Boston Scientific’s first quarter saw a strong positive market reaction, underpinned by solid organic sales growth and improved operating margins. Management attributed the quarterly outperformance to robust demand in neuromodulation, interventional cardiology, and continued adoption of newer platforms such as FARAPULSE and WATCHMAN FLX Pro. CEO Michael Mahoney noted that five of the company’s eight business units posted double-digit growth in the U.S., with Asia Pacific also delivering significant operational gains. However, the quarter was not without challenges, as certain product lines, including urology and standalone WATCHMAN procedures, underperformed due to operational and market-specific issues.
Is now the time to buy BSX? Find out in our full research report (it’s free for active Edge members).
Boston Scientific (BSX) Q1 CY2026 Highlights:
- Revenue: $5.20 billion vs analyst estimates of $5.18 billion (11.6% year-on-year growth, 0.5% beat)
- Adjusted EPS: $0.80 vs analyst estimates of $0.79 (1.6% beat)
- Adjusted EBITDA: $1.60 billion vs analyst estimates of $1.56 billion (30.8% margin, 2.5% beat)
- Revenue Guidance for Q2 CY2026 is $5.39 billion at the midpoint, below analyst estimates of $5.55 billion
- Management lowered its full-year Adjusted EPS guidance to $3.38 at the midpoint, a 2.5% decrease
- Operating Margin: 21.2%, up from 19.8% in the same quarter last year
- Organic Revenue rose 9.4% year on year (beat)
- Market Capitalization: $86.87 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Boston Scientific’s Q1 Earnings Call
- Robert Marcus (JPMorgan) asked what prompted the lower guidance after initial optimism and how management remains confident in long-term goals; CEO Michael Mahoney explained the revision was due to unexpected volume declines in WATCHMAN, share erosion in EP, and underperformance in urology.
- Joanne Wuensch (Citi) pressed for details on how quarterly performance in EP, WATCHMAN, and urology would evolve through the year; CFO Jonathan Monson clarified that Q2 would be the toughest quarter, with gradual improvement expected in the second half.
- Larry Biegelsen (Wells Fargo) questioned the degree and sources of EP share pressure; Mahoney attributed it to increased competition from other major market players, noting a prudent reduction in U.S. growth expectations.
- Frederick Wise (Stifel) asked about controversy surrounding the CHAMPION data for WATCHMAN and the company’s strategy to address procedure growth; Mahoney and Dr. Ken Stein detailed plans for increased commercial investment and physician education to drive adoption.
- Marie Thibault (BTIG) inquired about the pace of recovery in urology, specifically sacral neuromodulation; Mahoney cited slow progress due to commercial turnover but expressed confidence in the new team and training investments.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will closely monitor (1) adoption rates and operational capacity for new product launches like FARAPULSE and expanded indications for WATCHMAN, (2) tangible improvements in urology sales execution and product pipeline progress, and (3) the integration and performance impact of upcoming M&A activities, notably the anticipated closing of the Penumbra acquisition. These milestones will be key indicators of Boston Scientific’s ability to regain momentum in growth and profitability.
Boston Scientific currently trades at $58.47, down from $59.52 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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