BSX

It has been about a month since the last earnings report for Boston Scientific (BSX). Shares have added about 1.5% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Boston Scientific due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Boston Scientific reported second-quarter 2026 adjusted earnings of 86 cents per share, up 14.7% year over year. The figure beat the Zacks Consensus Estimate by 3.6%. Revenues rose 7.5% on a reported basis to $5.44 billion and surpassed the consensus estimate by 1.1%. Cardiovascular growth, double-digit gains in Asia-Pacific (APAC) and Latin America and Canada (LACA) and strong Neuromodulation sales supported the quarter. Cardiovascular revenues totaled $3.62 billion, increasing 8.3% on a reported basis and 7.8% on an operational and organic basis. The segment generated roughly two-thirds of Boston Scientific’s quarterly revenues and remained the primary growth contributor. MedSurg revenues rose 5.9% to $1.82 billion, with operational and organic growth of 5.4%. Within the segment, Endoscopy sales increased 7.6% to $793 million, while Neuromodulation revenues climbed 12.7% to $341 million. Urology revenues advanced 1.1% to $684 million, marking the slowest growth among the company’s reported businesses. U.S. revenues increased 6.2% to $3.43 billion. The domestic market remained Boston Scientific’s largest region, generating nearly 63% of consolidated sales. APAC revenues rose 11.2% to $878 million, while LACA sales surged 22.4% to $206 million. LACA operational growth was 16.2%. Europe, Middle East and Africa (“EMEA”) revenues increased 6.1% to $932 million, although operational growth was lower at 4.2% due to currency effects. The gross margin expanded approximately 306 basis points (bps) year over year to 70.7%. The cost of products sold declined 2.6% to $1.59 billion in the reported quarter. Selling, general and administrative expenses rose 5.1% to $1.80 billion. Research and development expenses increased 5.3% to $554 million, while royalty expenses plunged 14.3% to $12 million. Adjusted operating margin expanded approximately 71 bps to 28.4%. Boston Scientific presented data from the FRACTURE trial of the SEISMIQ 4CE coronary intravascular lithotripsy catheter. The study met its primary endpoints, demonstrating procedural success and high freedom from major adverse cardiac events at 30 days. The AVANT GUARD study also met its safety and effectiveness endpoints. FARAPULSE pulsed field ablation demonstrated statistical superiority over anti-arrhythmic drugs in patients with persistent atrial fibrillation who had not received prior treatment for the condition. The company invested $1.5 billion in MiRus LLC for an approximately 34% equity stake and an exclusive option to acquire its transcatheter aortic valve replacement business. MiRus is developing the investigational SIEGEL balloon-expandable TAVR system. BSX also completed its previously announced $2 billion accelerated share repurchase program. The transaction resulted in the repurchase of approximately 40 million shares, reducing the company’s outstanding share base. Boston Scientific now expects reported sales growth of 5.5-6.5%, down from its prior forecast of 7-8.5%. Organic sales growth is now projected at 5-6% compared with the earlier range of 6.5-8%. The company also reduced its full-year adjusted earnings forecast to $3.28-$3.32 per share from the earlier $3.34-$3.41. For the third quarter, management forecasts reported and organic sales growth of 3-5%. Adjusted earnings are expected between 80 cents and 82 cents per share. In the past month, investors have witnessed a downward trend in estimates revision. Currently, Boston Scientific has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy. 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. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Boston Scientific has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Boston Scientific belongs to the Zacks Medical - Products industry. Another stock from the same industry, Royal Philips (PHG), has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Philips reported revenues of $5.07 billion in the last reported quarter, representing a year-over-year change of +3%. EPS of $0.57 for the same period compares with $0.41 a year ago. Philips is expected to post break-even earnings per share for the current quarter, representing a year-over-year change of 0%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Philips. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Koninklijke Philips N.V. (PHG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Medtronic plc MDT is slated to report its first-quarter fiscal 2027 results on Sept. 1, before the opening bell. The Zacks Consensus Estimate for the company’s first-quarter earnings per share (EPS) suggests 10.3% year-over-year growth to $1.39. The estimate has remained constant in the past 60 days. The consensus mark for first-quarter revenues currently stands at $9.47 billion, implying a 10.4% increase over the prior-year period. Image Source: Zacks Investment Research Medtronic has a solid earnings surprise history, beating estimates in each of the past four quarters, with an average surprise of 2.3%. Image Source: Zacks Investment Research Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. This is not the case here, as you can see below. Earnings ESP: Medtronic has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here. The segment is likely to have witnessed a solid performance across both U.S. and international markets. Within this, Cardiac Ablation Solutions (“CAS”) is expected to have remained the key growth driver, supported by momentum in the pulsed field ablation portfolio, which grew 145% in the previous quarter. The launch of the Sphere-9 catheter in Japan may have also strengthened Medtronic’s position in the region. The company has also begun the global rollout of Prism-2, its next-generation mapping software, which offers improved navigation through hybrid impedance and magnetic mapping. In June 2026, Medtronic announced strategic investments in two privately held companies focused on the development of intracardiac echocardiography (ICE) catheter technologies, which may have provided an additional boost to revenues. Cardiac Rhythm Management may also have contributed, driven by Micra leadless pacemakers, Aurora implantable cardioverter defibrillator (EV-ICD) system and the SelectSecure 3830 lead. In Structural Heart, revenues are expected to have benefited from continued international strength as well as stabilizing U.S. procedure volumes. Growth in the Symplicity Spyral renal denervation system, guide catheters and balloons, as well as Endovenous growth in Peripheral Vascular