Becton, Dickinson (BDX) is facing a "transition year" in 2026 as it navigates business headwinds related to China, vaccines, and its Alaris product, starting with a fiscal Q1 beat, RBC Capital Markets said in a Monday note.

The company reported fiscal Q1 adjusted earnings of $2.91 per diluted share, down from $3.43 a year earlier, while $5.25 billion increased to $5.17 billion. The company revised its fiscal 2026 adjusted earnings per share outlook to reflect the separation of its Lifesciences business, but reiterated its revenue guidance for the year.

RBC said the fiscal 2026 revenue guidance was maintained as "business trends are playing out as expected, including headwinds." The Lifesciences business separation is expected to increase Becton, Dickinson's strategic focus on high-growth markets, the investment firm added.

RBC lowered its price target on Becton, Dickinson to $172 from $210, with a sector perform rating.

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