Becton Dickinson raises lower end of annual profit forecast on drug delivery devices strength

Becton Dickinson BDX.N on Thursday raised the lower end of its adjusted profit forecast for full-year 2026 after beating Wall Street estimates for third-quarter profit and revenue, helped by demand for its drug-delivery devices and surgical equipment.

The medical device maker's shares were up 4% higher in early trading.

The company expects fiscal 2027 revenue growth to start from a low-single-digit baseline, taking a conservative posture due to volatility in oil prices, CEO Tom Polen said on a post earnings call.

Here are the details:

• Resins and molded plastics, used to make syringes and catheters, account for about 5% of cost of goods sold and higher oil prices could add $60 million to $70 million to Becton Dickinson's costs, though the company expects to offset the impact through price increases.
• "Oil is a factor that we are monitoring very closely... I think the most important is we are acting on it. We are not waiting and seeing this impact us. We have pricing actions underway already," said CFO Vitor Rogue.
• The company now expects 2026 adjusted profit per share between $12.62 and $12.72, compared with its previous forecast of $12.52 to $12.72.
• Analysts on an average expect annual profit of $12.61 per share, according to LSEG data.
• "After some quarters of rockiness, it is encouraging to see a solid delivery, Citi analysts said.
• The company earned adjusted profit per share of $3.23 for the quarter ended June 30, above estimates of $3.14.
• It posted quarterly revenue of $4.98 billion, topping estimates of $4.89 billion.