Becton’s primary case revolves around its unmatched position as a vital utility provider for global healthcare infrastructure. Over 90% of the company’s core platform generates steady, non-discretionary demand because its medical consumables, syringes, and clinical tools are indispensable for daily hospital operations and patient care. This ensures an exceptionally reliable, recurring revenue baseline that remains insulated from macroeconomic slowdowns or inflationary cycles.
Meanwhile the stock trades at just 12.2 times the company’s forward earnings forecast—and offers a solid yield.
BECTON DICKINSON & CO. (New York symbol BDX; www.bd.com) now operates through four segments: Medical Essentials, Connected Care, BioPharma Systems and Interventional
In February 2025, Becton announced a plan to spin off its Biosciences and Diagnostic Solutions operations as a separate, publicly traded firm. That business made products that helped medical providers collect, transport and analyze medical samples. It also sold instruments and substances to medical research labs.
However, the company decided instead to merge this business with lab equipment maker Waters Corp. (New York symbol WAT).
Becton has now completed its plan to merge its Biosciences and Diagnostic Solutions division with lab equipment maker Waters Corp (New York symbol WAT). As a result, shareholders received 0.135 of a Waters common share for every Becton share they held, and now own 39.2% of the combined company. Investors are not liable for capital gains taxes until they sell their new shares.
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Becton also received a cash payment of about $4 billion. It will use half of that cash to buy back shares. The company will apply the other half to its long-term deb.
Meanwhile, the company has now expanded 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.
Expanding domestic manufacturing should also help Becton avoid potential new tariffs on imported products.
Becton is a plus for investors
In the three months ended March 31, 2026, Becton Dickinson’s revenue rose 5.2%, to $4.71 billion from $4.48 billion a year earlier. Revenue rose due to improved performance across all business segments.
Excluding one-time items, earnings rose 4.1%, to $385.0 million, or $2.90 a share, from $370.0 million, or $2.79. Earnings rose due to productivity gains through the BD Excellence program and gross profit expansion, which were partially offset by an increase in operating expenses.
Going forward, thes Biosciences and Diagnostic Solutions 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 will probably earn $12.54 a share in 2026. The stock now trades at an attractive 12.2 times that estimate. The $4.20 dividend yields 2.8%
Recommendation in Wall Street Stock Forecaster: Becton Dickinson & Co. is a buy.