Health, may have boosted Coronary & Peripheral Vascular sales. The Zacks Consensus Estimate implies Cardiovascular revenues will increase 15.2% year over year. Medtronic continues to invest across its Neuroscience portfolio to advance pipeline innovation and support long-term growth. Within this, Cranial and Spinal Technologies results in the fiscal first quarter may benefit from the continued adoption of the AiBLE ecosystem, with Core Spine and Neurosurgery also likely contributing to growth. The commercial rollout of the Stealth AXiS surgical system may have further advanced. In June, Medtronic received the CE mark for the ear, nose and throat indications, expanding the platform’s reach. Neuromodulation performance is expected to have been led by the Inceptiv closed-loop spinal cord stimulator, the Percept RC neurostimulator with BrainSense technology, and Interventional products. Medtronic completed two acquisitions within this business. The Scientia Vascular acquisition in June adds a portfolio of guidewires and catheters to its existing neurovascular product lineup, while the July acquisition of SPR Therapeutics, Inc. (SPR) expands its ability to serve patients across the pain care continuum. The Zacks Consensus Estimate expects Neuroscience revenues to grow 10.7% year over year. In the fiscal first quarter, MedSurg performance is expected to have been driven by solid growth in Advanced Energy and Wound Management, alongside higher contribution from the Hugo robotic-assisted surgery system. However, similar to recent trends, continued pressure on U.S. bariatric surgery procedure volumes may have partially offset this growth. Endoscopy is likely to have been a growth driver, with sales benefiting from strong adoption of Endoflip in the United States and Western Europe, as well as from U.S. market share gains of the Nexpowder hemostasis system. Acute Care and Monitoring may have gained from strength in Nellcor pulse oximetry, respiratory and airways and in perioperative. The Zacks Consensus Estimate for MedSurg’s revenues suggests a 7.6% year-over-year increase. MiniMed, Medtronic’s diabetes business, completed an initial public offering in March, with approximately 10% of its ownership sold and its shares beginning to trade on the Nasdaq Global Select Market. Medtronic continues to hold approximately 90% ownership in MiniMed. In the first quarter of fiscal 2027, the business is likely to have witnessed robust international contributions from the continued adoption of the MiniMed 780G Automated Insulin Delivery (AID) system, including the Simplera Sync and Guardian 4 continuous glucose monitoring sensors and Extended Infusion Sets. U.S. momentum may also have continued following the late-2025 launches of the Simplera Sync and Abbott’s Instinct sensors. The quarter also saw several key developments. MiniMed announced the commercial availability of MiniMed Flex, its smallest app-controlled insulin pump powered by the advanced SmartGuard algorithm. The system is FDA cleared for people with type 1 diabetes aged 7 years and older, as well as adults aged 18 years and older with insulin-requiring type 2 diabetes and is paired with the Simplera Sync sensor. MiniMed Flex is also now available to Medicare and Medicare Advantage beneficiaries. MiniMed launched the MiniMed 780G system integrated with Abbott’s Instinct sensor and the MiniMed Go system with the Instinct Go sensor in Europe. Together, these developments are expected to have strongly boosted overall revenues in the quarter. The Zacks Consensus Estimate suggests Diabetes revenues will grow 15.1% year over year. Over the past three months, Medtronic shares have outperformed the industry and the broader Medical sector. Image Source: Zacks Investment Research The stock has also fared better than major peers like Boston Scientific BSX, whose shares fell 2%, while Edward Lifesciences EW gained 4.8%. Boston Scientific’s second-quarter 2026 revenues and EPS surpassed the Zacks Consensus Estimate by 1.1% and 3.6%, respectively. However, the company lowered its 2026 sales and earnings outlook after slower WATCHMAN demand, U.S. electrophysiology share losses and limited operating leverage weakened near-term visibility. Meanwhile, Edwards’ second-quarter revenues and EPS topped the consensus mark by 2.4% and 6.8%, respectively. Medtronic trades at a forward five-year Price/Earnings (P/E) of 14.98X, lower than its median of 15.73X and the industry average of 17.74X. Image Source: Zacks Investment Research Medtronic’s upcoming fiscal first-quarter results are expected to reflect ongoing momentum in CAS, as well as strength in businesses such as Cardiac Rhythm Management and Cranial and Spinal Technologies. At the same time, the company is also advancing its M&A and venture initiatives, targeting higher-growth segments to accelerate innovation. While current indicators do not point to a strong earnings beat, the company has a consistent earnings surprise history, which is encouraging. Medtronic’s recent stock performance has been impressive, outpacing the key benchmarks and peers. Existing MDT shareholders should consider holding their positions, supported by the company’s attractive valuation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8 a.m. ET Vice President, Investor Relations - Lauren Tengler Chairman and Chief Executive Officer - Michael Mahoney Executive Vice President and Chief Financial Officer - Jonathan Monson Chief Medical Officer - Dr. Ken Stein Operator: Good morning, and welcome to the Boston Scientific Second 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, Drew, and thanks to everyone for joining us. With me on today's call are Mike Mahoney, Chairman and Chief Executive Officer; and Jon Monson, Executive Vice President and Chief Financial Officer. During the Q&A session, Mike and Jon will be joined by our Chief Medical Officer, Dr. Ken Stein. We issued a press release earlier this morning announcing our Q2 2026 results, which included reconciliations of the non-GAAP measures used in this release. The release as well as the reconciliations of non-GAAP measures used in today's call can be found on the Investor Relations section of our 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 the second half of 2026, subject to customary closing conditions. For more information, please refer to the Q2 financial and operating highlights deck, which may be found on the Investor Relations section of our website. On this call, all references to sales and revenue are organic and relative growth as compared to the same quarter of prior year, unless otherwise specified. This call contains forward-looking statements regarding, among other things, our financial performance, business plans, market