Boston Scientific Corp

Citi downgraded Boston Scientific to Neutral from Buy, citing the lingering aftermath of an August cyberattack and rising competition across several of its businesses. The bank cut its price target on the medical device maker to $50 from $57, implying roughly 14% upside based on the Sept. 16 close. Analyst Joanne Wuensch said Boston Scientific has been hurt this year by a more mature U.S. pulsed field ablation market with increased competition, a stagnating left atrial appendage closure market, Urology hiccups, and the cybersecurity attack, and she has revised her estimates down eight times year to date. Wuensch warned that new proposed guidelines from the Heart Rhythm Society could weigh on sales of the company's key Watchman LAAC device, projecting Watchman sales will fall 7.6% in the second half of the year followed by an 8.8% drop in 2027, and said Boston Scientific is likely to lose market share when Abbott Laboratories' Amulet LAAC launches in 2027. She added that while she is confident the company will work through its problems, the time to resolution is opaque, investor patience has run thin, and the recovery path remains unclear.

Boston Scientific has initiated a voluntary global recall of its LUX-Dx Insertable Cardiac Monitor System and software over delays in atrial fibrillation Burden Alerts. The recall targets multiple versions of LUX-Dx hardware and associated software that may postpone detection alerts for atrial arrhythmias used in patient monitoring, and the US FDA has taken enforcement interest in the action. Boston Scientific is a US-based medical equipment group with a market cap of about $63.6b that builds devices used in interventional procedures across cardiology and other specialties. The company said the LUX-Dx software recall leans directly into regulatory and product lifecycle risk already flagged in its narrative, alongside earlier device recalls and the ACURATE valve discontinuation, and puts more weight on the risk that continual product refresh and acquisition integration can introduce operational setbacks. The key question for investors is whether the LUX-Dx issues stay contained within a niche cardiac monitoring segment or start to cloud physician confidence and hospital purchasing decisions across cardiology, where Boston Scientific is working to support growth and margins.

Zacks Investment Research added three stocks to its Zacks Rank #5 (Strong Sell) List on September 16th. AGCO Corporation, an agricultural equipment manufacturer, saw its Zacks Consensus Estimate for current year earnings revised 8.1% downward over the last 60 days. Boston Scientific Corporation, a medical devices company, had its current year earnings estimate revised 1.8% downward over the same period. Bath & Body Works, Inc., a specialty retailer of home fragrance, body care, soaps and sanitizers, saw its current year earnings estimate revised 11.6% downward over the last 60 days.

Boston Scientific Corporation disclosed that an August 25 cyberattack disrupted manufacturing and shipping, making it unlikely to meet its previously issued third-quarter and full-year 2026 guidance for net sales and adjusted earnings per share. The company said operations have since resumed, but the incident is still expected to weigh on third-quarter and full-year results. The disruption did not stem from a product-quality problem; the lost sales were orders that could not ship, and distribution is already back online. Farapulse, Boston Scientific's pulsed-field-ablation system, still commands a major share of the US atrial-fibrillation market, though the company had already projected flat global electrophysiology growth for the second half of 2026 after lowering its market-share assumptions. Hedge fund holdings in BSX slipped to 99 in the second quarter of 2026 from 106 in the prior quarter, while short interest remains low at 1.9% of the float.

Novartis shares fell after its third clinical-trial setback in a week, as a treatment for a rare muscle-wasting disease failed a late-stage study. Boston Scientific also declined, saying a cybersecurity incident has disrupted product shipments and will cause it to miss its sales growth and earnings estimates for the year. Meanwhile, Intel rose on a report that it may raise computer chip prices next month.

Boston Scientific has lowered its 2026 expectations, now calling for organic revenue growth of 5% to 6% and adjusted earnings per share of $3.28 to $3.32, or 7% to 8% growth, as weakness in its WATCHMAN and Electrophysiology businesses weighs on performance. Management expects the pressure to extend into 2027, with revenue growth potentially remaining below its weighted average market growth rate and adjusted EPS growth limited. However, growth could pick up meaningfully in 2028, driven by seven new launches that collectively address a total addressable market of nearly $25 billion, including the SEISMIQ 4CE Coronary IVL Catheter and the FARAWAVE Ultra mapping and ablation catheter, as well as the pending Penumbra acquisition. The company is also pursuing a restructuring program targeting approximately $500 million in annual run-rate savings by the end of 2029, with more than half expected by the end of 2027, to support operating-margin expansion and stronger adjusted EPS growth in 2028 and beyond.

