In early November of last year, I covered Becton, Dickinson and Company ( BDX ) following the release of their 2025 Q4 earnings. At that time, the stock traded for the about $177 per share and appearedI have a masters degree in Analytics from Northwestern University and a bachelors degree in Accounting. I have worked in the investment arena for over 10 years starting as an analyst and working my way up to a management role. Dividend investing is a personal hobby and I look forward to sharing my thoughts wit ...

Core Insights - Becton Dickinson reported first-quarter results that exceeded expectations, but the full-year profit outlook was significantly below analyst forecasts, leading to a more than 3% decline in shares [1] Financial Performance - The company posted adjusted earnings of $2.91 per share for the first quarter, surpassing analyst estimates of $2.81 [2] - Revenue increased by 1.6% year over year to $5.3 billion, exceeding the consensus estimate of $5.15 billion [2] - On a foreign-currency-neutral basis, revenue rose 0.4%, with New BD revenue growing 2.5% [2] Future Guidance - The fiscal 2026 adjusted earnings guidance is set at $12.35 to $12.65 per share, which is well below the analyst consensus of $14.94 [3] - This outlook reflects the impact of the combination of BD's Biosciences and Diagnostic Solutions business with Waters Corporation, which closed on the earnings release date [3] Segment Performance - The Connected Care segment led performance with a reported growth of 5.5%, or 4.7% on a foreign-currency-neutral basis [4] - The BD Interventional segment grew by 5.8% reported, or 5.1% FX-neutral [4] - The Life Sciences segment, which is being separated, declined by 8.3% reported and 10.5% on an FX-neutral basis [4] Revenue Outlook - Becton Dickinson reaffirmed its fiscal 2026 revenue growth outlook, expecting low-single-digit growth on a foreign-currency-neutral basis, with reported revenue growth anticipated in the "low single-digit plus" range [5]

