(Reuters) -Medical device maker Becton Dickinson on Thursday topped Wall Street estimates for fourth-quarter adjusted profit and forecast 2026 earnings slightly above expectations, supported by steady demand for its drug delivery products.
U.S. health insurers have flagged rising medical cost pressures that squeezed profit margins despite growing demand for care. This contrasts with an increase in medical procedures, which boosted the demand for medical devices and supplies.
While insurers struggled with higher claims, medical device makers such as Becton benefited from the volume growth driven by more procedures.
Lab equipment maker Waters Corp in July agreed to acquire Becton’s bioscience and diagnostics unit in a $17.5 billion deal, which made Becton a pure-play medical technology company focused solely on medical devices and supplies.
Becton, which makes medical supplies such as syringes, needles, IV catheters and devices that help safely deliver medicines, projected 2026 adjusted profit between $14.75 and $15.05 per share.
Analysts on average were expecting $14.85, according to data compiled by LSEG.
RBC Capital Markets analyst Shagun Singh said shares are trading lower due to an “underwhelming,” 2026 outlook and ongoing pressures in its core business.
Becton reported profit of $3.96 per share on an adjusted basis for the quarter ended September 30, beating estimates of $3.92 per share.
Quarterly sales came in at $5.89 billion, in line with estimates of $5.9 billion.
Sales at its life sciences unit came in at $1.37 billion for the fourth quarter, compared with estimates of $1.38 billion.
Sales at its medical unit, which makes devices to administer drugs and is Becton’s largest by revenue, rose 9.9% to $3.16 billion from a year ago, compared with expectations of $3.18 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shreya Biswas)
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