Roivant Sciences shares rallied 24% after the pharma company reported positive Phase 2 trial results for its subsidiary Pulmovant's mosliciguat, which showed a clinically meaningful and statistically significant reduction in pulmonary vascular resistance in patients with pulmonary hypertension and interstitial lung disease. Meanwhile, Lockheed Martin edged up 0.7% after UBS upgraded the stock to buy, citing underappreciated earnings growth potential. Novartis tumbled 12% after its del-desiran drug failed to show significant improvement in a Phase 3 trial for myotonic dystrophy type 1. Peloton Interactive slid more than 4% following a Morgan Stanley downgrade to underweight, citing structural headwinds in fitness. Boston Scientific slipped over 2% after warning that a recent cyberattack likely impacted its 2026 sales and profit targets. Bloom Energy rose over 6% as it prepares to join the S&P 500 on Sept. 21, having gained about 190% this year on the AI data center buildout.

Boston Scientific has initiated multiple worldwide product recalls, including a Class I recall of its ENROUTE Transcarotid Neuroprotection System due to risks of arterial sheath tip separation, and Class II recalls of certain OverStitch Suture Cinch endoscopic devices citing deployment and suture cutting failures. The Class I recall affects 164,687 neuroprotection units across two product versions, while the Class II recalls cover 60,654 standard units plus additional long versions. These products are distributed worldwide and are used in high-acuity procedures, so the field actions could disrupt physician workflows and reorder patterns. The recalls add operational, regulatory, and reputational pressures for Boston Scientific in 2026, and investors will watch for the company's formal update on recall-related costs, remediation timing, and any sales or margin impact in its next earnings report.

Boston Scientific, a U.S. medical device maker, disclosed in a federal filing that a cyberattack is causing an ongoing global disruption to its operations, affecting its ability to ship and process orders. The company, which treats around 48 million patients a year, said the attack began on Tuesday and has limited access to its IT systems and business applications. Boston Scientific has not commented on whether patients are affected or provided a timeline for restoring systems. The company is the latest healthtech firm to be hacked this year, following incidents at Abbott Laboratories, Medtronic, and Stryker.

Abercrombie & Fitch soared 37% after trouncing fiscal second-quarter estimates and raising its full-year outlook, with adjusted earnings of $2.42 per share and revenue up 5% to $1.27 billion, helped by tariff refunds and stronger growth at its Abercrombie unit. Intuit fell 4% after offering disappointing fiscal year 2027 guidance of $23.3 billion to $23.5 billion in revenue, below the $23.7 billion analyst estimate, though its fiscal fourth-quarter earnings and revenue beat expectations. Meta Platforms jumped 3% after reaching a settlement with state attorneys general in a case alleging it made its apps addictive to teenagers. Zoom Communications dropped 7% after its third-quarter forecast of $1.46 to $1.48 earnings per share missed the $1.50 estimate. Kohl's rose 2% after raising its full-year outlook, partly due to $150 million in tariff refunds, and announced share buybacks of up to $100 million in 2026. J.M. Smucker climbed 3% on fiscal first-quarter revenue of $2.22 billion, topping the $2.13 billion consensus. SolarEdge Technologies jumped nearly 8% after a UBS upgrade to buy, citing an FCC policy expected to boost market share and pricing power. Semtech rose over 8% on second-quarter earnings beat, with adjusted EPS of 71 cents versus 61 cents expected. Boston Scientific fell 5% after reporting a cybersecurity incident causing product disruptions. SAP declined 3% after a UBS downgrade to neutral, citing slow delivery of agentic AI.