Financial Performance - For the three months ended December 31, 2025, worldwide revenues were $5.252 billion, reflecting a 1.6% increase from the prior-year period[121]. - Cash flows from operating activities were $657 million, with $1.035 billion in cash and equivalents at the end of the period[121]. - The Medical Essentials segment reported revenues of $1.595 billion, a 0.6% increase, with segment income at $569 million, representing 35.6% of revenues[124]. - The Connected Care segment achieved revenues of $1.131 billion, a 5.5% increase, with segment income at $352 million, or 31.1% of revenues[129]. - The BioPharma Systems segment generated revenues of $429 million, a 2.7% increase, with segment income at $140 million, or 32.6% of revenues[131]. - The Interventional segment reported total revenues of $1,330 million for the three months ended December 31, 2025, representing a 5.8% increase compared to $1,257 million in the prior year[133]. - The Urology and Critical Care unit achieved a revenue growth of 9.8%, with sales reaching $427 million, while the Surgery unit's revenues increased by 5.9% to $418 million[133]. - Life Sciences segment revenues declined by 8.3% to $766 million, down from $836 million in the previous year, primarily due to a 7.4% drop in Diagnostic Solutions[137]. - The Life Sciences segment income decreased to $159 million, representing 20.8% of revenues, compared to $240 million and 28.7% in the prior year[138]. - Net income for the three months ended December 31, 2025, was $382 million, with diluted earnings per share of $1.34, compared to $303 million and $1.04 in the prior year[156]. Expenses and Margins - Gross profit margin for the first quarter of 2026 was 45.9%, down from 43.3% in the prior year, impacted by higher tariffs and labor costs[144]. - Selling and administrative expenses increased to $1,393 million, accounting for 26.5% of revenues, up from 25.5% in the previous year[146]. - Research and development expenses decreased to $306 million, representing 5.8% of revenues, compared to 6.6% in the prior year[146]. Cash Flow and Debt - Operating cash flows for the first three months of fiscal year 2026 were $657 million, a decrease from $693 million in the same period of 2025[158]. - Cash flows from investing activities included capital expenditures of $108 million in Q1 2026, compared to $105 million in Q1 2025[161]. - Total debt as of December 31, 2025, was $19.54 billion, with a weighted average cost of 3.4% and total debt representing 43.1% of total capital[162]. - Cash and equivalents, including short-term investments, totaled approximately $1.035 billion as of December 31, 2025[163]. - The company has a revolving credit facility of up to $2.75 billion, with no borrowings outstanding as of December 31, 2025[164]. - Commercial paper borrowings amounted to $1.172 billion as of December 31, 2025[166]. Regulatory and Compliance Issues - The company received FDA 510(k) clearance for the updated BD Alaris™ Infusion System on July 21, 2023, which includes enhanced cybersecurity features[179]. - The company is under a consent decree with the FDA regarding its infusion pumps, with potential penalties of $15,000 per day for violations[177]. - The FDA issued a Form 483 Notice following an inspection of the El Paso facility in October 2025, which is classified as "Official Action Indicated"[183]. - The company recorded a liability for estimated future costs associated with actions required to respond to the Dispensing Warning Letter, with potential for the liability to exceed currently accrued amounts[182]. - The U.S. EPA has increased focus on ethylene oxide emissions, potentially leading to new regulatory requirements that could impact sterilization operations and increase costs for the company[184]. - The final National Emission Standards for Hazardous Air Pollutants for ethylene oxide became effective on April 5, 2024, with a two-year compliance period for companies[184]. - The company has proactively installed emissions controls at facilities in East Columbus, NE, and Sandy, UT, to comply with new regulations[184]. - On January 14, 2025, the EPA published a decision regulating ethylene oxide as a sterilant, with certain requirements becoming effective in January 2026[186]. - Business continuity plans are in place to mitigate potential disruptions from regulatory changes, although full offset may not be achievable[187]. - The company is investing in new technologies and operational changes to comply with revised pesticide use requirements for ethylene oxide[186]. - Regulatory changes could lead to interruptions in sterilization operations, adversely impacting production and potentially resulting in civil litigation[187]. - Increased regulatory scrutiny on ethylene oxide could lead to additional operational costs and impact the availability of sterilization capacity[193]. Strategic Focus and Risks - The company continues to face adverse impacts from market dynamics in China, including volume-based procurement programs and reduced demand for vaccines[116]. - The company is focused on geographic expansion and innovation as part of its growth strategy, emphasizing operational excellence and customer experience[114]. - The company is investing in research and development and strategic acquisitions to drive revenue and profit growth, with a focus on improving operating efficiency[119]. - The company faces risks from global economic downturns, inflation, and supply chain disruptions that could negatively affect demand for its products[191]. - The company is focused on technological innovation and compliance with evolving regulations to maintain its competitive position in the market[191]. - The company is facing pending and potential future litigation concerning alleged violations of law, including healthcare programs and product liability matters[196]. - New laws and regulations may affect the company's operations, particularly regarding environmental protection and product marketing, potentially increasing operational costs[196]. - Adverse media exposure could impact the company's reputation and demand for its products[196]. - Market fluctuations may affect the value of assets in the company's pension plans, potentially requiring additional contributions[196]. - The company is assessing the anticipated benefits of any restructuring programs it may undertake[196]. - There have been no material changes in market risk information since the end of the fiscal year on September 30, 2025[197].

Core Insights - BD reported earnings per share (EPS) of $2.91, exceeding estimates of $2.82, indicating strong financial performance in fiscal 2026 [2] - Revenue increased by 1.6% to $5.3 billion, surpassing the estimated $5.15 billion, with a foreign exchange-neutral revenue rise of 0.4% [2] - The merger with Waters Corporation aims to enhance shareholder value and is expected to contribute to gross margin expansion [3] Financial Performance - BD's price-to-earnings (P/E) ratio is approximately 35.87, indicating a premium investors are willing to pay for earnings [5] - The price-to-sales ratio stands at about 2.74, while the enterprise value to sales ratio is 3.58, reflecting the value placed on its sales [5] - The debt-to-equity ratio is approximately 0.76, suggesting a balanced approach to financing assets [5] Strategic Initiatives - The merger with Waters Corporation combines BD's Biosciences and Diagnostic Solutions business, focusing on innovation and productivity [3] - Tom Polen, BD's chairman and CEO, expressed confidence in the company's future prospects and affirmed revenue growth guidance for fiscal year 2026 [4]

