BECTON DICKINSON & CO (BDX)

Price—Loading quote

AI: Fair-priced

Price checkAt $183.40, the shares look reasonably priced rather than clearly cheap or expensive.

The August 14 closing price equals 14.5 times management’s $12.67 midpoint for fiscal 2026 adjusted earnings per share. That multiple is moderate given third-quarter sales growth of 4.4% excluding exchange-rate movements. However, adjusted earnings remove amortization, separation costs and other charges that can affect shareholder value. The price therefore assumes continued modest growth and improving cash conversion, but not exceptional expansion. Balanced upside and accounting uncertainty support a Fair-priced verdict.

Big pictureSales and cash are growing, but past results show uneven profit conversion.

Revenue increased from $16.1 billion in fiscal 2020 to $21.8 billion in 2025, although acquisitions and the Waters separation limit direct comparisons. Annual free cash flow—cash left after operations and capital investment—remained positive but ranged from roughly $1.5 billion to $3.5 billion. For continuing operations, third-quarter 2026 revenue grew 5.4%, while nine-month free cash flow rose 44.6% to $1.7 billion. Demand was broad, but international growth excluding currency was only 0.6%, showing some regional sensitivity.

Business strengthDebt is falling, while buybacks offset dilution but consume substantial cash.

June debt was $16.8 billion against $708 million of cash, leaving $16.1 billion of net debt. That improved from $18.5 billion at fiscal 2025 year-end, although current liabilities still exceeded current assets by $1.3 billion. During the first nine months, Becton Dickinson spent $2.25 billion on buybacks and $875 million on dividends, versus $2.39 billion of free cash flow. Transaction proceeds funded the difference. Buybacks comfortably exceeded $204 million of employee share compensation, limiting dilution, but debt reduction remains important for downside protection.

What could change the storySteady growth and debt reduction could lift value; weaker cash conversion would undermine it.

The strongest bull case is continuing revenue growth near 4% to 5%, wider operating margins and annual free cash flow above $2.5 billion, while net debt falls below $15 billion. The bear case is that slow international demand, separation costs or weak cash conversion expose the gap between adjusted and reported earnings. At $183.40, investors are effectively assuming the $12.62 to $12.72 adjusted earnings forecast is durable. Fiscal 2027 growth below 3% or free cash flow below $2 billion would make the present valuation harder to defend.

$183.40 price considered

AI: News

Third-quarter guidance increaseThird-quarter sales and cash exceeded earlier expectations, supporting a modest earnings forecast increase.

On August 6, Becton Dickinson reported $4.98 billion of quarterly revenue, up 5.4%, and adjusted earnings of $3.23 per share. Nine-month free cash flow increased 44.6% to $1.7 billion. Management narrowed fiscal 2026 adjusted earnings guidance upward to $12.62–$12.72. Shares gained 3.76% that day. The timing suggests the report influenced trading, but it does not prove the earnings release alone caused the move.

Waters separation completedThe Waters transaction delivered cash and substantially changed what each Becton Dickinson share represents.

On February 9, Becton Dickinson completed the separation of its Biosciences and Diagnostic Solutions businesses and their combination with Waters. The transaction valued those businesses at $18.8 billion. Becton Dickinson received $4 billion in cash, while its shareholders received about 0.135 Waters shares per Becton Dickinson share and collectively owned 39.2% of Waters. Half the cash funded buybacks and half funded debt repayment, making the transaction central to both valuation and historical comparability.

Second-quarter capital deploymentSecond-quarter results beat expectations while transaction cash funded a large buyback and debt repayment.

On May 7, continuing-operations revenue reached $4.7 billion, up 5.2%, and adjusted earnings were $2.90 per share. Becton Dickinson also executed a $2.0 billion accelerated share repurchase and retired $2.1 billion of debt. Investing.com reported a 3.9% premarket rise to $149.63. That reaction coincided with the earnings beat and higher guidance, although premarket timing cannot isolate which announcement mattered most.

