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Boston Scientific Cuts Full-Year Forecast on Weaker Watchman Demand
Boston Scientific on Wednesday lowered its full-year profit and sales forecast, citing weaker-than-expected demand for its Watchman heart device. The revised outlook overshadowed a second-quarter earnings report that surpassed analyst expectations, initially sending the company's shares up in premarket trading.
Revised Outlook and Q2 Results
The company announced it now anticipates full-year performance to be lower than previously guided. The updated forecast comes despite a strong second quarter where Boston Scientific outperformed market consensus.
- 2026 Adjusted EPS Forecast: Lowered to a range of $3.28 to $3.32 per share, down from its prior view of $3.34 to $3.41. Analysts had expected $3.36 per share, according to LSEG data.
- 2026 Organic Sales Growth Forecast: Trimmed to 5% to 6%, compared to the previous range of 6.5% to 8%.
This guidance contrasts with second-quarter results that beat estimates. The company posted an adjusted profit of 86 cents per share on revenue of $5.44 billion, ahead of analyst expectations for 83 cents per share and $5.36 billion in revenue.
Watchman Device Faces Headwinds
AdThe primary driver for the reduced forecast is pressure on sales of the Watchman, a small implant designed to prevent stroke-causing blood clots in patients with atrial fibrillation. Boston Scientific said it is seeing a decline in standalone Watchman procedures.
This slowdown is occurring because physicians are increasingly opting to combine the implant procedure with other cardiac treatments during a single patient visit. As a result, the company said it expects flat revenue growth for the Watchman device in the second and likely third quarters.
Company-Wide Restructuring
Separately, Boston Scientific's board approved a new company-wide restructuring plan on July 21. The initiative is aimed at cutting costs and positioning the company for future growth through supply chain optimization, shifts in manufacturing, and other organizational changes.
The company expects the restructuring plan to be substantially complete by the end of 2029.
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