Boston Scientific Earnings Beat, Cuts Full-Year Outlook

Boston Scientific Corporation (NYSE: BSX) reported second-quarter results on July 29, 2026, with earnings surpassing revenue and adjusted EPS forecasts. However, management lowered its full-year outlook, citing weaker WATCHMAN demand and intensified U.S. electrophysiology competition, which narrowed near-term growth expectations.

Q2 Results and Guidance

Boston Scientific reported net sales of $5.4 billion, up 7.5% reported and 7.0% organically, and adjusted earnings of $0.86 per share, exceeding the company’s internal guidance. Net income reached $907 million, with an adjusted operating margin of about 28.4%. The Cardiovascular segment posted $3.6 billion in sales, growing 7.8% organically, while MedSurg sales rose 5.4% organically to $1.8 billion.

Management narrowed full-year guidance, cutting organic net-sales growth to 5.0%–6.0% from 6.5%–8.0%, and trimmed adjusted EPS guidance to $3.28–$3.32 from $3.34–$3.41. Reported net-sales growth is now expected at 5.5%–6.5%, with third-quarter adjusted EPS guidance of $0.80–$0.82.

WATCHMAN and Electrophysiology Pressures

WATCHMAN sales totaled $507 million in the quarter, rising about 4.0%–4.3% year over year, driven by international growth near 18% and U.S. organic growth around 3%. Management said roughly one-third of U.S. WATCHMAN procedures are now performed as concomitant procedures combined with other cardiac interventions. Concomitant procedures increased more than 60% year over year and 11% sequentially, while standalone WATCHMAN procedures declined in the low teens compared with the prior year.

This shift, along with changing referral patterns linked to emerging clinical evidence, is weighing on near-term WATCHMAN demand. Management updated its outlook to flat to low-single-digit global WATCHMAN growth for 2026, with mid- to high-single-digit declines in the second half year over year. U.S. WATCHMAN sales are expected to be roughly flat for the full year, with a mid-single-digit sequential decline in the third quarter.

Electrophysiology (EP) sales reached $916 million, growing about 9.0%–9.1% organically year over year. International EP sales grew roughly 23%, but U.S. growth was more modest amid competitive share pressure. Management cited an unexpected degree of share movement in U.S. pulsed-field ablation (PFA), attributing increased competition to Medtronic, Johnson & Johnson, and Abbott. EP sales are expected to be approximately flat in the second half of 2026, with a rebound anticipated in the second half of 2027 and stronger performance in 2028.

Boston Scientific noted progress in its EP pipeline: the Farapulse PFA system is approved in the U.S., and the FARADIGM investigational device exemption trial for the Faraflex mapping and PFA catheter has enrolled its first patients toward a target of about 571.

In response to the WATCHMAN and EP challenges, the company is beginning a restructuring program to improve cost efficiency. Earlier reports indicated potential restructuring charges up to $800 million related to these actions. Management expects the combination of pipeline innovation and cost measures to support stronger growth and margin recovery by 2028 and beyond.