How Is Boston Scientific's Cardiovascular Growth Path Shaping Up?

Boston Scientific’s BSX Cardiovascular segment operates in a $50 billion market, projected to grow nearly 9% over the 2026-2028 long-range plan (LRP). Management expects the business to outpace end-market growth rates and also be accretive to the company’s target of more than 10% average organic revenue growth. Electrophysiology (“EP”), one of the fastest growing businesses, is expected to grow roughly 15% over the LRP, driven by continued share gains and expansion into additional EP areas, such as the $1 billion Intracardiac Echocardiography space. 

Meanwhile, Boston Scientific’s WATCHMAN remains the leading device in percutaneous LAAC globally. Management’s long-term view of WATCHMAN as a 20%+ growth engine is contingent upon positive outcomes from the OPTION trial, already published in the New England Journal of Medicine, and the upcoming CHAMPION trial readout in the first half of 2026.

The company’s CRM DX business — covering active implantables, pacemakers and others — is expected to grow about 4% over the LRP. Recent investments in the conduction system pacing, entry into the leadless market in modular therapies and the launch of a new platform midway through the plan are expected to support a return to at least market-level growth.

The Interventional Cardiology Therapies (ICTx) is the company’s most global Cardiovascular business, with strong development in the Emerging Markets, such as Asia, the Middle East, Africa, and Latin America, helping it sustain a double-digit growth rate. The company forecasts 10% growth for ICTx and intends to outperform the rate. The Peripheral Interventions, Interventional Oncology and Embolics businesses collectively represent $11 billion, growing around 7%, with the company aiming to grow above market as well.

Update From Boston Scientific’s Peers

Medtronic MDT announced that its Diabetes business, soon to operate under the name MiniMed, has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO) of newly issued common stock. The separation is expected to be completed through a series of capital markets transactions, preferably via an IPO and subsequent split-off. Additionally, Medtronic’s Hugo robotic-assisted surgery (RAS) system has secured FDA approval for use in urologic surgical procedures. 

Johnson & Johnson JNJ has completed the acquisition of Halda Therapeutics OpCo, Inc. for $3.05 billion in cash. With this acquisition, Johnson & Johnson adds HLD-0915, a clinical-stage therapy for prostate cancer, building on its nearly two decades of innovation in this disease area. In addition, the European Commission has approved the company’s TREMFYA (guselkumab) for the treatment of children with plaque psoriasis, marking the first paediatric indication for an IL-23 inhibitor.

BSX Price Performance, Valuation and Estimates

In the past year, BSX shares have climbed 7.5% compared with the industry’s 1.7% rise.

BSX shares are trading at a forward, five-year Price-to-Earnings (P/E) ratio of 27.81, above its median and the industry average. 

See how analysts are projecting Boston Scientific’s 2025 and 2026 earnings.

BSX stock currently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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