Operating margins collapsed to 2.0% in 2026Q2 from a 16.0% peak in 2025Q3, reflecting an inability to scale fixed costs against a 10.6% revenue decline.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 21.36B | 21.84B | 20.18B | 19.37B | 18.87B | 19.13B | 16.07B | 17.29B | 15.98B | 12.09B | 12.48B | 10.28B | 8.45B | 8.05B | 7.71B | 7.58B | 7.12B | 6.99B | 7.07B | 6.36B | 5.74B | 5.41B | 4.93B | 4.46B | 3.96B | 3.75B | 3.62B | 3.42B | 3.12B | 2.81B | 2.77B |
| Revenue Growth % | 2.39% | 8.23% | 4.16% | 2.66% | -1.36% | 19.02% | -7.03% | 8.18% | 32.17% | -3.12% | 21.41% | 21.74% | 4.87% | 4.49% | 1.64% | 6.45% | 1.97% | -1.25% | 11.25% | 10.83% | 5.97% | 9.73% | 10.56% | 12.7% | 5.49% | 3.76% | 5.85% | 9.67% | 10.9% | 1.47% | 2.11% |
| Cost of Goods Sold | 11.44B | 11.91B | 11.05B | 11.2B | 10.39B | 10.5B | 9.28B | 9B | 8.71B | 6.13B | 6.49B | 5.59B | 4.14B | 3.88B | 3.75B | 3.63B | 3.43B | 3.31B | 3.45B | 3.07B | 2.79B | 2.66B | 2.5B | 2.3B | 2.05B | 1.91B | 1.56B | 1.45B | 1.31B | 1.2B | 1.23B |
| COGS % of Revenue | - | 54.56% | 54.78% | 57.83% | 55.08% | 54.88% | 57.71% | 52.06% | 54.52% | 50.67% | 52.01% | 54.34% | 49.08% | 48.21% | 48.72% | 47.8% | 48.12% | 47.4% | 48.72% | 48.3% | 48.68% | 49.16% | 50.67% | 51.45% | 51.75% | 50.96% | 43.12% | 42.5% | 42.1% | 42.82% | 44.36% |
| Gross Profit | 9.93B | 9.92B | 9.13B | 8.17B | 8.48B | 8.63B | 6.8B | 8.29B | 7.27B | 5.96B | 5.99B | 4.7B | 4.3B | 4.17B | 3.95B | 3.96B | 3.7B | 3.68B | 3.63B | 3.29B | 2.94B | 2.75B | 2.43B | 2.17B | 1.91B | 1.84B | 2.06B | 1.97B | 1.8B | 1.61B | 1.54B |
| Gross Margin % | 46.48% | 45.44% | 45.22% | 42.17% | 44.92% | 45.12% | 42.29% | 47.94% | 45.48% | 49.33% | 47.99% | 45.66% | 50.92% | 51.79% | 51.28% | 52.2% | 51.88% | 52.6% | 51.28% | 51.7% | 51.32% | 50.84% | 49.33% | 48.55% | 48.25% | 49.04% | 56.88% | 57.5% | 57.9% | 57.18% | 55.64% |
| Gross Profit Growth % | - | 8.76% | 11.69% | -3.62% | -1.78% | 26.96% | -17.98% | 14.02% | 21.86% | -0.43% | 27.6% | 9.16% | 3.12% | 5.51% | -0.15% | 7.11% | 0.57% | 1.29% | 10.35% | 11.65% | 6.98% | 13.07% | 12.35% | 13.4% | 3.8% | -10.55% | 4.71% | 8.92% | 12.3% | 4.28% | 3.85% |
| Operating Expenses | 7.67B | 7.35B | 6.73B | 6.06B | 6.2B | 6.38B | 5.89B | 6.53B | 5.76B | 4.44B | 4.56B | 3.62B | 2.69B | 2.92B | 2.4B | 2.29B | 2.11B | 2.09B | 2.09B | 2.08B | 1.8B | 1.72B | 1.65B | 1.41B | 1.24B | 1.2B | 1.49B | 1.44B | 1.31B | 1.16B | 1.11B |
| OpEx % of Revenue | - | 33.64% | 33.34% | 31.28% | 32.83% | 33.35% | 36.62% | 37.76% | 36.04% | 36.74% | 36.54% | 35.22% | 31.91% | 36.22% | 31.07% | 30.23% | 29.67% | 29.85% | 29.56% | 32.78% | 31.43% | 31.81% | 33.38% | 31.49% | 31.22% | 31.83% | 41.07% | 42.27% | 41.97% | 41.15% | 40.07% |
| Selling, General & Admin | 5.33B | 5.28B | 4.86B | 4.72B | 4.71B | 4.72B | 4.18B | 4.33B | 4.02B | 2.91B | 3B | 2.56B | 2.15B | 2.42B | 1.92B | 1.82B | 1.69B | 1.68B | 1.7B | 1.6B | 1.45B | 1.45B | 1.31B | 1.18B | 1.01B | 983.3M | 973.9M | 931.9M | 861.6M | 766.1M | 909.3M |
