BD’s third quarter results were broadly in line with Wall Street expectations, reflecting resilience across most of its product portfolio even as certain market headwinds emerged. Management credited strong demand in Interventional, Biologics, and Advanced Patient Monitoring segments for supporting organic growth, while acknowledging that vaccine demand and subdued research funding weighed on parts of the business. CEO Thomas Polen highlighted the sequential acceleration in organic growth and pointed to high-margin product categories, such as PureWick and advanced tissue regeneration, as key contributors. Management took a cautious view on ongoing macro challenges, particularly in vaccine demand and biosciences research, emphasizing targeted investments and operational discipline.
Is now the time to buy BDX? Find out in our full research report (it’s free for active Edge members).
BD (BDX) Q3 CY2025 Highlights:
- Revenue: $5.89 billion vs analyst estimates of $5.91 billion (8.3% year-on-year growth, in line)
- Adjusted EPS: $3.96 vs analyst estimates of $3.91 (1.2% beat)
- Adjusted EBITDA: $1.79 billion vs analyst estimates of $1.78 billion (30.5% margin, 0.6% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $14.90 at the midpoint, in line with analyst estimates
- Operating Margin: 11.8%, in line with the same quarter last year
- Constant Currency Revenue rose 7% year on year, in line with the same quarter last year
- Market Capitalization: $55.07 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From BD’s Q3 Earnings Call
- Travis Steed (Bank of America) asked about the prudence and confidence behind the guidance; CEO Thomas Polen explained that the outlook reflects conservative assumptions on vaccines, China, and Alaris, with no improvement in macro conditions baked in.
- Patrick Wood (Morgan Stanley) questioned the capital allocation strategy and the rationale for not accelerating share buybacks; CFO Christopher DelOrefice emphasized maintaining leverage targets while prioritizing share repurchases post-Waters transaction.
- Larry Biegelsen (Wells Fargo) probed on the China outlook and its impact post-separation; Polen clarified that China headwinds are fully incorporated into guidance, and it will represent a smaller share of revenue after the Waters deal.
- Robert Marcus (JPMorgan) inquired about the Alaris pump’s contribution and the normalization of its revenue run rate; DelOrefice detailed that Alaris was a tailwind in the prior year and will be a headwind in the next, with normalization expected beyond 2026.
- Frederick Wise (Stifel) sought more detail on commercial realignment and cost initiatives; Polen elaborated on the new Chief Revenue Officer role and targeted salesforce expansion, projecting visible payoffs within a year and longer-term margin benefits.
Catalysts in Upcoming Quarters
Over the coming quarters, our analysts will monitor (1) the execution and timing of the Waters transaction and resulting portfolio changes, (2) the acceleration of salesforce expansion and commercial effectiveness in high-growth product lines, and (3) the impact of cost optimization measures on operating margins. Additionally, we will track adoption rates for new products, such as the Pyxis Pro and Incada platforms, and signs of stabilization or recovery in vaccine and China markets.
BD currently trades at $192.34, up from $176.36 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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