Boston Scientific cut its 2026 sales and earnings guidance for the second consecutive quarter, citing slowing growth in its electrophysiology and Watchman product lines.
Guidance lowered amid weaker unit performance
CEO Mike Mahoney told investors Wednesday that the company now expects net‑sales growth of 5.5% to 6.5% for 2026, down from the 7% to 8.5% range announced in April. Adjusted earnings per share (EPS) were revised to $3.28‑$3.32, versus the earlier $3.34‑$3.41 outlook.
The revision follows a February forecast that had projected 10.5%‑11.5% sales growth and EPS of $3.43‑$3.49. Mahoney said the shift reflects “market conditions have evolved quickly, and it’s been a challenge to forecast effectively.”
Watchman unit sees growth stall
Watchman, a left atrial appendage closure device that had generated $1.96 billion in sales in 2025 with nearly 30% growth, recorded only $507 million in the second quarter—a 4.3% increase year over year. The CEO described the market as having changed “dramatically” over the past six months.
The firm expects the segment to post flat to low‑single‑digit growth for the full year, with a mid‑ to high‑single‑digit decline in the second half. Mahoney added it does not anticipate a rebound in standalone Watchman procedures during that period.
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“We absolutely believe in this therapy and that Watchman is the best treatment for patients who can’t, won’t, or shouldn’t take oral anticoagulation for stroke prevention,” Mahoney said. “We expect that the actions we are taking today will support the market over time.”
Electrophysiology, once a driver of triple‑digit growth thanks to pulsed field ablation (PFA), now faces heightened competition from Medtronic, Johnson & Johnson and Abbott. The CEO acknowledged the company “under‑called the competitive pressures in the U.S.” and noted that while Boston Scientific still leads in PFA, its share has slipped.
PFA now comprises 80%‑85% of U.S. ablation procedures, limiting further expansion. The electrophysiology unit posted $916 million in second‑quarter revenue, a 9% year‑over‑year rise but little change from the prior quarter.
In the midst of these setbacks, the firm announced a global restructuring that will result in layoffs and $700 million‑$800 million in pre‑tax charges. The program, slated to run through 2029, is projected to generate about $500 million in run‑rate savings once completed.
The outlook reflects both the competitive environment and internal efforts to streamline operations. The next earnings release will reveal whether the restructuring and strategic adjustments can stabilize the underperforming units.