U.S. stock futures hovered around the flatline on Wednesday as investors awaited the latest inflation data and Nvidia's quarterly results. Among premarket movers, Intuit tumbled 11.8% to $315.30 after issuing fiscal 2027 guidance that fell well short of expectations, overshadowing a strong fourth-quarter earnings beat. Semtech surged 4.7% after reporting record fiscal second-quarter results, with revenue of $341.9 million and adjusted EPS of $0.71 beating estimates, and data-center revenue hitting a record $100 million. SolarEdge rose 5.6% after UBS upgraded it to Buy, citing the FCC's decision to add foreign-produced power inverters to its national-security Covered List, which could tighten supply and benefit domestic suppliers. Spyre Therapeutics fell 11.7% after deciding not to develop its drug SPY072 as a standalone rheumatoid arthritis treatment despite positive statistical results, while Boston Scientific dropped 3.2% on a cybersecurity incident disrupting operations.

Intuit shares plunged 11% in premarket trading after the financial technology platform issued fiscal 2027 revenue guidance of $23.279 billion to $23.512 billion, below the $23.7 billion analysts expected, though its fiscal fourth-quarter earnings and revenue beat estimates. The disappointing outlook dragged other software stocks lower, with the iShares Expanded Tech-Software ETF down over 1%, ServiceNow off more than 2.5%, and Workday and Salesforce each down 2%. Zoom Communications fell 7% after its third-quarter earnings per share guidance of $1.46 to $1.48 came in short of the $1.50 FactSet consensus. Kohl's declined 5% after reporting a 0.9% drop in second-quarter comparable sales, worse than the 0.6% decline expected, but the retailer raised its full-year outlook, partly due to $150 million in tariff refunds, and restarted share buybacks of up to $100 million in 2026. On the upside, J.M. Smucker climbed 5.6% after fiscal first-quarter revenue of $2.22 billion topped the LSEG consensus of $2.13 billion, SolarEdge jumped nearly 7% following a UBS upgrade to buy on a new FCC policy, and Semtech rose more than 5% after beating earnings estimates with adjusted EPS of 71 cents versus 61 cents expected. Box gained over 2% on revenue beat, while Boston Scientific fell more than 3% after disclosing a cybersecurity incident causing product disruptions, and SAP dropped almost 4% after a UBS downgrade to neutral on slow agentic AI delivery.

Boston Scientific shares have fallen back to a price zone between $46.56 and $51.46 that has acted as support on six prior occasions, now trading around $49.01. The company has cut its full-year 2026 adjusted EPS guidance to a range of $3.28 to $3.32, citing a sharp slowdown in its U.S. WATCHMAN heart device market and unexpected competitive share losses in its Electrophysiology business. Management now expects limited adjusted EPS growth in 2027 and is guiding for global WATCHMAN revenue to decline mid- to high-single digits year-over-year in the second half of 2026. Excluding a multi-year advance that began in late 2023, prior defenses of this support level produced a median peak gain of 8.6% over holding periods of 11 to 47 days.

Boston Scientific Corporation shares fell after its second-quarter results and CHAMPION-AF data release, according to TCW Concentrated Large Cap Growth Fund's Q2 2026 investor letter. The fund said results modestly beat expectations, but U.S. Electrophysiology and Watchman franchises missed consensus, and management lowered 2026 organic sales growth guidance to 10-11%. The CHAMPION-AF data released at the end of March hit all endpoints but failed to act as a positive catalyst for the stock. The fund believes current valuation may have overly discounted the company's long-term earnings growth profile, and shares remain under review. Boston Scientific closed at $51.42 per share on August 12, 2026, with a one-month return of 15.24% and a 52-week loss of 50.63%.

Boston Scientific has initiated multiple product recalls covering cardiac ablation generators and vascular access sheaths due to labeling discrepancies and air embolism risks. The recalls affect a broad mix of devices used in cardiac and vascular procedures across several international markets, with the FARADRIVE sheath recalls involving more than 700,000 units across US, global, and IDE use. The PFA generator issues mainly involve labeling and smaller unit counts, while the Rapid Refill system recall brings in a third-party component issue. Regulators and hospitals are assessing the implications for device safety protocols, clinical workflows, and future use of the impacted products.

