Boston Scientific Corporation (NYSE:BSX) stock is trading lower after the company cut its fiscal 2026 outlook, citing pressures on the Watchman and EP markets.

Q2 Beats Estimates

The medical technology giant reported revenues of $5.442 billion on Wednesday, better than the consensus estimate of $5.361 billion, beating the management guidance of $5.34 billion-$5.44 billion.

The medical devices maker reported adjusted earnings of 86 cents, beating the consensus of 83 cents and the management guidance of 82-84 cents.

“Our team delivered a solid quarter while continuing to navigate a dynamic environment,” said Mike Mahoney, chairman and CEO of Boston Scientific. “We are focused on disciplined execution and prioritizing investments in our highest-impact opportunities…”

Boston Scientific Cuts Fiscal 2026 Sales And Earnings Guidance

Boston Scientific lowered its fiscal 2026 adjusted earnings guidance from $3.34-$3.41 per share to $3.28-$3.32 per share, compared to the consensus of $3.36.

The company also cut its 2026 sales guidance from $21.479 billion-$21.78 billion to $21.178 billion-$21.379 billion, compared to the consensus of $21.562 billion.

In an earnings conference call, the company said the guidance reduction was due to Watchman heart implant, where the U.S. market has slowed sharply and unexpectedly, primarily driven by compounding clinical evidence which has impacted referral patterns; and second, EP, where the company did not anticipate the degree of competitive share movement it is now seeing in the U.S. market.

The company said, “While we are sharpening our forecasting processes and taking action to address controllable headwinds, our underlying assumptions are that these dynamics continue in 2027, resulting in revenue growth below our WAMGR and limited adjusted EPS growth. We expect our revenue and EPS growth profile to improve meaningfully in 2028.”

The company expects net sales growth of approximately 3%-5% on a reported and organic basis in the third quarter of 2026, equivalent to sales of $5.217 billion-$5.318 billion, compared to the consensus of $5.358 billion.

The medtech giant expects adjusted earnings of 80-82 cents versus the consensus of 83 cents.

Restructuring Plan Targets Long-Term Cost Savings

Earlier this week, Boston Scientific initiated a restructuring plan.

The company, in an SEC filing, said the plan will generate $700 million to $800 million in total pre-tax charges, including $600 million to $700 million in future cash outlays.

Once fully implemented, the company expects the restructuring to reduce gross annual pre-tax expenses by about $500 million, with a significant portion of the savings earmarked for strategic growth investments.

BSX Stock Price Activity: Boston Scientific shares were down 6.17% at $43.22 at the time of publication Wednesday, according to Benzinga Pro data.

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