Boston Scientific — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net sales of $5.138 billion for the third quarter of 2026, representing a 1.5% increase on a reported, operational, and organic basis compared to the prior year period.
• GAAP net income attributable to common stockholders was $582 million ($0.40 per share), down from $755 million ($0.51 per share) in the prior year.
• Adjusted EPS was $0.73 for the quarter, compared to $0.75 in the prior year.
• Gross profit was $3.428 billion for the quarter, compared to $3.542 billion in the prior year.
• Operating expenses totaled $2.600 billion for the quarter, including $81 million in litigation-related net charges and $63 million in restructuring net charges.
• Operating income was $828 million for the quarter, down from $1.048 billion in the prior year.
• Net income for the nine months ended September 30, 2026, was $2.823 billion, compared to $2.222 billion in the prior year.
• Adjusted net income attributable to common stockholders for the nine months ended September 30, 2026, was $3.527 billion ($2.39 per share), compared to $3.372 billion ($2.26 per share) in the prior year.

Guidance and Future Outlook:

• Full-year 2026 net sales growth is now estimated at approximately 4.25% on a reported basis and 3.75% on an organic basis.
• Full-year 2026 adjusted EPS is estimated between $3.16 and $3.18.
• Fourth quarter 2026 net sales are estimated to decline by approximately 1.0% to 3.0% on both a reported and organic basis.
• Fourth quarter 2026 adjusted EPS is estimated between $0.77 and $0.79.
• The company cannot provide reconciliations of forward-looking adjusted EPS to GAAP guidance due to the uncertainty of intangible asset impairment charges, acquisition-related charges, restructuring charges, and litigation-related charges.

Business Segments and Product Lines:

• MedSurg segment reported 0.6% reported, 0.7% operational, and 0.7% organic net sales growth.
• Cardiovascular segment reported 1.9% reported, operational, and organic net sales growth.
• Endoscopy segment reported a 0.8% reported decline in net sales.
• Urology segment reported a 3.2% reported decline in net sales.
• Neuromodulation segment reported a 13.1% reported increase in net sales.
• Commenced enrollment in the Elite AF clinical trial for the next-generation WATCHMAN Elite™ Left Atrial Appendage Closure Device.
• Received FDA 510(k) clearance for the Navigator™ Flex Ureteral Access Sheath Set and the LithoVue™ Elite Single-Use Digital Flexible Ureteroscope with temperature sensing.
• Received FDA 510(k) clearance for an expanded size offering of the SEISMIQ™ Intravascular Lithotripsy Peripheral Catheter.
• Received Category I CPT codes from the American Medical Association for renal denervation devices (TIVUS™ Renal Denervation System) and implantable tibial nerve stimulation devices (eCoin® ITNS System), effective January 2028.
• Entered a strategic collaboration with Heartflow, Inc. to advance AI-powered, CT-guided planning for percutaneous coronary intervention (PCI) procedures.

Market and Competitive Landscape:

• United States net sales grew 0.5% reported and operational.
• Europe, Middle East and Africa (EMEA) net sales grew 4.4% reported and 6.1% operational.
• Asia-Pacific (APAC) net sales declined 0.6% reported and 1.1% operational.
• Latin America and Canada (LACA) net sales grew 16.0% reported and 10.5% operational.

Risks and Challenges:

• The company faced a cybersecurity incident reported on August 26, 2026, which impacted operations, requiring urgent response to restore operations and support customers.
• Risks include economic conditions, foreign currency fluctuations, geopolitical conflicts, supply chain disruptions, labor shortages, and variations in clinical trial outcomes.
• Future results may be materially affected by litigation, regulatory conditions, reimbursement changes, and the execution of business strategy and restructuring programs.
• The combined impact of intangible asset impairment charges, acquisition-related charges, restructuring charges, and litigation-related charges is uncertain and could be material to GAAP financial results.

Management Commentary and Tone:

• CEO Mike Mahoney described the year as challenging but expressed pride in the global teams' response to the cybersecurity incident, citing urgency and resilience.
• Management stated confidence in the long-term strategy, fueled by dedicated talent, a differentiated portfolio, and a strong pipeline of innovation.

Other Key Points:

• The company webcast its conference call with analysts on October 28, 2026, at 8:00 a.m. ET.
• Non-GAAP financial measures exclude amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges, restructuring charges, litigation-related charges, investment portfolio losses, EU MDR implementation costs, and deferred tax expenses/benefits.
• An IEEPA tariff refund of $83 million was recognized in the nine-month period and excluded from adjusted net income.