Becton, Dickinson and Company reported fiscal 2025 fourth‑quarter revenue of $5.89 billion, a 8.3% year‑over‑year increase, but the figure fell $20 million short of the $5.91 billion consensus estimate. GAAP diluted earnings per share were $1.72, while adjusted diluted EPS rose to $3.96, beating the $3.91 consensus by $0.05 (1.3%). The adjusted EPS beat was driven by disciplined cost management and a favorable product mix that amplified the impact of the company’s BD Excellence operating system.
The quarter’s revenue growth was led by the Medical segment, which generated $3.155 billion, and the Interventional segment, which produced $1.367 billion. Both segments expanded in absolute terms, with the Medical unit benefiting from strong demand for its sterile products and the Interventional unit gaining from increased sales of its catheter and imaging‑guided devices. Life Sciences, however, grew only 0.3% to $1.168 billion, reflecting modest demand in the drug delivery and diagnostic sub‑segments and a decline in the BDB line. The mixed performance across segments explains the modest overall revenue increase and the slight miss relative to analysts’ expectations.
Adjusted gross margin increased by 140 basis points to 25.0%, and adjusted operating margin rose 80 basis points to 25.0% as well. The margin expansion was largely attributable to higher pricing power in the Medical and Interventional units, combined with effective cost controls in manufacturing and supply‑chain operations. The company’s BD Excellence program, which focuses on operational efficiency and product mix optimization, continued to deliver incremental margin lift even as the company faced higher raw‑material costs and competitive pricing pressure in some legacy product lines.
Full‑year fiscal 2025 revenue totaled $21.8 billion, up 7% from the prior year, while full‑year adjusted diluted EPS reached $14.40, slightly below the $14.89 consensus estimate. Management guided for low‑single‑digit revenue growth in fiscal 2026 and an adjusted diluted EPS range of $14.75 to $15.05, a range that aligns closely with analyst expectations for the year. The company also reiterated its plan to complete the separation of its Biosciences and Diagnostic Solutions businesses with Waters Corporation by the end of the first quarter of 2026, a move intended to unlock value for both entities.
CEO Tom Polen highlighted that “our resilient business model and commitment to commercial and operational execution enabled us to deliver 3.9% organic growth in New BD along with substantial adjusted margin and earnings growth in fiscal 2025.” He added that the company remains focused on the separation strategy and on addressing headwinds in China, vaccine revenue, and the Alaris product line. The market’s muted reaction to the earnings—despite the EPS beat—was driven primarily by the revenue miss and the cautious fiscal‑2026 outlook, which underscored investor concerns about near‑term demand softness and ongoing product‑line challenges.
The earnings report signals that Becton, Dickinson is maintaining solid profitability through disciplined cost management and a strong product mix, but it also highlights the company’s exposure to regional demand fluctuations and legacy product challenges. The modest revenue miss and the cautious guidance suggest that management is conservative in its outlook, reflecting uncertainty around global healthcare spending and competitive dynamics. The upcoming separation with Waters Corporation is expected to sharpen the company’s focus on high‑growth MedTech opportunities, potentially improving long‑term value creation for shareholders.
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