Boston Scientific 2Q26: The 2027 talk-down we were waiting for?

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Boston Scientific 2Q26: The 2027 talk-down we were waiting for?

n the earnings call and in our follow-up call offering an updated framework for how

to think about 2027 and 2028 revenue and EPS. In Exhibit 3, we summarize what we heard from management re: a rough

framework for 2027.

Dynamics pressuring 2026 expected to continue into 2027, with meaningful improvement in 2028. In our follow-up call,

leadership suggested a starting point for FY27 around 2%-4% organic growth (excluding Penumbra), which is clearly below

BSX’s WAMGR of 7%-8%. The team suggested EPS would grow at roughly the same pace as revenue given little expected

support from operating margin expansion. Gross margin is expected to suffer as high-margin Watchman and EP businesses

contribute less and the company prioritizes investments to reinvigorate growth. The pressured FY27 revenue and EPS outlook

reflects expectations for continued softness in Watchman and EP. Note that this framework was not intended to include impact

from the Penumbra deal. Management expects significant improvement in the company’s revenue and EPS growth profile in

2028.

“While we are sharpening our forecasting processes and taking actions to address controllable headwinds, our

underlying assumptions are that these dynamics continue in 2027, resulting in revenue growth below

our WAMGR and limited adjusted EPS growth. We expect our revenue and EPS growth profile to improve

meaningfully in 2028, supported by key catalysts across Boston Scientific.”

Focusing on what BSX can control. Boston’s Board approved a new global restructuring program on July 21 (see 8K and our

recap), estimated to result in pre-tax charges of $700mn-$800mn, of which $600mn-$700mn is expected to result in future

cash outlays.