Key financial results
- For the fourth quarter, Becton, Dickinson and Company reported revenue of $5.3 billion, representing an increase of 5.6%, and adjusted diluted EPS growth of 27.3% to $4.15.
revenue of $5.3 billion, up 5.6% and 27.3% growth in adjusted EPS to $4.15.
- For the full fiscal year 2026, the company delivered $19.5 billion in revenue, up 3.9%, and adjusted EPS growth of 6.7% to $12.70.
For the full year, we delivered $19.5 billion in revenue, up 3.9% and 6.7% growth in adjusted EPS to $12.70.
- Adjusted gross margin for the fourth quarter was 56.8% and adjusted operating margin was 28.6%, up 180 and 280 basis points, respectively.
Adjusted gross margin was 56.8% and adjusted operating margin was 28.6%, up 180 and 280 basis points, respectively
- Full year free cash flow was $2.9 billion, an increase of 42% compared to the prior year.
Full year free cash flow was $2.9 billion, an increase of 42% versus the prior year.
Business segment results
- Medical essentials: Medical essentials grew 5.9% for the quarter, with Medical Delivery Systems driven by share gains and health utilization across the vascular access management portfolio.
- Specimen management: Specimen management achieved high single-digit growth driven by share gains across the BD Vacutainer portfolio, new supply capacity, and incremental demand from competitor disruptions.
- Connected Care: Connected Care grew 2.1%, led by double-digit growth in advanced patient monitoring with strength in both capital and consumables.
- Medication Management Solutions: Medication Management Solutions declined low single digits due to a difficult prior year comparison in Alaris capital, though excluding the Alaris comparison it delivered mid-single-digit growth.
MMS declined low single digits due to difficult prior year comparison in Alaris Capital.
- Biopharma Systems: Biopharma Systems grew 7%, driven by continued double-digit growth in biologics led by GLP-1s and a moderating vaccine headwind.
Biopharma Systems grew 7%, driven by continued double-digit growth in biologics led by GLP-1s and moderating vaccine headwind.
- Interventional: Interventional grew 7.6%, with high single-digit growth in peripheral intervention and Urology and Critical Care, and solid mid-single-digit growth in surgery.
Interventional grew 7.6%, with high single-digit growth in peripheral intervention and UCC and solid mid-single-digit growth in surgery.
Capital allocation
- In fiscal year 2026, the company returned $3.6 billion to shareholders, including approximately $2.4 billion in share repurchases and $1.2 billion in dividends.
- The company paid down $2.4 billion in debt and ended the year with a net leverage of 2.7x.
Finally, we paid down $2.4 billion in debt and ended the year with 2.7x net leverage.
- Management announced the 55th consecutive year of dividend increases.
earlier this morning announced our 55th consecutive year of dividend increases.
Industry trends and dynamics
- Management noted that healthcare utilization in the United States remains strong, supported by metrics such as increased blood collection tubes per patient.
we continue to see strong utilization in the U.S.
- Capital spending by hospitals is described as constructive but selective, with a strong prioritization of high return on investment technologies.
Capital, we continue to see it constructive, I'd say, but selective and they're prioritizing high ROI investments.
Competitive landscape
- Alaris finished the year with strong competitive momentum, gaining more than 250 basis points of share for the full year.
Alaris finished the year with strong competitive momentum, gaining additional share in Q4 and more than 250 basis points for the full year.
- Dispensing continued to gain share, backed by strong Pyxis Pro order momentum and a 95% attachment rate of the new Incada artificial intelligence platform.
Dispensing also continued to gain share. With strong Pyxis Pro order momentum and a 95% attachment rate of our new Incada AI platform.
Macroeconomic environment
- Full year results were impacted by a 90 basis point headwind from tariffs, which was mostly offset by BD Excellence and favorable mix.
This was driven by a 90 basis point impact of tariffs, mostly offset by our work through BD Excellence in favorable mix.
- For fiscal year 2027, currency exchange rates are estimated to be a headwind of about 70 basis points based on current spot rates.
Based on current spot rates, currency is estimated to be a headwind of about 70 basis points.
Growth opportunities and strategies
- The company committed to invest $19 billion in the United States over several years, with $3 billion directed toward manufacturing expansion and supply chain resiliency.
Through this agreement, we committed to invest $19 billion in the U.S. over several years with $3 billion of the overall investment directed toward manufacturing expansion.
- Key growth platforms including advanced patient monitoring, PureWick, advanced tissue regeneration, biologic drug delivery, and pharmacy automation all delivered double-digit growth.
Financial guidance and outlook
- For fiscal year 2027, the company expects low single-digit revenue growth on an all-in basis, representing mid-single-digit growth at the midpoint when excluding the approximately 200 basis point Alaris capital comparison impact.
- Adjusted operating margins are expected to be roughly flat year-over-year for fiscal year 2027.
We expect adjusted operating margins to be roughly flat year-over-year.
- Adjusted diluted EPS for fiscal year 2027 is expected to be in a range of $13.10 to $13.30.
Adjusted EPS is expected to be in a range of $13.10 to $13.30.
Strategic portfolio transformation
- Fiscal year 2026 marked the completion of the portfolio transformation into a pure-play medical technology company through the separation of the Life Sciences business.
Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Q4 Revenue | $5.3 billion | up 5.6% |
| Q4 Adjusted EPS | $4.15 | up 27.3% |
| Full Year Revenue | $19.5 billion | up 3.9% |
| Full Year Adjusted EPS | $12.70 | up 6.7% |
| Q4 Adjusted Gross Margin | 56.8% | up 180 basis points |
| Q4 Adjusted Operating Margin | 28.6% | up 280 basis points |
How management sounded
Balanced (+30 on our -100 to +100 scale). Management expressed strong satisfaction with the completion of the Life Sciences separation and broad-based portfolio growth, offset by prudent guidance for fiscal 2027 due to tariffs and Alaris comparisons. Management sounded more upbeat than on 16% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Implementation and final scope of Section 232 tariffs and their potential impact on BD products.
- Execution of the $19 billion U.S. manufacturing investment and domestic supply chain commitments.
- Performance and adoption rates of new product launches, including Liverty TIPS and Phasix ST parastomal mesh.
- Integration milestones and system go-live for the advanced patient monitoring business.
Earlier calls
- Q3 FY2026 (Aug 6, 2026), tone Balanced: BD delivered a strong third quarter with revenue of $5 billion, up 4.4%, driven by momentum across key growth platforms.
