Becton, Dickinson and Company (BDX) reported its fiscal 2026 first‑quarter results, posting adjusted diluted earnings per share of $2.91, a $0.09 beat over the $2.82 consensus. The $2.91 figure represents a 15.2% decline from the $3.43 adjusted EPS reported in Q1 FY25, underscoring the impact of tariffs and increased commercial investments on profitability.
Revenue rose 1.6% year‑over‑year to $5.25 billion, surpassing the $5.15 billion consensus. The growth was driven by strength in the Connected Care and Interventional segments, while Medical Essentials and Life Sciences lagged, reflecting ongoing pricing pressure and competitive dynamics in those legacy businesses.
Adjusted gross margin fell to 53.4% from 54.8% a year earlier, a 140‑basis‑point contraction largely attributable to a 170‑basis‑point tariff impact on raw‑material costs. Operating margin also slipped to 21.2% from 23.4%, a 240‑basis‑point decline that highlights the cost‑pressure environment and the company’s heavy investment in commercial capabilities.
Management lowered its full‑year 2026 adjusted EPS guidance to $12.35–$12.65, down from the $14.75–$15.05 range previously issued. The revision signals caution amid persistent tariff headwinds and the ongoing integration of the Waters transaction, which has added both opportunity and short‑term cost drag.
CEO Tom Polen emphasized that the company remains focused on “New BD” – a leaner, commercially‑driven organization – and that the current results provide a solid foundation for long‑term growth. He noted that the company will use proceeds from the Waters transaction to repay debt and fund share repurchases, reinforcing shareholder value while navigating the transition.
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