Boston Scientific BSX has entered the second half of 2026 with more pressure than expected as weakness in two important businesses weighs on its near-term performance. WATCHMAN has been hurt by a sharp slowdown in the U.S. market, with clinical evidence affecting referral patterns. In Electrophysiology (“EP”), the company is facing greater competitive share losses in the United States than expected. Together, these headwinds are making it more challenging for the company to deliver the growth it has historically achieved.
Boston Scientific lowered its 2026 expectations, now calling for organic revenue growth of 5% to 6% and adjusted earnings per share (EPS) of $3.28 to $3.32, or 7% to 8% growth. Management expects the pressure to extend into 2027, when revenue growth could remain below its weighted average market growth rate and adjusted EPS growth may be limited.
On a positive note, growth could pick up meaningfully in 2028, as new catalysts begin to take effect. Based on investments made over the past two or three years, the company will have seven new launches that surpass nearly $25 billion in total addressable market (TAM). Among them are the planned launch of the SEISMIQ 4CE Coronary IVL Catheter in the first half of 2027 after positive FRACTURE trial data and the introduction of the FARAWAVE Ultra mapping and ablation catheter. The pending Penumbra acquisition could also strengthen Boston Scientific’s long-term growth profile.
The company is pursuing a restructuring program targeting approximately $500 million in annual run-rate savings by the end of 2029, with more than half expected by the end of 2027. The savings will be focused in the areas of supply-chain optimization, targeted functional changes, organizational restructuring and reductions in indirect spending, supporting operating-margin expansion and stronger adjusted EPS growth in 2028 and beyond.
Latest Developments Among BSX’s Peers
Abbott ABT recently presented new late-breaking 12-month data from the FlexPulse Global IDE study, showing favorable safety and effectiveness outcomes for the company’s investigational TactiFlex Duo Ablation Catheter, Sensor Enabled to treat patients with challenging cases of atrial fibrillation. Abbott’s Nutrition business also launched Similac 360 Total Care Made With Whole Milk, the only commercially sterile, ready-to-feed liquid infant formula made with whole milk in the United States.
Globus Medical’s GMED Excelsius3D intelligent 3-in-1 imaging system achieved the CE mark for commercial sale in the European Union and the United Kingdom. The system received FDA’s 510(k) clearance in 2021. The addition of Excelsius3D expands the company’s Excelsius Ecosystem of enabling technologies and enhances the capabilities of the ExcelsiusGPS robotic navigation system in the European Union. Globus Medical also announced the acquisition of Higgs Boson Health, a Duke University-incubated digital healthcare company based in Durham, NC.
BSX’s Price Performance, Valuation and Estimates
Over the past 12 months, Boston Scientific shares have plunged 55.8% compared with the industry’s 27.1% decline.
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Boston Scientific trades at a forward earnings multiple of 14.13 over the past 12 months, lower than its historical median and industry average.
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The company’s earnings estimates have trended lower over the past three months.
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BSX stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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