A global medical technology company, BD makes the everyday tools hospitals and labs rely on—syringes, IV catheters, infusion pumps, blood collection tubes, and surgical and diagnostic products sold under brands like BD Alaris and BD Pyxis. It was founded in 1897 when two salesmen, Maxwell Becton and Fairleigh Dickinson, met in a Texas train-station restaurant, discovered they shared the same birthday, and pooled their savings to start a medical supply business in New York City.
BD's Q3 gross margin fell 80 basis points to 46.4% as tariffs and remediation costs outweighed manufacturing savings.
Tariffs and regulatory costs are eating into BD's recovery. rose 5.4% to $4.98 billion, but fell to 46.4% from 47.3% a year ago as tariffs, higher labor, and El Paso Warning Letter remediation costs more than offset manufacturing savings. The company is growing volume but paying more to do it.
Key takeaways
declined 80 to 46.4%, as tariffs, higher labor costs, and El Paso Warning Letter remediation costs outweighed manufacturing savings from BD Excellence programs.
rose 5.4% to $4.983 billion, with volume/other contributing 4.1%, pricing 0.3%, and foreign currency 1.0%.
Interventional rose 6.4% on double-digit growth in urology products and Surgery's infection prevention and tissue regeneration portfolios.
Section summaries
Management's Discussion and Analysis
BD's Q3 FY2026 revenue rose 5.4% to $4.98B driven by volume and FX, while margins compressed from tariffs, labor costs, and regulatory remediation.
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Worldwide revenues grew 5.4% to $4.983 billion, with volume/other contributing 4.1%, pricing 0.3%, and foreign currency 1.0%.
BioPharma Systems grew 6.6% on double-digit prefillable solutions growth for GLP-1 drugs, partially offset by lower vaccine demand.
increased 4.9% driven by strong in Medication Management Solutions and double-digit growth in Advanced Patient Monitoring's Acumen IQ sensors.
Medical Essentials rose 4.5% on U.S. share gains in Vascular Access Management and Specimen Management, partially offset by China volume-based procurement impacts.
What changed
The Q2 FY2026 watch item on Medical Essentials income margin is answered: margin fell 4.5 points to 34.8% in Q2, and the Q3 narrative confirms tariffs, labor, and remediation costs continue to pressure margins, with now down 80 .
The Q2 FY2026 $450 million did not repeat, allowing to swing from a $93 million Q1 to $663 million in Q2 and to return to positive $377 million.
The Q1 FY2026 watch item on Life Sciences trajectory is partially resolved: the has been renamed and split, with BioPharma Systems growing 6.6% in Q3, while the former Biosciences and Diagnostic Solutions business was separated and is no longer consolidated.
What to watch
trajectory in Q4 FY2026 to see if the tariff, labor, and El Paso Warning Letter remediation cost headwinds persist or if manufacturing savings begin to offset them.
Medical Essentials income margin in Q4 FY2026 to determine if the 4.5-point Q2 decline stabilizes as productivity initiatives scale.
Actual full-year tariff impact on against the $90 million FY2025 estimate, given management's disclosure that mitigation strategies remain uncertain.
BioPharma Systems prefillable solutions growth sustainability for GLP-1 drugs in Q4, and whether lower vaccine demand continues to be a partial offset.
declined 90 to 46.4% as tariffs, higher labor costs, and El Paso Warning Letter remediation costs more than offset manufacturing savings from BD Excellence programs.
Medical Essentials rose 4.5% on U.S. share gains in Vascular Access Management and Specimen Management, partially offset by China impacts.
Connected Care increased 4.9% driven by strong in Medication Management Solutions and double-digit growth in Advanced Patient Monitoring's Acumen IQ sensors.
BioPharma Systems grew 6.6% on double-digit prefillable solutions growth for GLP-1 drugs, partially offset by lower vaccine demand.
Interventional rose 6.4% with double-digit growth in urology products and Surgery's infection prevention and tissue regeneration portfolios.
We are involved, both as a plaintiff and a defendant, in various legal proceedings, including product liability and environmental matters as set forth in our 2025 Annual Report, and in Note 6 of the Notes to Condensed Consolidated Financial Statements in this report, which is in…
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We are involved, both as a plaintiff and a defendant, in various legal proceedings, including product liability and environmental matters as set forth in our 2025 Annual Report, and in Note 6 of the Notes to Condensed Consolidated Financial Statements in this report, which is incorporated herein by reference.
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