BDX Drops 5.11% as Q2 Revenue Misses Estimates

Becton, Dickinson and Company (BDX) experienced a 5.11% drop in pre-market trading on May 1, 2025.

In the second quarter, Becton, Dickinson reported revenue of $5.27 billion, slightly below the projected $5.35 billion. Despite facing a challenging operational environment, the company highlighted the robustness of its business model. CEO Tom Polen noted that the company managed to surpass earnings expectations through improvements in gross margins. BDX continues to leverage its operational excellence, leading to sustained margin growth while ramping up investments in its commercial and innovation sectors. The firm is confident in its potential to boost growth as market conditions improve. Polen emphasized that BDX's status as the largest U.S. medical device manufacturer provides a significant edge in creating long-term value despite current economic challenges.

In the first quarter of 2025, BDX reported strong results with 9.6% revenue growth and 28% growth in adjusted diluted EPS to $3.43. The company returned over $1 billion to shareholders, including $300 million in dividends and a $750 million accelerated share buyback. BDX affirmed its full-year currency-neutral and organic revenue growth guidance, demonstrating confidence in its operational performance. The company is making significant progress in its innovation pipeline, including advancements in connected care and advanced patient monitoring. However, the separation of the Biosciences and Diagnostic Solutions business has led to the postponement of the company's Investor Day, indicating potential uncertainty in strategic communication. BDX faces challenges from translational currency impacts, which are expected to be a headwind to revenue of approximately $250 million for the full fiscal year. The company is experiencing a decline in Biosciences revenue due to reduced research funding in China and the US, impacting overall growth. There are ongoing market dynamics in China and Biosciences research funding levels that BDX continues to monitor, which could affect future performance. The company is also dealing with potential tariff impacts from recent US-China and US-Mexico trade tensions, which could affect manufacturing and operational costs.