Why Is Boston Scientific (BSX) Down 6% Since Last Earnings Report?

A month has gone by since the last earnings report for Boston Scientific (BSX). Shares have lost about 6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Boston Scientific due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

Boston Scientific Reports Q4 Earnings, Revenue Beat, Margins Expand

Boston Scientific posted fourth-quarter 2025 adjusted earnings per share of 80 cents, up 14.3% from the year-ago figure. The figure beat the Zacks Consensus Estimate by 2.6% and exceeded the company’s adjusted earnings per share guidance of 77-79 cents.

The quarter’s adjustments included certain amortization expenses, litigation-related net charges and restructuring charges, among others. Reported earnings per share for the fourth quarter was 45 cents, reflecting a 18.4% rise from the year-ago quarter’s 38 cents.

Full-year adjusted earnings per share was $3.06, a 21.9% increase from 2024. It also exceeded the Zacks Consensus Estimate by 0.7% and the company’s 2025 guidance range of $3.02-$3.04.

Revenue Details

Fourth-quarter revenues totaled $5.29 billion, up 15.9% year over year on a reported basis and 14.3% on an operational basis. Organic growth, adjusted for foreign currency fluctuations and certain recent acquisitions and divestments, was 12.7% year over year.

The top line exceeded the Zacks Consensus Estimate by 0.4%. Revenue growth was within the company’s reported growth guidance of 14.5-16.5%.

For 2025, revenues were $20.07 billion, up 19.9% on a reported basis, 19.2% on an operational basis and 15.8% on an organic basis over 2024.

Revenues by Regions

In the fourth quarter, revenues rose 17% in the United States on a reported basis (same operationally).

Reported revenues rose 12.4% in Europe, the Middle East and Africa (EMEA) region (up 4.8% operationally) and 15.2% in the Asia Pacific zone (up 14.8% operationally).

Reported revenues increased 15.9% in Latin America and Canada (up 10.4% operationally). Reported revenue growth in emerging markets was 15.4% (up 13% operationally).

Revenues by Segments

Boston Scientific recently reorganized its operational structure and aggregated its core businesses into two reportable segments — MedSurg and Cardiovascular. Both these segments generate revenues from the sale of Medical Devices.

MedSurg

MedSurg revenues in the fourth quarter totaled $1.81 billion, up 15.9% year over year on a reported basis (up 12.7% organically).

Within this, the Endoscopy unit generated revenues of $760 million, up 8.2% organically.

Urology revenues amounted to $717 million, reflecting organic growth of 3.2%.

The Neuromodulation business reported $332 million in revenues, highlighting a 9.9% rise organically year over year.

Cardiovascular

The company generates maximum revenues from this segment. Revenues in the fourth quarter totaled $3.48 billion, up 18.2% (reportedly) and 16.1% (organically) year over year.

Margin Performance

The gross margin expanded 172 basis points (bps) year over year to 69.6%. There was a 9.7% rise in the cost of products sold to $1.61 billion in the reported quarter.

Selling, general and administrative expenses rose 13.8% to $1.83 billion. Research and development expenses rose 23.7% to $569 million. Royalty expenses of $6 million declined 40% year over year. Adjusted operating margin expanded 180 bps to 24% in the reported quarter.

2026 and Q1 View

For 2026, Boston Scientific anticipates net sales to grow approximately 10.5-11.5% on a reported basis and 10-11% on an organic basis. The Zacks Consensus Estimate is currently pegged at $22.32 billion, indicating an 11.3% rise from the 2025 figure.

Full-year adjusted earnings per share is now expected in the range of $3.43-$3.49. The Zacks Consensus Estimate for the same is currently pegged at $3.45.

For the first quarter of 2026, revenue growth is projected in the range of approximately 10.5-12% on a reported basis (up 8.5-10% organically). Adjusted earnings are expected in the range of 78-80 cents per share.

The Zacks Consensus Estimate for first-quarter earnings and revenues is pegged at 79 cents per share and $5.20 billion, respectively.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Boston Scientific has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Boston Scientific has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Boston Scientific is part of the Zacks Medical - Products industry. Over the past month, Abbott (ABT), a stock from the same industry, has gained 1.8%. The company reported its results for the quarter ended December 2025 more than a month ago.

Abbott reported revenues of $11.46 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.50 for the same period compares with $1.34 a year ago.

For the current quarter, Abbott is expected to post earnings of $1.15 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of C.

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

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