Hernia trial enrollmentCompleted trial enrollment creates future product upside, but meaningful evidence remains years away.

On August 12, Becton Dickinson said it had enrolled 477 patients across 32 sites in the PREVENT study of Phasix Mesh for preventing incisional hernias. Patients must reach a 24-month primary endpoint before results can support a planned regulatory submission, so this is optional future value rather than current earnings. Shares rose 1.20% that day, but broader market forces or prior earnings momentum could also explain the movement.

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$21.84B	$20.18B	$19.37B	$18.87B	$19.13B	$16.07B	$17.29B	$15.98B	$12.09B	$12.48B	$10.28B	$8.45B	$8.05B	$7.71B	$7.58B	$7.12B	$6.99B	$6.90B	$6.28B
Gross profit	—	—	—	—	—	$7.58B	$8.29B	$7.27B	$5.94B	$5.99B	$4.70B	$4.30B	—	—	—	—	—	—	—
Research & development	$1.26B	$1.19B	$1.24B	$1.26B	$1.28B	$1.04B	$1.06B	$1.00B	$770.0M	$828.0M	$632.0M	$550.0M	$494.0M	$472.0M	$470.0M	$422.8M	$404.6M	—	—
Operating income	$2.58B	$2.40B	$2.11B	$2.28B	$2.25B	$912.0M	$1.76B	$1.51B	$1.52B	$1.43B	$1.07B	$1.61B	$1.25B	$1.56B	$1.67B	$1.58B	$1.59B	$1.49B	$1.18B
EBITDAderived	$5.04B	$4.68B	$4.40B	$4.51B	$4.48B	$3.03B	$4.01B	$3.49B	$2.61B	$2.54B	$1.97B	$2.17B	$1.80B	$2.07B	$2.16B	$2.07B	$2.05B	$1.96B	$1.63B
Net income	$1.68B	$1.71B	$1.48B	$1.78B	$2.09B	$874.0M	$1.23B	$311.0M	$1.10B	$976.0M	$695.0M	$1.19B	$1.29B	$1.17B	$1.27B	$1.32B	$1.23B	$1.13B	$890.0M
Basic EPSper diluted share	$5.83	$5.88	$4.97	$5.93	$6.92	$2.75	$4.01	$0.62	$4.70	$4.59	$3.43	$6.13	$6.63	$5.69	$5.75	$5.62	$5.12	$4.61	$3.63
Diluted EPSper diluted share	$5.82	$5.86	$4.94	$5.88	$6.85	$2.71	$3.94	$0.60	$4.60	$4.49	$3.35	$5.99	$6.49	$5.59	$5.62	$5.49	$4.99	$4.46	$3.49

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$1.36M disclosed value

Sells (SEC code S)37$6.03M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 26, 2026Form 4 · 10b5-1	Feld MichaelEVP, Chief Revenue Officer	SellCommon Stock	75	$152.80	$11.5K	21.0K
Jun 24, 2026Form 4 · 10b5-1	Garrison Michael DavidEVP & Pres Med.Essntl&BioPharm	SellCommon Stock	1.1K	$145.66	$160.2K	13.2K
Jun 10, 2026Form 4 · 10b5-1	Garrison Michael DavidEVP & Pres Med.Essntl&BioPharm	SellCommon Stock	1.1K	$151.48	$166.6K	14.3K
Jun 1, 2026Form 4 · 10b5-1	Polen Thomas E JrChairman, CEO and President	SellCommon Stock	2.8K	$146.35	$404.5K	110.2K
May 26, 2026Form 4 · 10b5-1	Feld MichaelEVP, Chief Revenue Officer	SellCommon Stock	75	$147.35	$11.1K	21.1K

Review ownership filings at SEC.gov ↗

BECTON DICKINSON & CO (BDX)

Financial charts

Financial statements

Insider buys & sells