Boston Scientific (BSX) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $5.138B, up 1.5% reported, operational and organic; adjusted EPS was $0.73 versus $0.75 a year earlier, below guidance.

• Results reflected strong Interventional Cardiology & Vascular Therapies and Neuromodulation growth, offset by declines in WATCHMAN, EP, Urology and Cardiac Rhythm Management; the August cyber incident disrupted operations.

Financial highlights

• Q3 sales were $5.138B versus $5.065B in Q3 2025; reported, operational and organic growth were each 1.5%.

• GAAP diluted EPS was $0.40 versus $0.51; adjusted diluted EPS was $0.73 versus $0.75.

• Adjusted gross margin was 68.0%, down 300 bps YoY; adjusted operating margin was 26.5%, down 150 bps, while GAAP operating margin was 16.1%.

• Q3 free cash flow was $867M, versus $1.163B in Q3 2025; operating cash flow was $1.047B and net capital expenditures were $180M.

• 9M net sales were $15.784B versus $14.788B; GAAP diluted EPS was $1.92 versus $1.49 and adjusted EPS was $2.39 versus $2.26.

Outlook and guidance

• Q4 2026 sales are guided to decline 1.0%–3.0% reported and organic; adjusted EPS is expected at $0.77–$0.79.

• Cyber-related customer inventory normalization is expected to weigh on Q4 growth by 200–300 bps and adjusted EPS by $0.04–$0.05.

• FY2026 reported sales growth is expected at ~4.25%, organic growth at ~3.75%, and adjusted EPS at $3.16–$3.18.

• FY2026 adjusted operating margin is expected at ~27.6%, adjusted tax rate at ~12%, and free cash flow at ~$3.6B; adjusted gross margin is expected below FY2025.

• 2027 revenue and adjusted EPS growth are expected to be challenging, with stabilization targeted in 2027 and improvement in 2028; launches are expected to support recovery.