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Becton Dickinson And Company (BDX)
NYSE:BDX
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Becton Dickinson (BDX) AI Stock Analysis

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BDX

Becton Dickinson

(NYSE:BDX)

Rating:69Neutral
Price Target:
$206.00
▲(7.71% Upside)
Becton Dickinson's overall stock score reflects strong strategic initiatives and positive earnings guidance, which are offset by valuation concerns and challenges in cash flow generation. The earnings call provided a boost with its positive outlook and strategic moves, while technical indicators suggest potential short-term weakness. The company's financial performance remains stable, but areas for improvement exist in profitability and cash flow.
Positive Factors
Cost Control
The EPS guide tweak up shows continued cost control at the business and protecting the earnings line.
Earnings
BDX reported fiscal third-quarter results that were in line with consensus on the top line and ahead of expectations on the bottom line by 8%.
Negative Factors
Market Perception
The market is not currently giving BDX the benefit of the 11% value accretion due to perceived risks to RemainCo revenue estimates and uncertainties about WAT’s stock price at deal close.
Revenue Growth
BDX's stock is likely to remain in flux while awaiting the completion of the RMT with Waters and how the market decides to feel about the tougher Q4 to hit the growth guide.

Becton Dickinson (BDX) vs. SPDR S&P 500 ETF (SPY)

Becton Dickinson Business Overview & Revenue Model

Company DescriptionBecton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company's BD Medical segment offers peripheral intravenous (IV) and advanced peripheral catheters, central lines, acute dialysis catheters, vascular care and preparation products, needle-free IV connectors and extensions sets, closed-system drug transfer devices, hazardous drug detections, hypodermic syringes and needles, anesthesia needles and trays, enteral syringes, and sharps disposal systems; IV medication and infusion therapy delivery systems, medication compounding workflow systems, automated medication dispensing and supply management systems, and medication inventory optimization and tracking systems; syringes, pen needles, and other products for diabetes; and prefillable drug delivery systems. Its BD Life Sciences segment provides specimen and blood collection products; automated blood and tuberculosis culturing, molecular testing, microorganism identification and drug susceptibility, and liquid-based cytology systems, as well as rapid diagnostic assays, microbiology laboratory automation products, and plated media products; and fluorescence-activated cell sorters and analyzers, antibodies and kits, reagent systems, and solutions for single-cell gene expression analysis, as well as clinical oncology, immunological, and transplantation diagnostic/monitoring reagents and analyzers. The company's BD Interventional segment offers hernia and soft tissue repair, biological and bioresorbable grafts, biosurgery, and other surgical products; surgical infection prevention, surgical and laparoscopic instrumentation products; peripheral intervention products; and urology and critical care products. The company was founded in 1897 and is based in Franklin Lakes, New Jersey.
How the Company Makes MoneyBecton Dickinson generates revenue through the sale of a diverse range of medical devices, equipment, and diagnostic solutions across its three main sectors. The BD Medical segment is a significant revenue source, contributing through products like syringes, needles, and infusion systems used widely in hospitals and clinics. BD Life Sciences generates revenue from diagnostic instruments, reagents, and microbiology products, which are essential for laboratory testing and disease management. The BD Interventional segment includes products for surgical and minimally invasive procedures, further enhancing the company's revenue. Additionally, BDX benefits from partnerships with healthcare providers, research institutions, and technology companies that facilitate the development and distribution of its products, enhancing its market presence and driving sales. The company's focus on innovation and expanding its product portfolio also plays a crucial role in maintaining a steady revenue stream.

Becton Dickinson Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business units, highlighting which segments drive growth and profitability, and indicating strategic focus areas for Becton Dickinson.
Chart InsightsBecton Dickinson's Medical segment shows robust growth, with recent quarters outperforming previous levels, indicating strong demand and effective strategic positioning. However, the Life Sciences segment faces headwinds due to reduced global research funding, impacting biosciences sales. Despite these challenges, BD's strategic investments in U.S. manufacturing and product innovation aim to bolster future growth. The earnings call highlights tariff impacts and market pressures in China, which could affect margins and growth projections. Investors should watch for BD's ability to navigate these challenges while leveraging its strong EPS performance and margin improvements.
Data provided by:Main Street Data

