Boston Scientific Slashes Growth Forecast to 6.5-8% as Shares Plunge 12%
BSX•Boston Scientific cut full-year organic growth guidance for 2026 from 10%-11% to 6.5%-8% after Q1 saw competitive pressures on its PFA system and WATCHMAN volumes. Shares plunged ~12% to a 52-week low, trading near $50 as valuation multiple compressed to 15.0x forward earnings.
1. Q1 Results and Guidance Cut
Boston Scientific’s cardiovascular segment grew 13.5% in Q1 2026, driven by its FARAPULSE PFA system and WATCHMAN implant, but management reduced its full-year organic growth forecast to 6.5%-8.0% from 10%-11% after unexpected electrophysiology headwinds and lower WATCHMAN volumes.
2. Market Reaction
Shares slid roughly 12% on May 27 to a 52-week low and are down about 46% year-to-date, reflecting investor concerns over the company’s slowing growth trajectory and prompting a rapid sell-off.
3. Valuation Re-Rating
The stock now trades near $50 with a forward multiple of 15.0x expected earnings of $3.38, well below its five-year average of 26.1x, indicating significant multiple compression.
4. Competitive Pressures
Intense rivalry from Medtronic’s CARTO-integrated Varipulse system and Johnson & Johnson’s electrophysiology offerings has increased switching costs, challenging Boston Scientific’s high-margin cardiovascular strategy.
