Becton, Dickinson and Company

BDX
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$4.7B
Q2 FY2026 · +5.2% YoY
TTM ROIC
11.8%
FY2025 · NOPAT / Invested Capital; NOPAT = Adj. Operating Income × (1 – 22% tax rate); Invested Capital = Total Equity + Net Debt · WACC ~8% · Moat spread +3.5pp
Margin Profile
Gross 54.7%
Operating 25%
FCF 12.4%
FY2025
Net Debt
$14.9B
Cash $3.1B · Debt $18.0B · FY2024

Business Overview

ticker: BDX step: 01 generated: 2026-05-12 source: quick-research

Becton, Dickinson and Company (BDX) — Business Overview

Business Description

BD is one of the world's largest medical technology companies, with a 125+ year history producing medical devices, instrument systems, and reagents used by healthcare professionals, researchers, and patients globally. Post-Waters spinoff (February 2026 separation of Biosciences + Diagnostic Solutions), BDX is now a pure-play medical device company focused on injection systems, infusion, surgical, and critical care monitoring. CEO Tom Polen executed "BD 2025" simplification strategy.

Revenue Model

~$21.8B FY2025 revenue (post-spin: ~$19.2B FY26E) across five segments after 2025 reorganization: Medical Essentials, Connected Care, BioPharma Systems, Interventional, and Life Sciences (spun off Feb 2026 as "Waters"). Recurring sales of consumables (syringes, needles, IV catheters) + capital equipment (Alaris pumps, surgical instruments) + monitoring devices. Recurring consumables drive defensive revenue.

Products & Services

  • Medical Essentials — Syringes, needles, IV catheters (BD core franchise, 30%+ revenue)
  • Connected Care — Alaris infusion platform + Advanced Patient Monitoring (Edwards Critical Care acquired Sept 2024, $4.2B)
  • BioPharma Systems — Prefilled syringes + pen-injectors for GLP-1 (Ozempic, Mounjaro, Wegovy) + biologics
  • Interventional — Vascular access, urology (PureWick), peripheral intervention
  • Life Sciences — Biosciences + Diagnostic Solutions (spun off as Waters Feb 2026)
  • PureWick — External catheter for incontinence (high-margin growing franchise)

Customer Base & Go-to-Market

Hospitals (large IDNs like HCA, Tenet), physician offices, surgical centers, pharma + biotech companies (BioPharma Systems), research labs. ~70% North America, ~20% Europe, ~10% Asia. BioPharma Systems serves Eli Lilly, Novo Nordisk, Sanofi (GLP-1 + insulin manufacturers).

Competitive Position

Top 5 global medical device company. Competes with Medtronic, Stryker, Boston Scientific, Edwards Lifesciences, Baxter. #1 globally in syringes + needles. BioPharma Systems segment unique exposure to GLP-1 supply chain. Connected Care (Alaris + APM) reinvigorated post-Critical Care acquisition.

Key Facts

  • Founded: 1897
  • Headquarters: Franklin Lakes, NJ
  • Employees: ~75,000 (pre-spin)
  • Exchange: NYSE (BDX)
  • Sector / Industry: Healthcare / Medical Devices
  • Market Cap: ~$60B (post-spin)
  • CEO: Tom Polen (since 2020; chairman + president + CEO)

Financial Snapshot

ticker: BDX step: 04 generated: 2026-05-12 source: quick-research

Becton, Dickinson and Company (BDX) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 FY2025 FY2026E
Revenue $18.9B $19.4B $20.2B $21.8B $19.2B (post spin)
Organic Growth +5% +4% +6.2% +3.9% LSD
Adj Gross Margin 51.6% 53.5% 54.3% 54.7% 55%+
Adj Op Margin 22.6% 23.8% 24.2% 25.0% 25-26%
Adj Diluted EPS $11.97 $12.05 $13.14 $14.40 $12.35-12.65

Fiscal year ends September. FY25 record adj op margin 25% (+80bps YoY). Adj EPS +9.6% incl. 2pp tariff impact. FY26E EPS reset reflects Life Sciences spinoff completion.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$3.5B
Free Cash Flow ~$3.0B
FCF Conversion ~85%
Cash & Equivalents ~$3.1B
Total Debt ~$18B (including Edwards Critical Care acquisition)
Net Debt/EBITDA ~2.6x (deleveraging)

Key Ratios (approximate)

  • P/E: ~15x | EV/EBITDA: ~13x | FCF Yield: ~5%
  • Revenue Growth (TTM): ~8% reported / ~4% organic
  • Dividend Yield: ~1.9% | Dividend: $4.16/share
  • 53-year consecutive dividend increase (Dividend Aristocrat)
  • $2B buyback authorization (Feb 2026) to offset spin EPS dilution

Growth Profile

Long-term New BD model: 5%+ organic growth + margin expansion + double-digit EPS growth. BioPharma Systems (GLP-1 supply) is the standout growth driver. Edwards Critical Care (now APM) accretive 2026+. PureWick + Alaris + Pyxis recurring revenue franchises. BD Excellence operating system driving 80bps annual margin expansion.

Forward Estimates

  • FY 2026 (ending Sep 2026, post-spin): Revenue ~$19.2B; adj EPS $12.35-12.65 (~6% growth at midpoint)
  • FY 2027: Adj EPS ~$13.50-14.00; New BD targets 5%+ organic
  • GLP-1 syringe demand multi-year secular driver
  • $2B buyback offsetting spinoff EPS dilution

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $BDX.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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