Becton, Dickinson and Company stock research
FY2026 Q1
Becton, Dickinson and (BDX) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased from the same quarter one year earlier, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the immediately preceding quarter, revenue declined and cost of revenue declined less proportionally, leading to lower gross profit and a weakened gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q1
Revenue increased from the same quarter one year earlier, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the immediately preceding quarter, revenue declined and cost of revenue declined less proportionally, leading to lower gross profit and a weakened gross margin.
- The year-over-year improvement in gross margin is driven by cost of revenue moving lower while revenue moved higher, whereas the sequential weakening reflects cost of revenue not declining as much as revenue.
- Gross margin improved compared to the same quarter last year and weakened compared to the prior quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.9%
Gross profit
$2.4B
Revenue
$5.3B
Cost of revenue
$2.8B
Quarter-over-quarter change
-1.6 pts
Year-over-year change
+2.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $4.5B | $1.9B | $2.6B | 41.5% |
| Jun 30, 2025 | $5.5B | $2.6B | $2.9B | 47.8% |
| Sep 30, 2025 | $5.9B | $2.8B | $3.1B | 47.5% |
| Dec 31, 2025 | $5.3B | $2.4B | $2.8B | 45.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.6 pts
Year-over-year change
Dec 31, 2024
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin is driven by cost of revenue moving lower while revenue moved higher, whereas the sequential weakening reflects cost of revenue not declining as much as revenue.
Gross margin improved compared to the same quarter last year and weakened compared to the prior quarter.
The filing cites higher inventory levels as a net use of cash in operating activities during the current quarter; monitoring inventory changes may offer insight into future cost of revenue trends.