BSX changes
Pick any two versions below to diff them.
- Price
- $44.14 → $41.98(−4.9%)
- Discount category
- Far below intrinsic value → Below intrinsic value
- Next earnings
- Oct 28, 2026 → Jan 28, 2027
- Next earnings is estimate
- No → Yes
- About
- Boston Scientific makes medical devices that doctors use in minimally invasive procedures. Its Cardiovascular segment sells pulsed field ablation systems such as FARAPULSE for atrial fibrillation, the WATCHMAN device that lowers stroke risk, devices for coronary and peripheral arteries, and cardiac rhythm products. Its MedSurg segment sells endoscopy, urology and neuromodulation products. The company sells mainly to hospitals and clinics, and about two thirds of sales are in the United States. Net sales were removed: $5.44 added: $5.14 billion in removed: Q2 added: Q3 2026. It grows with new products, clinical data that widens their use, and acquisitions; it agreed to buy Penumbra, a maker of thrombectomy devices, in January 2026. From January 1, 2027, it will report three segments: Interventional Therapies, Rhythm Solutions and MedSurg.
- Thesis
- The market no longer pays for the fast growth that Boston Scientific had in 2024 and 2025. removed: The share price fell on February 4, 2026, after the full-year 2025 results added: Competitors now also sell pulsed field ablation systems, and removed: guidance, with investor concern about growth added: sales in added: the two main U.S. removed: electrophysiology. added: growth businesses now fall. In removed: Q2 added: Q3 2026, U.S. electrophysiology sales removed: grew only 3% added: fell 8% and U.S. WATCHMAN sales removed: grew 3% from a year earlier. Organic sales growth was 7.0%, and added: fell 7%, as management said on the removed: company guided 5% added: call, according to removed: 6% for 2026 and 3% to 5% for Q3. added: a press transcript. A cybersecurity incident on August 25, removed: 2026, then stopped some manufacturing added: 2026 also cut Q3 sales growth by about 300 basis points, and removed: shipping, and the added: organic growth was only 1.5%. The company added: expects Q4 2026 sales to fall 1% to 3%. The CEO said removed: it added: that 2027 will removed: likely miss its Q3 added: be the low point of the cycle and removed: full-year guidance. added: that sales and adjusted EPS will be hard to grow in 2027 without Penumbra. For the gap to close, four things must be true. removed: Sales lost to the cyber incident must come back as the company clears its order backlog. U.S. electrophysiology and WATCHMAN removed: growth added: sales must removed: speed up again, added: stop falling, with new FARAPULSE removed: products added: products, the next WATCHMAN device and clinical data. removed: The FTC must clear added: Customer orders lost to the added: cyber incident must come back. The Penumbra purchase, which the company added: now expects to close in removed: the second half of 2026. Guidance for 2027 added: early 2027, must removed: show organic growth above the added: get its remaining regulatory clearances and add growth. The 2026 removed: level, with help from the 2026 restructuring plan, which targets about $500 million of yearly removed: savings. added: savings, must protect the margin. The removed: first added: next evidence comes removed: on October 28, 2026, with the removed: Q3 report and the updated outlook. The Q4 added: 2026 report and the 2027 guidance removed: follow in early added: 2027, and then with the quarterly reports of 2027. If removed: these checks pass, added: growth returns in 2028, as management expects, the gap can close over the next removed: three added: four to removed: five added: eight quarters. The main reason it may not close is a longer removed: slowdown in electrophysiology because added: loss of removed: competition. added: electrophysiology and WATCHMAN sales to competitors.
- Risks
- removed: Growth added: Sales in the largest U.S. growth businesses removed: slowed. added: now fall. In removed: Q2 added: Q3 2026, U.S. electrophysiology sales removed: rose 3% to $606 million added: fell 8% and U.S. WATCHMAN sales removed: rose 3% added: fell 7%, as management said on the call, according to removed: $459 million. added: a press transcript. Competitors also sell pulsed field ablation systems, and removed: slower growth lowers added: management expects 2027 to be the removed: value added: low point of the removed: business. added: cycle. The cybersecurity incident of August 25, 2026, disrupted manufacturing and shipping. removed: The company added: It cut Q3 2026 sales growth by about 300 basis points, and management expects a removed: material impact on added: further effect of 200 to 300 basis points in Q4 2026 removed: results, and added: while customers rebuild their stock, as a press transcript of the removed: time to full recovery is not known. added: call reports. Investigations, litigation and harm to customer relations can follow. The Penumbra purchase, valued at about $14.5 billion when announced, is under FTC review since a Second Request on March 16, 2026. added: On October 28, 2026, the company said that it now expects to close in early 2027, after the remaining regulatory clearances. Boston Scientific has $6 billion of term loans ready for the deal, so debt will rise, and a block or added: a longer delay is possible. A securities class action filed on March 5, 2026, claims that the company made misleading statements about guidance and U.S. electrophysiology growth. The case is at an early stage.
