Why Is Becton Dickinson (BDX) Down 4.5% Since Last Earnings Report?

It has been about a month since the last earnings report for Becton Dickinson (BDX). Shares have lost about 4.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Becton Dickinson due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

BD Q1 Earnings Beat Estimates, Margins Up

BD delivered adjusted earnings per share of $2.91 in the first quarter of fiscal 2026, down 15.2% year over year. The figure topped the Zacks Consensus Estimate by 3.4%.

The adjustments include expenses related to purchase accounting adjustments and restructuring costs, among others.

GAAP earnings per share for the quarter was $1.34, reflecting an uptick of 28.8% from the year-ago figure.

BDX’s Revenues in Detail

BD registered revenues of $5.25 billion in the fiscal first quarter, up 1.6% year over year on a reported basis. The figure surpassed the Zacks Consensus Estimate by 2%.

At constant exchange rate (CER), revenues climbed 0.4% year over year.

Robust performances by the majority of the segments drove the top-line improvement.

New BD revenues (which reflect the separation of its Biosciences and Diagnostic Solutions business and combination with Waters Corp.) were $4.49 billion, up 3.5% and 2.5% on a reported basis and at CER, respectively.

BD’s Segment Details

Effective Oct. 1, 2025, BD reorganized its organizational units into five distinct, separately-managed segments, which are based on the nature of its product and service offerings.

In the quarter under review, Medical Essentials segment reported revenues of $1.59 billion, up 0.6% from the year-ago quarter on a reported basis, but down 0.6% at CER.

Revenues in the Connected Care segment totaled $1.13 billion, up 5.5% year over year on a reported basis and 4.7% at CER.

BioPharma Systems segment generated revenues of $429 million, up 2.7% from the year-ago quarter on a reported basis and 1% at CER.

BD Interventional segment generated revenues of $1.33 billion, up 5.8% from the year-ago quarter on a reported basis and 5.1% at CER.

BD Life Sciences segment generated revenues of $766 million, down 8.3% from the year-ago quarter on a reported basis and 10.5% at CER.

BDX’s Geographic Results

In the first quarter of fiscal 2026, revenues in the United States improved 2.6% year over year to $3.16 billion.

International revenues grossed $2.09 billion, up 0.2% from the year-ago quarter on a reported basis, but down 2.8% at CER.

BD’s Margin Analysis

In the quarter under review, BD’s gross profit increased 7.9% year over year to $2.41 billion. The gross margin expanded 266 basis points (bps) to 45.9%.

Selling and administrative expenses increased 5.7% year over year to $1.39 billion. R&D expenses decreased 10.8% year over year to $306 million. Adjusted operating expenses of $1.69 billion rose 2.3% year over year.

Adjusted operating profit totaled $712 million, reflecting a 24% increase from the year-ago quarter. The adjusted operating margin in the fiscal first quarter expanded 245 bps to 13.6%.

BDX’s Financial Position

BD exited first-quarter fiscal 2026 with cash and cash equivalents and short-term investments of $751 million compared with $649 million at the fiscal 2025-end. Total debt (including current debt obligations) at the end of the fiscal first quarter was $19.54 billion compared with $19.18 billion at the fiscal 2025-end.

Net cash provided by continuing operating activities at the end of first-quarter fiscal 2026 was $657 million compared with $693 million a year ago.

Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 5.47%.

BD’s Fiscal 2026 Guidance

BD has provided guidance for fiscal 2026 for New BD.

BD projects its full fiscal year revenues to grow above low single-digit on a reported basis, while it expects them to grow at low single-digit at CER.

For the full fiscal year, adjusted earnings per share is anticipated to be in the range of $12.35-$12.65. The Zacks Consensus Estimate is pegged at $14.84.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -16.86% due to these changes.

VGM Scores

Currently, Becton Dickinson has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Becton Dickinson has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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Becton, Dickinson and Company (BDX): Free Stock Analysis Report

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