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Boston Scientific's MedSurg Diversification Bolsters Growth Prospects

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Key Takeaways

  • Boston Scientific's Endoscopy sales rose 7%, driven by broad strength and another strong AXIOS quarter.
  • Boston Scientific's Urology grew 1% as recovery lagged and stone management faced portfolio gaps.
  • Boston Scientific's Neuromodulation sales climbed 12%, led by pain strength and DBS franchise growth.

Boston Scientific’s (BSX - Free Report) MedSurg segment continues to provide a diversified and stable revenue base. Within this, Endoscopy sales grew 7% year over year in the second quarter of 2026, driven by strong performance across the business and another better-than-expected quarter for AXIOS Stent and Delivery System. The company also received FDA clearance for RIVOS, a first-of-its-kind single device designed to consolidate multiple exchanges and simplify endoscopic ultrasound biliary drainage.

Urology results fell short of its expectations, growing 1% this quarter, as the recovery in sacral neuromodulation continued to take longer than anticipated. Stone management also remained under pressure due to key portfolio gaps that the company plans to address over the next three quarters. Management now expects full-year growth in the business to be flat to low-single digits.

However, Boston Scientific remains confident that the long-term trajectory in Urology will improve in 2027. Three key launches are planned for its core stone portfolio over the next two to three quarters, which should help the business move closer to market growth next year. The company has also addressed a significant disruption to its sacral neuromodulation commercial capabilities by hiring and training new clinical and sales representatives, who are now in the field.

Neuromodulation sales grew 12% in the second quarter, supported by strength across its pain portfolio. The Intracept Intraosseous Nerve Ablation System continues to gain momentum, aided by compelling five-year data highlighting its long-term efficacy and cost-effectiveness for chronic low back pain. Boston Scientific also benefited from a full quarter of contribution from Nalu Medical, while integration efforts continued to progress. The company’s deep brain stimulation (DBS) franchise maintained strong global growth, supported by differentiated offerings, including Cartesia Leads, Illumina programming and the DBS Patient Controller.

BSX Peers Update

Medtronic (MDT - Free Report) recently strengthened its Medical Surgical portfolio with the FDA clearance of its LigaSure RAS Maryland jaw device for use with the Hugo robotic-assisted surgery (RAS) system. The clearance expands the instruments available on the Hugo RAS system and brings the company’s established vessel-sealing technology to U.S. surgeons performing robotic-assisted procedures. Medtronic also announced a $700 million investment in Cornerstone Robotics, including rights to distribute its Sentire surgical system in select international markets where the system is market-approved.

Teleflex (TFX - Free Report) announced the publication of its latest peer-reviewed study in the American Journal of Infection Control. The findingsdemonstrated that Central Venous Catheters protected with Teleflex’s Arrowg+ard technology were associated with a statistically significant 70% lower hazard of central line-associated bloodstream infections compared with plain, non-impregnated catheters during a 30-day period.

The Zacks Rundown for BSX Stock

Over the past six months, Boston Scientific shares have dropped 30.2% compared with the industry’s 7.1% decline.   

Zacks Investment Research
Image Source: Zacks Investment Research

Boston Scientific trades at a forward, five-year Price-to-Sales ratio of 2.89 compared with the 2.12 industry average. 

Zacks Investment Research
Image Source: Zacks Investment Research

Over the past three months, analysts have lowered their earnings estimates for the company, as shown in the image below.

Zacks Investment Research
Image Source: Zacks Investment Research

BSX stock currently carries a Zacks Rank #4 (Sell).  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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