Medical technology company Becton, Dickinson and Company (NYSE: BDX) reported calendar Q3 2026 (fiscal Q4 2026) results exceeding the market’s revenue expectations, with revenue up 5.4% year on year to $5.27 billion. Its non-GAAP profit of $4.15 per share was 2% above analysts’ consensus estimates.

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"We delivered a strong fourth quarter, with 5.6% revenue growth and broad-based performance led by our key growth platforms," said Tom Polen, chairman, CEO and president of BD. "Fiscal 2026 was a defining year as we completed BD's transformation to a more focused MedTech company with separation of our Life Sciences business. We strengthened our core growth and expanded BD Excellence to elevate our commercial capabilities, accelerate innovation and drive greater productivity. We enter fiscal 2027 from a position of strength, with a portfolio built for durable performance and confidence in the long-term growth, earnings and cash-flow potential of New BD."

Revenue growth

Reviewing a company’s long-term revenue performance reveals insights into its quality. Even a weak business can perform well for one or two quarters, but a top-tier one grows for years. BD struggled to consistently increase demand as its $19.46 billion of revenue for the trailing 12 months was close to its revenue five years ago. This fell short of our standards and suggests it is a lower-quality business.

Long-term growth matters most, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. BD’s recent performance shows its demand remained suppressed as its revenue has declined by 2% annually over the last two years.

BD also reports revenue performance excluding currency movements, which are outside the company’s control and not indicative of demand. Over the last two years, its constant currency revenue averaged 5.5% year-on-year growth. This outpaced its reported revenue growth, indicating that foreign exchange rates have been a headwind for BD.

This quarter, BD reported year-on-year revenue growth of 5.4%, and its $5.27 billion of revenue exceeded Wall Street’s consensus estimates by 3.1%.

Looking ahead, sell-side analysts expect revenue to grow 1.3% over the next 12 months, according to S&P. While this projection implies its newer products and services will improve revenue performance, it is still below the sector average.

Adjusted operating margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes and interest on debt – metrics less connected to business fundamentals.

BD’s adjusted operating margin has generally stayed the same over the last 12 months, averaging 23.6% over the last five years. This profitability was strong for a healthcare business, showing it’s a well-run company with an efficient cost structure.

Looking at the trend in its profitability, BD’s adjusted operating margin of 22.6% for the trailing 12 months may be around the same as five years ago, but it has decreased by 1.7 percentage points over the last two years. This dynamic unfolded because it failed to adjust its fixed costs while demand fell.

In Q3, BD’s adjusted operating margin was 19.6%, down 6.2 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings per share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share, or EPS, points to the profitability of that growth – for example, a company could inflate its revenue through excessive spending on advertising and promotions.

BD’s EPS was flat over the last five years, just like its revenue. This performance was underwhelming across the board.

In Q3, BD reported adjusted EPS of $4.15, up from $3.96 in the same quarter last year. This result beat analysts’ consensus estimates by 2%. Over the next 12 months, Wall Street expects BD’s full-year EPS to stay about the same, moving from $13.19 to $13.25, according to S&P.

Key takeaways from BD’s Q3 results

BD’s quarter had some key positives, including revenue that topped analysts’ consensus estimates, but its full-year EPS guidance came in slightly below expectations. The market seemed to be hoping for more: Shares fell 4.2% to $200.50 immediately after the results.

When considering an investment in BD, look at its valuation, business quality and latest earnings. Read our full research report here (it’s free).