expectations, and product performance and development. These statements are based on our current beliefs using information available to us as of today's date and are not intended to be guarantees of future events or performance. If our underlying assumptions turn out to be incorrect or certain risks or uncertainties materialize, actual results could vary materially from those projected by forward-looking statements. Factors that may cause such differences are discussed in our periodic reports and other filings with the SEC, including the Risk Factors section of our most recent annual report on Form 10-K. Boston Scientific disclaims any intention or obligation to update these forward-looking statements, except as required by law. In addition, this call does not constitute an offer to sell or the solicitation of any offer to buy any securities or solicitation of any vote or approval in connection with the proposed transaction with Penumbra. Boston Scientific has filed the SEC registration statement on Form S-4 containing a proxy statement of Penumbra and a prospectus of Boston Scientific that contains important information about Penumbra, Boston Scientific, the proposed transaction and related matters. At this point, I'll turn it over to Mike. Michael Mahoney: Thank you, Lauren. Thank you, everyone, for joining us today. Second quarter represented a solid quarter for Boston Scientific, while we continue to navigate a dynamic environment. Total company organic sales grew 7% versus our guide of 5% to 7%, driven by our Interventional Cardiology, Endoscopy, and Neuromodulation business. Q2 adjusted EPS of $0.86 grew 15% and exceeded the high end of guidance range of $0.82 to $0.84, driven primarily by some favorable tax results. Second quarter adjusted operating margin was 28.4%. Turning to our outlook. We now expect the second half to be more pressured than we originally anticipated. To that end, we are updating our full year 2026 guidance for organic revenue of 5% to 6% with our full year adjusted EPS of $3.28 to $3.32, representing growth of 7% to 8%. For the third quarter, we're guiding to organic revenue growth of 3% to 5% and adjusted EPS of $0.80 to $0.82. We updated our guidance in Q1 with a goal of establishing the right baseline for the year. This update today is not the outcome we planned or what you have come to expect from us. Boston Scientific has had a strong record of growing above our weighted average market growth rates while delivering double-digit adjusted EPS growth. However, market conditions have evolved quickly and has been challenged to forecast effectively. Our guidance reduction is concentrated in 2 areas: First, WATCHMAN, where the U.S. market has slowed sharply and unexpectedly, primarily driven by compounding clinical evidence, which has impacted referral patterns. And second, EP, where we did not anticipate the degree of competitive share movement we're now seeing in the U.S. market. While we are sharpening our forecasting processes and taking actions to address controllable headwinds, our underlying assumptions are that these dynamics continue in '27, resulting in revenue growth below our WAMGR and limited adjusted EPS growth. We expect our revenue and EPS growth profile to improve meaningfully in 2028, supported by key catalysts across Boston Scientific. In the meantime, we're focused on execution and delivering our 2026 guide, staying disciplined on spending and continuing to fund the areas of the portfolio where we see the strongest long-term opportunity. As part of that effort, we just announced a restructuring program aimed to deliver approximately $500 million in run rate savings exiting '29. This program will enable us to drive sustainable cost efficiencies while strategically reinvesting in our business to support a return to strong adjusted EPS growth in '28 and beyond. So before I provide more information in regards to our second quarter performance and full year outlook, I want to reiterate my confidence in the future of Boston Scientific. While EP and WATCHMAN have been tremendous growth drivers for the company, our other business units, which represent roughly 75% of our revenue, are expected to grow approximately 6% in the second half of the year, consistent with our historical performance over many quarters. Turning to our regional performance. The U.S. grew 6% on an operational basis, driven by ICVT, Interventional Oncology, and Neuromodulation. Europe, Middle East, Africa grew 4% on an operational basis, driven by EP, Vascular and Neuromod. And Asia Pac grew 11% operationally, led by double-digit growth in Japan, China and Korea. Across the region, performance was driven by our Interventional Cardiology, EP, and WATCHMAN businesses. Now some additional color on our business units. Neuromodulation sales grew 12% with double-digit growth in both pain and brain. Within pain, growth was strong across the portfolio, including a full quarter of contribution from Nalu, which performed well in the second quarter with the integration progressing nicely. In brain, we saw strong growth across the globe enabled by differentiated products, including our Cartesia Leads, Illumina programming, and DBS Patient controller. Urology grew 1% this quarter, falling short of our expectations, driven by sacral neuromodulation with the recovery in that business taking longer than we had anticipated. In stone management, we continue to see pressure in the market with key portfolio gaps that we aim to fill over the next 3 quarters. We now expect our full year Urology growth to be flat to low-single digits. Endoscopy sales grew 7% with strong results across our business, another quarter of better-than-anticipated performance from AXIOS. Within the quarter, we received FDA clearance for RIVOS, a first-of-its-kind single-device designed to consolidate multiple exchanges, enable physicians to streamline procedural steps while performing endoscopic ultrasound biliary drainage with positive feedback received on initial cases. Turning to Cardiovascular. Cardiovascular sales grew 8% in the quarter. Interventional Cardiology and Vascular Therapies grew 12%. Our Interventional Cardiology business had another excellent quarter, growing 15%, driven by double-digit growth in our coronary therapies with continued strength in DCB, imaging, and complex PCI. In May, data from the FRACTURE trial was presented as a late-breaker at EuroPCR, achieving all endpoints with the SEISMIQ 4CE Coronary IVL Catheter, demonstrating high rates of freedom from major adverse cardiac events at 30 days as well as procedural success in patients with severely calcified coronary artery disease. We look forward to bringing SEISMIQ 4CE to market in the first half of '27. Earlier