Shares of Becton, Dickinson and Company (BD) declined in extended trading on Monday, February 9, 2026, following the completion of a significant corporate transaction and a downward revision to its profit forecast. The stock fell 1.2% to $207.39 after the close of regular market hours, having recovered from an intraday drop that exceeded 4.7%.
Strategic Spin-Off and Revised Financial Outlook
The medical technology firm finalized the spin-off and subsequent merger of its Biosciences & Diagnostic Solutions unit into Waters Corporation. As part of this deal, BD shareholders of record on February 5 received approximately 0.135 Waters shares for each share of BD they owned. The transaction provided BD with $4 billion in cash proceeds. Management has outlined a plan to deploy half of this sum, $2 billion, toward an accelerated share repurchase program facilitated through a banking partner, with the remaining $2 billion allocated for debt reduction.
Chief Executive Officer Tom Polen characterized the move as the concluding step in a strategic transformation, positioning the company as a "focused, pure-play MedTech company." Concurrently, BD issued a new adjusted earnings per share (EPS) forecast for fiscal year 2026. The company now anticipates EPS in the range of $12.35 to $12.65, a figure that represents a substantial reduction from its prior guidance of $14.75 to $15.05 and also falls below the Wall Street consensus estimate of $14.72, according to data from LSEG.
Operational and Macroeconomic Headwinds
The revised guidance reflects several challenges. Management pointed to ongoing pressures, including tariff-related expenses and pricing headwinds in China, where the company expects roughly 80% of its business to be subject to the nation's volume-based procurement program by fiscal 2026. This system typically mandates significant price reductions. Uncertainty surrounding the recovery of the Alaris infusion pump business was also cited as a factor. For the recently completed quarter, BD reported revenue of approximately $5.3 billion and adjusted EPS of $2.91.
Analyst commentary suggested the guidance may be conservative. J.P. Morgan's Robbie Marcus noted the company is navigating the separation process while contending with vaccine-related market softness, the China pricing environment, and the Alaris situation. Despite the lowered profit view, BD maintained its revenue outlook, projecting low single-digit organic growth for the continuing operations, now referred to as "New BD."
Impact on Waters and Investor Cross-Holdings
The transaction had a pronounced negative effect on Waters Corporation shares, which plummeted nearly 14% to $328.14. The decline was attributed in part to a disappointing profit outlook for Waters' first quarter, which management linked to weaker-than-anticipated performance from the newly integrated BD unit. Morningstar analyst Julie Utterback described the integration and turnaround as "a heavier lift" than initially expected. This markdown creates an immediate valuation impact for BD shareholders, who now hold a direct stake in Waters through the distribution.
Investors are now scrutinizing several key details from both companies. The specific timing of BD's accelerated share buyback, the planned pace of deleveraging, and strategies to mitigate margin pressure from tariffs and Chinese pricing mechanisms are all under the microscope. Furthermore, updates from Waters regarding the performance of the acquired diagnostics business will be closely watched due to the newly created cross-ownership structure.
Broader Market Context
Beyond these company-specific developments, U.S. equity traders face a consequential macroeconomic calendar later in the week. The January Employment Situation report is scheduled for release on Wednesday, February 11, followed by the Consumer Price Index (CPI) data for January on Friday, February 13. These indicators are poised to influence expectations for future interest rate policy and could trigger volatility across market sectors, including traditionally defensive areas like healthcare.
The situation presents a complex landscape for BD investors. The company has executed a major strategic simplification and committed to returning significant capital to shareholders. However, the path forward is clouded by external economic pressures and integration risks associated with the spun-off assets, requiring careful monitoring of execution against the new financial framework and management's ability to navigate the outlined headwinds.
