Becton Dickinson (BDX) AI Stock Analysis

• Market Cap: $52.02B
• Dividend Yield: 2.13%
• Average Volume (3M): 2.42M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.35
• Revenue Growth: 8.23%
• EPS Growth: -2.04%
• Country: US
• Employees: 70,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.29
• Shares Outstanding: 284,741,820
• 10 Day Avg. Volume: 3,485,321
• 30 Day Avg. Volume: 2,419,594
• PEG Ratio: -29.05
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 12.42
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 3.91
• Enterprise Value/Gross Profit: 8.54
• Enterprise Value/Ebitda: 16.81
• 1Y Price Target: $189.55
• Price Target Upside: 2.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 10.29
• Revenue Forecast (FY): $19.86B

• Rating: 66 Neutral
• Price Target: $224.00 ▲(20.83% Upside)

The score is primarily driven by steady underlying business performance but moderated by leverage, weaker cash flow trends, and net margin compression. Technicals are supportive with a clear uptrend, while valuation is a notable constraint due to a high earnings multiple. Earnings-call guidance is balanced: productivity and capital returns help offset tariff and China-related headwinds.

Positive Factors

Focused Portfolio Post-Spin-Off

Completing the Waters combination and receiving a $4.0B distribution crystallizes BD’s strategic pivot to a more focused medtech company. That sharper portfolio alignment should improve management attention, simplify operations, and let capital be redirected to core growth, buybacks and debt reduction over the medium term.

Durable Growth Platforms

Sustained double-digit expansion across biologic drug delivery, automation and advanced monitoring reflects structural demand shifts (e.g., GLP‑1 therapies, hospital automation). These higher-growth, higher-value product lines should drive above-market revenue growth and mix improvement over several quarters.

Productivity and Capital Allocation

Material productivity gains and tangible cost-out execution demonstrate operational leverage and margin recapture potential. Coupled with a clear plan to use the Waters distribution for ASR and debt paydown, this shows disciplined capital allocation that can sustainably boost return on capital and reduce financing risk.

Negative Factors

Elevated Leverage

Leverage near 3x constrains financial flexibility and increases sensitivity to cash flow volatility or rising rates. Even with planned $2B debt paydown, the balance sheet remains meaningfully levered versus peers, limiting spending optionality on M&A, capex or sustained buybacks if cash generation softens.

Weakening Free Cash Flow Trend

A decline in free cash flow growth and subpar operating cash flow coverage relative to net income reduces internal funding for debt reduction, R&D and shareholder returns. Persistent weakness in FCF conversion raises medium-term execution and working-capital risk even if quarterly improvements are achievable.

Structural Margin & Market Headwinds

Ongoing tariff burdens, China volume‑based procurement pricing pressure, and multi-year Alaris remediation create structural drag on net margins. These factors erode earnings convertibility and require sustained productivity or pricing to offset, making margin recovery uncertain over the next several quarters.

Becton Dickinson Business Overview & Revenue Model

Company Description

Becton, 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 Money

BDX generates revenue through the sale of its diverse product offerings across its three main segments. The BD Medical segment, which provides medical devices and supplies, contributes significantly to the company's revenue through sales to hospitals and healthcare facilities. BD Life Sciences generates income from its diagnostic systems and reagents, catering to laboratories and healthcare providers that require testing solutions. BD Interventional focuses on products used in minimally invasive procedures, contributing to revenue through partnerships with hospitals and surgical centers. Additionally, BDX capitalizes on long-term contracts and collaborations with healthcare institutions, ensuring a steady revenue stream. The company also invests in research and development to innovate and expand its product lines, which can enhance its market position and drive future earnings.

Becton Dickinson Financial Statement Overview

Summary

Solid multi-year revenue expansion and stable profitability (mid-40% gross margin; low-20% EBITDA margin) support the score, but it is held back by meaningful leverage, net margin compression versus prior years, and softening recent free cash flow trends with weaker operating cash flow coverage.

Income Statement

Revenue has expanded steadily across the last several annual periods (about $19.4B in 2023 to $21.8B in 2025 annual), and the latest TTM (Trailing-Twelve-Months) shows a higher growth rate versus the prior annual pace. Profitability is solid for the industry with gross margin holding in the mid‑40% range and EBITDA margin around the low‑20% range. The main offset is that net margin is below earlier highs (roughly ~7.7% in 2025 vs ~10.9% in 2021), indicating weaker bottom-line conversion despite stable operating profitability.

