It has been about a month since the last earnings report for Boston Scientific (BSX). Shares have lost about 13% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Boston Scientific due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
BSX Q1 Earnings Match, '26 View Down
Boston Scientific Corporation (BSX) posted first-quarter 2026 adjusted earnings per share (EPS) of 80 cents, up 6.7% from the year-ago figure. The figure matched the Zacks Consensus Estimate.
The quarter’s adjustments included certain amortization expenses, litigation-related net charges and restructuring charges, among others. Reported EPS for the first quarter was 90 cents compared with the year-ago quarter’s 45 cents.
Revenue Details of BSX
First-quarter revenues totaled $5.20 billion, up 11.6% year over year on a reported basis and up 9.4% on an operational and organic basis. The top line exceeded the Zacks Consensus Estimate by 0.4%.
BSX's Q1 Revenues by Regions
In the first quarter, revenues rose 10.9% in the United States on a reported basis (same operationally).
Reported revenues increased 10.1% in EMEA, or 1.2% on an operational basis, and 14.7% in Asia Pacific, or 12% operationally.
Reported revenues increased 19% in Latin America and Canada (up 12% operationally).
Breaking Down BSX's Q1 Revenues by Segments
Boston Scientific recently reorganized its operational structure and aggregated its core businesses into two reportable segments — MedSurg and Cardiovascular. Both these segments generate revenues from the sale of Medical Devices.
MedSurg
MedSurg revenues in the first quarter totaled $1.70 billion, up 7.8% year over year on a reported basis (up 5.7% on an operational and organic basis).
Within this, the Endoscopy unit generated revenues of $736 million, up 6.8% organically and operationally.
Urology revenues amounted to $646 million, reflecting organic and operational growth of 0.5%.
The Neuromodulation business reported $318 million in revenues, reflecting 15.4% year-over-year organic and operational growth.
Cardiovascular
The company generates maximum revenues from this segment. Revenues in the first quarter totaled $3.50 billion, up 13.5% (reportedly) and 11.2% (organically and operationally) year over year.
BSX’s Margin Performance in Q1
The gross margin expanded 60 basis points (bps) year over year to 69.4%. There was a 9.4% rise in the cost of products sold (to $1.59 billion) in the reported quarter.
Selling, general and administrative expenses rose 11.5% to $1.78 billion. Research and development expenses rose 16.5% to $516 million. Royalty expenses of $12 million declined 14.3% year over year. Adjusted operating margin expanded 27 bps to 25.1%.
BSX’s Lowered 2026 and Q2 View
For 2026, Boston Scientific now anticipates net sales to grow approximately 7-8.5% on a reported basis and 6.5-8% on an organic basis (down from previous growth guidance of 10.5-11.5% on a reported basis and 10-11% on an organic basis). The Zacks Consensus Estimate is currently pegged at $22.27 billion, indicating a 10.9% rise from the 2025 figure.
Full-year adjusted EPS is now expected in the range of $3.34-$3.41 (down from $3.43-$3.49). The Zacks Consensus Estimate is currently pegged at $3.45.
For the second quarter of 2026, revenue growth is projected in the range of approximately 5.5-7.5% on a reported basis (up 5-7% organically). Adjusted earnings are expected to be in the range of 82-84 cents per share.
The Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 86 cents per share and $5.57 billion, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Boston Scientific has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Boston Scientific has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).