Q3 FY2026
Filed Aug 6, 2026BD Reports Third Quarter Fiscal 2026 Financial Results
Revenue increased 5.4% as reported and 4.4% FXN, while GAAP and adjusted diluted EPS from continuing operations increased 4.5% and 4.9%, respectively. All four reported operating segments grew, year-to-date cash from continuing operations and free cash flow increased, and the company raised the midpoint of adjusted diluted EPS guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $4,983 million | – | 5.4% |
| Revenues foreign currency neutral changenon-GAAP | 4.4% | – | 4.4% |
| Reported Diluted Earnings per ShareGAAP | $1.64 | – | 4.5% |
| Reported Diluted Earnings per Share foreign currency neutral changenon-GAAP | 3.8% | – | 3.8% |
| Adjusted Diluted Earnings per Sharenon-GAAP | $3.23 | – | 4.9% |
| Adjusted Diluted Earnings per Share foreign currency neutral changenon-GAAP | 3.9% | – | 3.9% |
| United States revenuesGAAP | $3,081 million | – | 6.9% |
| International revenuesGAAP | $1,902 million | – | 3.2% |
| International revenues foreign currency neutral changenon-GAAP | 0.6% | – | 0.6% |
| Year-to-date cash from continuing operationsGAAP | $2.1 billion | – | 33.3% |
| Year-to-date free cash flownon-GAAP | $1.7 billion | – | 44.6% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Medical EssentialsNo segment-specific financial driver was disclosed. | $1,675 million | – | 4.5% |
| Connected CareNo segment-specific financial driver was disclosed. | $1,224 million | – | 4.9% |
| BioPharma SystemsBD announced a collaboration with EMS to expand access to GLP-1 therapies through a semaglutide launch utilizing BD's Vystra™ Injection Pen platform. | $670 million | – | 6.6% |
| InterventionalBD launched the Elyra™ Thulium Fiber Laser System, expanding its kidney stone care portfolio. | $1,414 million | – | 6.4% |
Full Year Fiscal 2026 outlook
- RevenueGAAP Revenue Growth: Low single-digit plus; Revenue Growth (FXN): Low single-digit
- NoteAdjusted Diluted EPS: $12.62 to $12.72
What drove it
- United States revenues increased 6.9%, compared with International revenue growth of 3.2% as reported and 0.6% on a foreign currency-neutral basis.
- All four reported operating segments recorded revenue growth, led by BioPharma Systems at 6.6% and Interventional at 6.4%.
- The company cited strong momentum across key growth platforms, continued innovation, and further progress through BD Excellence.
- BD completed the spin-off of its former Biosciences and Diagnostic Solutions business and the combination of that business with Waters on February 9, 2026. Results of the former business are reflected as discontinued operations and prior periods were recast on a continuing operations basis.
Concerns
- International revenue increased 0.6% on a foreign currency-neutral basis, below United States revenue growth of 6.9%.
- Full-year adjusted diluted EPS guidance excludes potential charges or gains including non-cash amortization of intangible assets, acquisition-related charges, separation-related costs, and certain tax matters.
- The company stated that the impact and timing of potential excluded charges or gains are inherently uncertain and difficult to predict.
What to watch
- Whether revenue growth reaches the high end of the company's full-year GAAP Revenue Growth range of Low single-digit plus.
- Execution against full-year Revenue Growth (FXN) guidance of Low single-digit.
- Delivery within the updated full-year Adjusted Diluted EPS range of $12.62 to $12.72.
- The pace of International revenue growth on a foreign currency-neutral basis.
- Continued cash generation from continuing operations and free cash flow following the February 9, 2026 transaction.
Balance sheet and cash flow
- Year-to-date cash from continuing operations increased 33.3% to $2.1 billion.
- Year-to-date free cash flow increased 44.6% to $1.7 billion.
- Free cash flow is defined as net cash provided by continuing operating activities less capital expenditures.
Analysis
BD reported third-quarter continuing-operations revenue of $4,983 million, up 5.4% as reported and 4.4% on a foreign currency-neutral basis. GAAP diluted earnings per share rose 4.5% to $1.64, while adjusted diluted earnings per share increased 4.9% to $3.23. The release states that revenue, adjusted operating margin and adjusted EPS were ahead of management's expectations, although it does not disclose the adjusted operating margin figure.
Growth was broad across the four continuing-operations segments. BioPharma Systems produced the highest reported growth at 6.6%, followed by Interventional at 6.4%, Connected Care at 4.9%, and Medical Essentials at 4.5%. Geographic performance was led by the United States, where revenue rose 6.9%. International revenue increased 3.2% as reported but only 0.6% on a foreign currency-neutral basis, making underlying international growth an important point of attention.
Cash generation strengthened in the first nine months of fiscal 2026. Year-to-date cash from continuing operations increased 33.3% to $2.1 billion, and free cash flow increased 44.6% to $1.7 billion. The filing does not provide capital-return activity, cash balances, debt balances, capital expenditures, or a reconciliation of the reported free-cash-flow amount in the provided text.
The results are presented on a continuing-operations basis after the February 9, 2026 spin-off of BD's former Biosciences and Diagnostic Solutions business and its combination with Waters. Prior-period amounts have been recast, which is essential context for interpreting the reported comparisons. BD characterized the quarter as its first full quarter as New BD and highlighted growth-platform momentum, innovation, BD Excellence, and strategic capital allocation.
For full-year fiscal 2026, BD maintained GAAP Revenue Growth guidance at Low single-digit plus and Revenue Growth (FXN) guidance at Low single-digit. It updated adjusted diluted EPS guidance to $12.62 to $12.72 from $12.52 to $12.72, raising the midpoint while retaining the upper end. The company said the outlook reflects assumptions reviewed as of August 6, 2026, and noted that adjusted diluted EPS excludes several potentially material and uncertain items.
Management, verbatim
We delivered a strong third quarter, with revenue, adjusted operating margin and adjusted EPS all ahead of our expectations.
Tom Polen, chairman, CEO and president of BD
Our first full quarter as New BD demonstrates the early benefits of a more focused MedTech company, with strong momentum across our key growth platforms, continued innovation and further progress through BD Excellence.
Tom Polen, chairman, CEO and president of BD
Not in the filing
stated, not guessed- Gross profit and gross margin for the third quarter
- Operating income, adjusted operating income, and operating margin figures for the third quarter
- GAAP net income from continuing operations for the third quarter
- Adjusted net income for the third quarter
- Prior-quarter revenue, EPS, segment revenue, geographic revenue, and cash-flow comparisons
- Segment foreign currency-neutral revenue-growth rates
- Third-quarter operating cash flow and free cash flow amounts
- Capital expenditures
- Cash and cash equivalents balance
- Debt balance
- Share repurchases, dividends, and other capital-return activity
- Full-year fiscal 2026 GAAP EPS guidance
- Full-year fiscal 2026 gross-margin, operating-expense, and tax-rate guidance
- Actual full-year fiscal 2026 results needed to assess prior full-year guidance versus actual performance
- Complete financial tables and non-GAAP reconciliations, which were not included in the provided filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.