| SG&A % of Revenue | - | 24.16% | 24.07% | 24.36% | 24.95% | 24.67% | 26.04% | 25.05% | 25.13% | 24.06% | 24.07% | 24.93% | 25.4% | 30.07% | 24.95% | 24.05% | 23.73% | 24.06% | 23.97% | 25.2% | 25.24% | 26.78% | 26.58% | 26.47% | 25.44% | 26.19% | 26.92% | 27.26% | 27.64% | 27.26% | 32.83% |
| Research & Development | 1.19B | 1.26B | 1.19B | 1.24B | 1.26B | 1.28B | 1.04B | 1.06B | 1B | 770M | 828M | 632M | 550M | 494M | 472M | 470M | 422.77M | 404.57M | 395.63M | 360.05M | 301.87M | 271.63M | 235.65M | 224.24M | 207.2M | 211.83M | 223.78M | 254M | 217.9M | 180.6M | 0 |
| R&D % of Revenue | - | 5.79% | 5.9% | 6.39% | 6.66% | 6.69% | 6.46% | 6.14% | 6.28% | 6.37% | 6.63% | 6.15% | 6.51% | 6.13% | 6.12% | 6.2% | 5.93% | 5.79% | 5.59% | 5.66% | 5.26% | 5.02% | 4.78% | 5.02% | 5.23% | 5.64% | 6.18% | 7.43% | 6.99% | 6.43% | - |
| Other Operating Expenses | 3M | 806M | 681M | 103M | 230M | 383M | 662M | 1.13B | 740M | 764M | 728M | 426M | 0 | 1M | 0 | -1M | 0 | 0 | 0 | 122.13M | 53.3M | 1M | 100M | 0 | 21.51M | 0 | 288.25M | 258.9M | 228.7M | 209.8M | 200.5M |
| Operating Income | 2.27B | 2.58B | 2.4B | 2.11B | 2.28B | 2.25B | 912M | 1.76B | 1.51B | 1.52B | 1.43B | 1.07B | 1.61B | 1.25B | 1.56B | 1.67B | 1.58B | 1.59B | 1.54B | 1.2B | 1.14B | 1.03B | 787.27M | 761.23M | 674.48M | 645.88M | 572.32M | 520.8M | 496.4M | 450.5M | 431.3M |
| Operating Margin % | 10.61% | 11.8% | 11.88% | 10.9% | 12.09% | 11.76% | 5.67% | 10.18% | 9.44% | 12.59% | 11.46% | 10.45% | 19.01% | 15.57% | 20.21% | 21.97% | 22.21% | 22.75% | 21.72% | 18.92% | 19.89% | 19.03% | 15.95% | 17.05% | 17.03% | 17.2% | 15.82% | 15.24% | 15.93% | 16.03% | 15.57% |
| Operating Income Growth % | - | 7.55% | 13.55% | -7.49% | 1.42% | 146.71% | -48.18% | 16.63% | -0.85% | 6.43% | 33.15% | -33.13% | 28.07% | -19.51% | -6.48% | 5.28% | -0.46% | 3.44% | 27.73% | 5.41% | 10.8% | 30.85% | 3.42% | 12.86% | 4.43% | 12.85% | 9.89% | 4.92% | 10.19% | 4.45% | 8.75% |
| EBITDA | 4.22B | 5.04B | 4.68B | 4.4B | 4.51B | 4.48B | 3.03B | 4.01B | 3.49B | 2.61B | 2.54B | 1.97B | 2.17B | 1.8B | 2.07B | 2.16B | 2.07B | 2.05B | 2.01B | 1.64B | 1.54B | 1.42B | 1.14B | 1.1B | 971.05M | 951.58M | 860.57M | 779.7M | 725.1M | 660.3M | 631.8M |
| EBITDA Margin % | 19.77% | 23.08% | 23.21% | 22.71% | 23.91% | 23.42% | 18.83% | 23.21% | 21.82% | 21.58% | 20.38% | 19.11% | 25.67% | 22.35% | 26.84% | 28.48% | 29.11% | 29.4% | 28.47% | 25.86% | 26.9% | 26.18% | 23.19% | 24.58% | 24.52% | 25.35% | 23.78% | 22.81% | 23.26% | 23.49% | 22.81% |
| EBITDA Growth % | -8.04% | 7.62% | 6.46% | -2.48% | 0.69% | 48% | -24.57% | 15.08% | 33.6% | 2.59% | 29.47% | -9.36% | 20.44% | -13% | -4.21% | 4.16% | 0.95% | 2% | 22.46% | 6.53% | 8.89% | 23.87% | 4.33% | 12.97% | 2.05% | 10.58% | 10.37% | 7.53% | 9.81% | 4.51% | 4.53% |
| D&A (Non-Cash Add-back) | 1.86B | 2.46B | 2.29B | 2.29B | 2.23B | 2.23B | 2.12B | 2.25B | 1.98B | 1.09B | 1.11B | 891M | 562M | 546M | 511M | 494M | 491.42M | 464.6M | 477.12M | 441.34M | 402.33M | 387.5M | 357.22M | 335.76M | 296.58M | 305.7M | 288.25M | 258.9M | 228.7M | 209.8M | 200.5M |
| EBIT | 2.3B | 2.5B | 2.53B | 2.11B | 2.18B | 2.16B | 942M | 1.81B | 1.88B | 1.5B | 1.46B | 1.11B | 1.66B | 1.3B | 1.61B | 1.7B | 1.62B | 1.62B | 1.57B | 1.33B | 1.19B | 1.03B | 787.27M | 761.23M | 674.48M | 645.88M | 572.32M | 520.8M | 496.4M | 450.5M | 431.3M |
