BDX 10-K Deep Dive: Acquisition Powers Revenue Growth as Company Reshapes Portfolio

Medical technology giant Becton, Dickinson and Co. (BDX) recently released its annual 10-K report, providing a detailed look at its financial performance for the fiscal year ending September 30, 2025. We've delved into the numbers to see how the company is navigating the competitive medtech landscape. You can view the full filing here.

Overall, BDX reported a solid 8.2% increase in worldwide revenues, reaching $21.84 billion. However, this headline number is largely powered by a significant acquisition, while performance across its core business segments tells a more nuanced story. Let's break it down.

The following flow diagram provides a visual overview of Becton Dickinson's income statement for the fiscal year 2025, illustrating how revenue from its various segments is transformed into net income.

The Power of Acquisition

The primary engine of BDX's growth this year was its BD Medical segment, which saw revenues jump 13.7% to $11.5 billion. This surge was almost entirely due to the acquisition of Edwards Lifesciences’ Critical Care product group, which now forms the Advanced Patient Monitoring unit. This new unit contributed over $1 billion in revenue in 2025, a massive increase from just $74 million in the prior year when it was only part of BDX for a short period.

Without this acquisition, the segment's growth would have been far more modest. For example, the Medication Delivery Solutions unit grew by a respectable 3.5% on a currency-neutral basis. This highlights the company's strategy of using acquisitions to enter faster-growing markets.

A Tale of Two Segments

While the Medical segment thrived on its new addition, the story was different for the BD Life Sciences segment. Revenues here dipped slightly by 0.5% to $5.2 billion. The main challenge was in the Biosciences unit, which saw a 4.0% currency-neutral decline due to what the company calls "continued market dynamics impacting sales of instruments."

This is particularly interesting given BDX's major strategic announcement: a proposed combination of its Biosciences and Diagnostic Solutions businesses with Waters Corporation. This move, if completed, would significantly reshape BDX, allowing it to focus on its other core areas. The company acknowledges the risks associated with this complex transaction, noting in its Risk Factors section that the deal could be delayed or face disruptions, and the expected benefits may not be fully realized.

Meanwhile, the BD Interventional segment delivered steady, solid performance, with revenues growing 4.8% to $5.2 billion. This was primarily driven by continued double-digit growth in its popular PureWick™ products within the Urology and Critical Care unit. The segment also boasted an impressive operating margin of 43.2%.

Looking Ahead

Becton Dickinson's fiscal year 2025 was a story of strategic transformation. The company successfully leveraged a major acquisition to drive top-line growth while simultaneously laying the groundwork for a significant divestiture aimed at streamlining its portfolio. Net income from continuing operations remained relatively flat at $1.68 billion compared to $1.71 billion in 2024, indicating that the benefits of the revenue growth were offset by other costs and expenses.

Investors will be closely watching two key narratives in the coming year: how effectively BDX integrates its new Advanced Patient Monitoring business and how smoothly it executes the complex separation and combination of its Life Sciences units with Waters Corporation. Success on these fronts will be crucial for maintaining its competitive edge in the dynamic medical technology industry.