Boston Scientific cuts 2026 outlook after cyberattack cost about $150 million in sales

Boston Scientific lowered its 2026 sales and profit outlook on Oct 28 and said it expects fourth-quarter sales to fall from a year earlier, after a cyberattack in August shut down parts of its global operations for about two weeks. The medical device maker reported third-quarter net sales of $5.138 billion, up 1.5% from a year earlier, short of the 3% to 5% organic growth it had earlier forecast for the quarter.

The shares fell 9% in early New York trading on Oct 28. Through the Oct 27 close, they had lost 53% in 2026.

The cyberattack

The attack began on Aug 25, according to Investing.com, and the company first reported it on Aug 26. It hit the information systems Boston Scientific uses to process and ship customer orders. All operations were back up as of Sept 8. In September, the company warned in an SEC filing that it was unlikely to meet its third-quarter and full-year guidance.

Boston Scientific estimates the incident cut third-quarter organic sales growth by about 300 basis points, or roughly $150 million in sales, and adjusted earnings per share by about $0.07. Adjusted gross margin fell to 68.0% from 71.0%, mainly because of manufacturing inefficiencies during the disruption.

The quarter

Net income attributable to common stockholders fell to $582 million, or $0.40 per share, from $755 million, or $0.51, a year earlier. Adjusted earnings per share was $0.73, compared with $0.75 a year earlier and the company's own forecast of $0.80 to $0.82. Analysts had expected $0.75, according to Investing.com.

Sales of electrophysiology devices, which treat irregular heart rhythms, fell 5%, and sales of the Watchman stroke-prevention implant fell 6%. Management said the cyber incident caused roughly half of the electrophysiology shortfall. It expects to keep losing share in pulsed-field ablation, a newer heart-rhythm treatment, until it launches FARAWAVE Ultra, now expected in early 2028. The rest of the business, about 75% of sales, grew 6%.

The new outlook

Organic growth excludes currency swings and recent acquisitions.

Analysts had expected full-year adjusted earnings per share of $3.23, the Irish Examiner reported. For the fourth quarter, Boston Scientific expects sales to decline 1% to 3%, including a cyber-related drag of 200 to 300 basis points as elevated customer orders are worked down. It guided fourth-quarter adjusted earnings per share to $0.77 to $0.79, including about $0.04 to $0.05 of cyber impact.

Chief executive Mike Mahoney said the company will be challenged to grow sales and adjusted earnings per share in 2027, excluding its pending acquisition of Penumbra. Management expects further price pressure in China in 2027. A company-wide restructuring is expected to save more than $500 million over three years, with more than half achieved by the end of 2027.

Who is exposed

Boston Scientific agreed in January to buy Penumbra, a maker of devices that remove blood clots, for about $14.5 billion, paying $374 per Penumbra share in cash and stock. The deal was originally expected to close in 2026.

Abbott makes Amulet, a device that competes with Watchman. Before the results, Bernstein analysts said Abbott's newer Amulet 360 could double its share of that market to 20% from 10%, Investing.com reported.

What comes next

Boston Scientific now expects to close the Penumbra acquisition early in the first quarter of 2027. Chief financial officer Jon Monson said the fourth-quarter outlook provides a reasonable baseline for the company's 2027 revenue and adjusted earnings per share outlook.