Becton, Dickinson and Company (NYSE:BDX) reported higher fiscal fourth-quarter revenue and adjusted earnings as demand for patient monitoring, biologic drug delivery and other products helped offset a difficult comparison for its Alaris infusion platform.
The medical technology company said fourth-quarter revenue rose 5.6% to $5.3 billion, while adjusted diluted earnings per share increased 27.3% to $4.15. For the full fiscal year, revenue rose 3.9% to $19.5 billion and adjusted EPS increased 6.7% to $12.70. Revenue growth figures are currency-neutral unless otherwise noted.
Chairman, CEO and President Tom Polen said revenue grew about 7% in the quarter excluding the Alaris comparison. He said the company’s growth platforms, including Advanced Patient Monitoring, PureWick and biologic drug delivery, posted double-digit growth in both the quarter and the full year.
BD’s results reflect continuing operations, with prior periods recast following the separation of its life sciences business in combination with Waters. Polen said the transaction completed BD’s transformation into a more focused medical technology company.
Fiscal 2027 Outlook Reflects Alaris Comparison
For fiscal 2027, BD forecast low-single-digit revenue growth and adjusted EPS of $13.10 to $13.30. The outlook includes an approximately 200-basis-point revenue growth headwind from the prior-year comparison for Alaris capital equipment. Excluding that effect, the company expects mid-single-digit growth at the guidance midpoint.
CFO Vitor Roque said the Alaris comparison would be more pronounced in the first quarter, representing about a 250-basis-point growth headwind. BD also took a cautious approach to its first-quarter outlook because its Advanced Patient Monitoring business is moving onto BD’s systems as its integration concludes.
Polen said the system transition had begun and was proceeding as planned. He said demand had not changed, but some shipments could move from the first quarter into the second if the transition is less smooth than expected.
BD expects first-quarter adjusted EPS of $2.32 to $2.37 and earnings growth to accelerate in the second quarter and the second half. For the full year, it expects adjusted operating margin to be roughly flat. Roque said the Alaris comparison represents about 60 basis points of pressure on operating margin.
Looking beyond fiscal 2027, Polen said he expects BD to return to mid-single-digit overall revenue growth as the Alaris comparison fades, along with continued margin expansion. The company plans to discuss its long-term financial targets at its Dec. 10 investor day.
Business Growth and Cash Flow
Fourth-quarter growth was led by Interventional, where revenue rose 7.6%, and BioPharma Systems, which grew 7%. Roque attributed the latter result to double-digit growth in biologics, led by GLP-1 therapies, and a moderating vaccine headwind. Medical Essentials grew 5.9%, while Connected Care increased 2.1%.
Polen said BD expects continued growth in biologic drug delivery, including from GLP-1 therapies and biosimilars. He said the company has signed nearly 100 deals in the biosimilars space and expects some benefits to begin appearing in fiscal 2027. Vaccine revenue declined about 11% in the fourth quarter, but he said BD does not expect vaccines to remain a headwind to BioPharma Systems in fiscal 2027.
Fourth-quarter adjusted gross margin rose 180 basis points to 56.8%, and adjusted operating margin increased 280 basis points to 28.6%. For the full year, those margins declined by 10 and 20 basis points, respectively. Roque said a 90-basis-point tariff impact was mostly offset by productivity work and favorable product mix.
Free cash flow rose 42% to $2.9 billion for the year. BD returned $3.6 billion to shareholders, including approximately $2.4 billion in share repurchases and $1.2 billion in dividends. It also paid down $2.4 billion in debt and ended the year with net leverage of 2.7 times.
U.S. Investment and Potential Tariff Relief
Polen highlighted BD’s agreement with the U.S. government to invest $19 billion domestically over several years, including $3 billion for manufacturing expansion. He said the commitment represents a shift in planned investment toward the U.S., not additional spending.
The agreement provides potential relief from future Section 232 tariffs on covered BD products and inputs, subject to the final scope and implementation of any such measures and BD meeting agreed milestones. Polen said the fiscal 2027 outlook assumes tariffs generally in line with fiscal 2026 and does not include a benefit from the agreement.
“Any benefit on tariffs would flow through as a positive in our earnings,” Polen said, adding that BD would update its guidance if and when the relevant tariff measures are communicated.
About Becton, Dickinson and Company (NYSE:BDX)
Becton, Dickinson and Company, commonly known as BD, is a global medical technology company that develops, manufactures and sells a broad range of products used by healthcare providers, clinical laboratories, pharmaceutical companies and patients. Its offerings support medication delivery, diagnostics, infection prevention, surgical care and other clinical procedures.
BD’s products include needles, syringes, injection devices, intravenous administration systems, medication-management technologies, specimen-collection products, diagnostic systems and laboratory instruments.
