Boston Scientific Stock Earnings Reports

Boston Scientific reported a solid Q1 2026 with organic revenue growth of 9.4% and adjusted EPS of $0.80 (up 6%), but the company lowered its full-year organic revenue guidance to 6.5%–8.0% (Q2 guide 5%–7%) and adjusted EPS to $3.34–$3.41. Management cited three primary, unanticipated headwinds prompting the guide reduction: softening in stand‑alone WATCHMAN volumes (despite strong concomitant WATCHMAN demand and positive CHAMPION data), greater-than-expected share pressure in electrophysiology (EP) amid an increasingly competitive PFA market, and weaker-than-expected performance in Urology (stone management and sacral neuromodulation) driven by China VBP impact and commercial disruptions. Regionally, the U.S. grew 11%, EMEA 1%, and Asia Pacific 12% operationally with notable strength in Japan and China and continued momentum for FARAPULSE, WATCHMAN FLX Pro, and interventional imaging. Margins: Q1 adjusted operating margin was ~28%; adjusted gross margin pressure from tariffs and inventory charges led management to expect full-year adjusted gross margin slightly below 2025, but they still expect 50–75 bps of adjusted operating margin expansion for the year via OpEx controls and efficiency initiatives. Cash & capital allocation: Q1 free cash flow was $170M; full-year FCF now expected to be ~ $4.0B. The Board approved an incremental $4B repurchase authorization (total $5B) and management intends to repurchase approximately $2B of shares in Q2, subject to restrictions. The previously announced acquisition of Penumbra is expected to close in H2 2026 (subject to approvals). Management reiterated confidence in the long‑term strategy, product pipeline (multiple PFA and other launches in 2027+), and the company’s ability to deliver double‑digit adjusted EPS growth over the LRP despite near‑term headwinds.