BD Q3 Revenue Up 5.4% but GAAP EPS Drops 34% on Higher Costs; Guidance Raised
BDX sits 39% above its 52-week low of $127.536.
Summary
BD posted mixed Q3 results: revenue beat but GAAP earnings missed on higher costs and a new FDA Warning Letter. Adjusted EPS topped estimates and full-year guidance was raised.
Key Events · Earnings and Guidance · BDX
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Revenue Growth, Earnings Miss
Q3 revenue rose 5.4% to $4.98 billion, but GAAP net income fell 34% to $377 million ($1.37/share) due to higher costs, restructuring, and legal charges.
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Adjusted EPS Beat, Guidance Raised
Adjusted EPS of $3.23 exceeded expectations. Full-year adjusted EPS guidance raised to $12.62-$12.72, up from $12.52-$12.72.
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New FDA Warning Letter
El Paso facility received an FDA Warning Letter on April 30, 2026, citing manufacturing deficiencies. BD recorded charges and committed to corrective actions; further regulatory action possible.
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$450M Non-Cash Impairment
Recorded in Q2 as part of 'Excellence Unleashed' restructuring, reflecting exit from certain operational activities and projects.
Analysis · BDX · Industrial Applications And Services
BD's Q3 fiscal 2026 revenue grew 5.4% to $4.98 billion, but GAAP earnings fell 34% to $377 million as higher costs, restructuring charges, and a new FDA Warning Letter weighed on results. Adjusted EPS of $3.23 beat expectations, and the company lifted the lower end of its full-year adjusted EPS guidance to $12.62. The quarter also saw the completion of a $2 billion accelerated share repurchase and a €600 million debt refinancing. The new El Paso Warning Letter adds regulatory risk, while the $450 million non-cash impairment signals a strategic pivot under the 'Excellence Unleashed' plan.
At the time of this filing, BDX was trading at $177.07 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $48.8B. The 52-week trading range was $127.54 to $187.35. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.