Boston Scientific Stock Slides on Second Consecutive Guidance Cut

Boston Scientific (NYSE: BSX) shares continued to slide in pre-open trading, extending losses from an earnings report two days prior where the company cut its full-year forecast for the second consecutive quarter. The lowered outlook has overshadowed better-than-expected quarterly results and triggered a wave of analyst price target reductions.

Guidance Cut Overshadows Earnings Beat

The medical device maker reported second-quarter revenue of $5.44 billion and adjusted earnings per share (EPS) of $0.86, both of which surpassed consensus analyst estimates. However, investor focus remained squarely on the company's revised outlook for the remainder of the year.

Boston Scientific lowered its full-year 2026 adjusted EPS guidance to a range of $3.28 to $3.32. The company also trimmed its full-year net sales growth forecast to between 5.5% and 6.5%, a significant reduction from prior expectations.

Headwinds in Key Franchises

Company management attributed the weaker forecast to challenges in two of its key growth divisions. According to the company, the reduction was driven by:

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• A "sharp and unexpected deceleration" in U.S. procedures for its WATCHMAN device, resulting from shifting physician referral patterns.
• "Greater-than-anticipated competitive share losses" in its electrophysiology (EP) franchise.

Compounding investor concerns, management indicated these headwinds are likely to persist through 2027. A meaningful recovery in revenue and EPS growth is not anticipated until 2028, signaling a prolonged period of slower growth for these important product lines.

Wall Street Reacts

The guidance revision and extended timeline for recovery prompted several Wall Street analysts to lower their price targets for Boston Scientific stock. Notable target cuts included JPMorgan (to $56 from $80), Raymond James (to $57 from $78), and Mizuho (to $60 from $70).

Furthermore, Argus downgraded the stock from Buy to Hold. The stock's decline has occurred while the broader U.S. equity market posted gains, underscoring that the selling pressure is specific to the company's operational challenges rather than macroeconomic factors.