| Net Interest Income | -540M | -575M | -365M | -403M | -382M | -460M | -521M | -627M | -641M | -445M | -367M | -356M | -89M | -98M | -85M | -41M | -16.13M | -7.24M | 3.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 23M | 38M | 163M | 49M | 16M | 9M | 7M | 12M | 65M | 76M | 21M | 15M | 46M | 40M | 50.33M | 43.21M | 35.13M | 33.15M | 39.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 563M | 613M | 528M | 452M | 398M | 469M | 528M | 639M | 706M | 521M | 388M | 371M | 135M | 138M | 135M | 84M | 51.26M | 40.39M | 36.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -528M | -696M | -392M | -449M | -499M | -558M | -498M | -584M | -336M | -546M | -356M | -335M | -84M | -89M | -86M | -48M | -15.64M | -11.09M | 1.54M | 745K | -15.51M | -25.32M | -34.4M | -39.27M | -47.01M | -69.13M | -52.38M | -148.2M | -155.5M | -27.8M | -37.5M |
| Pretax Income | 1.74B | 1.88B | 2B | 1.66B | 1.78B | 1.69B | 414M | 1.18B | 1.17B | 976M | 1.07B | 739M | 1.52B | 1.17B | 1.47B | 1.62B | 1.57B | 1.58B | 1.54B | 1.2B | 1.13B | 1B | 752.87M | 721.96M | 627.47M | 576.75M | 519.93M | 372.6M | 340.9M | 422.7M | 393.8M |
| Pretax Margin % | 8.14% | 8.62% | 9.94% | 8.58% | 9.45% | 8.84% | 2.58% | 6.8% | 7.34% | 8.07% | 8.6% | 7.19% | 18.02% | 14.46% | 19.1% | 21.33% | 21.99% | 22.59% | 21.74% | 18.93% | 19.62% | 18.56% | 15.26% | 16.17% | 15.84% | 15.36% | 14.37% | 10.9% | 10.94% | 15.04% | 14.22% |
| Income Tax | 327M | 204M | 300M | 132M | 148M | 88M | 62M | -57M | 862M | -124M | 97M | 44M | 337M | 236M | 363M | 417M | 451.9M | 411.25M | 422.54M | 347.78M | 310.79M | 312.57M | 170.36M | 167.03M | 148.12M | 138.35M | 127.04M | 96.9M | 104.3M | 122.6M | 110.2M |
| Effective Tax Rate % | 18.8% | 10.84% | 14.96% | 7.94% | 8.3% | 5.2% | 14.98% | -4.85% | 73.49% | -12.7% | 9.03% | 5.95% | 22.14% | 20.26% | 24.66% | 25.77% | 28.84% | 26.05% | 27.47% | 28.89% | 27.6% | 31.11% | 22.63% | 23.14% | 23.61% | 23.99% | 24.43% | 26.01% | 30.6% | 29% | 27.98% |
| Net Income | 1.14B | 1.68B | 1.71B | 1.48B | 1.78B | 2.09B | 874M | 1.23B | 311M | 1.1B | 976M | 695M | 1.19B | 1.29B | 1.17B | 1.27B | 1.32B | 1.23B | 1.13B | 890.03M | 752.28M | 722.26M | 467.4M | 547.06M | 479.98M | 401.65M | 392.9M | 275.7M | 236.6M | 300.1M | 283.6M |
| Net Margin % | 5.33% | 7.68% | 8.45% | 7.66% | 9.43% | 10.94% | 5.44% | 7.13% | 1.95% | 9.1% | 7.82% | 6.76% | 14.03% | 16.05% | 15.18% | 16.76% | 18.49% | 17.63% | 15.93% | 13.99% | 13.11% | 13.34% | 9.47% | 12.26% | 12.12% | 10.7% | 10.86% | 8.07% | 7.59% | 10.68% | 10.24% |
| Net Income Growth % | -24.03% | -1.58% | 14.89% | -16.58% | -14.96% | 139.36% | -29.12% | 296.46% | -71.73% | 12.7% | 40.43% | -41.35% | -8.35% | 10.51% | -7.95% | -3.54% | 6.98% | 9.28% | 26.62% | 18.31% | 4.16% | 54.53% | -14.56% | 13.97% | 19.5% | 2.23% | 42.51% | 16.53% | -21.16% | 5.82% | 12.67% |
| Net Income (Continuing) | 1.41B | 1.68B | 1.71B | 1.53B | 1.64B | 1.6B | 352M | 1.23B | 311M | 1.1B | 976M | 695M | 1.19B | 929M | 1.11B | 1.2B | 1.11B | 1.17B | 1.12B | 856.17M | 815.11M | 692.28M | 582.5M | 554.93M | 479.35M | 438.4M | 392.9M | 275.7M | 236.6M | 300.1M | 283.6M |
