- Price
- $44.14
- Fair value
- $64.00
- Discount
- 31.0%
- Uncertainty
- Medium
- LSEG rating
- 1.94
- Moat
- Narrow
- Next earnings
- 2026-10-28
- Next earnings is estimate
- No
- Company name
- Boston Scientific
- Sector
- Medical devices
- 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 $5.44 billion in Q2 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. The share price fell on February 4, 2026, after the full-year 2025 results and guidance, with investor concern about growth in U.S. electrophysiology. In Q2 2026, U.S. electrophysiology sales grew only 3% and U.S. WATCHMAN sales grew 3% from a year earlier. Organic sales growth was 7.0%, and the company guided 5% to 6% for 2026 and 3% to 5% for Q3. A cybersecurity incident on August 25, 2026, then stopped some manufacturing and shipping, and the company said it will likely miss its Q3 and full-year guidance. For the gap to close, four things must be true. Sales lost to the cyber incident must come back as the company clears its order backlog. U.S. electrophysiology and WATCHMAN growth must speed up again, with new FARAPULSE products and clinical data. The FTC must clear the Penumbra purchase, which the company expects to close in the second half of 2026. Guidance for 2027 must show organic growth above the 2026 level, with help from the 2026 restructuring plan, which targets about $500 million of yearly savings. The first evidence comes on October 28, 2026, with the Q3 report and the updated outlook. The Q4 report and the 2027 guidance follow in early 2027. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a longer slowdown in electrophysiology because of competition.
- Risks
- Growth in the largest U.S. growth businesses slowed. In Q2 2026, U.S. electrophysiology sales rose 3% to $606 million and U.S. WATCHMAN sales rose 3% to $459 million. Competitors also sell pulsed field ablation systems, and slower growth lowers the value of the business.
The cybersecurity incident of August 25, 2026, disrupted manufacturing and shipping. The company expects a material impact on 2026 results, and the time to full recovery is not known. 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. Boston Scientific has $6 billion of term loans ready for the deal, so debt will rise, and a block or 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.
As of 2026-06-30.
- Checkpoints
- Oct 28, 2026: Q3 2026 earnings and updated outlook after the cyber incident. Pending. 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.
Dec 31, 2026 (estimate): Penumbra purchase closes. Pending. 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.
Feb 4, 2027 (estimate): Q4 2026 earnings and 2027 guidance. Pending. Watch: 2027 organic growth guidance above the 5% to 6% of 2026 passes; lower guidance fails.
- Recent events
- 2026-10-07: 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.
2026-09-21: 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.
2026-09-08: 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.
2026-08-25: Boston Scientific found a cybersecurity incident that caused a global disruption of its operations, including its ability to process and ship customer orders.
2026-07-29: 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.
2026-07-21: 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.
2026-05-18: 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.
2026-05-06: Penumbra stockholders approved the purchase by Boston Scientific. The FTC asked for more information on March 16, 2026, and the review continues.