this quarter, we announced our intent to potentially reenter the TAVR market through an investment in MiRus and their differentiated SIEGEL TAVR valve. The SIEGEL valve is currently enrolling in the STAR clinical trial and upon achievement of certain clinical and reg milestones, Boston Scientific has the option to acquire 100% of the TAVR assets. This valve has been built on years of research and proprietary technology. We believe that the distinctive design and impressive early clinical results of the SIEGEL valve may set it apart from currently available technologies. We're making great progress in our THRIVE trial enrollment evaluating the TIVUS Ultrasound System for renal denervation in the treatment of hypertension and continue to anticipate bringing our technology to market in '28. As we look ahead, we believe that our IC business and ICVT broadly will be our strongest growth driver for Boston Scientific as we enter a number of high-growth adjacent markets over the coming years. Our Vascular Therapies business grew 8%, driven by broader adoption of Varithena and our drug-eluting portfolio. We're pleased with the performance of our SEISMIQ IVL launch with strong reception for the clinical differentiation of the device, and we continue to ramp supply. We remain excited about the opportunity to add the Penumbra team and highly differentiated and complementary portfolio to Boston Scientific. We anticipate the deal will close in the second half of '26, subject to the receipt of the remaining regulatory clearances. Our Interventional Oncology and Embolization business grew 12%, driven by strong global growth with our broad offering of innovative technologies. Earlier this month, results from the PROACTIF, which is a large prospective real-world study evaluating TheraSphere in the treatment of liver malignancies were published. The study demonstrated meaningful survival outcomes across all stages of disease, including patients with larger or more advanced tumors, further supporting the use of TheraSphere in these populations. Additionally, we received FDA clearance for TruSelect, which is a microcatheter that combines precise navigation and efficient embolic delivery. Cardiac Rhythm Management sales declined 2% in the quarter. In core CRM, our low-voltage business declined high-single digits and our high-voltage business declined mid-single digits. Across our CRM franchise, we are seeing competitive pressure with some portfolio gaps, and we expect to make progress against these portfolio gaps with PRECEDENT, which is a new defib platform to be launched in second half 2027. In Q2, our Diagnostics franchise grew low-double digits with continued strength across our broad diagnostic portfolio. Overall, we anticipate that our CRM growth will be flat on a full year basis with slight improvement in the second half of the year with contribution from EluPro, which is now in full launch. Turning to WATCHMAN. Our goal here is to provide you with more details on the LAAC market dynamics, the impact and expectations going forward. In second quarter, WATCHMAN grew 4% with international growth of 18% and U.S. growth of 3%. The adoption of concomitant has been swift, and we now estimate that 1/3 of WATCHMAN procedures in the U.S. are done concomitantly. In second quarter, concomitant procedures grew over 60% with sequential growth of 11% versus first quarter 2026. For the remaining 2/3 of the procedures that are stand-alone, we saw low-teens declines versus second quarter 2025. We believe the overall LAAC market slowdown is driven by 2 main factors. First, there has been a significant amount of clinical evidence regarding stroke risk in AF patients published over the last 9 months and integrating this evidence into practice takes time, which is impacting patient identification and referral patterns. Second, the focus on the fast adoption of concomitant procedures has created inefficiencies in the system with regards to operationalize both stand-alone and concomitant and allowing for sustained growth. With these key challenges understood, we are executing against 3 priorities to reaccelerate growth. First, we are driving greater clinical understanding through expanded physician education and evidence dissemination, which we expect will help referrers and implanters more easily identify patients appropriate for WATCHMAN. Second, we're also strategically investing in our commercial organization to increase account engagement and unlock growth across both concomitant and stand-alone segments. And finally, we're accelerating direct-to-patient investments to stimulate demand, increase patient activation and reach more patients in the state of care journey -- in the start of care journey. Together, these actions are designed to increase the number of patients treated and improve the LAAC market over time. So given these market dynamics we are seeing, we are updating our full year outlook for global WATCHMAN growth to be flat to low-single digits with the second half of 2026 declining mid- to high-single digits on a year-over-year basis. In the U.S., we anticipate that Q3 sales will decline mid-single digits sequentially versus second quarter, resulting in flat full year growth. We anticipate that year-over-year concomitant growth will materially slow in the second half due to higher comps from 2025. Our outlook does not anticipate any improvement in stand-alone procedural growth trends in the second half. We absolutely believe in this therapy and that WATCHMAN is the best treatment for patients who can't, won't or shouldn't take oral anticoagulation for stroke prevention. We expect that the actions we are taking today will support the LAAC market over time. However, we are not assuming improved WATCHMAN growth in 2027 until we see these dynamics actually change. Electrophysiology sales grew 9% with 3% growth in the U.S. and 23% internationally. Growth was driven by our innovative portfolio, including our continued expansion of our OPAL Mapping footprint, strong catheter utilization and continued momentum with our FARAPOINT launch. We continue to be pleased with the progress of expanding our OPAL Mapping footprint, supported by the OPAL HDx 7.0 Software release, which improved map quality. Our software releases every 6 months continue to enhance capabilities and support the expanding FARAPULSE platform. We have seen significant growth in our EP business with our differentiated FARAPULSE technology, enabling the transition to PFA faster than we anticipated. We believe that the U.S. PFA revenue now makes up approximately 80% of the AFib market, which does limit our ability to offset some competitive pressures. Going forward, we have adjusted our market share assumptions