third quarter 2026
Filed Oct 28, 2026Boston Scientific reported third-quarter net sales of $5.138 billion, up 1.5 percent, while GAAP EPS declined to $0.40 and adjusted EPS declined to $0.73 amid a cybersecurity incident and several charges.
Net sales increased 1.5 percent on a reported, operational and organic basis, but GAAP net income attributable to common stockholders declined to $582 million from $755 million and adjusted EPS declined to $0.73 from $0.75. The company also expects fourth-quarter net sales to decline by approximately (3.0) to (1.0) percent.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $5.14B | – | 1.5 % |
| Cost of products sold (excluding amortization expense), three months ended September 30, 2026GAAP | $1.71B | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $3.43B | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $1.68B | – | – |
| Research and development expenses, three months ended September 30, 2026GAAP | $520M | – | – |
| Royalty expense, three months ended September 30, 2026GAAP | $12M | – | – |
| Amortization expense, three months ended September 30, 2026GAAP | $234M | – | – |
| Intangible asset impairment charges, three months ended September 30, 2026GAAP | $39M | – | – |
| Restructuring net charges (credits), three months ended September 30, 2026GAAP | $63M | – | – |
| Contingent consideration net expense (benefit), three months ended September 30, 2026GAAP | −$32M | – | – |
| Litigation-related net charges (credits), three months ended September 30, 2026GAAP | $81M | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | $2.6B | – | – |
| Operating income (loss), three months ended September 30, 2026GAAP | $828M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$100M | – | – |
| Other, net, three months ended September 30, 2026GAAP | $4M | – | – |
| Income (loss) before income taxes, three months ended September 30, 2026GAAP | $733M | – | – |
| Income tax expense (benefit), three months ended September 30, 2026GAAP | $153M | – | – |
| Net income (loss), three months ended September 30, 2026GAAP | $580M | – | – |
| Net income (loss) attributable to Boston Scientific common stockholders, three months ended September 30, 2026GAAP | $582M | – | – |
| Net income (loss) per common share - basic, three months ended September 30, 2026GAAP | $0.40 | – | – |
| Net income (loss) per common share - diluted, three months ended September 30, 2026GAAP | $0.40 | – | – |
| Adjusted gross profit, three months ended September 30, 2026non-GAAP | $3.49B | – | – |
| Adjusted operating expenses, three months ended September 30, 2026non-GAAP | $2.13B | – | – |
| Adjusted operating income (loss), three months ended September 30, 2026non-GAAP | $1.36B | – | – |
| Adjusted net income (loss) attributable to Boston Scientific common stockholders, three months ended September 30, 2026non-GAAP | $1.06B | – | – |
| Adjusted EPS, three months ended September 30, 2026non-GAAP | $0.73 | – | – |
| Net sales, nine months ended September 30, 2026GAAP | $15.78B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $10.89B | – | – |
| Operating expenses, nine months ended September 30, 2026GAAP | $7.78B | – | – |
| Operating income (loss), nine months ended September 30, 2026GAAP | $3.11B | – | – |
| Net income (loss) attributable to Boston Scientific common stockholders, nine months ended September 30, 2026GAAP | $2.83B | – | – |
| Net income (loss) per common share - diluted, nine months ended September 30, 2026GAAP | $1.92 | – | – |
| Adjusted operating income (loss), nine months ended September 30, 2026non-GAAP | $4.37B | – | – |
| Adjusted net income (loss) attributable to Boston Scientific common stockholders, nine months ended September 30, 2026non-GAAP | $3.53B | – | – |
| Adjusted EPS, nine months ended September 30, 2026non-GAAP | $2.39 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| EndoscopyImpact of foreign currency fluctuations was 0.1 %. | $741M | – | (0.8) % reported; (0.6) % operational; (0.6) % organic |
| UrologyImpact of foreign currency fluctuations was 0.1 %. | $661M | – | (3.2) % reported; (3.1) % operational; (3.1) % organic |
| NeuromodulationImpact of foreign currency fluctuations was (0.1) %. | $331M | – | 13.1 % reported; 13.0 % operational; 13.0 % organic |
| MedSurgEndoscopy, Urology and Neuromodulation are reported within MedSurg. | $1.73B | – | 0.6 % reported; 0.7 % operational; 0.7 % organic |
| CardiovascularImpact of foreign currency fluctuations was (0.0) %. | $3.41B | – | 1.9 % reported; 1.9 % operational; 1.9 % organic |
| U.S.Impact of foreign currency fluctuations was — %. | $3.31B | – | 0.5 % reported and operational |
| EMEAImpact of foreign currency fluctuations was 1.7 %. | $829M | – | 4.4 % reported; 6.1 % operational |
| APACImpact of foreign currency fluctuations was (0.4) %. | $797M | – | (0.6) % reported; (1.1) % operational |
| LACAImpact of foreign currency fluctuations was (5.5) %. | $203M | – | 16.0 % reported; 10.5 % operational |
Full Year and Fourth Quarter 2026 outlook
- RevenueFull year 2026: approximately 4.25 percent reported net sales growth and approximately 3.75 percent organic net sales growth. Fourth quarter 2026: approximately (3.0) to (1.0) percent reported and organic net sales growth/(decline).
- NoteFull year 2026 adjusted EPS, excluding certain charges (credits): $3.16 to $3.18.
- NoteFourth quarter 2026 adjusted EPS, excluding certain charges (credits): $0.77 to $0.79.