Boston Scientific lowered its 2026 sales and earnings outlook, citing slower WATCHMAN demand, U.S. electrophysiology share losses, and limited operating leverage. The company now expects reported sales growth of 5.5 to 6.5 percent, down from a prior range of 7 to 8.5 percent, while organic sales growth guidance fell to 5 to 6 percent from 6.5 to 8 percent. Adjusted earnings per share are now seen at $3.28 to $3.32, below the previous $3.34 to $3.41. The third-quarter outlook also points to a sharper slowdown, with reported and organic sales growth of 3 to 5 percent and adjusted earnings of 80 to 82 cents per share, below the Zacks Consensus Estimate of 84 cents. Management expects lower WATCHMAN and electrophysiology sales to weaken product mix and push full-year adjusted gross margin below the 2025 level, while adjusted operating margin expansion is now forecast at 0 to 25 basis points, down from 50 to 75 basis points. Key recovery catalysts, including FARAWAVE Ultra and intracardiac echocardiography products, are not expected until the second half of 2027, leaving the company exposed to rivals such as Abbott Laboratories, which reaffirmed 6.5 to 7.5 percent comparable sales growth guidance for 2026. A restructuring program targeting about $500 million in run-rate savings exiting 2029 is expected to deliver more than half of the savings and related spending by the end of 2027, but near-term revenue growth is forecast below the weighted average market growth rate with limited adjusted earnings growth in 2027. Shares of Boston Scientific have gained 3.7 percent since the second-quarter earnings announcement, outperforming the industry's 1.5 percent decline, though the stock currently carries a Zacks Rank of 5, or Strong Sell.

Bristol-Myers Squibb lifted its full-year outlook after reporting better-than-expected second-quarter 2026 results driven by higher sales of its cancer therapies. The company posted approximately $13.0 billion in revenue, beating consensus by $1.23 billion, with its growth portfolio contributing $7.6 billion. Adjusted earnings per share rose about 40% year-over-year to $2.04, exceeding estimates by $0.44. Bristol-Myers now expects full-year revenue of about $49.0 billion to $50.0 billion and adjusted EPS of $6.75 to $7.00, up from prior guidance and ahead of consensus. In other healthcare news, Johnson & Johnson agreed to pay up to $5.5 billion to settle remaining talc lawsuits alleging its products caused ovarian cancer, conditioned on at least 95% participation by claimants. Curium is in advanced talks to acquire Lantheus Holdings for about $7 billion upfront, with an additional $12.50 per share in contingent value rights, potentially valuing the deal at $8 billion. Boston Scientific shares slipped after its full-year outlook trailed consensus, despite second-quarter revenue of $5.4 billion beating estimates. Most Medicare Part D enrollees will face higher premiums in 2027 after the Trump administration ended a subsidy program, with three out of four seeing increases. The S&P 500 Health Care Index Sector edged up 0.12% during the week.

Eight out of nine healthcare companies that reported quarterly results this week beat earnings-per-share expectations, while all nine exceeded revenue consensus. Centene posted second-quarter revenue of $53.6 billion, topping estimates by $6.1 billion, and raised its full-year revenue guidance to $193.5 billion to $197.5 billion. Boston Scientific reported revenue of $5.4 billion, beating by $70 million, but lowered its full-year net sales growth outlook to 5.5% to 6.5% year-over-year. DexCom beat on both top and bottom lines and raised the midpoint of its 2026 revenue guidance to a range of $5.18 billion to $5.25 billion. Universal Health Services was the only company to miss EPS estimates.

Boston Scientific reported second-quarter revenue of $5.44 billion, beating analyst estimates of $5.36 billion, but issued third-quarter revenue guidance of $5.27 billion that fell short of the $5.39 billion consensus. The company lowered its full-year adjusted earnings per share guidance to $3.30, a 2.2% reduction, citing unexpected slowdowns in its WATCHMAN left atrial appendage closure device and U.S. Electrophysiology business. CEO Michael Mahoney pointed to rapid shifts in clinical adoption and competitive pressures, particularly from pulsed-field ablation devices, as factors that will likely persist into 2027. A new restructuring program targeting $500 million in run-rate savings by 2029 was announced, with meaningful margin expansion not expected until 2028. Management highlighted seven major product launches planned for 2028 and beyond as key catalysts for a return to higher growth.

