Quarterly Revenue and Organic Growth Beat Guidance
Q1 consolidated revenue of $5.203B, reported growth +11.6% vs Q1 2025; operational/organic revenue growth +9.4%, above guidance range of 8.5%–10%.
Boston Scientific
· BSX
April 22nd, 2026
Summary
- Earnings Call Date:
- 2026-04-22
- Change Since:
- -31.46%
- Next Earnings Date:
- 2026-07-29
Earnings Call Sentiment
NeutralThe call reflected a mixed picture: a strong Q1 with organic growth and EPS above guidance, meaningful product and regional momentum (notably in EP/PFA, WATCHMAN clinical data, Asia Pacific), and solid capital priorities (buyback, Penumbra deal). However, management lowered near-term guidance and flagged several material headwinds — weaker Urology, some EP share pressure, margin compression (gross margin down 100 bps) and operational disruptions (POLARx discontinuation and supply issues) — leading to a more cautious full-year outlook. The company emphasizes confidence in longer-term strategy and product pipeline while taking near-term actions to control costs and invest commercially.
Company Guidance
Boston Scientific updated 2Q and full‑year 2026 guidance: Q2 reported revenue growth 5.5%–7.5% (operational/organic 5.0%–7.0%) with Q2 adjusted EPS $0.82–$0.84; full‑year reported revenue growth 7.0%–8.5% (operational/organic 6.5%–8.0% after an assumed ~50 bp FX tailwind), full‑year adjusted EPS $3.34–$3.41 (up 9%–11% vs. 2025, including an ≈$0.04 FX headwind), and adjusted operating margin expansion of 50–75 bps (Q1 adjusted operating margin ~28%, Q1 adjusted gross margin 70.5%). They also expect full‑year free cash flow of ~$4.0 billion, a full‑year adjusted tax rate of ~12% (Q1 was 11.7%), Q1 consolidated revenue was $5.203B (11.6% reported growth including a 220 bp FX tailwind ≈$104M) and Q1 adjusted EPS was $0.80 (up 6%), the Penumbra transaction is excluded from guidance, and the Board approved a total $5B repurchase authorization with ~$2B intended to be repurchased in Q2.
Adjusted EPS and Operating Margin Performance
Q1 adjusted EPS $0.80, +6% YoY and at the high end of guidance ($0.78–$0.80); Q1 adjusted operating margin ~28.8%.
Regional Strength — U.S. and Asia Pacific
U.S. organic growth +11% with double-digit growth in five of eight business units; Asia Pacific operational growth +12%, including strong Japan and China performance.
EP / PFA Momentum and Mapping Platform Expansion
Global EP organic sales +22% (U.S. +18%, international +30%); strong uptake of FARAPULSE and OPAL mapping footprint; company expects to maintain PFA leadership and forecasts EP investment and next-generation catheter launches.
WATCHMAN Clinical Breakthrough — CHAMPION Trial
CHAMPION trial presented at ACC met primary and secondary endpoints, reinforcing WATCHMAN safety/efficacy; WATCHMAN grew +19% organically in Q1 and management expects full-year global WATCHMAN growth to be mid-teens.
Interventional Oncology and Other Business Unit Wins
Interventional Oncology organic growth +15%; Endoscopy +7% with AXIOS ramping; Cardiovascular / ICVT delivered double-digit drivers in imaging and certain therapies; regulatory approvals secured (e.g., PMDA DCB de novo, NMPA OPAL HDx).
Strong Capital Allocation and Liquidity Actions
Board approved additional $4B repurchase authorization (total $5B); intent to repurchase ~$2B in Q2; announced expected close of Penumbra acquisition in H2 2026; Q1 cash on hand $1.453B and expected full-year free cash flow ~$4B.
Operator
Good morning, and welcome to the Boston Scientific First Quarter 2026 Earnings Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Lauren Tengler, Vice President, Investor Relations. Please go ahead.
Lauren Tengler
Thank you, Bailey, and thanks to everyone for joining us. With me today are Mike Mahoney, Chairman and Chief Executive Officer; Jon Monson, Executive Vice President and Chief Financial Officer. During the Q&A session, Mike and John will be joined by our Chief Medical Officer, Dr. Ken Stein. We issued a press release earlier this morning announcing our Q1 2026 results, which included reconciliations of the non-GAAP measures used in this release. The release as well as reconciliations of non-GAAP measures used in today's call can be found on the Investor Relations section of the website. Please note that on the call, operational revenue excludes the impact of foreign currency fluctuations, and organic revenue further excludes certain acquisitions and divestitures for which there is less than a full period of comparable net sales. Guidance excludes the previously announced agreement to acquire Penumbra, which is expected to close in 2026, subject to customary closing conditions.
For more information, please refer to the Q1 financial and operating highlights deck, which may be found in the Investor Relations section of our website. On this call, all references to sales and revenue are organic and relative growth is compared to the same quarter in prior year, unless otherwise specified. This call contains forward-l...
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