Boston Scientific (BSX) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $5.44B, up 7.5% year-over-year, with organic growth at 7.0%; adjusted EPS was $0.86, up 15% year-over-year, and GAAP EPS was $0.61.

• Growth was led by Interventional Cardiology, Endoscopy, Neuromodulation, and Cardiovascular segments, supported by innovation and strong clinical trial results.

• Completed a $2B accelerated share repurchase (~40M shares) and invested $1.5B in MiRus LLC for a 34% equity stake and exclusive TAVR option.

• Announced a restructuring program targeting $500M in run rate savings by 2029, with over half realized by end of 2027.

• Near-term outlook pressured by declines in WATCHMAN and electrophysiology (EP) businesses; major acquisition of Penumbra expected to close in H2 2026.

Financial highlights

• Q2 2026 consolidated revenue: $5.44B, up 7.5% reported and 7.0% organic year-over-year; adjusted EPS: $0.86; GAAP EPS: $0.61.

• Gross margin: 70.7% as reported (+300 bps YoY); adjusted: 70.3% (+80 bps YoY); operating margin: 21.7% as reported, adjusted: 28.4%.

• Free cash flow for Q2: $1.29B; full-year 2026 expected at $3.8B.

• Share count reduced to 1.475B via accelerated repurchase.

• Operating expenses included $1.803B in SG&A and $554M in R&D for Q2 2026.

Outlook and guidance

• Full-year 2026 organic revenue growth expected at 5%-6%; adjusted EPS $3.28-$3.32 (7%-8% growth).

• Q3 2026 guidance: organic revenue growth 3%-5%, adjusted EPS $0.80-$0.82.

• Second half 2026: flat global EP growth, mid to high single-digit decline in WATCHMAN, base business to grow ~6%.

• 2027 expected to remain pressured with limited EPS growth; meaningful improvement anticipated in 2028 with new product launches and restructuring benefits.

• Management notes ongoing macroeconomic and geopolitical uncertainties but expects to fund operations and investments for the next 12 months.