GET DAILY SIGNALSBecton Dickinson (BDX) Closes Fiscal 2026 with a Clean Earnings Beat and Margin Expansion
Key Takeaways
- BD reported fourth-quarter fiscal 2026 revenue of $5.274 billion, up 5.4% year over year (5.6% on a currency-neutral basis), exceeding analyst estimates.
- Adjusted earnings per share (EPS) reached $4.15, up 27.3% year over year and ahead of consensus expectations of roughly $4.07 to $4.11.
- Adjusted operating margin expanded 280 basis points to 28.6% in the quarter, driven by productivity gains and favorable mix.
- Full-year adjusted EPS came in at $12.70, up 6.7%, while free cash flow climbed 42% to $2.9 billion.
- Management issued fiscal 2027 guidance of adjusted EPS of $13.10 to $13.30, implying slower, low-single-digit revenue growth.
- The company raised its quarterly dividend to $1.06 per share, marking its 55th consecutive annual increase.
- For more details on this ticker's Major News, Today's Price Move, Price Targets, and Forecast, be sure to explore these dedicated pages.
- Explore Trending AI Robots to discover AI-powered trading strategies currently drawing investor attention.
Putting the Results in Context
Becton, Dickinson and Company closed out fiscal 2026 having completed a major portfolio transformation into a pure-play medical technology company. The February 2026 separation of its Biosciences and Diagnostic Solutions business refocused BD on medical essentials, connected care, biopharma systems, and interventional products. This fourth-quarter report therefore served as a critical proof point for the "New BD" strategy, testing whether the narrowed portfolio could sustain growth while expanding profitability and cash flow. Investors were watching for evidence that recent commercial investments in platforms such as Advanced Patient Monitoring, PureWick, and biologic drug delivery were translating into durable momentum heading into fiscal 2027.
What the Numbers Showed
For the fourth quarter of fiscal 2026, ended September 30, 2026, BD reported revenue of $5.274 billion, up 5.4% as reported and 5.6% on a currency-neutral basis, exceeding consensus estimates of about $5.11 billion. Adjusted EPS of $4.15 rose 27.3% year over year, topping the roughly $4.07 consensus. Adjusted gross margin reached 56.8%, up 180 basis points, while adjusted operating margin rose 280 basis points to 28.6%. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Segment performance was broad-based. Interventional grew 7.6%, BioPharma Systems rose 7%, and Medical Essentials increased 5.9%. Connected Care advanced 2.1%, with double-digit growth in Advanced Patient Monitoring offsetting a difficult Alaris comparison. For the full year, revenue totaled $19.5 billion, up 3.9%, and adjusted EPS was $12.70, up 6.7%. Free cash flow jumped 42% to $2.9 billion.
How the Market Responded
BD shares traded modestly higher following the report as investors weighed a clean quarterly beat against a conservative fiscal 2027 outlook. The fourth quarter delivered the strongest growth trajectory of the year, with currency-neutral revenue growth accelerating from 2.6% in the fiscal second quarter to 5.6% in the fourth. However, management's fiscal 2027 framework—low-single-digit revenue growth and adjusted EPS of $13.10 to $13.30—came in at the low end of some expectations, tempering enthusiasm for a stock that had already priced in significant momentum. Cash flow proved a key positive, with free cash flow conversion improving to roughly 74% from about 57% a year earlier.
What to Watch Going Forward
Following this report, investors will be watching whether BD can sustain the commercial momentum it built in fiscal 2026 while navigating a more conservative growth guide. Management pointed to sustainable mid-single-digit growth as the long-term target, but the fiscal 2027 framework implies a slower near-term trajectory. The company's upcoming Investor Day on December 10, 2026 is expected to provide additional detail on how management plans to bridge that gap.
Several catalysts deserve attention. The Alaris infusion-pump comparison is expected to normalize, removing a drag that weighed on Connected Care growth in the quarter. In BioPharma Systems, the vaccine headwind that pressured results earlier in the year is forecast to disappear in fiscal 2027, while demand for GLP-1 (glucagon-like peptide-1) biologic drug delivery remains a growth driver. Newly approved products, including the Liverty TIPS stent graft and the Phasix ST Parastomal mesh, offer additional launch opportunities in the first half of fiscal 2027.
Margin and cash-flow execution will remain central to the investment case. BD's $200 million cost-out program is fully identified, and management is targeting a step-up toward its 90% free cash flow conversion goal. Tariff impacts, which reduced full-year margins by 90 basis points, and continued investment in selling and research and development (R&D) will also shape profitability going forward.
My Take on Tickeron’s AI Screener
In my own research process I frequently use Tickeron’s AI Screener to quickly filter medical-technology names by technical patterns, fundamentals, and AI-driven signals. It helps surface comparable ideas without spending hours on manual screens, which is especially useful when evaluating earnings-driven moves like the one we just saw from BD.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BDX's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for BDX turned positive on October 09, 2026. Looking at past instances where BDX's MACD turned positive, the stock continued to rise in 26 of 45 cases over the following month. The odds of a continued upward trend are 58%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on BDX as a result. In 52 of 102 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 51%.
BDX moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BDX crossed bullishly above the 50-day moving average on October 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +1.70% 3-day Advance, the price is estimated to grow further. Considering data from situations where BDX advanced for three days, in 134 of 294 cases, the price rose further within the following month. The odds of a continued upward trend are 46%.
The Aroon Indicator entered an Uptrend today. In 105 of 218 cases where BDX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 48%.
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BDX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 42%.
BDX broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 6 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 8 (best 1 - 100 worst), indicating outstanding price growth. BDX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 65 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock slightly better than average.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.334) is normal, around the industry mean (5.069). P/E Ratio (63.009) is within average values for comparable stocks, (40.009). Projected Growth (PEG Ratio) (1.107) is also within normal values, averaging (4.143). BDX has a moderately high Dividend Yield (0.020) as compared to the industry average of (0.005). P/S Ratio (2.290) is also within normal values, averaging (56.876).
The Tickeron SMR rating for this company is 85 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of medical supplies, devices, laboratory equipment and diagnostic products
Industry PharmaceuticalsOther
Advertisement