Boston Scientific Cuts 2026 Guidance on Slower WATCHMAN Demand and Electrophysiology Share Losses

Earnings
โดย Zacks Investment Research·US·Read original
Summary · why it matters

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.

Impact on stocks 3

Brain-Computer Interface▼ · 1 stocks
Boston Scientific Corp
BSX
▼ NegativeDemandrelevance

Company cut 2026 guidance due to slower WATCHMAN demand and electrophysiology share losses.

Biotech & Genomic Medicine▲ · 1 stocks
Abbott Laboratories
ABT
▲ PositiveCompetitionrelevance

Abbott reaffirmed 6.5-7.5% comparable sales growth guidance for 2026, contrasting with Boston Scientific's cut, highlighting competitive strength.

Robotics & Physical AI▲ · 1 stocks
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