to ensure a more realistic outlook given these developments, while our team continues to focus on bringing our leading PFA ecosystem to more physicians and their patients who may benefit from the therapy. In light of this, we now expect our second half '26 global growth for EP to be flat. In the U.S., we anticipate that our Q3 sales will sequentially decline mid-single digits versus second quarter, resulting in full year growth of flat to low-single digits. We expect continued strength internationally with full year growth of approximately 20%. As we look ahead, we anticipate that our U.S. EP performance will improve in the second half of 2027 after the introduction of FARAWAVE Ultra, which is a high-density mapping and ablation catheter as well as our entry into the ICE market. We expect further improvement in 2028 as FARAFLEX, our novel large focal high-density map and ablate catheter, becomes available. And importantly, earlier this month, we commenced enrollment in the pivotal FARADIGM trial, evaluating the safety and effectiveness of FARAFLEX mapping and PFA catheter for the treatment of patients with paroxysmal and persistent AF. So in closing, we're not satisfied with our near-term outlook. We believe we now have a clear picture of the dynamics in our business and our updated guidance reflects a realistic view of the second half of '26. I remain confident in our long-term outlook for a number of reasons. Our performance is strong across many business units with Interventional Cardiology, Neuromodulation, IO&E, and Vascular, all delivering double-digit growth through the first half of the year. We also have an impactful cadence of catalysts in '27 that we expect to drive a significant improvement to our growth profile in 2028 and beyond. And even as we work through near-term top line pressures, we continue to be disciplined with our spending while investing in future growth drivers to ensure a return to meaningful adjusted operating margin expansion and adjusted EPS growth in '28 and beyond. So while we continue to navigate current challenges, our foundation, values and purpose haven't changed. Boston Scientific focuses on improving patient lives through our relentless pursuit of innovation, and we are confident that the qualities that have defined this company over many years will continue to shape our future as we evolve and build on those strengths with a highly skilled global team and a winning spirit. So with that, I'll hand it over to Jon for more commentary. Jonathan Monson: Thanks, Mike. Second quarter consolidated revenue of $5.442 billion represents 7.5% reported growth versus second quarter 2025 and includes a 50 basis point tailwind from foreign exchange, which was in line with our expectations. Excluding this $28 million foreign exchange tailwind, operational revenue growth was 7.0% in the quarter. Organic revenue growth was also 7.0% versus our second quarter guidance range of 5% to 7%. Second quarter 2026 adjusted earnings per share of $0.86 grew 15% versus 2025, exceeding the high end of our guidance range of $0.82 to $0.84, primarily driven by favorable discrete tax items. Adjusted gross margin for the second quarter was 70.3%, which represented an 80 basis point increase versus the second quarter of 2025. Second quarter adjusted operating margin was 28.4%, which was in line with expectations and represented 70 basis points of expansion versus the second quarter of 2025. On a GAAP basis, second quarter operating margin was 21.6%. These results include an approximate $75 million charge related to certain product liability cases as well as the recognition of approximately $80 million of refunds on previously paid IEEPA tariffs, representing substantially all of the refunds that we expect to receive. Moving to below the line. Second quarter adjusted interest and other expenses totaled $120 million, which was slightly unfavorable to expectations driven by FX volatility and certain unhedged currencies. On an adjusted basis, our tax rate for the second quarter was 10.4% which was better than expected and includes favorable discrete tax items. Fully diluted weighted average shares outstanding ended at $1.475 billion in the second quarter, reflecting the repurchase of approximately 40 million shares under our previously announced accelerated share repurchase agreement, which reduced our share count more than initially anticipated. As a result, we now expect full year 2026 weighted average shares outstanding to be approximately 1.475 billion. Free cash flow for the second quarter was $1.290 billion with $1.475 billion from operating activities, less $184 million in net capital expenditures. We now expect full year 2026 free cash flow to be approximately $3.8 billion. As of June 30, 2026, we had cash on hand of $539 million, and our gross debt leverage ratio was 2.0x. Our capital allocation approach is disciplined and growth-oriented. Our top priorities remain strategic tuck-in M&A and opportunistic share repurchases, while we continue to evaluate and fund the opportunities that we believe will create the greatest long-term value for our shareholders. Consistent with that framework, we announced a $1.5 billion investment in MiRus, which includes an exclusive option to acquire its TAVR business, and we completed our previously announced $2 billion accelerated share repurchase program. In addition, we look forward to the close of Penumbra in the second half, which we believe will strengthen our long-term growth profile through its innovative portfolio and strong strategic fit within our cardiovascular business. I'll now walk through guidance for the third quarter and full year 2026. We now expect full year 2026 reported revenue growth to be in a range of 5.5% to 6.5% versus 2025. Excluding an approximate 50 basis point tailwind from foreign exchange based on current rates, we expect full year 2026 operational and organic growth to be in the range of 5% to 6%. We believe this guidance reflects a comprehensive and realistic view of our end market dynamics. For the second half of 2026, this outlook contemplates approximately flat growth in our global Electrophysiology business, a mid- to high-single-digit decline in our global WATCHMAN business, and a steady base business growing approximately 6%, consistent with our historical performance over many quarters. We expect third quarter 2026 reported revenue growth to be in the range of 3% to 5% versus third quarter 2025. We anticipate no impact from foreign exchange based on current rates and therefore, expect third quarter 2026 operational and organic growth to also be in the range of 3% to 5%. We expect full year 2026 adjusted gross margin to be below full year 2025, reflecting a less