On August 6, Jim Cramer highlighted Becton, Dickinson and Company (NYSE:BDX) on CNBC’s Mad Money following its third-quarter fiscal 2026 financial report and said:
This morning, we got a very strong quarter from BD. That’s the big medical technology and supply play… That was formerly known as Becton, Dickson. This was the first full quarter after they split off their biosciences and diagnostics business, something we loved. They posted a 9-cent earnings beat off a $3.14 basis, higher-than-expected revenue, up 5.4% year-over-year.
They also said their full-year revenue growth would be toward the high end of their previously issued guidance, raised the low end of the earnings per share outlook, and that’s why the stock jumped almost 4%. Even after this move, though, BD still trades at roughly 14 times forward earnings estimates, which is pretty darn cheap… This is one that is going to bring out a lot of value. I love this part of tech and… you don’t have to worry about memory and memory shortage.
The fiscal third-quarter results represented the initial full operational cycle following the February spin-off of the biosciences and diagnostic solutions business. Top-line revenue reached $4.98 billion, which shows a 4.4% expansion on a constant-currency basis. Adjusted diluted EPS reached $3.23. It is worth noting that decoupling the diagnostics unit allowed management to streamline capital allocation toward high-margin medical devices and automated dispensing systems.
Post-Split Focus Powers Broad-Based Growth and Raised Guidance
Broad-based demand across all four operating divisions proved to be a catalyst in the quarter, led by Medical Essentials at $1.68 billion and Connected Care at $1.22 billion, which grew 4.4% on a constant-currency basis behind double-digit dispensing gains. BioPharma Systems generated $670 million, which was powered by double-digit biologics volume in GLP-1 auto-injector programs. Furthermore, year-to-date free cash flow surged 44.6% to $1.7 billion, which provided balance sheet strength to absorb approximately 110 basis points of international tariff headwinds.
Becton, Dickinson and Company’s (NYSE:BDX) performance in the quarter led to better full-year financial targets. Management adjusted the lower boundary of its full-year adjusted diluted EPS forecast upward to a revised range of $12.62 to $12.72. Full-year revenue growth expectations were similarly refined toward the upper tier of initial guidance. Trading at approximately 14 times forward earnings estimates, the stock continues to be modest for a major medical technology company.
Insider Monkey Data Shows Hedge Fund Interest
According to data tracked by Insider Monkey, 48 hedge funds held long positions in Becton, Dickinson and Company (NYSE:BDX) during the first quarter of 2026, marking an increase from 45 funds in the fourth quarter of 2025. Meanwhile, the short interest sits at 3.82% of total float. While hedge fund ownership and short float metrics operate as independent sentiment indicators rather than direct drivers of quarterly earnings, the steady institutional accumulation shows growing market confidence in the company’s post-spin operational trajectory. Becton, Dickinson and Company seems well-positioned to compound value for long-term investors due to its expanding infusion platform adoption, disciplined balance sheet management, and attractive valuation multiples.
While we acknowledge the risk and potential of BDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BDX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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