Becton Dickinson Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The call highlighted strong revenue growth and successful product launches, with significant strategic moves and investments in innovation. However, challenges remain in the form of market headwinds in China and tariff impacts.
Q3-2025 Updates
Positive Updates
Revenue and Organic Growth
Revenue grew 8.5% to $5.5 billion, or 3% organic growth. New BD organic growth was 4%. Adjusted gross margin rose to 54.8%, up 50 basis points year-over-year.
Innovation and Product Launches
Successful launch of FACSDiscover A8 with breakthrough technologies, and the launch of the first Made in China for China clinical analyzer. Upcoming launches include next-generation BACTEC and new assays for BD MAX.
Strong Segment Performance
Pharm Systems improved to nearly 5% growth, BDI accelerated to nearly 7% growth, and APM delivered 13% pro forma growth. UCC showed strong growth with new product launches.
Positive Strategic Moves
Announced agreement to combine Biosciences and Diagnostic Solutions business with Waters through a tax-efficient Reverse Morris Trust. Plan to use at least half of the $4 billion cash distribution from Waters for share buybacks.
Negative Updates
Market Headwinds in China
Continued market headwinds in China, impacting certain subsegments such as Pharm Systems and the life science research market.
Impact of Tariffs
Tariff impact expected to be $90 million for the full fiscal year and around $275 million in fiscal 2026, affecting EPS growth.
Challenges in Life Sciences
Biosciences and Diagnostic Solutions decreased low single digits, facing market dynamics in China and Europe. However, sequential positive momentum was noted.
Company Guidance
During BD's Third Fiscal Quarter 2025 Earnings Call, several key metrics and strategic initiatives were highlighted. BD reported an 8.5% increase in revenue to $5.5 billion, with an organic growth rate of 3%. The adjusted gross margin expanded to 54.8%, up 50 basis points year-over-year, while the adjusted operating margin increased to 25.8%, up 60 basis points. The adjusted diluted EPS exceeded expectations at $3.68. BD reaffirmed its organic revenue guidance for the fiscal year and raised its earnings guidance by $0.18 at the midpoint. The company announced a definitive agreement to separate its Biosciences and Diagnostics business through a Reverse Morris Trust with Waters. BD plans to use at least half of the approximately $4 billion cash distribution from Waters for share buybacks. Significant investments in growth opportunities, including new product launches and selling and marketing resources, were emphasized as key drivers for future performance.

Becton Dickinson Financial Statement Overview

Summary
Becton Dickinson demonstrates solid revenue growth and operational efficiency, though profitability margins have slightly declined. The balance sheet shows improved leverage management, but return on equity has decreased. Cash flow metrics indicate challenges in cash generation, with negative free cash flow growth. Overall, the company maintains a stable financial position with areas for improvement in profitability and cash flow.
Income Statement
75
Positive
Becton Dickinson shows a stable revenue growth trajectory with a TTM revenue growth rate of 2.49%. The gross profit margin has decreased from previous years, indicating potential cost pressures. The net profit margin is slightly lower than the previous year, reflecting a modest decline in profitability. However, the company maintains a healthy EBIT and EBITDA margin, suggesting operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved slightly, indicating better leverage management. Return on equity has decreased, which may suggest challenges in generating returns on shareholder investments. The equity ratio remains stable, reflecting a balanced capital structure.
Cash Flow
65
Positive
Operating cash flow has decreased, impacting the operating cash flow to net income ratio. Free cash flow has also declined, resulting in negative free cash flow growth. However, the free cash flow to net income ratio remains strong, indicating efficient cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.39B20.18B19.37B18.87B19.13B16.07B
Gross Profit9.64B9.13B8.17B8.48B8.63B6.80B
EBITDA4.80B4.82B4.40B4.41B4.39B3.06B
Net Income1.61B1.71B1.48B1.78B2.09B874.00M
Balance Sheet
Total Assets54.90B57.29B52.78B52.93B53.88B54.01B
Cash, Cash Equivalents and Short-Term Investments757.00M2.16B1.42B1.01B2.29B2.85B
Total Debt19.34B20.92B15.88B16.07B17.61B17.93B
Total Liabilities29.43B31.40B26.98B27.65B30.20B30.25B
Stockholders Equity25.47B25.89B25.80B25.28B23.68B23.77B
Cash Flow
Free Cash Flow2.55B3.07B2.12B1.66B3.42B2.73B
Operating Cash Flow3.25B3.80B2.99B2.63B4.65B3.54B
Investing Cash Flow-4.26B-5.51B-716.00M-3.23B-1.88B-1.23B
Financing Cash Flow-2.68B2.09B-1.96B-591.00M-3.31B22.00M

