HealthTech
BD Q4 GAAP EPS Rises 110% as Revenue Grows 5.4% to $5.27 Billion
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Fourth-quarter revenue at BD rose 5.4% to $5.274 billion and GAAP diluted earnings per share from continuing operations climbed 110% to $2.52, the company said in its fiscal 2026 results released November 5, 2026, as lower operating costs lifted earnings much faster than sales.
For the quarter ended September 30, 2026, revenue increased from $5.005 billion a year earlier, with growth of 5.6% on a foreign-currency-neutral (FXN) basis. Total operating costs and expenses fell 5.1% to $4.242 billion despite higher sales, helping operating income rise 92.5% to $1.032 billion from $536 million. Net income from continuing operations doubled to $692 million from $345 million. Adjusted diluted EPS, a non-GAAP measure that excludes specified items including purchase-accounting, integration, restructuring and separation costs, rose 27.3% to $4.15 from $3.26.
Segment Growth Remained Uneven
Interventional was BD’s fastest-growing segment in the quarter, while Connected Care recorded the smallest increase:
| Segment | Q4 FY2026 revenue (millions of dollars) | Reported growth | FXN growth |
|---|---|---|---|
| Medical Essentials | $1,786 | 5.9% | 5.9% |
| Connected Care | $1,269 | 1.6% | 2.1% |
| BioPharma Systems | $748 | 6.5% | 7.0% |
| Interventional | $1,472 | 7.6% | 7.6% |
Connected Care’s modest growth masked opposing trends within the segment. Medication Management Solutions revenue declined 2.3% to $952 million, while Advanced Patient Monitoring increased 15.0% to $317 million. International revenue rose 7.0% to $2.070 billion, outpacing U.S. growth of 4.3% to $3.204 billion.
Life Sciences Separation Reshapes Annual Comparisons
Tom Polen, BD’s chairman, CEO and president, said: “Fiscal 2026 was a defining year as we completed BD’s transformation to a more focused MedTech company with separation of our Life Sciences business.” On February 9, 2026, BD completed the spin-off of its former Biosciences and Diagnostic Solutions business and combined that business with Waters Corporation (WAT ). The former Life Sciences segment is presented as discontinued operations for all periods, and prior periods were recast to conform to the continuing-operations presentation.
Full-year revenue from continuing operations increased 4.9% to $19.457 billion from $18.544 billion, or 3.9% on an FXN basis. Total net income nevertheless fell 31.7% to $1.145 billion, even as net income from continuing operations rose 28.7% to $1.417 billion. The total included a $271 million loss from discontinued operations, compared with $577 million of income a year earlier.
The full-year adjusted-earnings reconciliation also contained $1.460 billion of pre-tax purchase-accounting adjustments and $642 million of restructuring costs. Restructuring included $450 million of non-cash asset impairment charges across all reportable segments, tied to BD’s commitment to exit activities and projects that no longer aligned with its Excellence Unleashed strategy. Full-year GAAP diluted EPS from continuing operations rose 32.8% to $5.06, while adjusted diluted EPS increased 6.7% to $12.70 from $11.90.
Cash Generation Strengthens Ahead of Fiscal 2027
Cash provided by continuing operating activities increased 30.0% to $3.605 billion, while capital expenditures declined 6.0% to $672 million. Free cash flow, which BD defines as continuing operating cash flow less capital expenditures, rose 42.5% to $2.933 billion. During the same year, the cash-flow statement recorded $2.433 billion of share repurchases, $1.161 billion of dividends paid and $2.696 billion of debt payments, as well as a $3.916 billion net distribution from the spin-off entity.
For fiscal 2027, BD forecast low-single-digit GAAP and foreign-currency-neutral revenue growth and adjusted diluted EPS of $13.10 to $13.30, representing growth of 3.1% to 4.7% from fiscal 2026’s adjusted result. An illustrative foreign-currency impact of approximately negative 70 basis points accompanies the revenue outlook. The adjusted EPS forecast excludes potential charges or gains such as intangible-asset amortization, acquisition-related charges, separation-related costs and certain tax matters.
That makes the composition of growth as important as its headline rate. With Interventional and Advanced Patient Monitoring expanding rapidly and Medication Management Solutions declining, the central operational question is whether growth broadens across the post-separation portfolio as BD moves into fiscal 2027.
