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BSX Q3 Earnings Meet Estimates, Revenues Rise Y/Y, Stock Down
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Key Takeaways
BSX's Q3 revenues reached $5.14 billion, beating estimates by 0.68%, while EPS met expectations.
Higher product costs squeezed BSX's margins, while Endoscopy, Urology and APAC sales weakened.
Boston Scientific cut its 2026 sales and adjusted EPS forecasts amid cybersecurity-related challenges.
Boston Scientific Corporation (BSX - Free Report) reported third-quarter 2026 adjusted earnings of 73 cents per share, down 2.7% year over year. The figure came in line with the Zacks Consensus Estimate.
Revenues increased 1.5% on a reported, operational and organic basis to $5.14 billion, surpassing the consensus estimate by 0.68%.
Following the earnings announcement, BSX shares plunged nearly 4.6% in pre-market trading today.
BSX's Segmental Results Reflect Modest Growth
Cardiovascular revenues totaled $3.41 billion, increasing 1.9% on a reported, operational and organic basis. The segment remained Boston Scientific's largest business, accounting for approximately two-thirds of consolidated revenues.
MedSurg revenues increased 0.6% to $1.73 billion, with operational and organic growth of 0.7%. Within the segment, Neuromodulation sales climbed 13.1% year over year to $331 million. However, Endoscopy revenues declined 0.8% to $741 million, while Urology sales fell 3.2% to $661 million.
Boston Scientific Posts Mixed Regional Sales
U.S. revenues increased 0.5% to $3.31 billion. The domestic market remained the company's largest region, contributing approximately 64.4% of consolidated sales.
Boston Scientific Corporation Price, Consensus and EPS Surprise
Europe, Middle East and Africa ("EMEA") revenues rose 4.4% to $829 million, with operational growth of 6.1%. Latin America and Canada ("LACA") sales advanced 16% to $203 million, although operational growth was lower at 10.5%. Asia-Pacific ("APAC") revenues declined 0.6% to $797 million, with an operational decline of 1.1%.
BSX's Margins Contract Amid Higher Product Costs
Boston Scientific's adjusted gross margin contracted approximately 299 basis points (bps) year over year to 68%. The cost of products sold increased 12.3% to $1.71 billion, outpacing revenue growth and pressuring profitability.
Selling, general and administrative expenses declined 3.3% to $1.68 billion. Research and development expenses increased 1.2% to $520 million, while royalty expenses remained unchanged at $12 million. Adjusted operating income dropped 3.9% year over year to $1.36 billion, with adjusted operating margin contracting approximately 147 bps to 26.5%.
BSX’s Full-Year and Q4 Guidance
Boston Scientific now expects full-year 2026 reported sales growth of approximately 4.25%, down from its previous forecast of 5.5-6.5%. Organic sales growth is projected at approximately 3.75% compared with the earlier guidance of 5-6%. The Zacks Consensus Estimate is currently pegged at $21.17 billion.
Management also lowered its full-year adjusted earnings forecast to $3.16-$3.18 per share from the previous range of $3.28-$3.32. The Zacks Consensus Estimate for the metric stands at $3.22.
For the fourth quarter, Boston Scientific anticipates reported and organic sales declines of 1-3%. Adjusted earnings are expected between 77 and 79 cents per share. The Zacks Consensus Estimate for fourth-quarter revenues and earnings is pegged at $5.39 billion and 83 cents, respectively.
Management acknowledged operational challenges stemming from the August 2026 cybersecurity incident. Despite these disruptions, the company remains focused on restoring operations, supporting customers and advancing its differentiated product portfolio.
Our Take on BSX
Boston Scientific exited the third quarter of 2026 with earnings meeting estimates and revenues surpassing expectations. However, the company faced operational challenges stemming from the August cybersecurity incident, while sluggish sales in Endoscopy and Urology and weakness in APAC weighed on performance. The contraction in adjusted gross and operating margins is also concerning. Although Neuromodulation maintained double-digit growth, the reduction in full-year sales and adjusted earnings guidance remains discouraging.
On a positive note, Boston Scientific continued advancing its product pipeline and expanding its technology portfolio. During the quarter, the company commenced enrollment in the Elite AF clinical trial to evaluate its next-generation WATCHMAN Elite Left Atrial Appendage Closure Device. It also secured FDA 510(k) clearances for the Navigator Flex Ureteral Access Sheath Set, LithoVue Elite Ureteroscope and expanded sizes of the SEISMIQ Intravascular Lithotripsy Peripheral Catheter. Its strategic collaboration with Heartflow to advance AI-powered coronary intervention planning supports the company's focus on innovation.
BSX’s Zacks Rank and Key Picks
Boston Scientific currently carries a Zacks Rank #4 (Sell).
Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace, carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
Elevance Health, carrying a Zacks Rank #2 at present, posted third-quarter 2026 adjusted EPS of $6.99, exceeding the Zacks Consensus Estimate by 50%. Revenues of $50.44 billion outperformed the Zacks Consensus Estimate by 4.01%.
