Key Takeaways
- Boston Scientific shares fell as much as 12% after it cut its 2026 adjusted EPS outlook to $3.16 to $3.18, from $3.28 to $3.32, before recovering to a roughly 4% loss.
- The August cyberattack explains the expected fourth-quarter sales decline, but the business was slowing before it.
- Even before today’s cut, Wall Street expected only about 5% revenue growth in 2027.
- The stock briefly matched its lowest forward P/E of the past five years, and how much lost business comes back is what to watch.
Boston Scientific (BSX) shares fell as much as 12% this morning after a third-quarter report that came with a guidance cut. They’ve since recovered most of that drop and are down about 4%, at $43.26.
“This has been a challenging year for Boston Scientific,” CEO Mike Mahoney said, crediting his teams’ response “particularly to the cybersecurity incident.”
What Boston Scientific Reported
The quarter edged past expectations, but the outlook came down for the third time this year:
- Third-quarter sales of $5.14 billion, up 1.5%, ahead of the $5.05 billion analysts expected
- Adjusted EPS of $0.73, against $0.75 a year ago and a $0.72 consensus
- 2026 adjusted EPS guidance cut to $3.16 to $3.18, from $3.28 to $3.32 (consensus: $3.23)
- 2026 sales growth now about 4.25%, down from 5.5% to 6.5% (and 10.5% to 11.5% in February)
- Fourth-quarter sales expected to fall 1% to 3%, with adjusted EPS of $0.77 to $0.79 against the $0.83 analysts expected
The Attack Isn’t the Whole Story
The cyberattack Boston Scientific identified on Aug. 25 shut every plant and distribution center for eight days. Sales grew 9.5% in the first half, then 1.5% in the third quarter, and are now expected to shrink in the fourth. Mahoney said in September that “some hospitals likely ordered from others” during the shutdown.
But the slowdown started before the attack. WATCHMAN, the stroke-prevention implant, saw sales fall 6% in the third quarter after growing nearly 30% in 2025, and Mahoney said in September he doesn’t “want to call the market improving until we see it improving.” U.S. sales grew just 0.5%, and Urology fell 3.1%.
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Revenue grew roughly 18% in 2024 and 20% in 2025. Even before today’s cut, analysts expected only about 5% growth in 2027:
On today’s call, Mahoney said the company will be challenged to grow sales and adjusted EPS next year, excluding its pending acquisition of Penumbra (PEN).
Boston Scientific Stock Is Priced for a Slow 2027
Boston Scientific traded at 14x forward earnings at Tuesday’s close. Its five-year average is 26x, and it peaked at 38x in February 2025:
At today’s low, it briefly matched June’s five-year low of about 12.4x. It’s now about 13.5x.
The cyberattack explains an ugly fourth quarter, and WATCHMAN’s slowdown casts doubt on a quick 2027 recovery. Still, 13.5x prices Boston Scientific as if growth isn’t coming back at all, which looks too harsh for a business that grew 9.5% in the first half.
How much lost business returns decides it. Management speaks next at Stifel’s healthcare conference on Nov. 11.
So what is Boston Scientific stock actually worth?
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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