| Discontinued Operations | -1000K | 0 | 0 | -46M | 144M | 488M | 522M | 0 | 0 | 0 | 0 | 0 | 0 | 364M | 60M | 70M | 202.77M | 64.26M | 11.13M | 33.87M | -62.83M | 29.98M | -115.1M | -7.87M | 630K | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.06 | 5.83 | 5.86 | 4.94 | 5.88 | 6.85 | 2.71 | 3.89 | 0.60 | 4.60 | 4.49 | 3.35 | 5.99 | 6.49 | 5.59 | 5.62 | 5.49 | 4.99 | 4.46 | 3.49 | 2.93 | 2.77 | 1.77 | 2.07 | 1.79 | 1.49 | 1.49 | 1.04 | 0.90 | 1.15 | 1.06 |
| EPS Growth % | -24.62% | -0.51% | 18.62% | -15.99% | -14.16% | 152.77% | -30.33% | 548.33% | -86.96% | 2.45% | 34.03% | -44.07% | -7.7% | 16.1% | -0.53% | 2.37% | 10.02% | 11.88% | 27.79% | 19.11% | 5.78% | 56.5% | -14.49% | 15.64% | 20.13% | 0% | 43.27% | 15.56% | -21.74% | 8.49% | 17.78% |
| EPS (Basic) | - | 5.84 | 5.88 | 4.97 | 5.93 | 6.92 | 2.75 | 3.96 | 0.62 | 4.70 | 4.59 | 3.43 | 6.13 | 6.63 | 5.59 | 5.75 | 5.62 | 5.12 | 4.61 | 3.63 | 3.04 | 2.87 | 1.85 | 2.14 | 1.85 | 1.55 | 1.54 | 1.09 | 0.95 | 1.15 | 1.06 |
| Diluted Shares Outstanding | 280.64M | 287.12M | 291.01M | 288.39M | 287.36M | 292.09M | 282.4M | 274.77M | 264.62M | 223.59M | 217.54M | 207.51M | 197.71M | 199.19M | 209.18M | 226.28M | 240.14M | 246.8M | 252.68M | 255.02M | 256.75M | 260.61M | 262.87M | 263.15M | 266.72M | 267.74M | 261.73M | 262.12M | 259.33M | 258.61M | 264.25M |
| Basic Shares Outstanding | 280.64M | 286.61M | 289.76M | 286.28M | 285M | 289.29M | 278.97M | 269.94M | 258.35M | 218.94M | 212.7M | 202.54M | 193.3M | 195.16M | 205.46M | 221.18M | 234.33M | 240.48M | 244.32M | 245.19M | 247.46M | 251.53M | 251.51M | 254.54M | 258.07M | 257.37M | 253.23M | 250.09M | 245.68M | 258.61M | 264.25M |
| Dividend Payout Ratio | - | 71.28% | 64.52% | 75.07% | 60.82% | 50.1% | 117.39% | 79.81% | 298.07% | 61.55% | 57.58% | 69.78% | 35.53% | 29.85% | 31.42% | 28.42% | 26.24% | 25.73% | 24.71% | 26.94% | 28.24% | 25.23% | 32.15% | 19.04% | 21.35% | 25.23% | 24.37% | 31.95% | 31.83% | 22.39% | 21.76% |
Regulatory and compliance remediation
According to the most recent quarterly filings, BDX experienced a significant revenue contraction of 10.6% in 2026Q2, marking a stark reversal from the 8.3% growth observed in 2025Q4 and highlighting the volatility inherent in the company's current clinical procedure volume and product mix transition.
The sudden shift from positive growth to a double-digit decline suggests that the company's reliance on high-frequency disposables may be more sensitive to market fluctuations than previously anticipated. Investors should monitor whether this deceleration reflects a temporary inventory correction or a more structural loss of market share in key segments.
As reported in financial statements, BDX's gross margin fell to 45.7% in 2026Q2, struggling to maintain the 47.8% peak observed in 2025Q3, which underscores the ongoing difficulty in offsetting inflationary pressures on raw materials and the high costs associated with maintaining a complex global manufacturing footprint.