favorable product mix than previously anticipated, primarily driven by our lower sales outlook for WATCHMAN and Electrophysiology. Additionally, we continue to make incremental investments in our global supply chain and quality systems. We now expect to expand full year 2026 adjusted operating margin by 0 to 25 basis points. Despite pressure on margins this year, we remain disciplined on spending while continuing to invest in our highest priority growth opportunities, supported by our recently announced restructuring program. We anticipate this comprehensive company-wide program will deliver run rate savings of approximately $500 million exiting 2029 in the areas of supply chain optimization, targeted functional transformation, org structure evolution as well as focused reductions in indirect spending to drive sustained cost efficiencies. We expect to realize over half of our run rate savings and incur over half of our program spend exiting 2027. This will position the company to return to meaningful operating margin expansion and strong adjusted EPS growth in 2028 and beyond. We now expect full year 2026 adjusted below-the-line expense to be approximately $485 million, reflecting the financing impact associated with our strategic investment in MiRus and our accelerated share repurchase agreement. Under current legislation, including enacted laws and issued guidance, we now expect a full year 2026 adjusted tax rate of approximately 11.5%. We expect full year 2026 adjusted earnings per share to be in a range of $3.28 to $3.32, representing 7% to 8% growth versus 2025, including an approximate $0.05 headwind from foreign exchange. We expect third quarter adjusted earnings per share to be in a range of $0.80 to $0.82. In closing, I'm confident in the long-term outlook for the company and our team's ability to navigate the current environment. While the challenges we face today will weigh on near-term financial performance, we are taking decisive actions to sharpen our organizational focus, adjust our cost structure and position the business for the future. We remain focused on executing our full year 2026 guidance of 5% to 6% organic revenue growth, 0 to 25 basis points of adjusted operating margin expansion, and 7% to 8% adjusted earnings per share growth. Importantly, we remain confident that the actions we are taking today will position Boston Scientific to return to differentiated financial performance in 2028 and beyond. For more information, please check our Investor Relations website for second quarter 2026 financial and operational highlights, which outlines more details on second quarter results and 2026 guidance. And with that, I'll turn it back to Lauren, who will moderate the Q&A. Lauren Tengler: Thanks, Jon. Drew, let's open it up for questions for the next 30 minutes or so. In order for us to take as many questions as possible, please limit yourself to one question. Drew, please go ahead. Operator: [Operator Instructions] The first question comes from Robbie Marcus with JPMorgan. Robert Marcus: I wanted to ask, we're coming off a beat in second quarter here. And I realize there have been a number of downward revisions over the past few quarters as some of the end markets have been moving. How do you frame this latest guidance update, particularly with respect to EP and WATCHMAN? Is this based on a level of conservatism where you can eliminate hopefully, any future negative revisions? Or is this based more on trends you're seeing exiting second quarter and so far into third quarter? And any early commentary you could give on 2027. I believe buy side is settling out somewhere around 5% organic growth coming into today. How does that sound to you going into second half of this year? Michael Mahoney: Thanks, Robbie. Yes, we are pleased with our second quarter results. And we did mention in the script, basically, 75% of our business continues to grow 6%, consistent with 2025, and we anticipate that set of businesses that are 75% will improve over the coming years as we strengthen our Urology business, launch CRM and continued momentum there. So 75% of the business kind of growing at 6%, we aim for that to improve in the future. The challenge, as you know, has been in the 2 areas, EP and WATCHMAN, that had hyper growth, unusually differentiated growth in '24 and '25, and now we expect more pressure in '26 and '27. And specific to EP, we see that rebounding in second half '27, and we expect to get back to kind of at market or above market growth in EP in '28. So when you look at the second half, really it's the EP and WATCHMAN is driving the bulk of the guidance reduction. And we're clearly not pleased with this change. It's not the outcome that we plan for. It's not what you expect from us, and I do take responsibility for the guidance reduction, and it's primarily driven by EP and WATCHMAN. And as I mentioned in the script, on the WATCHMAN side itself, we do expect second half declines globally in the mid-single-digit to high-single-digit results. And that is based on a trend that we've seen that we have not seen uptick in the first half of the year. So we think that's the appropriate prudent conservative guide for WATCHMAN based on the existing market that we're seeing. Now we're assuming in the WATCHMAN guide that despite the efforts we are making, which we aim to improve that those do not benefit the existing WATCHMAN market. So the 3 things that we laid out today continue to enhance and if labeling occurs in 2027, there obviously could be some upside to those numbers. But for guidance purposes, we're assuming the existing market that we're seeing today does not change. And that market change is very dramatic and pretty sudden over the past 6 months. So the WATCHMAN is the biggest piece of it. And secondly, on EP, we're overall in EP, we're actually quite pleased with the performance in the quarter, and we're quite pleased with the portfolio road map that we have with Ultra being launched in kind of this time next year, the entry into ICE and the Ultra platform just initiating this IDE. So that team is executing well. But with specific EP, we did undercall the competitive pressures in the U.S. in terms of share taking. We continue to be the PFA leader, but our share has come down. And the second attribute there is the PFA market has really accelerated to about 80%, 85% of the market share. We don't see that in Europe and Asia, where we continue to grow about 20% in our EP business. So the second half guide down is primarily driven by WATCHMAN and EP for the reasons stated. In 2027, to be appropriately conservative again, we would say that in 2027, we aim to do better than our guide for the second half of 2026. So assuming our 2027, we're being