BDX · 8-K · 20260806PR053790

Operating Margin Drivers

BECTON DICKINSON & CO · 2026-08-06 · Importance 35 · Surprise 22 · From source text

Third-quarter cost of products sold increased 7.1% to $2.668 billion from $2.491 billion, faster than the 5.4% revenue increase. Selling and administrative expense rose 8.4% to $1.261 billion, while research and development expense increased 12.0% to $258 million. Total operating costs and expenses increased 8.4% to $4.320 billion, reducing operating income 10.3% to $663 million from $739 million. Adjusted diluted EPS increased 4.9% to $3.23 from $3.08, supported partly by lower interest expense of $132 million versus $152 million and other income of $19 million versus $22 million of expense in the prior-year quarter.

Key facts

• Third quarter fiscal 2026 operating income: $663 million, down 10.3% versus $739 million in the prior year period. source
• Third quarter fiscal 2026 research and development expense: $258 million, up 12.0% versus prior year period. source
• Third quarter reconciliation shows purchase accounting adjustments of $363 million and $376 million pre-tax for the three months ended June 30, 2026 and 2025, respectively. source
• Third quarter fiscal 2026 cost of products sold: $2,668 million, up 7.1% versus prior year period. source
• Third quarter fiscal 2026 selling and administrative expense: $1,261 million, up 8.4% versus prior year period. source
• Nine months ended June 30, 2026 depreciation and amortization: $1,697 million. source
• Third quarter fiscal 2026 interest expense: $132 million, a 13.4% decrease versus prior year period. source

Impact estimates