Boston Scientific earnings fell short of the company’s own guidance in the third quarter of 2026 after a cybersecurity incident halted manufacturing and product shipments for eight business days. The medical device maker reported organic revenue of $5.138 billion, up 1.5% from a year earlier, below its prior outlook for growth of 3% to 5%. Adjusted earnings per share fell 3% to $0.73, against guidance of $0.80 to $0.82 set in July.
Chairman and chief executive Mike Mahoney said the incident reduced quarterly sales growth by about 300 basis points and lowered adjusted earnings per share by about $0.07. That amounts to roughly $150 million in lost revenue in the quarter. Operations were restored after a two week outage, with all operations back online as of 8 September, Mahoney said. The company identified the attack on 25 August and first reported it publicly the next day.
The results landed on 28 October, and Boston Scientific shares fell 5.8% that day while the wider S and P 500 rose 0.3%, according to market reporting. Revenue of $5.14 billion came in above the $5.09 billion estimate from analysts, and adjusted earnings of $0.73 were in line with a $0.727 estimate. The outlook, rather than the quarter alone, drove the reaction, as Boston Scientific cut its full year guidance for the third time in 2026.
How Boston Scientific earnings were hit by the shutdown
During the eight business day disruption, every plant and distribution center in the company’s global network stopped work. Ordering, manufacturing and shipping all paused. That kind of halt leaves a mark that lasts beyond the days lost, because hospitals and distributors place larger orders once supply resumes, and inventory levels take time to return to normal. Mahoney said the company expects the incident to keep affecting fourth quarter results as elevated customer orders from the end of the third quarter are worked through. That backlog will shape Boston Scientific earnings in the fourth quarter.
Chief financial officer Jon Monson said the cyber incident is expected to create a 200 to 300 basis point revenue headwind in the fourth quarter and reduce earnings per share by roughly $0.04 to $0.05. Boston Scientific forecast fourth quarter organic revenue to fall 1% to 3% from the prior year period, with adjusted earnings per share of $0.77 to $0.79. Analysts had expected 83 cents a share for the quarter. That headwind will also affect Boston Scientific earnings early next year.
Boston Scientific earnings by business segment
Cardiovascular sales grew 1.9% to $3.41 billion in the third quarter, while MedSurg sales rose 0.6% to $1.73 billion. Within those totals, some product lines weakened sharply. Electrophysiology sales fell 5%, including an 8% decline in the United States and 2% growth internationally. Sales of Watchman, the implant that lowers stroke risk, fell 6% after rising nearly 30% in 2025. Urology sales fell 3.1%, and United States sales overall grew only 0.5%. Those declines weighed on Boston Scientific earnings in the quarter.
Competitive and pricing pressures weighed on those franchises alongside the cyber incident. Monson said electrophysiology share pressure has intensified since the second quarter earnings call, and that pressure was accelerated by the cyber incident. Pricing dynamics in China have also become more difficult. China’s volume based procurement program presses suppliers to lower device prices in exchange for bulk hospital purchases, and that strain is expected to persist through 2027, particularly in endoscopy.
Adjusted operating income fell to $1.364 billion from $1.419 billion a year earlier, for an adjusted operating margin of 26.5% against 28.0% a year earlier. On a GAAP basis, Boston Scientific earned $582 million, or 40 cents a share, down from 51 cents a year earlier. The quarter held up against analyst estimates in part because expectations had already been lowered after the attack, but the margin compression showed the cost of idle plants, disrupted shipments, expedited shipping and outside help during the outage. Margin pressure showed up in Boston Scientific earnings as well.
What Boston Scientific earnings mean for 2027
The third quarter showed how a short shutdown can move a full year. Without the attack, organic growth would have been roughly 4.5%, inside the original 3% to 5% guidance range, according to company estimates. With it, Boston Scientific earnings for the quarter missed guidance, the full year outlook was cut again, and the fourth quarter is now expected to show a sales decline. Boston Scientific is expected to report fourth quarter results in February 2027, when investors will see whether inventory levels have normalised and whether Watchman and electrophysiology sales have steadied after a quarter in which both fell. Investors will judge Boston Scientific earnings against that guidance in February.