Boston Scientific (NYSE:BSX) Surprises With Q1 CY2026 Sales

Medical device company Boston Scientific (NYSE:BSX) reported Q1 CY2026 results topping the market’s revenue expectations, with sales up 11.6% year on year to $5.20 billion. On the other hand, next quarter’s revenue guidance of $5.39 billion was less impressive, coming in 2.9% below analysts’ estimates. Its non-GAAP profit of $0.80 per share was 1.6% above analysts’ consensus estimates.

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"Our global team and the strength of our category leadership strategy enabled us to deliver solid results this quarter," said Mike Mahoney, chairman and chief executive officer, Boston Scientific.

Company Overview

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Boston Scientific’s sales grew at a solid 15.3% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Boston Scientific’s annualized revenue growth of 18.4% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

We can dig further into the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Boston Scientific’s organic revenue averaged 15.7% year-on-year growth. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, Boston Scientific reported year-on-year revenue growth of 11.6%, and its $5.20 billion of revenue exceeded Wall Street’s estimates by 0.5%. Company management is currently guiding for a 6.5% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 10.5% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is attractive given its scale and implies the market sees success for its products and services.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Boston Scientific’s adjusted operating margin has more or less stayed the same over the last 12 months , averaging 26.3% over the last five years. This profitability was top-notch for a healthcare business, showing it’s an well-run company with an efficient cost structure.

Analyzing the trend in its profitability, Boston Scientific’s adjusted operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

In Q1, Boston Scientific generated an adjusted operating margin profit margin of 21.2%, down 7.8 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Boston Scientific’s EPS grew at 24.2% compounded annual growth rate over the last five years, higher than its 15.3% annualized revenue growth. However, we take this with a grain of salt because its adjusted operating margin didn’t improve and it didn’t repurchase its shares, meaning the delta came from reduced interest expenses or taxes.

In Q1, Boston Scientific reported adjusted EPS of $0.80, up from $0.75 in the same quarter last year. This print beat analysts’ estimates by 1.6%. Over the next 12 months, Wall Street expects Boston Scientific’s full-year EPS of $3.10 to grow 14.7%.

Key Takeaways from Boston Scientific’s Q1 Results

It was good to see Boston Scientific meet analysts’ organic revenue expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its revenue guidance for next quarter missed and its EPS guidance for next quarter fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 3.3% to $57.52 immediately after reporting.

Boston Scientific didn’t show it’s best hand this quarter, but does that create an opportunity to buy the stock right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).