Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
BD's Q3 FY2026, ending June 30, 2026, was defined by the completion of its Biosciences and Diagnostic Solutions spin-off and a reorganization into four operating segments. Revenue grew 5.4% driven by volume gains across all businesses, particularly Interventional and BioPharma Systems, but GAAP net income fell 34% to $377 million as tariff costs, restructuring charges, and separation-related expenses compressed margins. Gross margin contracted 90 basis points to 46.4% as higher labor and tariff impacts outweighed manufacturing efficiency savings. The company deployed $2.25 billion in share repurchases during the first nine months, funded in part by a $4 billion cash distribution from the spin-off.
Revenue
$4.98B
+5.44% YoY
EPS (Diluted)
$1.37
-31.50% YoY
Operating Income
$663M
-10.28% YoY
Source: SEC XBRL
Becton Dickinson & Co (BDX) reported Q3 FY2026 revenue of $4.98B, up 5.4% year over year. Operating margin was 13.3%, down 2.3 points from 15.6% a year earlier. BDX's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 3.23 | 3.17 | Beat +1.8% |
| Mar 2026 | 2.90 | 2.80 | Beat +3.5% |
| Dec 2025 | 2.91 | 2.84 | Beat +2.4% |
| Sep 2025 | 3.96 | 3.96 | Miss -0.0% |
4 reported segments · SEC XBRL
Segment revenue totals $4.98B, which is the $4.98B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure BDX itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Management noted that tariffs have adversely impacted operating expense in Q3 and expects a continued adverse impact for fiscal year 2026 and potentially beyond, primarily from imports with no exemption opportunities. Mitigation efforts include sourcing optimization and tariff exemption claims, though the collectability of related receivables is uncertain.
Source: 10-Q Item 2 MD&A
During the nine months ended June 30, 2026, BD recorded a $450 million non-cash asset impairment charge as part of restructuring costs. This charge stemmed from the commitment to exit certain operational activities and projects that no longer align with the new 'Excellence Unleashed' strategy.
Source: 10-Q Item 2 MD&A
Worldwide revenue increased 5.4%, composed of 4.1% volume/other, 0.3% pricing, and 1.0% foreign currency translation. All four segments grew, with Interventional up 6.4% and BioPharma Systems up 6.6% on strength in oncology, GLP-1 delivery, and infection prevention products.
Source: 10-Q Item 2 MD&A
Gross margin fell to 46.4% from 47.3%. Operating performance was -0.8 points, driven by tariffs, higher labor, and costs related to the El Paso Warning Letter, partially offset by continuous improvement savings from the BD Excellence operating model.
Source: 10-Q Item 2 MD&A
BD received a $3.857 billion cash distribution from the spun-off entity, used primarily for $2.250 billion in share repurchases and $2.696 billion in debt repayments during the nine-month period. Dividends paid were $875 million.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
Market dynamics in China, including VBP programs and cost-containment efforts, have adversely impacted BD's revenues, particularly in the Medical Essentials and Interventional segments. The company experienced declines in certain product categories, and this trend could persist if government policies further reduce pricing or demand.
Source: 10-Q Item 2 MD&A
Existing tariffs have already increased operating expenses and compressed margins. Additional tariffs or trade barriers imposed by the U.S. or other countries could further raise supply chain costs, reduce profitability, and disrupt sourcing. The effectiveness of mitigation strategies, such as tariff exemptions, remains uncertain.
Source: 10-Q Item 2 MD&A
The new 'Excellence Unleashed' strategy has led to significant restructuring actions, including a $450 million non-cash impairment charge in fiscal 2026. Exiting activities and projects may not yield the anticipated cost savings or operational benefits, and further restructuring charges could occur.
Source: 10-Q Item 2 MD&A
Conflicts in the Middle East and disruptions to transportation lanes could increase supply chain costs, delay deliveries, and impact raw material availability. While the impact has not been significant to date, elevated oil prices and logistics pressures may adversely affect results.
Source: 10-Q Item 2 MD&A
The El Paso Warning Letter has necessitated corrective actions and additional spending, which pressured Interventional segment margins. Ongoing regulatory scrutiny or new quality issues could lead to further remediation costs, manufacturing delays, or reputational harm.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.98 $B | 4.73 $B | +5.44% |
Cost of Revenue $B | 2.67 $B | 2.49 $B | +7.11% |
Operating Income $M | 663.00 $M | 739.00 $M | -10.28% |
Net Income $M | 377.00 $M | 574.00 $M | -34.32% |
EPS (Basic) $ | 1.37 $ | 2.00 $ | -31.50% |
EPS (Diluted) $ | 1.37 $ | 2.00 $ | -31.50% |
R&D Expense $M | 258.00 $M | 230.00 $M | +12.17% |
SG&A Expense $B | 1.26 $B | 1.16 $B | +8.43% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
BDX reported Q2 FY2026 revenue growth of 5.2% to $4.71B, but swung to a net loss of $311M (EPS -$1.11) driven by a sharp 75.7% collapse in operating income and surging SG&A costs, while the current ratio fell below 1.0x signaling near-term liquidity pressure.
BDX delivered solid Q1 FY2026 results with revenue up 1.6% to $5.25B, operating income surging 21.9% to $552M, and net income rising 26.1% to $382M, driven by improved cost efficiency and margin expansion.
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