Boston Scientific Shares Plunge 9% After CHAMPION-AF Stroke Data
Boston Scientific stock has fallen one-third year-to-date, including a 9% slide on March 30 after CHAMPION-AF data showed a higher ischemic stroke rate for its Watchman FLX device. Q4 revenue was $5.29 billion but Q1 guidance fell short; $14.5 billion Penumbra deal and recall of 1.6 million pacemaker batteries add pressure.
1. CHAMPION-AF Trial Impact
Boston Scientific shares plunged 9% after CHAMPION-AF trial data for the Watchman FLX device showed a slightly higher ischemic stroke rate versus standard blood thinners, prompting a major brokerage to cut its price target from $97 to $88.
2. Financial Performance and Guidance
In Q4, the company reported revenue of $5.29 billion and EPS of $0.80, both above consensus, but Q1 2026 revenue guidance fell below estimates, driving concerns over future growth.
3. Strategic Challenges
The $14.5 billion acquisition of Penumbra is forecast to dilute adjusted EPS by $0.06–$0.08 in the first full year, while an FDA recall of 1.6 million Accolade pacemaker batteries raises potential liability and operational disruption.
4. Valuation and Outlook
At approximately 18.1x forward earnings, the stock trades well below its three-year average P/E of 26.5x, implying potential upside if growth rebounds and trial concerns abate.