Boston Scientific says cyberattack makes 2026 earnings and sales guidance unlikely to be met
Key Facts
Boston Scientific warned in a September filing that a cyber incident made it unlikely to meet its previous sales growth and adjusted earnings per share guidance for the third quarter and full year 2026. The company said in its filing with the U.S. Securities and Exchange Commission that "the guidance ranges for net sales growth and adjusted earnings per share are unlikely to be achieved." Before the incident, management had targeted third-quarter adjusted earnings per share of $0.80 to $0.82. It also expected sales growth of 3% to 5% on both a reported and organic basis for the same period. The warning thus covered both sales and earnings targets, for both quarterly and annual results. Reuters reported that the shares fell 4.5% in premarket trading following the warning about the attack's impact.
The company said in a September update that it had fully restored manufacturing, order fulfillment and shipping after the incident, which it discovered on August 25, 2026. It continued to work through its order backlog, with some customers potentially facing delays in receiving orders while that process was completed. The restoration covered operations from manufacturing through order preparation and dispatch, according to the company update. In a separate statement on the investigation's findings, it said CrowdStrike concluded that the attacker gained access through an internet-facing network device. The attacker then accessed a limited portion of Boston Scientific's on-premises information technology environment, according to the investigation summary published by the company. The investigation found no evidence of continued attacker activity after the containment measures the company implemented on the day it discovered the incident.
The cyber warning came after Boston Scientific had already cut its annual earnings outlook before the incident. According to Reuters, the company lowered its expected 2026 adjusted earnings per share range to $3.28 to $3.32, from a previous range of $3.34 to $3.41. That was despite second-quarter earnings beating analysts' estimates. The company reported adjusted earnings per share of $0.86 for that quarter, compared with $0.75 a year earlier. Reuters said analysts had estimated adjusted earnings of 83 cents per share. Net sales totaled $5.442 billion in the second quarter of 2026, a reported increase of 7.5% year on year, according to the earnings release.
Across its businesses, the company's financial and operational presentation showed global Watchman device net sales grew 4.2% organically in the second quarter of 2026. The business performed below expectations as the left atrial appendage closure market slowed. The company said patient referral patterns were affected by clinical evidence, among the factors accompanying the business's weak performance. Meanwhile, global net sales in the electrophysiology business grew 9.1% during the same quarter. The growth rate was the same on a reported, operational and organic basis, according to the presentation. The pulsed field ablation system continued to grow, but competitive pressures in the United States offset some of that growth.
On product safety, the U.S. Food and Drug Administration documented the removal of unused Infinion CX leads from the market, with the action excluding devices already implanted. The problem involves mechanical stress that could lead to high impedance or lead fracture, according to the agency. The regulator said Boston Scientific had reported 1,081 serious injuries associated with the issue as of May 27, 2026. The company had reported no related deaths as of that date. The company also recalled Imager II catheters because of a manufacturing defect in the tips that could increase the risk of deterioration and detachment. It decided to stop selling the product, according to the FDA notice. It reported two serious injuries and no deaths associated with the catheter issue as of July 16.
The company heads into its upcoming earnings announcement against a comparison period in which third-quarter 2025 net sales totaled about $5.065 billion. Those sales had grown a reported 20.3% year on year, according to the earnings release for the comparison period. Further out, the company said it expected a "meaningful improvement" in earnings and revenue growth in 2028, according to Reuters. Management plans to update its operating and financial outlook when it reports third-quarter results. Investor relations scheduled the earnings conference call for October 28, 2026, at 08:00 a.m. U.S. Eastern Time.