Becton Dickinson Co. (NYSE: BDX) shares declined roughly 5% in pre-market trading following the company's fiscal first-quarter 2026 report, as investors digested a mix of stronger-than-expected quarterly results and guidance that fell short of some analyst forecasts.
The medical technology company carries a market capitalization of $59.1 billion and is trading at a price-to-earnings multiple of 35.8. InvestingPro analysis indicates that this valuation sits above the stock's Fair Value.
RBC Capital analyst Shagun Singh maintained a Sector Perform rating on the stock and reiterated a $210.00 price target. Singh's assessment came after Becton Dickinson posted top- and bottom-line results for fiscal Q1 that outperformed consensus expectations.
On a currency-neutral basis (ex-fx), BDX reported year-over-year revenue growth of 0.4%, which exceeded the company's own guidance that had anticipated a low-single-digit decline. Adjusted earnings per share for the quarter amounted to $2.91, beating consensus by $0.10. Supporting the firm-level profitability picture, InvestingPro data shows Becton Dickinson has been profitable over the last twelve months and reported a gross profit margin of 47.4% for that period.
The company used the quarter to unveil fiscal year 2026 guidance for what it calls "New BD" following the completion of its Lifesciences business separation. Management reiterated a projection of low-single-digit ex-fx year-over-year revenue growth for the full fiscal year and set EPS guidance at $12.35 to $12.65, adjusted to reflect the separation.
Investor attention also fell on the company's dividend profile: Becton Dickinson has increased its dividend for 55 consecutive years and offers a current yield of 2.0%, details that InvestingPro includes in its research coverage.
Despite the quarter's upside surprises, BDX's fiscal Q2 2026 revenue guidance - approximately 2% year-over-year growth on an ex-fx basis - came in under some analysts' expectations of roughly 3%. That softer near-term outlook likely contributed to the pre-market price decline.
RBC Capital commented that with the Lifesciences separation now complete, Becton Dickinson will have a sharpened strategic focus on high-growth MedTech end markets, though the firm cautioned that a recovery in growth to mid-single digits "is yet to be proven out."
Breaking down the quarter's headline figures, the company reported adjusted EPS of $2.91 versus the analyst consensus of $2.81, and revenue of $5.3 billion compared with an anticipated $5.15 billion. Even with the top-line and EPS beats, the company faces investor scrutiny over operational margins and the implications of its forward guidance.
The results underscore a transitionary period for Becton Dickinson as it completes structural changes and sets a directional plan for the narrower, MedTech-focused business. The company’s near-term revenue guidance and questions about margin performance are central to markets' reassessment of the stock following the separation.
These developments provide concrete data points for investors evaluating BDX’s financial position. The company’s quarterly outperformance demonstrates resilience in revenue and adjusted earnings, but the tempered outlook for the next quarter and the need to establish a sustained growth trajectory leave uncertainties that market participants are weighing.
Summary
Becton Dickinson beat Q1 consensus on revenue and adjusted EPS but issued fiscal Q2 revenue guidance below some analyst expectations. RBC Capital kept its Sector Perform rating and $210.00 price target. The company is now operating as "New BD" following the Lifesciences separation and has reiterated full-year guidance and an EPS range adjusted for the separation.
Key points
- Q1 performance: Adjusted EPS of $2.91 beat the $2.81 consensus; revenue was $5.3 billion versus an expected $5.15 billion.
- Guidance and valuation: Fiscal Q2 ex-fx revenue guidance near 2% fell short of some expectations; market cap is $59.1 billion and P/E is 35.8, assessed by InvestingPro as above Fair Value.
- Strategic shift: The Lifesciences separation is complete and management outlined FY2026 guidance for "New BD," with EPS guidance of $12.35-12.65 and a focus on high-growth MedTech markets.
Risks and uncertainties
- Near-term growth risk: Fiscal Q2 revenue guidance of approximately 2% ex-fx is below some analyst assumptions, which may pressure investor sentiment and share price - impacts MedTech and healthcare investors.
- Margin and operational risk: Investor concerns about operational margins remain following the quarter, introducing uncertainty in profitability trends - impacts equity valuations and healthcare sector margins.
- Execution risk post-separation: While the Lifesciences spin-off is complete, management's expectation that growth will recover to mid-single digits "is yet to be proven out," presenting execution risk for the narrower company - relevant to MedTech-focused investors.