Johnson & Johnson's MedTech segment posted second-quarter sales of $8.93 billion, up 4.5 percent but slightly below the Zacks Consensus Estimate of $8.96 billion, as slower cardiovascular performance weighed on results. Operational growth in the Cardiovascular business was 3.1 percent, held back by a 2 percent decline in Abiomed sales after a U.K. study prompted physicians to reassess use of the Impella heart pump, while Shockwave revenues rose 14.6 percent to $335 million and electrophysiology sales increased 3.1 percent amid competitive pulsed field ablation pressures. The other three MedTech businesses all accelerated, with Surgery up 3.9 percent, Orthopedics up 4.9 percent, and Vision up 6 percent. J&J tempered its Abiomed outlook, now expecting only modest growth in the second half of 2026, but remains optimistic about overall MedTech performance driven by strength in Vision, Orthopedics, Surgery, and new product launches including the recently approved OTTAVA robotic surgical system and the VARIPULSE pulsed field ablation system.

Ten stocks in the S&P 500 lost more than 40% in 2026 even as the index rose 8.28%, as investors fled companies they believed artificial intelligence would disrupt. Intuit fell 55.27% after cheap AI tax tools emerged, prompting Goldman Sachs analyst Gabriela Borges to cut her price target to $276 from $519 and the company to reduce staff by 17% and lower its TurboTax forecast. Accenture dropped 45.21% as clients shifted spending to AI instead of consultants, with new orders slipping to $19.3 billion from $19.7 billion and the firm cutting its sales growth outlook to between 3% and 4%. Cognizant, Gartner, and The Trade Desk each lost between 44% and 55%, while the two worst performers fell for non-AI reasons: CoStar Group sank 58.86% after saying its Homes.com site would not cover costs until 2029, and Boston Scientific declined 53.59% after cutting its sales growth forecast and recalling Accolade pacemakers linked to four deaths and 2,557 serious injuries. Meanwhile, chip and memory makers surged, with Sandisk up 505.17%, Dell Technologies up 247.55%, and Micron Technology up 222.68%.

The US FDA is recommending that certain lots of Boston Scientific's ENROUTE Transcarotid Neuroprotection System percutaneous catheters be avoided following reports of arterial sheath tip separation or partial tip separation. The company has reported one serious injury since July 9. The agency warned that tip separation may require endovascular or surgical retrieval of the retained tip, and complications can include embolism, stroke, transient ischemic attack, restenosis, or thrombosis.

Medtronic has completed its acquisition of SPR Therapeutics, adding a minimally invasive, non-opioid peripheral nerve stimulation system to its pain therapy portfolio. The deal brings the SPRINT system under Medtronic's umbrella, giving the company a short-term therapy option that can sit alongside its existing spinal cord and implanted neuromodulation devices for chronic and acute pain. This move expands Medtronic's presence in earlier-stage pain interventions and aligns with a broader healthcare push to reduce reliance on opioid medications. Integration of the smaller, focused platform will require careful commercial execution, pricing decisions, and reimbursement alignment to ensure clinically appropriate use. The acquisition also positions Medtronic as a more comprehensive partner for pain clinics versus large device peers such as Abbott and Boston Scientific.

Boston Scientific has initiated several voluntary Class II recalls of its CRE and CRE Pro Wireguided endoscopy devices worldwide due to potential sterile breaches in packaging, affecting tens of thousands of units across multiple size ranges. The July 11 enforcement reports detail issues across more than 80,000 units per SKU, with worldwide distribution that could pressure margins and brand trust in the company's endoscopy segment. While the financial impact remains unclear, the recalls highlight manufacturing and regulatory risks as Boston Scientific integrates recent acquisitions and scales globally. The company's investment narrative projects $25.8 billion in revenue and $4.8 billion in earnings by 2029, requiring 7.8% annual revenue growth and a $1.2 billion earnings increase from the current $3.6 billion. The most pessimistic analysts already forecast slower 6.9% annual revenue growth and $4.5 billion in earnings, and these recalls may reinforce concerns about quality control and integration risk.