Becton Dickinson shares surge as Q3 earnings beat drives guidance hike

Published 07/08/2025, 11:54
© Reuters

Investing.com -- Becton Dickinson shares surged over 8% in premarket trading on Thursday after the medical technology company reported third-quarter earnings that exceeded analyst expectations and raised its full-year profit outlook, citing strong margin improvements driven by operational excellence initiatives.

The company reported adjusted earnings per share of $3.68 for its fiscal third quarter, significantly beating the analyst consensus of $3.40. Revenue came in at $5.5 billion, slightly above the $5.49 billion analysts had expected and representing a 10.4% increase from the same period last year. On an organic basis, revenue grew 3.0% YoY.

"We increased our organic growth trajectory in Q3 while delivering strong margin and EPS growth fueled by BD Excellence, enabling us to raise our EPS guidance and reaffirm organic revenue growth expectations for the full year," said Tom Polen, chairman, CEO and president of BD.

The company raised its full-year adjusted earnings guidance to between $14.30 and $14.45 per share, up from its previous forecast of $14.06 to $14.34 and above the analyst consensus of $14.10. The company maintained its organic revenue growth forecast of 3.0% to 3.5% for the fiscal year.

BD’s Medical (TASE:BLWV) segment led growth with a 14.4% revenue increase to $2.93 billion, while the Interventional segment grew 7.2% to $1.33 billion. The Life Sciences segment saw a slight 0.5% decline to $1.25 billion, reflecting lower demand for point-of-care testing and blood culture products.

Gross margin improved 160 basis points on a GAAP basis and 50 basis points on an adjusted basis compared to the prior year, while adjusted operating income increased 11.3%.

The company also noted progress on its recently announced agreement to combine its Biosciences and Diagnostic Solutions business with Waters Corporation (NYSE:WAT), which it expects will create "an innovative life science and diagnostic leader focused on high-volume testing."

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