Boston Scientific reported fourth-quarter revenues of $5.29 billion, exceeding the consensus estimate of $5.28 billion, and delivered adjusted earnings per share of $0.80, above both the consensus of $0.78 and management guidance of $0.77–0.79. Reported sales grew 15.9% year-over-year, with operational growth of 14.3% and organic growth of 12.7%. The cardiovascular segment generated $3.48 billion in sales, up 18.2% reported (16.5% operational, 16.1% organic), while the MedSurg division contributed $1.81 billion, a rise of 11.7% reported (10.2% operational, 6.5% organic). Endoscopy revenues increased 10.1% to $760 million, electrophysiology sales reached $890 million (a 35% jump) despite falling short of consensus, and urology products grew 13.8% to $717 million. The adjusted operating margin remained robust at 27.3%, in line with the prior year.

Management forecast 2026 net sales growth of 10.5%–11.5% on a reported basis and 10%–11% organically, targeting total revenues between $22.18 billion and $22.38 billion, slightly below elevated investor expectations. Adjusted earnings guidance of $3.43–3.49 per share edged below the consensus of $3.47. In response, the stock plunged 17.5% in a single session, erasing months of gains and marking a 52-week low with a 15.8% decline from the prior close. Contributing to investor concern was the recall of AXIOS stents after reports of 167 serious injuries and three deaths, prompting healthcare facilities to halt use and return affected devices.

Following the Q4 release, Needham raised its target to $97, implying roughly 28% upside from recent levels, citing the company’s projected free cash flow of $4.2 billion in 2026 and a track record of 12 consecutive quarters of double-digit sales growth. Other firms trimmed earnings estimates slightly, reflecting the cautious guidance, but maintained outperform ratings based on diversified product pipelines in cardiology, endoscopy and urology. Boston Scientific’s market capitalization remains near $112 billion, underscoring continued confidence in its long-term growth trajectory despite near-term volatility.