Boston Scientific Corporation (BSX) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 3, 2027 — estimated from last year’s reporting date.

Consensus is $0.78 EPS for Dec 2026 across 7 estimates, ranging $0.77 to $0.79.

BSX Sep 2026

Reported Oct 28, 2026 · before the open

: 0.00%

: $0.73
: $0.73
: —
: $5.14B

Reported results

: $5.14B; from $5.07B
: 66.72%; from 69.93%
: $828.00M; from $1.05B
: 16.12%; from 20.69%
: $580.00M; from $755.00M
: $0.40; from $0.51

Highlights

Cyber disruption — The August incident cut Q3 organic sales growth by an estimated 300 basis points, or about $150 million, and adjusted EPS by $0.07; an eight-business-day interruption halted manufacturing and shipments.
Below company guidance — Revenue was $5.138 billion, up 1.5% year over year but below the company’s 3%–5% growth forecast; adjusted EPS of $0.73 matched consensus but fell short of the company’s $0.80–$0.82 outlook.
Earnings and margins — GAAP diluted EPS declined to $0.40 from $0.51 a year ago, while adjusted EPS was $0.73 versus $0.75. Adjusted gross margin fell 300 basis points to 68.0%, primarily from disruption-related manufacturing under-absorption.
Weak near-term outlook — Q4 organic sales are forecast to decline 1%–3%, with adjusted EPS of $0.77–$0.79. Management expects the inventory normalization after Q3’s customer restocking to create another 200–300 basis points of sales pressure and $0.04–$0.05 of EPS impact.
2027 transition year — Management expects revenue and adjusted EPS growth to be challenging in 2027, excluding Penumbra, as EP and WATCHMAN pressures and China pricing persist; it sees 2027 as the trough and expects improvement in 2028.
Uneven businesses — Cardiovascular sales grew 1.9% organically and MedSurg 0.7%; neuromodulation rose 13%, while urology fell 3.1% and endoscopy declined 0.6%. EP sales fell 5% and WATCHMAN declined 7% in the U.S.
Cost actions and pipeline — A restructuring program is expected to deliver more than $500 million of savings over three years, with over half targeted by the end of 2027. Penumbra is now expected to close in early 2027.
Year-to-date growth — Nine-month sales were $15.784 billion, up 6.7% from $14.788 billion a year earlier; adjusted EPS was $2.39 versus $2.26.

Analysis

Boston Scientific’s Q3 showed how a major operational interruption compounded an already turning growth cycle. Revenue of $5.138 billion rose 1.5% year over year, but fell from $5.44 billion in Q2 and missed the company’s 3%–5% growth outlook: management attributed about 300 basis points, or roughly $150 million, of the shortfall to the August cybersecurity incident. Adjusted EPS of $0.73 matched the $0.73 consensus, but missed company guidance of $0.80–$0.82 and was down from $0.75 a year ago. GAAP diluted EPS fell to $0.40 from $0.51, and reported operating income declined to $828 million from $1.048 billion.

The incident also pressured adjusted gross margin, down 300 basis points to 68.0%, and management expects customer inventory normalization to weigh on Q4, guiding to a 1%–3% organic sales decline and adjusted EPS of $0.77–$0.79. Beyond the cyber effects, the quarter exposed weakness in EP and WATCHMAN amid intensifying competition and tougher China pricing. Management expects 2027 to be a difficult transition year, with revenue and adjusted EPS growth challenging before improvement in 2028. Full-year 2026 guidance is now 3.75% organic sales growth and $3.16–$3.18 adjusted EPS; restructuring savings and a product pipeline are intended to support the recovery.

Cyber disruption

The incident, first reported in August, interrupted the global network for eight business days and halted manufacturing and shipments. Operations were back up by September 8, but the sales and profit effects extended beyond the outage as the company worked to restore production and customer supply. Management estimates Q3 lost about $150 million in sales, equivalent to a 300-basis-point growth headwind, and reduced adjusted EPS by $0.07. Lower sales and manufacturing under-absorption were compounded by direct expenses including expedited shipping. For Q4, management expects another 200–300 basis points of sales impact and $0.04–$0.05 of EPS pressure as customers draw down elevated orders placed at the end of Q3.

Guidance reset

The Q4 outlook reflects both the cyber-related inventory unwind and underlying business pressures. Boston Scientific expects organic and reported revenue to decline 1%–3% year over year and adjusted EPS of $0.77–$0.79. For full-year 2026, it forecasts reported sales growth of about 4.25%, including roughly 50 basis points of currency benefit, and organic growth of about 3.75%, with adjusted EPS of $3.16–$3.18. Management said Q4 dynamics provide a reasonable baseline for 2027: it expects growth in revenue and adjusted EPS to be challenging, excluding Penumbra, citing EP and WATCHMAN pressure, China pricing, and mix-related gross-margin headwinds. The company sees 2027 as the trough, with better performance expected in 2028 and further improvement in 2029.

EP and WATCHMAN

The two franchises that had driven strong growth in recent years are now weighing on the overall result. EP sales declined 5% year over year, including an 8% drop in the U.S. and 2% international growth; management said cyber contributed to roughly half of its shortfall. The company expects further share erosion until launches including 2D ICE in the second half of 2027 and FARAWAVE Ultra, now expected in early 2028. WATCHMAN sales declined 7% in the U.S. but grew 4% internationally. U.S. standalone procedures fell by a high-teens percentage, while concomitant procedures grew about 35%. Management expects current market conditions to persist into 2027, with competitive entry adding pressure, while it invests in referral support and the next-generation WATCHMAN platform.

Segment performance

Cardiovascular — Sales were $3.406 billion, up 1.9% organically. Interventional cardiology and vascular therapies grew 12%; interventional cardiology grew 19%, while vascular therapies grew 1%, with cyber and TCAR supply constraints among the headwinds.
MedSurg — Sales were $1.733 billion, up 0.7% organically. Neuromodulation grew 13%, led by broad pain growth and Nalu; urology declined 3.1% amid cyber effects and China pricing; endoscopy declined 0.6%, with China pricing and cyber cited as factors.
Regions — EMEA grew 6.1% operationally and LACA 10.5%; the U.S. grew 0.5%, while APAC declined 1.1%, reflecting cyber disruption and China price pressure.

Margins and earnings

Adjusted EPS of $0.73 was 3% below the year-ago $0.75, while GAAP net income attributable to common stockholders fell to $582 million from $755 million. Adjusted gross margin was 68.0%, down 300 basis points, and adjusted operating margin was 26.5%, down 150 basis points, primarily because of disruption-related manufacturing under-absorption. GAAP operating margin was 16.1%; reported operating income of $828 million included an $81 million litigation-related charge, primarily tied to certain product-liability cases. Free cash flow was $867 million, comprising $1.05 billion of operating cash flow less $180 million of net capital expenditures. The company ended September with $690 million of cash and gross debt leverage of 1.9x.

Restructuring and pipeline

Management is pairing cost reduction with continued investment, rather than relying on expense cuts alone to bridge the weaker cycle. The company expects its restructuring program—covering organizational layers, back-office processes, supply chain, and other spending—to generate more than $500 million of savings over three years, with over half expected by the end of 2027. Penumbra’s acquisition is now expected to close in early 2027, subject to remaining regulatory clearances; financing costs may make the previously estimated $0.06–$0.08 first-year EPS dilution greater. Product updates included FDA clearances for StoneSmart technologies and an expanded SEISMIQ offering. Management also described a multiyear launch cadence intended to strengthen growth from 2028 onward.

Boston Scientific Corporation

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