Balance Sheet

Leverage is meaningful: debt-to-equity sits around ~0.76 in the latest periods, which is manageable but limits flexibility if rates or cash generation weaken. Return on equity is moderate (~6–7% recently) and below earlier levels, suggesting less efficient equity earnings power than a few years ago. On the positive side, equity is sizable (TTM shows ~$34.0B) relative to total debt (~$18.0B), which supports balance-sheet stability even with elevated leverage.

Cash Flow

Cash generation is positive with TTM (Trailing-Twelve-Months) free cash flow of ~$2.6B, and free cash flow is a healthy portion of net income (about ~78% TTM). However, free cash flow growth is negative in the latest periods (TTM decline and a modest decline in 2025 annual versus 2024), pointing to pressure on cash conversion. Additionally, operating cash flow relative to net income is not particularly strong in the provided data (coverage ratio ~0.41 TTM), which raises some quality-of-earnings and working-capital timing questions versus prior years.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	21.92B	21.84B	20.18B	19.37B	18.87B	19.13B
Gross Profit	10.03B	9.92B	9.13B	8.17B	8.48B	8.63B
EBITDA	5.10B	4.96B	4.82B	4.40B	4.41B	4.39B
Net Income	1.76B	1.68B	1.71B	1.48B	1.78B	2.09B
Balance Sheet
Total Assets	54.84B	55.33B	57.29B	52.78B	52.93B	53.88B
Cash, Cash Equivalents and Short-Term Investments	1.03B	859.00M	2.30B	1.42B	1.17B	2.40B
Total Debt	19.54B	19.18B	21.59B	16.82B	16.95B	18.42B
Total Liabilities	29.56B	29.94B	31.40B	26.98B	27.65B	30.20B
Stockholders Equity	25.28B	25.39B	25.89B	25.80B	25.28B	23.68B
Cash Flow
Free Cash Flow	2.63B	2.67B	3.07B	2.12B	1.66B	3.42B
Operating Cash Flow	3.39B	3.43B	3.80B	2.99B	2.63B	4.65B
Investing Cash Flow	-1.21B	-818.00M	-5.51B	-716.00M	-3.23B	-1.88B
Financing Cash Flow	-1.99B	-3.62B	2.09B	-1.96B	-591.00M	-3.31B

Becton Dickinson Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 185.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDX, the sentiment is Positive. The current price of 185.39 is above the 20-day moving average (MA) of 168.17, above the 50-day MA of 161.46, and above the 200-day MA of 147.26, indicating a bullish trend. The MACD of 6.47 indicates Negative momentum. The RSI at 74.78 is Negative, neither overbought nor oversold. The STOCH value of 40.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BDX.

Becton Dickinson Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	78 Outperform	$37.72B	25.59	25.68%	0.92%	9.36%	29.56%
ISRG	76 Outperform	$177.84B	63.42	16.67%	―	22.18%	21.37%
WST	72 Outperform	$17.88B	36.56	16.85%	0.32%	4.90%	-0.26%
BDX	66 Neutral	$52.02B	29.84	6.96%	2.13%	8.23%	-2.04%
HOLX	66 Neutral	$16.79B	31.18	10.86%	―	1.74%	-25.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	47 Neutral	$11.25B	-12.71	-13.75%	2.75%	-21.20%	-325.40%

Becton Dickinson Corporate Events

Becton Dickinson Launches $1.6 Billion Debt Tender Offers

On February 10, 2026, BD launched a series of cash tender offers for up to $1.6 billion in aggregate purchase price of 15 tranches of outstanding senior notes and debentures, ranging in maturity from 2026 to 2050. The offers apply prioritized acceptance levels and series-specific caps, including notable sub-caps on certain long-dated notes, and provide early tender incentives for holders who participate by February 24, ahead of a March 11 expiration.

