Becton Dickinson (BDX) AI Stock Analysis

Company Guidance

BD updated fiscal '26 guidance, saying revenue is now expected toward the high end of its low single‑digit FX‑neutral range (currency now a ~100 bp tailwind at current spot rates) and raising the midpoint of adjusted EPS guidance to a range of $12.62–$12.72; the company still expects adjusted operating margin of about 25% (inclusive of tariffs) and an adjusted effective tax rate of 16–17%. Management cited Q3 results of $5.0B revenue (up 4.4%), adjusted gross margin of 54.3%, adjusted operating margin of 24.9% and adjusted EPS of $3.23 as the basis for the update, noted tariffs trimmed margins by roughly 110 bps, and highlighted YTD free cash flow of $1.7B (up 45%) and $3.1B returned to shareholders ($2.3B repurchases, $0.9B dividends) with net leverage ~2.9x (2.5x target). Looking to FY‑27, management reiterated a low single‑digit revenue starting point with a defined ~200 bp Alaris headwind next year and said it expects only “modest” EPS leverage off that baseline, with pricing, BD Excellence productivity and favorable mix helping to offset headwinds and a longer‑term free cash flow conversion goal of ~90%.