- Balance sheet
- Cash: $539M Debt: $12.6B Net debt: $12.1B Interest cover: 12× Debt due within 12 months: $1.7B Boston Scientific funds itself with senior notes, commercial paper and bank facilities. At June 30, 2026, debt was $12.62 billion: $1.71 billion of current debt, which included $1.69 billion of commercial paper, and $10.92 billion of long-term debt. Cash was $539 million, down from $1.97 billion at December 31, 2025, after the $2 billion share repurchase and the $1.5 billion investment in MiRus. Interest cover is operating income divided by interest expense for the first half of 2026. The covenant leverage ratio, total debt to EBITDA as the credit agreements define it, was 2.02 times against a limit of 4.00 times. For the Penumbra purchase, the company signed a $6.0 billion term loan agreement and a $2.0 billion 364-day revolving credit agreement on February 26, 2026; it can draw the term loans only at closing. added: On the Q3 2026 call on October 28, 2026, management said that cash was $609 million and the gross debt leverage ratio was 1.9 times at September 30, 2026, as a press transcript reports. The Q3 2026 Form 10-Q was not filed on October 28, 2026, so the other figures here are from June 30, 2026. As of Jun 30, 2026.
- Checkpoints
- Oct 28, 2026: Q3 2026 earnings and updated outlook after the cyber incident. removed: Pending. added: Failed. Watch: A clear recovery plan, with most lost sales expected back by early 2027 and U.S. electrophysiology growth that does not slow further, passes; a large cut to the outlook or a longer disruption fails. removed: Dec 31, added: Outcome: U.S. electrophysiology sales fell 8%, the company cut its 2026 removed: (estimate): added: adjusted EPS guidance to $3.16 to $3.18, and it expects Q4 2026 sales to fall 1% to 3%. Oct 28, 2026: Penumbra purchase removed: closes. Pending. added: closes in 2026. Failed. Watch: FTC clearance and closing in the second half of 2026, as the company expects, pass; an FTC challenge or a delay into 2027 fails. removed: Feb 4, added: Outcome: On October 28, 2026, the company said that it now expects the purchase to close in early 2027, after the remaining regulatory clearances. Jan 28, 2027 (estimate): Q4 2026 earnings and 2027 guidance. Pending. Watch: added: Q4 sales near the guided fall of 1% to 3% and 2027 removed: organic added: guidance with some growth added: in organic sales and adjusted EPS pass; guidance removed: above the 5% to 6% of removed: 2026 added: falling sales or adjusted EPS fails. Q1 2027 (estimate): Penumbra purchase closes. Pending. Watch: Closing in early 2027 with no large required sales of businesses passes; removed: lower guidance added: an FTC challenge or a delay past mid-2027 fails.
- Recent events
- Oct added: 28, 2026: Boston Scientific reported Q3 2026 results. Net sales grew 1.5% to $5.138 billion, on a reported and an organic basis. Adjusted EPS was $0.73, down from $0.75. The company cut its 2026 guidance to organic sales growth of about 3.75% and adjusted EPS of $3.16 to $3.18, and it expects Q4 2026 sales to fall 1% to 3%. On the call, as a press transcript reports, management said that the cyber incident cut Q3 sales growth by about 300 basis points, that U.S. electrophysiology sales fell 8% and U.S. WATCHMAN sales fell 7%, and that it now expects the Penumbra purchase to close in early 2027. It also said that 2027 will be the low point of the cycle. Oct 7, 2026: Boston Scientific promoted Joe Fitzgerald, head of the Cardiovascular group, to Chief Operating Officer from January 1, 2027. From that date, it will report three segments: Interventional Therapies, which will include Penumbra after closing, Rhythm Solutions and MedSurg. Sep 21, 2026: Arthur Butcher, Executive Vice President and Group President of MedSurg and Asia Pacific, told the company that he will retire from that role on January 1, 2027. Sep 8, 2026: Boston Scientific said that the cybersecurity incident will likely have a material impact on Q3 and full-year 2026 results, and that it will likely miss its sales growth and adjusted EPS guidance. Distribution centers shipped at or above normal levels again, and manufacturing restarted at most sites. The company will update its outlook on October 28, 2026. Aug 25, 2026: Boston Scientific found a cybersecurity incident that caused a global disruption of its operations, including its ability to process and ship customer orders. Jul 29, 2026: Boston Scientific reported Q2 2026 results. Net sales grew 7.5% to $5.442 billion, and organic growth was 7.0%. Adjusted EPS was $0.86. It lowered its 2026 guidance to organic sales growth of 5% to 6% and adjusted EPS of $3.28 to $3.32, and guided Q3 organic growth of 3% to 5%. It completed a $2 billion accelerated share repurchase of about 40 million shares. Jul 21, 2026: The board approved a 2026 restructuring plan. It expects pre-tax charges of $700 million to $800 million through 2029 and gross annual savings of about $500 million. May 18, 2026: Boston Scientific invested $1.5 billion for about 34% of MiRus, with an option to buy its SIEGEL TAVR valve business for $3 billion more. It also started a $2 billion accelerated share repurchase. May 6, 2026: Penumbra stockholders approved the purchase by Boston Scientific. The FTC asked for more information on March 16, 2026, and the review continues.