Becton Dickinson Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price191.26
Price Trends
50DMA
184.09
Positive
100DMA
181.46
Positive
200DMA
203.56
Negative
Market Momentum
MACD
2.02
Positive
RSI
51.87
Neutral
STOCH
27.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDX, the sentiment is Neutral. The current price of 191.26 is below the 20-day moving average (MA) of 194.07, above the 50-day MA of 184.09, and below the 200-day MA of 203.56, indicating a neutral trend. The MACD of 2.02 indicates Positive momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 27.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BDX.

Becton Dickinson Risk Analysis

Becton Dickinson disclosed 25 risk factors in its most recent earnings report. Becton Dickinson reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Becton Dickinson Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$39.68B28.5125.86%0.80%9.84%37.48%
78
Outperform
$168.15B61.5616.02%20.77%23.16%
78
Outperform
$17.80B37.2917.72%0.34%2.88%-5.50%
75
Outperform
$14.82B27.4811.38%1.28%-17.73%
69
Neutral
$54.82B34.106.26%2.13%7.86%14.24%
54
Neutral
$12.11B136.07-3.30%2.88%-27.41%67.01%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BDX
Becton Dickinson
191.26
-36.94
-16.19%
BAX
Baxter International
23.58
-14.51
-38.09%
HOLX
Hologic
66.39
-15.18
-18.61%
ISRG
Intuitive Surgical
454.52
-17.30
-3.67%
RMD
Resmed
273.81
31.05
12.79%
WST
West Pharmaceutical Services
247.54
-48.78
-16.46%

Becton Dickinson Corporate Events

M&A TransactionsBusiness Operations and Strategy
Becton Dickinson Announces Reverse Morris Trust with Waters
Positive
Jul 14, 2025

On July 13, 2025, Becton, Dickinson and Company announced a Reverse Morris Trust transaction with Waters Corporation, combining its Biosciences and Diagnostic Solutions business with Waters. This strategic move will result in BD receiving approximately $4 billion in cash and its shareholders owning 39.2% of Waters’ common stock. The transaction involves several steps, including the separation of BD’s Biosciences and Diagnostic Solutions Business into a new entity, SpinCo, which will then merge with a subsidiary of Waters. This merger has been approved by both companies’ boards and is expected to enhance BD’s financial position and market influence.

M&A TransactionsBusiness Operations and Strategy
Becton Dickinson Announces $17.5B Merger with Waters
Positive
Jul 14, 2025

On July 14, 2025, Becton Dickinson and Waters Corporation announced a definitive agreement to combine BD’s Biosciences and Diagnostic Solutions business with Waters in a Reverse Morris Trust transaction valued at approximately $17.5 billion. This strategic move aims to create a leading life science and diagnostics company with a strong presence in high-growth markets, doubling Waters’ total addressable market to $40 billion. The combined company is expected to generate significant shareholder value through cost and revenue synergies, with anticipated annualized EBITDA synergies of $345 million by 2030. The transaction is expected to be accretive to adjusted EPS in the first year, with a promising financial outlook projecting mid-to-high single-digit revenue growth and mid-teens adjusted EPS growth over the next five years.

Legal Proceedings
Becton Dickinson Reaches Proposed Settlement in Derivative Case
Neutral
Jun 16, 2025

Becton, Dickinson and Company (BD) is involved in a legal matter concerning stockholder derivative actions. A proposed settlement has been reached in the consolidated stockholder derivative litigation against BD and certain of its officers and directors, which alleges breaches of fiduciary duties and other misconduct related to the Alaris infusion pump system. The settlement, if approved by the court, will resolve the litigation and prevent further claims related to the issues. A settlement hearing is scheduled for August 11, 2025, to determine the fairness of the settlement terms.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025