Boston Scientific Cuts 2026 Guidance for a Third Time After Cyberattack

Boston Scientific lowered its full-year 2026 sales and earnings outlook on Oct. 28, the third cut this year, as fallout from a cyberattack and continued weakness in its Watchman and electrophysiology businesses held third-quarter sales growth to 1.5%, the company reported.

The company now estimates full-year net sales growth of approximately 4.25% on a reported basis and approximately 3.75% on an organic basis, and adjusted earnings per share of $3.16 to $3.18. The previous outlook called for revenue growth of 5.5% to 6.5% and adjusted EPS of $3.28 to $3.32, MedTech Dive reported. At the start of the year, Boston Scientific had projected 2026 sales growth of 10.5% to 11.5%, according to MedTech Dive.

For the fourth quarter, Boston Scientific expects net sales to decline by approximately 1% to 3% on a reported and organic basis.

Third-quarter results

Net sales were $5.138 billion, up 1.5% on a reported, operational and organic basis. GAAP net income attributable to common stockholders was $582 million, or $0.40 per share, compared with $755 million, or $0.51 per share, a year earlier. Adjusted EPS was $0.73, compared with $0.75.

Cardiovascular sales rose 1.9% to $3.41 billion and MedSurg sales rose 0.6% to $1.73 billion. Within MedSurg, urology sales fell 3.2% and endoscopy 0.8%, while neuromodulation grew 13.1%. U.S. sales grew 0.5%.

CEO Mike Mahoney said on the earnings call that Watchman sales declined 6% and electrophysiology sales 5% in the quarter, MedTech Dive reported. He attributed the left atrial appendage closure slowdown to changes in patient identification and referral patterns, and the electrophysiology decline to new technologies and competition in pulsed field ablation, according to the outlet.

The cyberattack

A cyberattack in the third quarter temporarily shut down the company's ordering, manufacturing and shipping capabilities, and the company estimated a revenue hit of roughly $150 million in the quarter, MedTech Dive reported.

"This has been a challenging year for Boston Scientific and I'm proud of how our global teams have responded, particularly to the cybersecurity incident, working with urgency and resilience to restore operations and continue supporting customers and patients," Mahoney said in the release. "As we move forward, I remain confident in our long-term strategy, fueled by our dedicated talent, differentiated portfolio and strong pipeline of meaningful innovation."

Mahoney also said the company will be challenged to grow sales and adjusted EPS next year, according to MedTech Dive. The company's shares were down nearly 7% at $42.02 when the market opened on Oct. 28, the outlet reported.

Penumbra deal timing

Boston Scientific now expects to close its $14.5 billion acquisition of Penumbra in early 2027, rather than this year as it said when the deal was announced in January. "The regulatory process has taken a bit of time," Mahoney said on the call, as quoted by MedTech Dive. "We're still very confident in closing the transaction."

The release also listed recent pipeline items, including enrollment in the Elite AF trial of the next-generation Watchman Elite device and FDA 510(k) clearances for two StoneSmart urology products and an expanded size range of the SEISMIQ peripheral intravascular lithotripsy catheter.