Medical technology company Boston Scientific has released its second-quarter financial results for fiscal year 2026. Although the company lowered its full-year outlook due to a slowdown in the Watchman cardiac implant business and increased competition in the electrophysiology segment, quarterly results still exceeded market expectations, driven by strong performances in Interventional Cardiology and Neuromodulation.

The financial report shows that second-quarter net sales reached $5.442 billion, up 7.5% year-over-year, surpassing the market consensus of $5.36 billion. Adjusted earnings per share came in at $0.86, a 15% increase from the prior year, which was above the company's own guidance range of $0.82 to $0.84 and the market's expectation of $0.83.

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Among the various business segments, Cardiovascular net sales were $3.624 billion, a year-over-year increase of 8.3%. Within this segment, Interventional Cardiology and Vascular Therapies posted the strongest growth, with an organic growth rate of 12.1%. Coronary Therapies achieved double-digit growth, and the AGENT drug-coated balloon performed particularly well. Neuromodulation sales grew by 12.7%, with both the Pain and Brain Therapies areas delivering double-digit increases, benefiting from the integration of Nalu. Endoscopy sales rose by 7%, while Urology saw only a 0.8% increase, underperforming expectations.

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From a geographic perspective, U.S. market sales grew by 6.2%, Asia-Pacific sales increased by 11.2%, and Latin America and Canada saw a 22.4% rise. The adjusted operating profit margin was 28.4%, an improvement of approximately 70 basis points year-over-year.

However, the company lowered its full-year guidance due to the slowdown in the Watchman business and more intense-than-expected competition in the electrophysiology market. The full-year organic sales growth forecast was reduced from a previous range of 6.5% to 8% down to 5% to 6%. The full-year adjusted earnings per share outlook was trimmed from $3.34 to $3.41 down to a range of $3.28 to $3.32. The company indicated that these headwinds could persist into 2027, but expects a significant improvement in growth by 2028.