$BSX · BOSTON SCIENTIFIC CORP
Boston Scientific filed its Q3 FY2026 10-Q, reporting net sales of $5.138B (+1.4% YoY, +1.5% organic). GAAP EPS fell to $0.40 from $0.51 a year ago, while adjusted EPS was $0.73. Operating income dropped 21% to $828M, pressured by $81M in litigation-related charges, $63M in restructuring, and a $39M intangible impairment. Gross margin compressed to 66.7% from 69.9%. Nine-month revenue reached $15.78B (+6.7% reported, +5.8% organic) with net income of $2.83B.
- Q3 net sales $5.138B (+1.4% YoY), organic growth 1.5%
- GAAP EPS $0.40 vs $0.51 prior year; adjusted EPS $0.73
- Operating income fell 21% YoY to $828M, hit by $81M litigation charges and $63M restructuring
- Gross margin contracted to 66.7% from 69.9% prior year on higher cost of products sold
- Nine-month operating cash flow declined to $2.87B from $3.17B; $2B in share repurchases executed
Extended-hours last trade $44.26, down 0.14% from regular close — essentially flat. The 5.57% regular-session gain suggests the market had already priced in expectations; the mixed Q3 (revenue miss on low growth, margin compression, but strong nine-month trends) produced no incremental after-hours move.
The 21% operating income drop on flat organic growth signals margin stress at a $64B medtech giant, compounded by litigation overhang and an unquantified cybersecurity incident.
MedSurg (+0.7% organic) and Cardiovascular (+1.9% organic) drove growth, while Urology contracted 3.1% organically. Neuromodulation stood out at +13.0% organic, suggesting strong pain-management and DBS demand. The margin compression mirrors broader medtech cost pressures from higher manufacturing and labor costs.
Cybersecurity incident first reported August 26, 2026 flagged as a risk to operations and financial results. Tariff and trade policy changes, supply chain disruptions, and foreign currency fluctuations also cited as ongoing uncertainties.