What is the strategic outlook for BDX following the announcement of the combination with Waters Corporation?

BDX has entered into a definitive agreement to combine its Biosciences and Diagnostic Solutions business with Waters Corporation in a Reverse Morris Trust transaction. This aims to create a focused life science and diagnostics leader. BD shareholders are expected to own approximately 39.2% of the combined company, and BD will receive a significant cash distribution. The transaction is expected to close around the end of the first quarter of calendar year 2026, subject to regulatory and shareholder approvals. This move signifies a strategic refocusing of BD's portfolio.

How did the Advanced Patient Monitoring acquisition impact financial results?

The acquisition of Edwards Lifesciences' Critical Care product group (now BD Advanced Patient Monitoring), completed in Q4 FY2024, significantly contributed to revenue growth. For the third quarter of fiscal year 2025, it added approximately 5.5% to the overall revenue increase. Its integration is reflected in the strong performance of the Medical segment.

What are the key drivers of revenue growth for each of BDX's segments?

The Medical segment's revenue growth was driven by the Vascular Access Management portfolio and hypodermic products in Medication Delivery Solutions, infusion and dispensing solutions in Medication Management Solutions, and prefillable solutions in Pharmaceutical Systems, further boosted by the Advanced Patient Monitoring acquisition. The Interventional segment saw strong sales in advanced tissue regeneration and biosurgery products, growth in its peripheral vascular disease portfolio, and continued double-digit growth in Urology and Critical Care products. The Life Sciences segment experienced a slight revenue decline, with declines in Diagnostic Solutions and Biosciences partially offset by growth in Specimen Management.

What is the company's financial health and cash flow situation?

BDX reported solid operating cash flow of $2.076 billion for the first nine months of fiscal year 2025. The company had $820 million in cash, equivalents, and restricted cash as of June 30, 2025. Despite a decrease in operating cash flow compared to the prior year, the company continues to prioritize returning capital to shareholders through dividends and share repurchases, demonstrating a stable financial position.

BDX 10-Q Quarterly Report Q3 FY2025 — Revenue, Net Income, EPS

Summary

Becton, Dickinson and Company (BDX) reported solid revenue growth for the third quarter of fiscal year 2025, with total revenues reaching $5.509 billion, a 10.4% increase year-over-year. This growth was significantly bolstered by the acquisition of Advanced Patient Monitoring and organic growth across its Medical and Interventional segments, which offset a slight decline in Life Sciences revenue. Diluted earnings per share also saw an increase to $2.00 from $1.68 in the prior-year period, demonstrating improved profitability. The company continues to execute its BD 2025 strategy, focusing on growth, simplification, and empowerment, and is strategically managing its capital through dividends and share repurchases. A significant strategic development is the definitive agreement to combine BD's Biosciences and Diagnostic Solutions business with Waters Corporation, structured as a Reverse Morris Trust. This transaction is expected to create a focused life science and diagnostics leader, with BD receiving a substantial cash distribution. While the transaction is projected to be tax-free for BD and its shareholders, its completion is subject to regulatory and shareholder approvals and is anticipated around the end of the first quarter of calendar year 2026. Management remains focused on navigating global economic factors and supply chain dynamics while pursuing innovation and operational efficiency.

Financial Highlights

52 data points

Beta

Revenue

$5.51B

0.5% Gross Margin

Net Income

$574.00M

0.1% Net Margin

EPS (Diluted)

$2.00

Total Assets

$54.90B

Cash & Equivalents

$735.00M

Free Cash Flow

$1.04B

Financial Statements

Beta

Revenue	$5.51B
Cost of Revenue	$2.88B
Gross Profit	$2.63B
R&D Expenses	$297.00M
SG&A Expenses	$1.32B
Operating Expenses	$4.63B
Operating Income	$882.00M
Net Income	$574.00M
EPS (Basic)	$2.00
EPS (Diluted)	$2.00
Shares Outstanding (Basic)	287.17M
Shares Outstanding (Diluted)	287.22M

Key Highlights

1Total revenues increased by 10.4% to $5.509 billion for the third quarter, driven by the Advanced Patient Monitoring acquisition and organic growth in Medical and Interventional segments.
2Diluted Earnings Per Share (EPS) rose to $2.00 from $1.68 in the prior year's comparable quarter.
3A strategic agreement has been signed to combine the Biosciences and Diagnostic Solutions business with Waters Corporation in a Reverse Morris Trust transaction, expected to close around Q1 2026.
4The Medical segment showed strong revenue growth of 14.4%, led by Medication Management Solutions and Pharmaceutical Systems, alongside contributions from the newly acquired Advanced Patient Monitoring unit.
5The Interventional segment also delivered robust revenue growth of 7.2%, with significant contributions from Surgery, Peripheral Intervention, and Urology and Critical Care units.
6Operating cash flow for the first nine months was $2.076 billion, indicating strong cash generation from operations.
7The company continues to return capital to shareholders, with $899 million in dividends paid during the first nine months of fiscal year 2025.

BECTON DICKINSON & CO Quarterly Report for Q3 Ended Jun 30, 2025

Summary

Financial Highlights

Key Highlights

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