Becton, Dickinson and Company (BDX) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 revenue was $4.7 billion, up 5.2% year-over-year (2.6% FXN), with over 90% of the business delivering mid-single-digit growth and strong operational execution.

• Adjusted diluted EPS from continuing operations was $2.90, up 3.9% year-over-year, and adjusted operating margin reached 24.2%, both ahead of expectations.

• Raised full-year adjusted EPS guidance to $12.52–$12.72, reflecting confidence in the new strategy, improved visibility, and strong first-half performance.

• Completed the spin-off and combination of the Biosciences and Diagnostic Solutions business with Waters Corporation, with proceeds used for share repurchases and debt repayment.

• Returned $2.3 billion to shareholders in the quarter, including $2 billion in share repurchases and $0.3 billion in dividends.

Financial highlights

• Q2 revenue grew 5.2% year-over-year to $4.7 billion; U.S. revenue up 5.1%, international up 5.5%.

• Adjusted operating margin was 24.2%, down 110 basis points, reflecting tariffs and increased commercial investments.

• Adjusted EPS was $2.90, up 3.9% year-over-year, excluding $450 million in non-cash asset impairment charges.

• Free cash flow for the year-to-date improved to $1.1 billion, driven by working capital management and asset utilization.

• Operating income for Q2 was $93 million, down significantly year-over-year due to higher restructuring and integration costs.

Outlook and guidance

• Reaffirmed full-year revenue growth guidance of low single-digit (reported and FXN), with second-half revenue growth expected to mirror the first half.

• Adjusted operating margin guidance remains at approximately 25%, inclusive of tariffs.

• Adjusted effective tax rate expected between 16% and 17%.

• Full-year adjusted EPS guidance raised to $12.52–$12.72 for fiscal 2026.

• Guidance excludes potential charges such as amortization, acquisition, separation, and certain tax matters.