Copyright Reuters
U.S. health insurers have flagged rising medical cost pressures that squeezed profit margins despite growing demand for care. This contrasts with an increase in medical procedures, which boosted the demand for medical devices and supplies. Sign up here. While insurers struggled with higher claims, medical device makers such as Becton benefited from the volume growth driven by more procedures. Becton, which makes medical supplies such as syringes, needles, IV catheters and devices that help safely deliver medicines, projected 2026 adjusted profit between $14.75 and $15.05 per share. Analysts on average were expecting $14.85, according to data compiled by LSEG. RBC Capital Markets analyst Shagun Singh said shares are trading lower due to an "underwhelming," 2026 outlook and ongoing pressures in its core business. Becton reported profit of $3.96 per share on an adjusted basis for the quarter ended September 30, beating estimates of $3.92 per share. Quarterly sales came in at $5.89 billion, in line with estimates of $5.9 billion. Sales at its life sciences unit came in at $1.37 billion for the fourth quarter, compared with estimates of $1.38 billion. Sales at its medical unit, which makes devices to administer drugs and is Becton's largest by revenue, rose 9.9% to $3.16 billion from a year ago, compared with expectations of $3.18 billion. Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shreya Biswas
