BD Raises Guidance as Growth Platforms Drive 4.4% Revenue Increase
Medical technology company posts strong third quarter following Life Sciences spin-off, with double-digit gains across key platforms offsetting China headwinds.
Strong Quarter for Restructured Portfolio
Becton, Dickinson and Company reported third-quarter fiscal 2026 revenue of $5 billion, up 4.4% year-over-year, in its first full quarter operating as "new BD" following the spin-off of its Life Sciences business (earnings call, 2026-08-06). The company raised its full-year earnings guidance and now expects revenue growth "toward the high end" of its low single-digit range.
Adjusted earnings per share reached $3.23, up 4.9% and ahead of expectations, while adjusted operating margin came in at 24.9% (earnings call, 2026-08-06). The performance reflected broad-based momentum, with "more than 90%" of the portfolio delivering high single-digit growth, according to Chairman and CEO Tom Polen.
Growth Platforms Accelerate
The quarter was driven by double-digit growth across several key platforms, including biologic drug delivery, advanced patient monitoring, the PureWick incontinence management system, and advanced tissue regeneration (earnings call, 2026-08-06).
In biopharma systems, BD signed approximately 100 agreements across GLP-1 programs for diabetes and weight loss treatments, including a new collaboration with Brazilian pharmaceutical company EMS utilizing BD's Vistra injection pen (earnings call, 2026-08-06). Excluding vaccine products, the biopharma systems segment grew in the mid-teens, even as the division posted overall growth of 5.2%.
The Connected Care segment grew 4.4%, led by double-digit growth in advanced patient monitoring, while the company continued to gain market share in its Alaris infusion system, adding "over 200 basis points year-to-date" (earnings call, 2026-08-06).
Headwinds in China, Tariff Pressure
Growth was partially offset by "known dynamics concentrated in less than 10%" of the portfolio, primarily difficult comparisons in Alaris capital equipment and vaccines in China (earnings call, 2026-08-06). Tariffs impacted margins by approximately 110 basis points, according to CFO Vitor Roque.
Despite these pressures, the company maintained its adjusted operating margin guidance of approximately 25% for the full year.
Capital Allocation and Innovation
Year-to-date free cash flow reached $1.7 billion, up 45% versus the prior year, driven by improved working capital (earnings call, 2026-08-06). BD returned $3.1 billion to shareholders through approximately $2.3 billion in share repurchases and $900 million in dividends. Net leverage stood at 2.9x, with the company maintaining its long-term target of 2.5x.
On the innovation front, BD launched several new products during the quarter, including the Liverty TIPS stent graft for the venous market in Europe, the Elyra Thulium Fiber laser system for kidney stones, and the Acumen IQ Plus noninvasive monitoring system (earnings call, 2026-08-06).
Leadership Transition
BD announced that Mike Garrison, Executive Vice President and President of the Medical Essentials and Biopharma Systems segments, will retire after more than 20 years with the company. Peter Monuzio joined BD on June 1 as Executive Vice President and President (earnings call, 2026-08-06).
The company updated its full-year adjusted EPS guidance to a range of $12.62 to $12.72, raising the midpoint based on third-quarter performance and continued productivity improvements (earnings call, 2026-08-06).
This article was generated by MarginX from the earnings call on 2026-08-06. It is not investment advice.