appropriately conservative with our WATCHMAN market call, and we aim to get back to stronger performance in EP, and we're confident that 75% of the business, which is growing at 6%, will improve over time with Urology and CRM specifically. I hope that answered some of your questions. Operator: The next question comes from Larry Biegelsen with Wells Fargo. Larry Biegelsen: Mike, regarding WATCHMAN, I think you said mid- to high single-digit decline in the second half of '26. So when you say no improvement in '27, are you referring to the full year guide of flat to low-single-digit growth or second half guidance? And how are you thinking about new competition next year, the 20% cut to the physician fee? And just lastly, do you still expect the first-line label based on the 3-year CHAMPION data? Michael Mahoney: Yes. The -- again, on EP, we undercalled the share. The WATCHMAN, we're not looking for a pass, but it has changed dramatically over the past 6 months. So when we look at second half, our assumption for the -- we're talking about the market here because we're about 91% share of the market. We do think the market declines that mid- to high-single-digit range. It's primarily based on high comps with concomitants. And as I mentioned, declining stand-alone share of about -- or stand-alone growth of about mid-teens growth negative. So that's the call for second half. In terms of the market in 2027, we obviously aim for that to get better based on educating the referral community, the clinical messaging, expanded commercial coverage and increase in DTP. But for now, we think it's prudent to assume that the '27 market is consistent with the trends that we're seeing now. And we'll be happy to change that call once we see improvement in the WATCHMAN market if that occurs. As you mentioned, we do anticipate a competitor at some point in 2027. We have high confidence that WATCHMAN will continue to be clearly the market leader, but likely we'll have some share erosion in 2027 with the introduction of a new competitor. So WATCHMAN will be absent a change in the market, which we have not assumed in this guidance despite the efforts that we are taking, we expect WATCHMAN will be difficult in 2027. Operator: The next question comes from Joanne Wuensch with Citibank. Joanne Wuensch: If I heard you correctly, 2026 revenue growth of 5% to 6% organic is probably a good starting place to think about 2027 and then reaccelerating in 2028. Could you sort of confirm that's the right parameters to think about? And then if you could comment on what the new products are that you think will be the main drivers as we think about going into 2028? Michael Mahoney: Yes. So it's -- we gave our guide for '26. It's difficult to give you a precise guide, which we won't in 2027 until January. But for now, we at least want to give a framework that we aim to improve 2027 versus our second half 2026 guidance. And again, that's kind of assuming that the WATCHMAN markets don't change, which we obviously aim for them to improve. When you look to the 2028 and beyond, so I guess I would say, first of all, we are taking action. The company has delivered very, very high performance over many, many years, last 4 or 5 years. We had a decent first half of this year growing 8% top line, 10% EPS growth for the first half, and we've given our guide for 2026. We do expect a challenging 2027. But if I could just touch on the future there in 2028 and beyond. So we are restructuring this year to help take some cost out. But why we're so confident in improvement as you point to the second half of '27 and '28 is, one, the WAMGRs that we compete in are 7% to 8%. We have a number of businesses now that are growing double digits. We expect that 75% of our business that's growing 6% will improve over the coming 2 years. In addition to that, based on investments that we've made over the past 2 or 3 years, we'll be entering 7 new meaningful launches that exceed about a $25 billion TAM in 2028. And those launches basically are highlighted in our press release there are IVL, hypertension, the closing of Penumbra, entry into ICE imaging, FARAWAVE Ultra, and if the MiRus clinical trial continues to go as planned, the future acquisition of MiRus as well as the additional circulatory support. So we really see the ICVTx sector being a significant growth driver for the company in '28, '29, '30. And we expect that core 75% of our business to strengthen over that time period. And then on top of that, you layer in 7 meaningful platforms that exceed about a $25 billion TAM market opportunity. In addition to that, we're confident that the EP business will get back to at market or beyond growth in 2028 and improve nicely in second half 2027. The WATCHMAN market is tougher to call. We'll keep you as updated as we can. But we feel like the combination of all those elements will drive us to high performance and peer-leading performance again in '28 and beyond. Operator: The next question comes from Rick Wise with Stifel. Frederick Wise: I have 2 questions. First -- my first question is, I was hoping you could expand on your restructuring comments. We all read the release, the 8-K earlier this week. And you spoke about the -- some of the benefits and the efficiencies in the time frame. But could you talk a little bit more about the impact as we think about the next several years on the P&L? Where will we see it? To what extent are you going to reinvest some of those savings, which I think was some of the language in the 8-K, where are you going to reinvest them in your growth initiatives? How do we think about that? Jonathan Monson: Yes. Thanks, Rick, for the question. It's Jon. Yes. So comprehensive enterprise-wide program that we're initiating. So goal of driving better speed and cost efficiency, targeting $500 million of savings within the next 3 years. Based off of the phasing of that program, we'd expect to realize over half of those savings exiting 2027. So we'll start to see those savings come in, in 2027. And that will position us to drive more meaningful operating margin expansion and strong EPS growth in 2028 and beyond, as Mike has indicated, as well as continuing to fully fund those high-growth opportunities, and Mike just picked through several of those, but we have them across the businesses. So broad program. As far as where we'll see those savings, I'd expect to see them materialize in SG&A first and then COGS later over time. So I feel like it's the right program for Boston Scientific, given where we are and will help position us to return to strong growth and meaningful EPS expansion and growth in '28 and beyond. Operator: The next question comes from Michael Polark with Wolfe Research. Michael Polark: