Boston Scientific slashes 2026 guidance third time

Boston Scientific reported a challenging third quarter, marked by a cyberattack and ongoing struggles in key product lines, prompting the company to slash its 2026 earnings and sales guidance for the third consecutive time.

The medical device company now projects full-year revenue growth of 4.25%, down from a previous range of 5.5% to 6.5%. Adjusted earnings per share guidance was cut to $3.16 to $3.18 from $3.28 to $3.32, following an earlier February forecast of $3.43 to $3.49. The new guidance, released along with third-quarter results, is a far cry from what was projected at the beginning of the year, when Boston Scientific outlined 2026 sales growth expectations of 10.5% to 11.5%.

The third-quarter results included a roughly $150 million revenue hit from a cyberattack that disrupted ordering, manufacturing, and shipping operations. This markedly lower impact compared with the $755 million in revenue losses attributed to a similar cyberattack during the year-ago period, showing the company’s ongoing vulnerability to operational disruptions. Overall, Boston Scientific reported $5.14 billion in revenue, representing 1.5% growth compared to the prior year.

CEO Mike Mahoney attributed the guidance reductions to persistent challenges in the Watchman and electrophysiology divisions, which historically drove significant growth. Watchman sales fell 6% year-over-year, while electrophysiology declined 5%, contrasting with 30% growth in Watchman sales and triple-digit gains in electrophysiology during 2025. Mahoney highlighted that the slowdown in the left atrial appendage closure market, which includes Watchman, stems from changes in patient identification and referral patterns, while electrophysiology’s decline reflects competitive pressures in pulsed field ablation technology.

The company also forecast a 3% to 1% sales decline in the fourth quarter and acknowledged that it will be challenged to grow sales and adjusted EPS next year.

Boston Scientific’s stock dropped nearly 7% to $42.02 following the announcement. The company also delayed its $14.5 billion acquisition of Penumbra, now expecting completion in early 2027 rather than 2026 due to the regulatory process taking a bit of time. “The regulatory process has taken a bit of time,” Mahoney said. “We’re still very confident in closing the transaction, but based on some of the discussions with the regulatory authorities, we anticipate the early first quarter close.”