Becton Dickinson Cuts FY26 EPS Guidance to $12.35–$12.65 Post-Waters Merger
Becton Dickinson trimmed its fiscal 2026 adjusted EPS forecast from $14.75–$15.05 to $12.35–$12.65 per share to reflect the separation of its Biosciences and Diagnostic Solutions units and the merger with Waters Corporation. RBC Capital Markets cut its price target from $210 to $172, modeling 2.5% organic revenue growth and 6.0% EPS growth for FY26.
1. Guidance Revision
Becton Dickinson lowered its fiscal 2026 adjusted earnings per share guidance to a range of $12.35–$12.65 from $14.75–$15.05, attributing the reduction to the planned spin-off of Biosciences and Diagnostic Solutions operations and the upcoming merger with Waters Corporation to form New BD.
2. Analyst Price Target Cuts
RBC Capital Markets reduced its price target for the combined entity to $172 from $210, forecasting 2.5% organic revenue growth and 6.0% EPS growth in fiscal 2026. Wells Fargo, Piper Sandler and Citigroup also trimmed their targets in light of the transition-year outlook.
3. Combined Entity Strategy
Management anticipates transitional headwinds totaling roughly 250 basis points from challenges in China, vaccines and Alaris businesses. The company plans to pursue accretive tuck-in acquisitions to bolster growth and support the integration of Waters into the New BD platform.