Core Insights - Becton, Dickinson and Company (BDX) reported adjusted earnings per share (EPS) of $2.91 for Q1 fiscal 2026, a decrease of 15.2% year over year, but exceeding the Zacks Consensus Estimate by 3.4% [1] - The company’s revenues for the same quarter were $5.25 billion, reflecting a 1.6% year-over-year increase and surpassing the Zacks Consensus Estimate by 2% [2] - BDX's GAAP EPS was $1.34, showing a significant increase of 28.8% from the previous year [1] Revenue Analysis - BDX's new revenue, post-separation of its Biosciences and Diagnostic Solutions business, was $4.49 billion, marking a 3.5% increase on a reported basis [3] - The Medical Essentials segment generated revenues of $1.59 billion, up 0.6% year over year, while the Connected Care segment saw revenues of $1.13 billion, up 5.5% [4][5] - The BioPharma Systems segment reported revenues of $429 million, up 2.7%, and the BD Interventional segment generated $1.33 billion, up 5.8% [5] Geographic Performance - In the U.S., revenues improved by 2.6% year over year to $3.16 billion, while international revenues totaled $2.09 billion, up 0.2% on a reported basis but down 2.8% at constant exchange rates [6][8] Margin and Expense Analysis - BDX's gross profit increased by 7.9% year over year to $2.41 billion, with gross margin expanding by 266 basis points to 45.9% [9] - Adjusted operating profit rose by 24% to $712 million, with an adjusted operating margin of 13.6%, an increase of 245 basis points [10] Financial Position - At the end of Q1 fiscal 2026, BDX had cash and cash equivalents of $751 million, up from $649 million at the end of fiscal 2025, while total debt increased to $19.54 billion [11] - Net cash provided by continuing operating activities was $657 million, down from $693 million a year ago [11] Guidance and Future Outlook - BDX projects full fiscal year revenues to grow above low single-digit on a reported basis and anticipates adjusted EPS in the range of $12.35-$12.65, with the Zacks Consensus Estimate at $14.84 [13] - The company has a consistent dividend-paying history, with a five-year annualized dividend growth of 5.47% [12] Recent Developments - BDX announced collaborations to enhance hazardous drug contamination testing and expanded its product offerings, including the PureWick Portable Collection System and the BD Surgiphor Surgical Wound Irrigation System [15] - Despite positive developments, lower revenues from the Medical Essentials and Life Sciences segments were noted as disappointing [16]

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Core Insights - Becton, Dickinson and Company (BD) reported stronger than expected first fiscal quarter 2026 results, highlighting the completion of its Life Sciences business combination with Waters through a Reverse Morris Trust transaction [2] Quarterly Results - BD posted total revenue of $5.3 billion, reflecting a 0.4% year-over-year increase on an FX-neutral basis; "new BD" grew 2.5% with broad-based growth across most of the portfolio, partially offset by challenges in approximately 10% of the business, including Alaris, vaccines in China, and market dynamics in China [3] - The quarter demonstrated "disciplined execution" with accelerated commercial initiatives and strength in several growth platforms, including double-digit growth in biologic drug delivery, PureWick, advanced tissue regeneration, pharmacy automation, and high single-digit growth in advanced patient monitoring [3] Profitability - BD reported an adjusted gross margin of 53.4% and adjusted EPS of $2.91, both exceeding management's expectations; however, adjusted EPS was down 15.2% year-over-year, primarily due to tariffs [4] Segment Performance - Growth was led by Connected Care and Interventional, with details provided on performance across the company's recast segment structure, which includes Medical Essentials, Connected Care, Biopharma Systems, Interventional, and Life Sciences [5] Transaction and Financial Strategy - BD closed the Waters transaction, receiving a $4 billion cash distribution, which will be allocated as $2 billion for accelerated share repurchases and $2 billion to pay down debt; net leverage ended the quarter at 2.9x, with a long-term target of 2.5x [6] - Management maintained fiscal 2026 guidance for low single-digit revenue growth and adjusted EPS of $12.35 to $12.65, while cautioning about ongoing headwinds from China, vaccines, Alaris, and a multi-hundred-basis-point tariff impact [6]

