BDX · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

BECTON DICKINSON & CO · 2026-08-06 · Importance 50 · Surprise 58

The nine-month effective tax rate for continuing operations increased to 19.8% in fiscal 2026 from 16.7% in fiscal 2025. The increase reflected recognition of a deferred tax liability after BD decided to distribute certain prior-year earnings of foreign subsidiaries previously treated as permanently reinvested. The third-quarter effective tax rate decreased to 18.5% from 20.8%, benefiting from favorable discrete items relative to the prior-year period. BD continued to treat other unremitted foreign subsidiary earnings as indefinitely reinvested at June 30, 2026.

Key facts

• Effective income tax rate for continuing operations for the three months ended June 30, 2026 was 18.5% compared with 20.8% in the prior-year period; for the nine months ended June 30, 2026 it was 19.8% compared with 16.7% in the prior-year period. source
• The effective income tax rate for continuing operations for the three-month period of fiscal year 2026 reflected a favorable net impact from discrete items compared with an unfavorable net impact from such items in the prior-year period. source