revenues of $1.13 billion, up 5.5% [4][5] - The BioPharma Systems segment reported revenues of $429 million, up 2.7%, and the BD Interventional segment generated $1.33 billion, up 5.8% [5] Geographic Performance - In the U.S., revenues improved by 2.6% year over year to $3.16 billion, while international revenues totaled $2.09 billion, up 0.2% on a reported basis but down 2.8% at constant exchange rates [6][8] Margin and Expense Analysis - BDX's gross profit increased by 7.9% year over year to $2.41 billion, with gross margin expanding by 266 basis points to 45.9% [9] - Adjusted operating profit rose by 24% to $712 million, with an adjusted operating margin of 13.6%, an increase of 245 basis points [10] Financial Position - At the end of Q1 fiscal 2026, BDX had cash and cash equivalents of $751 million, up from $649 million at the end of fiscal 2025, while total debt increased to $19.54 billion [11] - Net cash provided by continuing operating activities was $657 million, down from $693 million a year ago [11] Guidance and Future Outlook - BDX projects full fiscal year revenues to grow above low single-digit on a reported basis and anticipates adjusted EPS in the range of $12.35-$12.65, with the Zacks Consensus Estimate at $14.84 [13] - The company has a consistent dividend-paying history, with a five-year annualized dividend growth of 5.47% [12] Recent Developments - BDX announced collaborations to enhance hazardous drug contamination testing and expanded its product offerings, including the PureWick Portable Collection System and the BD Surgiphor Surgical Wound Irrigation System [15] - Despite positive developments, lower revenues from the Medical Essentials and Life Sciences segments were noted as disappointing [16]