NEW YORK, July 29, 2026, 09:00 EDT — Boston Scientific NYSE:BSX shares declined after the medical device maker’s strong overseas results helped balance a downturn in its U.S. cardiac business.
Shares of Boston Scientific NYSE:BSX fluctuated by almost 10 percentage points in premarket trading on Wednesday. The stock dropped 5.1% to $43.71 as of 8:47 a.m. EDT, after previously rising 4.6%.
The reversal came after a second downgrade to the 2026 outlook since April. A quarterly beat failed to sway investors as Watchman concerns weighed on the second-half view.
The primary indicator for investors is found within two cardiac franchises. Roughly 68% of the combined dollar growth for Watchman and electrophysiology came from international markets.
Only 25% of their current-quarter sales accounted for that contribution. The figures are rounded, according to the company.
| Q2 combined Watchman and electrophysiology | United States | International |
|---|---|---|
| Sales | $1.065 billion | $358 million |
| Increase over last year | $32 million | $66 million |
| Growth rate | 3.1% | 22.6% |
Derived using Boston Scientific’s disclosed geographic sales data.
The divide indicates that international demand is mitigating, rather than resolving, weakness in the U.S. Both franchises saw domestic growth hold close to 3%.
Quarterly earnings surpassed expectations. Adjusted earnings per share came in at $0.86, compared to the $0.83 projected by LSEG.
Revenue increased by 7.5% to $5.44 billion, surpassing analysts’ forecasts of $5.36 billion.
| Metric | Q2 result or new guidance | Prior guidance or consensus |
|---|---|---|
| Q2 revenue | $5.44 billion | $5.36 billion consensus |
| Q2 adjusted EPS | $0.86 | $0.83 consensus |
| 2026 organic sales growth | 5.0%–6.0% | 6.5%–8.0% previous |
| 2026 adjusted EPS | $3.28–$3.32 | $3.34–$3.41 previous; $3.36 consensus |
Figures represent company forecasts alongside LSEG consensus projections.
Organic growth guidance was reduced by 1.75 percentage points at the midpoint. The midpoint for adjusted EPS declined 2.2% compared with April’s range.
Boston Scientific attributed Watchman weakness to a decline in standalone procedures. Physicians are more often implanting the device alongside other heart treatments in a single session.
Chairman and CEO Mike Mahoney described the results as a “solid quarter” despite a “dynamic environment.” He stated that Boston Scientific will focus on investments with the greatest impact. Boston Scientific
Profitability increased even as growth slowed. Adjusted operating margin rose to 28.4%, an increase of 70 basis points.
Free cash flow for the second quarter came in at $1.29 billion. The firm projects approximately $3.8 billion for 2026.
The restructuring provides an additional opportunity to impact earnings. Expected pretax charges are between $700 million and $800 million. Yearly gross savings may amount to approximately $500 million.
When fully implemented, this represents 1.4 to 1.6 years’ worth of gross savings compared to the charge. This does not constitute a profit forecast.
A significant portion of the savings is earmarked for growth initiatives. The strategy calls for a reduction in workforce, with completion targeted by end-2029.
Risks: U.S. Watchman and electrophysiology performance could remain subdued. Cost savings might be delayed, and reinvestments could restrict improvements in margins.
The upcoming Q3 test is next. The forecast projects sales growth of 3% to 5%, and adjusted EPS between $0.80 and $0.82. Continued strength from international demand remains important.