- NoteFull year 2026 estimated impact of foreign currency fluctuations: ~(0.5)%.
- NoteFourth quarter 2026 estimated impact of foreign currency fluctuations: — %.
What drove it
- Third-quarter net sales grew 1.5 percent on a reported, operational and organic basis compared to the prior year period.
- Neuromodulation net sales increased 13.1 % on a reported basis.
- LACA net sales increased 16.0 % on a reported basis and 10.5 % on an operational basis.
- The company commenced enrollment in the Elite AF clinical trial for the next-generation WATCHMAN Elite™ Left Atrial Appendage Closure Device.
- The company received U.S. FDA 510(k) clearance for two StoneSmart™ Solutions technologies and for an expanded size offering of the SEISMIQ™ Intravascular Lithotripsy Peripheral Catheter.
- The company entered into a strategic collaboration with Heartflow, Inc. to advance AI-powered CT-guided planning for PCI procedures.
Concerns
- The cybersecurity incident first reported on August 26, 2026 affected operations and financial results according to the forward-looking statements and risk disclosures.
- Endoscopy net sales declined (0.8) % on a reported basis, Urology net sales declined (3.2) %, and APAC net sales declined (0.6) %.
- Third-quarter GAAP operating income was $828 million compared to $1,048 million, while GAAP net income attributable to common stockholders was $582 million compared to $755 million.
- Third-quarter results included $39 million of intangible asset impairment charges, $63 million of restructuring net charges (credits), and $81 million of litigation-related net charges (credits).
- Fourth-quarter guidance calls for net sales to decline by approximately (3.0) to (1.0) percent on a reported and organic basis.
What to watch
- The operational and financial impacts of the August 2026 cybersecurity incident.
- Fourth-quarter reported and organic net sales growth/(decline) guidance of approximately (3.0) to (1.0) percent.
- Fourth-quarter adjusted EPS guidance of $0.77 to $0.79.
- Full-year adjusted EPS guidance of $3.16 to $3.18.
- Performance in Urology, Endoscopy and APAC following their third-quarter reported net sales declines.
- Enrollment progress in the Elite AF clinical trial and product commercialization following the disclosed FDA 510(k) clearances.
Analysis
Boston Scientific generated third-quarter net sales of $5.138 billion, compared with $5.065 billion in the prior-year period. The company described growth as 1.5 percent on reported, operational and organic bases. Cardiovascular revenue was $3,406 million and grew 1.9 percent on each basis, while MedSurg revenue was $1,733 million and grew 0.6 percent reported and 0.7 percent operational and organic.
Growth was uneven across underlying businesses and regions. Neuromodulation increased 13.1 percent on a reported basis, while Endoscopy declined (0.8) percent and Urology declined (3.2) percent. U.S. revenue grew 0.5 percent, EMEA grew 4.4 percent reported and 6.1 percent operational, APAC declined (0.6) percent reported and (1.1) percent operational, and LACA grew 16.0 percent reported and 10.5 percent operational.
Profitability was lower in the quarter on both reported and adjusted measures. GAAP gross profit was $3,428 million versus $3,542 million, GAAP operating income was $828 million versus $1,048 million, and GAAP net income attributable to Boston Scientific common stockholders was $582 million versus $755 million. GAAP diluted EPS was $0.40 versus $0.51. Adjusted operating income was $1,364 million versus $1,419 million, adjusted net income attributable to common stockholders was $1,063 million versus $1,124 million, and adjusted EPS was $0.73 versus $0.75.
The reported GAAP results included $39 million of intangible asset impairment charges, $63 million of restructuring net charges (credits), and $81 million of litigation-related net charges (credits). For the nine months ended September 30, net sales were $15,784 million versus $14,788 million, GAAP diluted EPS was $1.92 versus $1.49, and adjusted EPS was $2.39 versus $2.26. The nine-month non-GAAP reconciliation also included an IEEPA tariff refund adjustment of $(77) million to adjusted net income attributable to Boston Scientific common stockholders.
Management now estimates full-year reported net sales growth of approximately 4.25 percent and organic net sales growth of approximately 3.75 percent, with adjusted EPS of $3.16 to $3.18. The fourth-quarter outlook calls for reported and organic net sales to decline by approximately (3.0) to (1.0) percent and adjusted EPS of $0.77 to $0.79. The company identified the cybersecurity incident first reported on August 26, 2026 as a risk to operations and financial results, while also disclosing clinical, regulatory and technology-development actions including Elite AF enrollment, FDA clearances and the Heartflow collaboration.
Management, verbatim
This has been a challenging year for Boston Scientific and I’m proud of how our global teams have responded, particularly to the cybersecurity incident, working with urgency and resilience to restore operations and continue supporting customers and patients.
Mike Mahoney, chairman and chief executive officer, Boston Scientific
As we move forward, I remain confident in our long-term strategy, fueled by our dedicated talent, differentiated portfolio and strong pipeline of meaningful innovation.
Mike Mahoney, chairman and chief executive officer, Boston Scientific
Not in the filing
stated, not guessed- Prior-period outlook was not provided, so comparison with prior guidance is unavailable.
- GAAP gross margin was not reported.
- Non-GAAP gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and cash equivalents were not reported.
- Debt was not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- Capital-return activity was not reported.
- GAAP tax rate was not reported.
- Full-year and fourth-quarter GAAP EPS guidance was not provided.
- Full-year and fourth-quarter gross-margin, operating-expense and tax-rate guidance was not provided.
- Prior-quarter comparisons were not reported for the presented metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.