By Peter Loftus
Medical-device maker Boston Scientific slashed its forecast of full-year 2026 revenue Wednesday, citing softer-than-expected sales in areas like kidney-stone devices and its Watchman heart-rhythm device.
Yet the company's share price surged 8% Wednesday, on pace for its largest percent increase since March 2020.
It turns out investors were already expecting a guidance cut and the revised, lower targets now appear achievable. What's more, the company said it plans to buy back about $2 billion of its shares in the second quarter, which Evercore ISI analyst Vijay Kumar said was a sign of confidence.
Boston Scientific, which makes a range of devices for heart disease and other conditions, was riding high through late last year, buoyed by the success of its new Farapulse cardiac ablation system.
But the stock is down more than 30% year-to-date on a slowdown in its ablation business and Watchman. Investors have questioned whether Boston Scientific could hit its initial targets of full-year sales growth of up to 11.5%.
On Wednesday, the company lowered that target to sales growth of up to 8.5%. Analysts said the new guidance amounted to a reset, and appears conservative enough to leave room for Boston Scientific to exceed it.
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(END) Dow Jones Newswires
April 22, 2026 15:02 ET (19:02 GMT)
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