BSX Q2 Earnings Call Highlights WATCHMAN and EP Pressure
Boston Scientific CorporationBSX delivered a solid second quarter, but management highlighted a tougher path ahead as pressure in WATCHMAN and electrophysiology changed the company’s near-term outlook. Executives reduced full-year expectations while emphasizing cost actions and future product catalysts.
The call focused on market shifts, competitive dynamics and the steps Boston Scientific is taking to return to stronger growth beyond 2027. Management also addressed analyst concerns around WATCHMAN demand and EP share trends.
BSX Faces WATCHMAN and EP Headwinds
Michael Mahoney, chairman, president & CEO, said the updated outlook reflects pressure concentrated in WATCHMAN and electrophysiology, while the broader portfolio continues to perform. He noted that roughly 75% of revenues are growing around 6%.
Mahoney said WATCHMAN growth slowed due to changing referral patterns following new clinical evidence, while EP faced greater-than-expected competitive share movement in the U.S. market.
The company expects these dynamics to weigh on 2026 and create a challenging 2027 before improvement from new launches and investments.
Boston Scientific Updates Its Outlook
Boston Scientific expects full-year 2026 organic revenue growth of 5% to 6% and adjusted EPS of $3.28 to $3.32. Third-quarter organic revenue growth is projected at 3% to 5%, with adjusted EPS of $0.80 to $0.82.
Jonathan Monson, executive VP & CFO, said the second-half outlook assumes flat EPS growth, a mid- to high-single-digit decline in global WATCHMAN sales and approximately 6% growth from the base business.
The company also expects full-year adjusted operating margin expansion of 0 to 25 basis points, reflecting pressure from product mix and investments in supply chain and quality systems.
BSX Highlights Core Business Strength
BSX reported second-quarter revenues of $5.44 billion, up 7.5% year over year, surpassing the Zacks Consensus Estimate of $5.38 billion. Adjusted EPS rose 15% to $0.86 and beat the consensus mark of $0.83.
Boston Scientific Corporation Price, Consensus and EPS Surprise
Boston Scientific Corporation price-consensus-eps-surprise-chart | Boston Scientific Corporation Quote
Mahoney highlighted strength in Interventional Cardiology, Neuromodulation, Interventional Oncology and Vascular businesses. Interventional Cardiology grew 15%, supported by coronary therapies, drug-coated balloons, imaging and complex PCI.
Boston Scientific also reported strong regional performance, including operational growth of 6% in the United States and 11% in Asia-Pacific.
Boston Scientific Builds Future Growth Platforms
Boston Scientific emphasized upcoming growth opportunities tied to product launches and strategic investments. Management pointed to seven major launches expected to address more than $25 billion in total addressable markets in 2028.
The company highlighted opportunities including SEISMIQ intravascular lithotripsy, hypertension treatment, Penumbra integration, ICE imaging, FARAWAVE Ultra and potential MiRus TAVR expansion.
Mahoney said the company expects Interventional Cardiology and cardiovascular technologies broadly to become major growth drivers over the coming years.
BSX Advances Cost Reduction Efforts
BSX announced a restructuring program designed to deliver approximately $500 million in run-rate savings exiting 2029. Management expects savings to come initially from SG&A and later from the cost of goods sold.
Monson said more than half of the savings are expected to be realized exiting 2027, supporting stronger margin expansion and EPS growth beginning in 2028.
The company completed its $2 billion accelerated share repurchase program and invested $1.5 billion in MiRus, including an option related to its TAVR business.
Boston Scientific Addresses Investor Concerns
A JPMorgan analyst asked whether the revised outlook reflected conservatism or current trends. Mahoney said the changes were primarily driven by WATCHMAN and EP conditions observed entering the second half.
Management told analysts that EP performance should improve with future launches, including FARAWAVE Ultra and ICE market entry, while WATCHMAN recovery depends on market conditions and education efforts.
BSX Maintains Long-Term Focus
BSX management maintained confidence in long-term growth while acknowledging near-term challenges. Executives emphasized disciplined spending, continued investment in priority businesses and execution against 2026 guidance.
The company expects improvement in revenue and EPS trends in 2028 and beyond, supported by restructuring benefits and new product platforms.
BSX’s Zacks Rank and Style Score Signals
Boston Scientific has a Zacks Rank #4 (Sell), with a Value Score of B, Growth Score of C, Momentum Score of D and VGM Score of C.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank focuses on earnings estimate revisions, while Style Scores evaluate characteristics such as value, growth and momentum. These indicators are designed to complement the Zacks Rank when assessing stocks. The Zacks Rank can change as analysts update earnings estimates following quarterly results.
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