Becton Dickinson Beats Q1 Estimates, Lowers FY26 EPS Forecast to $12.35-$12.65
Becton Dickinson reported Q1 adjusted EPS of $2.91, exceeding consensus by $0.10, and sales of $5.25B, topping expectations by $0.10B. It slashed FY26 EPS guidance to $12.35-$12.65 from $14.75-$15.05, spurring a 17% share sell-off and prompting RBC's price target cut to $172.
1. Q1 Performance Beats Estimates
Becton Dickinson reported adjusted EPS of $2.91 for Q1 FY2026, beating the consensus by $0.10 per share, while revenue reached $5.25 billion, topping expectations by $100 million. The earnings beat was driven by robust sales across its medical device divisions and ongoing margin expansion.
2. Fiscal 2026 Guidance Cut
The company lowered its full-year FY26 adjusted EPS guidance to $12.35-$12.65 per share from a prior range of $14.75-$15.05, reflecting transition-year dynamics following the spin-off of Biosciences and Diagnostic Solutions and the combination with Waters. It also forecasted Q2 EPS of $2.72-$2.82.
3. Analyst Price Target Revisions
RBC Capital Markets cut its price target to $172 from $210, modeling 2.5% organic revenue growth and 6% EPS growth for FY26, and kept a Sector Perform rating. Wells Fargo, Piper Sandler and Citigroup trimmed their targets to $157, $170 and $232 respectively, signaling cautious optimism.
4. Headwinds and M&A Focus
Management cited approximately 250 basis points of headwinds from the China market, vaccines segment and Alaris business as reasons for the transition-year outlook. Executives emphasized a focus on accretive tuck-in M&A, with a robust pipeline targeting smaller strategic acquisitions to support mid-single-digit growth.