Becton Dickinson & Co offers an attractive blend of defensive healthcare exposure and structural growth that’s underpinned by mission‑critical products that hospitals and labs cannot easily substitute or delay purchasing. The company’s diversified portfolio spans injection systems, medication management, diagnostics and interventional therapies and avoids reliance on any single product.
What’s more, its strategic shift toward higher‑growth, higher‑margin platforms is already visible in margin expansion and double‑digit adjusted eps growth.
The stock trades at just 11.3 times the company’s forward earnings forecast, a reasonable valuation considering the strong balance sheet, active portfolio optimization and innovation engine to drive new product development.
BECTON DICKINSON & CO.(New York symbol BDX; www.bd.com) operates through three segments: Medical (50% of revenue) makes an array of devices for hospitals, doctors’ offices and other clients in health care; Life Sciences (25%) sells products for collecting and shipping biological specimens as well as equipment for detecting diseases; and Interventional (25%) makes stents, catheters, needles, incontinence devices and surgical tools.
In February 2025, Becton announced a plan to spin off its Biosciences and Diagnostic Solutions operations as a separate, publicly traded firm. That business makes products that help medical providers collect, transport and analyze medical samples. It also sells instruments and substances to medial research labs.
However, the company decided instead to merge this business with lab equipment maker Waters Corp. (New York symbol WAT).
Under the terms of the deal, Becton shareholders will own 39.2% of the combined company, with Waters’ shareholders holding the other 60.8%. Becton will also receive a cash payment of about $4 billion. It will allocate half the proceeds to debt repayment and half to share buybacks.
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This new firm will have 2025 sales of $6.5 billion and gross profits of $2.0 billion. It expects eliminating overlapping operations will add $345 million to its gross profits by the end of the fifth year.
The transaction helps Becton unlock some of its hidden value. It will also let the company better focus on its main businesses, which will help it respond to the impact of tariffs on products it makes outside of the U.S.
The company now plans to expand glass syringe production at its Columbus, Nebraska, facility. That positions the company to benefit from rising demand for GLP-1 weight-loss drugs and other injectable medicines. Becton expects to complete the $110 million project by mid-2026.
Expanding domestic manufacturing should also help Becton avoid potential new tariffs on imported products.
Becton’s tariff costs remain a significant challenge to profitability
In the three months ended December 31, 2025, Becton reported revenue of $5.25 billion, up 1.6% from 5.17 billion a year earlier. Earnings per share fell 15.2%, to $2.91 from $3.43. The decline was due to elevated tariff costs, as well as investments to promote future growth and lower vaccine-related demand.
The company will probably earn $14.94 per share in 2026. The stock now trades at an attractive 11.3 times that estimate. The $4.20 dividend yields 2.5%.
Recommendation in Wall Street Stock Forecaster: Becton Dickinson & Co. is a buy for long-term gains.