The inability to sustain gross margins above the 46% threshold suggests that BDX lacks the pricing power of its higher-margin peers like Edwards Lifesciences or Boston Scientific. This margin profile indicates that the company remains tethered to commodity-sensitive product lines, limiting its ability to expand profitability through product mix shifts alone.
Based on BDX's reported figures, the operating margin plummeted to a mere 2.0% in 2026Q2, a dramatic collapse from the 16.0% margin achieved in 2025Q3, indicating that the company's fixed cost structure is currently failing to scale effectively against the recent decline in top-line revenue.
This sharp contraction in operating income suggests that SG&A expenses are not sufficiently flexible to adjust to revenue volatility, creating a high-risk environment for earnings. The lack of operating leverage implies that any further revenue weakness will disproportionately impact the bottom line, warranting caution regarding near-term profitability.
Data from recent income statements reveals a net loss of $311 million in 2026Q2, a sharp departure from the $574 million profit reported in 2025Q3, which highlights the impact of non-operating items and potential restructuring charges on the company's reported earnings quality and overall financial stability.
The erratic nature of net income, exacerbated by fluctuating stock-based compensation and integration-related costs, makes it difficult to assess the underlying earnings power of the business. Investors should look past headline EPS to determine if these losses are truly transitory or indicative of deeper operational inefficiencies within the core business units.
While management emphasizes the strategic pivot toward higher-value diagnostics, the 2026Q2 results suggest that the company's reliance on legacy medical disposables remains a significant vulnerability, as evidenced by the rapid deterioration of operating margins when revenue growth turns negative in the current fiscal environment.
Short-sellers may focus on the company's inability to decouple its performance from broader hospital procedure volumes, which appear to be stagnating. The persistent need for regulatory remediation, particularly regarding the Alaris platform, suggests that operational risks may continue to outweigh the potential benefits of the company's long-term innovation strategy.
Quick answers to the most common questions about buying BDX stock.
For fiscal year 2025, Becton, Dickinson and Company (BDX) reported total revenue of $21.84B. This represents a 688.5% increase compared to $2.77B in 1996.
Becton, Dickinson and Company (BDX) is profitable, generating $1.68B in net income for the fiscal year ending 2025 with a net profit margin of 7.7%.
Becton, Dickinson and Company (BDX) reported an operating income of $2.58B, resulting in an operating profit margin of 11.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Becton, Dickinson and Company (BDX) generated $9.92B in gross profit for the year, representing a gross profit margin of 45.4%. This demonstrates the company's core pricing power and production efficiency.