Boston Scientific Stock Drops on Cautious 2026 Outlook

Forecast Overshadows Strong Q4 Performance

Boston Scientific Corp shares declined more than 11% in premarket trading after the company issued a cautious financial outlook for 2026. The guidance overshadowed a fourth-quarter performance that exceeded Wall Street estimates, signaling investor concern over future growth.

Financial Outlook Breakdown

The medical device manufacturer projects its 2026 adjusted earnings per share to be between $3.43 and $3.49. The midpoint of this range falls just short of the average analyst estimate of $3.47. Furthermore, the company anticipates organic revenue growth of 10% to 11% for 2026, a notable deceleration from the 15.8% growth recorded in 2025.

Quarterly Performance vs. Market Reaction

The market's negative reaction contrasts with the company's solid fourth-quarter results. Boston Scientific reported adjusted earnings of 80 cents per share and revenue of $5.29 billion, beating consensus estimates of 78 cents and $5.28 billion, respectively. The forecast for the first quarter of 2026 was largely in line with expectations.

Summary

Investors are focusing on the projected slowdown in growth for 2026 rather than the recent positive earnings report. This cautious forward-looking guidance is the primary driver behind the significant drop in the company's stock value.

FAQ

Q: Why did Boston Scientific's stock fall despite a strong quarter?
A: The stock fell because its financial forecast for 2026, including revenue growth and profit, was more modest than analysts had anticipated.

Q: What were Boston Scientific's key Q4 results?
A: For the fourth quarter, the company reported adjusted earnings of 80 cents per share on revenue of $5.29 billion, surpassing analyst expectations.

Source: Investing.com