ELV has an earnings yield of 6.5% compared with the industry’s 3.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 23.85%.
View the Zacks #1 Rank List
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BSX Q3 Earnings Meet Estimates, Revenues Rise Y/Y, Stock Down
Key Takeaways
Boston Scientific Corporation (BSX - Free Report) reported third-quarter 2026 adjusted earnings of 73 cents per share, down 2.7% year over year. The figure came in line with the Zacks Consensus Estimate.
Revenues increased 1.5% on a reported, operational and organic basis to $5.14 billion, surpassing the consensus estimate by 0.68%.
Following the earnings announcement, BSX shares plunged nearly 4.6% in pre-market trading today.
BSX's Segmental Results Reflect Modest Growth
Cardiovascular revenues totaled $3.41 billion, increasing 1.9% on a reported, operational and organic basis. The segment remained Boston Scientific's largest business, accounting for approximately two-thirds of consolidated revenues.
MedSurg revenues increased 0.6% to $1.73 billion, with operational and organic growth of 0.7%. Within the segment, Neuromodulation sales climbed 13.1% year over year to $331 million. However, Endoscopy revenues declined 0.8% to $741 million, while Urology sales fell 3.2% to $661 million.
Boston Scientific Posts Mixed Regional Sales
U.S. revenues increased 0.5% to $3.31 billion. The domestic market remained the company's largest region, contributing approximately 64.4% of consolidated sales.
Boston Scientific Corporation Price, Consensus and EPS Surprise
Boston Scientific Corporation price-consensus-eps-surprise-chart | Boston Scientific Corporation Quote
Europe, Middle East and Africa ("EMEA") revenues rose 4.4% to $829 million, with operational growth of 6.1%. Latin America and Canada ("LACA") sales advanced 16% to $203 million, although operational growth was lower at 10.5%. Asia-Pacific ("APAC") revenues declined 0.6% to $797 million, with an operational decline of 1.1%.
BSX's Margins Contract Amid Higher Product Costs
Boston Scientific's adjusted gross margin contracted approximately 299 basis points (bps) year over year to 68%. The cost of products sold increased 12.3% to $1.71 billion, outpacing revenue growth and pressuring profitability.
Selling, general and administrative expenses declined 3.3% to $1.68 billion. Research and development expenses increased 1.2% to $520 million, while royalty expenses remained unchanged at $12 million. Adjusted operating income dropped 3.9% year over year to $1.36 billion, with adjusted operating margin contracting approximately 147 bps to 26.5%.
BSX’s Full-Year and Q4 Guidance
Boston Scientific now expects full-year 2026 reported sales growth of approximately 4.25%, down from its previous forecast of 5.5-6.5%. Organic sales growth is projected at approximately 3.75% compared with the earlier guidance of 5-6%. The Zacks Consensus Estimate is currently pegged at $21.17 billion.
Management also lowered its full-year adjusted earnings forecast to $3.16-$3.18 per share from the previous range of $3.28-$3.32. The Zacks Consensus Estimate for the metric stands at $3.22.
For the fourth quarter, Boston Scientific anticipates reported and organic sales declines of 1-3%. Adjusted earnings are expected between 77 and 79 cents per share. The Zacks Consensus Estimate for fourth-quarter revenues and earnings is pegged at $5.39 billion and 83 cents, respectively.
Management acknowledged operational challenges stemming from the August 2026 cybersecurity incident. Despite these disruptions, the company remains focused on restoring operations, supporting customers and advancing its differentiated product portfolio.
Our Take on BSX
Boston Scientific exited the third quarter of 2026 with earnings meeting estimates and revenues surpassing expectations. However, the company faced operational challenges stemming from the August cybersecurity incident, while sluggish sales in Endoscopy and Urology and weakness in APAC weighed on performance. The contraction in adjusted gross and operating margins is also concerning. Although Neuromodulation maintained double-digit growth, the reduction in full-year sales and adjusted earnings guidance remains discouraging.
On a positive note, Boston Scientific continued advancing its product pipeline and expanding its technology portfolio. During the quarter, the company commenced enrollment in the Elite AF clinical trial to evaluate its next-generation WATCHMAN Elite Left Atrial Appendage Closure Device. It also secured FDA 510(k) clearances for the Navigator Flex Ureteral Access Sheath Set, LithoVue Elite Ureteroscope and expanded sizes of the SEISMIQ Intravascular Lithotripsy Peripheral Catheter. Its strategic collaboration with Heartflow to advance AI-powered coronary intervention planning supports the company's focus on innovation.
BSX’s Zacks Rank and Key Picks
Boston Scientific currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Medpace (MEDP - Free Report) and Elevance Health (ELV - Free Report) .
Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace, carrying a Zacks Rank #2 (Buy), reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
Elevance Health, carrying a Zacks Rank #2 at present, posted third-quarter 2026 adjusted EPS of $6.99, exceeding the Zacks Consensus Estimate by 50%. Revenues of $50.44 billion outperformed the Zacks Consensus Estimate by 4.01%.
ELV has an earnings yield of 6.5% compared with the industry’s 3.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 23.85%.