U.S. stocks traded mixed this morning, with the Dow Jones index falling around 250 points on Monday.Following the market opening Monday, the Dow traded down 0.51% to 49,860.74 while the NASDAQ climbed 0.12% to 23,058.05. The S&P 500 also fell, dropping, 0.02% to 6,931.07.Check This Out: How To Earn $500 A Month From Goldman Sachs Stock Ahead Of Q4 EarningsLeading and Lagging SectorsInformation technology shares gained by 1% on Monday.In trading on Monday, consumer discretionary stocks fell by 1.3%.Top Headl ...

Core Insights - The company reported a revenue of $5.3 billion for Q1, reflecting a 0.4% increase, with New Becton, Dickinson and Company growing by 2.5% due to broad-based growth across key markets [2][16] - The adjusted gross margin was 53.4%, and adjusted EPS was $2.91, both exceeding expectations due to strong revenue performance and operational execution [1][20] - The company is closing a significant transaction with Waters, which is expected to unlock substantial value for shareholders, including a $4 billion cash distribution [5][21] Financial Performance - The adjusted operating margin was 21.2%, down 240 basis points year-over-year, primarily due to tariffs and increased commercial investments [20] - Free cash flow for the quarter was $548 million, with a conversion rate improving to 66% from 59% in the prior year [20] - The company returned approximately $550 million to shareholders, including dividends and share buybacks [20] Business Segments and Growth - The new segment structure includes Medical Essentials, Connected Care, Biopharma Systems, Interventional, and Life Sciences, with financials recast to reflect this reorganization [3] - The Connected Care segment, particularly APM, saw high single-digit growth, while Pharmacy Automation experienced double-digit growth [17][18] - Biopharma Systems reported low single-digit growth, with double-digit growth in biologics, offset by lower demand for vaccine products [18] Strategic Initiatives - The company is focused on enhancing its capital allocation strategy, prioritizing share repurchases, dividends, and targeted tuck-in M&A to increase return on invested capital [6] - The company has identified three key trends shaping healthcare: the rise of smart connected devices, the shift towards lower-cost care settings, and the growth in technologies addressing chronic diseases [7] - The company aims to improve operational excellence through a simplified manufacturing network, reducing global sites by nearly half [15][42] Innovation and Market Position - The company has built multiple growth platforms, each with billion-dollar potential, positioning itself at the center of key healthcare trends [8] - The innovation pipeline has been strengthened with a reallocation of $50 million towards high-growth platforms, aiming to reduce development times and accelerate product launches [12][55] - The company has a strong competitive position, with over 90% of revenues driven by recurring consumables and leading positions in more than 90% of the markets served [9][10] Guidance and Future Outlook - For fiscal 2026, the company expects low single-digit revenue growth, with a positive currency impact estimated at about 120 basis points [21][22] - Adjusted EPS guidance for fiscal 2026 is set between $12.35 and $12.65, reflecting approximately 6% growth at the midpoint [22] - The company anticipates Q2 revenue growth of approximately 2%, consistent with full-year guidance assumptions [23]

Waters (NYSE:WAT) Q4 2025 Earnings call February 09, 2026 08:30 AM ET Company ParticipantsAmol Chaubal - SVP and CFOCaspar Tudor - Head of Investor RelationsUdit Batra - President and CEOConference Call ParticipantsCasey Woodring - Research Analyst of Life Science Tools and DiagnosticsCatherine Schulte - Senior Research Analyst and Director, Life Sciences and DiagnosticsDoug Schenkel - Managing Director, Senior Research Analyst and Head of Life Science Tools and DiagnosticsJack Meehan - Equity Research Anal ...