Shares of Becton Dickinson (BDX) plummeted 11.57% in pre-market trading on Thursday after the medical device maker reported mixed second-quarter results and lowered its full-year profit forecast due to concerns over potential tariff impacts.

For the fiscal second quarter ended March 31, Becton Dickinson reported adjusted earnings of $3.35 per share, beating analyst estimates of $3.28. However, quarterly revenue of $5.27 billion fell short of Wall Street's expectations of $5.35 billion, despite growing 4.5% year-over-year. The company's Medical segment saw strong 12.7% growth, but this was offset by weakness in other areas, particularly the Life Sciences segment which was impacted by global research funding cuts.

The main driver of the stock decline appears to be Becton Dickinson's reduced profit outlook for fiscal year 2025. The company now expects full-year adjusted earnings per share of $14.06 to $14.34, down from its previous guidance of $14.30 to $14.60. This reduction is primarily due to an estimated $0.25 per share impact from recently announced tariffs. While Becton Dickinson raised the lower end of its revenue forecast to $21.8 billion from $21.7 billion, maintaining the upper end at $21.9 billion, investors seem focused on the profit warning.

CEO Thomas Polen commented on the results, stating, "Amid a difficult operating environment impacting near-term organic revenue growth, our Q2 results reflect the strength of our business model and ability to exceed our earnings expectations through quality gross margin improvement." However, the company also noted that there continues to be "a high degree of uncertainty on the future of the tariff environment," though they have taken steps to mitigate near-term tariff risks.

In response to the challenging environment, Becton Dickinson announced plans to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years, aiming to strengthen its position as the largest U.S. manufacturer of medical devices and demonstrate its commitment to ensuring a resilient U.S. healthcare system.