By targeting a broad mix of near-, medium- and long-dated securities, the transaction is designed to actively manage BD’s debt profile and could lower interest costs and extend or rebalance its maturity schedule. The move underscores the company’s continued focus on balance sheet optimization, with potential implications for its credit metrics and flexibility to invest in core medical technology operations, while offering bondholders an opportunity to exit positions at defined pricing spreads over U.S. Treasuries.

The most recent analyst rating on (BDX) stock is a Buy with a $202.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.

BD Completes Biosciences Spin-Off and Waters Combination

On February 9, 2026, BD announced it had completed the spin-off of its Biosciences & Diagnostic Solutions business and its combination with Waters Corporation, valuing the divested unit at $18.8 billion and giving BD shareholders a 39.2% stake in the combined company. BD, Waters and the spun-off entity also signed tax, employee, intellectual property and transition services agreements to govern ongoing relationships and ensure operational continuity.

In connection with the deal, BD received a $4 billion cash distribution from the spin-off on February 6, 2026, which it plans to deploy roughly equally between an accelerated share repurchase program and debt reduction. The transaction finalizes BD’s BD 2025 portfolio strategy, sharpens its positioning as a focused medtech player, and triggers governance changes including the resignation of director Claire M. Fraser from BD’s board and her appointment to Waters’ board.

The most recent analyst rating on (BDX) stock is a Buy with a $242.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.

BD Reorganizes into Five Global Business Segments

Effective October 1, 2025, BD reorganized its operations into five global business segments—BD Medical Essentials, BD Connected Care, BD BioPharma Systems, BD Interventional and BD Life Sciences—aligning distinct product and service lines such as medication delivery, specimen management, medication management, advanced patient monitoring, biopharma systems, urology and critical care, peripheral intervention, surgery and life sciences under separately managed strategic units. The company also disclosed that its Biosciences and Diagnostic Solutions businesses, which currently comprise the Life Sciences segment, are subject to a definitive agreement signed on July 13, 2025, to be combined with Waters Corporation, after which Life Sciences will be removed from BD’s segment reporting, and it has provided recast historical segment revenues and related non-GAAP revenue metrics to help investors assess performance and comparability under the new structure.

The most recent analyst rating on (BDX) stock is a Buy with a $233.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.

Becton Dickinson Creates New Preferred Stock for Spin-Off

On January 30, 2026, Becton, Dickinson and Company filed a Certificate of Designation in New Jersey to create a new Series D Junior Participating Redeemable Preferred Stock, and on February 2, 2026, it entered into exchange agreements with two internal deferral plan trusts to swap portions of their BD common stock holdings for 27.5159 shares of this new preferred stock. The move is structured to prevent those trusts from receiving shares of Augusta SpinCo Corporation in BD’s planned distribution of SpinCo common stock ahead of SpinCo’s Reverse Morris Trust combination with Waters Corporation, with the preferred shares designed to be redeemable back into BD common stock, thereby fine-tuning shareholder treatment and capital structure as the separation and merger of BD’s Biosciences and Diagnostic Solutions business proceed.

The most recent analyst rating on (BDX) stock is a Buy with a $233.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.

Becton Dickinson adopts executive severance plan, equity increase

On January 27, 2026, BD’s board adopted a new Executive Severance Plan that standardizes severance benefits for senior management, including the CEO, executive leadership team, business unit presidents and other eligible executives who are terminated without cause, excluding cases such as death, disability, cause, voluntary resignation, retirement or certain divestiture-related terminations. The plan offers tiered cash severance based on salary and target bonus levels, pro-rated target bonuses for the year of termination, a lump-sum COBRA-related payment for continued health coverage, and up to nine months of outplacement services, all contingent on a general release of claims, compliance with post-employment covenants and the company’s clawback policies, signaling a more formalized approach to executive transitions and retention. At its 2026 Annual Meeting on January 27, 2026, shareholders also approved an increase of 3,935,000 shares under BD’s 2004 Employee and Director Equity-Based Compensation Plan, re-elected all director nominees, ratified Ernst & Young as the independent auditor for fiscal 2026 and backed executive compensation on an advisory basis, underscoring broad investor support for the company’s governance, pay practices and long-term equity incentive framework.

The most recent analyst rating on (BDX) stock is a Hold with a $205.00 price target. To see the full list of analyst forecasts on Becton Dickinson stock, see the BDX Stock Forecast page.