Boston Scientific Slashes Full-Year Guidance for Third Time in 2026 After Cyberattack Hammers Q4 Outlook

Boston Scientific cut its full-year 2026 earnings guidance for the third time this year after a cyberattack that struck in August continued to weigh on its business, sending shares down roughly 12 percent to a 52-week low of $41.12 and their worst level in four years. The company now expects full-year adjusted EPS of $3.16 to $3.18, below the prior Wall Street consensus of $3.23, and projects fourth-quarter reported and organic net sales growth of negative 3 percent to negative 1 percent, a sharp reversal from earlier expectations. Q4 adjusted EPS guidance of $0.77 to $0.79 also fell well short of the $0.84 analyst estimate.

Third-quarter results were mixed on their own terms. Net sales of $5.14 billion came in ahead of the $5.05 billion estimate and grew 1.5 percent on a reported and organic basis year over year, while adjusted EPS of $0.73 met or slightly beat consensus. GAAP EPS of $0.40, however, fell 22 percent from the prior year period. By segment, Neuromodulation was the standout at $331 million, up 13.1 percent, while Cardiovascular generated $3.4 billion, up 1.9 percent. Weakness was concentrated in Urology, down 3.2 percent to $661 million, and Endoscopy, down 0.8 percent to $741 million. For the full year, the company now guides to reported net sales growth of roughly 4.25 percent and organic growth of roughly 3.75 percent.

Management attributed the deteriorating outlook primarily to the August cybersecurity incident, which disrupted operations and customer support. CEO commentary cited urgency in restoring systems while expressing confidence in the company's long-term strategy, differentiated portfolio, and innovation pipeline. On the regulatory front, the company received FDA 510(k) clearance for two StoneSmart Solutions technologies and expanded sizing indications for its SEISMIQ system, and renal denervation reimbursement received Category I CPT codes set to take effect in January 2028.

JP Morgan downgraded the stock on the day of the report, citing new negatives it expects to weigh on shares. Evergreen Capital Management had separately disclosed growing its BSX position by 236.2 percent in the third quarter, adding 17,820 shares to bring its total to 25,363 shares, though that filing predated the guidance cut.