Follow-up on WATCHMAN and the topic of compounding clinical evidence impacting referral patterns. I think we've all seen these studies, obviously, closure, CHAMPION, OCEAN, ALONE. The question is, what can you do to change that? Is it a new round of clinical evidence generation? Is it the form factor innovation? Just talk to me about the fixed playbook for those shifting referral patterns for WATCHMAN. Michael Mahoney: Dr. Stein, if you want to take that one? Ken Stein: Yes. Yes. Sure, Mike. And again, I think it's pretty clear that there was a much bigger impact than we anticipated dating back to last November, the release of OCEAN closure. And then I think some of the confusion around CHAMPION certainly hasn't helped with that. We have seen, for instance, much greater use of the so-called wait-and-wait strategy in patients with a CHA2DS2-VASc score of 3 following ablation. And while concomitant is continuing to grow, that has affected the growth trajectory of concomitant. When we look at stand-alone WATCHMAN procedures, we're really seeing more than anything else is a drop-off in referrals for the so-called soft indications for the device, patients who really just prefer not to be on an oral anticoagulant without having a really well-defined reason to seek an alternative. And I think the solution is sort of everything that you listed and everything that Mike listed that we're doing. It's continuing to educate on the totality of the clinical data. To come back to what Mike said in the prepared remarks, right, this is still the only proven and the best option for patients who can't or who won't or who shouldn't be on long-term blood thinners. I'd remind all of you, right, that somewhere between 30% and 40% of patients who need stroke prevention in atrial fibrillation currently don't get anything. So there's, again, a very sizable unmet medical need that the WATCHMAN device serves. In addition to continuing our education on the current data, there's more data to come. I'd highlight our SIMPLAAFY trial, which we expect to be released second half of this year, which if it meets its endpoints, could help simplify the drug regimen post implant, deal with some of the concern around immediate post-procedure bleeding. We've talked about continuing to iterate our device platform with the upcoming clinical trial evaluating the WATCHMAN Elite device. And again, we continue to believe that the data from CHAMPION and the overall totality of the clinical data merit an update to our labeling from FDA and merit a reconsideration of the CMS national coverage decision. Operator: The next question comes from Travis Steed with Bank of America. Travis Steed: I wanted to ask about the limited EPS growth comment in 2027. Is that flat EPS? Is that EPS growth kind of in line with the 3% revenue growth in '27? Or is there some leverage still? And then 2028, do we get back to double-digit growth? And maybe also maybe address why the lack of EPS growth in '27 is just a lack of higher-margin revenue growth or needing to invest more in growth drivers? Jonathan Monson: Yes. Thanks, Travis. We'll get into much more detail on '27 expectations as we always do on our Q4 earnings call. But based on what we're assuming today, and you heard Mike outline WATCHMAN and EP dynamics, we expect those to extend into 2027. We expect limited EPS growth in 2027 and improving op margins will be a challenge. That is due to gross margin pressure from continued softness in WATCHMAN and EP as well as the initial impacts of Penumbra. I anticipate that will close in the second half of this year. Excited to add Penumbra. But as we've previously disclosed, expect Penumbra to be slightly dilutive to our op margins and EPS in 2026. Now again, we are taking action to ensure a return to meaningful operating margin expansion and strong EPS growth. We'll maintain a disciplined approach to spending across Boston Scientific. Again, we'll continue to fully fund those areas of the portfolio that we see driving our long-term growth. And again, as we discussed, we initiated a company-wide restructuring program, which along with those growth catalysts that Mike laid out a moment ago, that will start to hit in '27, '28. That will position us to return to strong revenue growth and strong adjusted EPS growth in 2028 and beyond. Operator: The next question comes from Matt Taylor with Jefferies. Matthew Taylor: I wanted to see if you could be a little bit more specific on 2027 assumptions for EP growth. You talked a little bit about the WATCHMAN outlook. Could you discuss EP as well? And I guess, when do you expect some of these pipeline contributions to help the EP growth outlook? Michael Mahoney: Sure. Yes. I mentioned it a little bit earlier. Really pleased with the momentum and execution of our EP R&D and innovation team broadly speaking. And as we know, we have FARAPOINT that we're launching or launched this year. But the big meaningful launches that will widen our ecosystem and widen the number of patients that we can treat and provide a more full comprehensive solution beyond current FARAPULSE really start in 2027, where we launch our next-generation FARAPULSE Ultra device, which we anticipate launching right around this time next year at scale. And then entry into the -- really the greater than $1 billion or so growing quickly ICE market will happen again in 2027 where we're not currently playing. So those 2 launches will help us considerably as we look at second half of '27. So we basically see the first half of '27 looking like similar dynamics that we see today in second half '26. But we do see improvement in 2027. And then in 2028, we have our Ultra device, which is now in clinical trial, which we think is a breakthrough device for us, which will again widen the patient indication and kind of full-service solution that we can offer an EP customer. So we're very confident in 2028 getting to at or above market growth again in EP based on that portfolio of Ultra, ICE, and FARAWAVE -- FARAFLEX, I'm sorry, FARAFLEX. Operator: The next question comes from Marie Thibault with BTIG. Marie Thibault: I wanted to ask a question here on one of the bright spots for your business, which has been the ICVTx segment. What are the products that are doing best? What are sort of the catalysts to look for in that business? And how can we sort of have confidence in the sustainability of some of the above WAMGR growth that you've been showing there? Michael Mahoney: Yes. We think that this will be our largest set of businesses in the company in the future here. If you look at Interventional Cardiology, Vascular, the ideally closed by the end of this year, addition of Penumbra. And the adjacencies that we may enter, I talked about the MiRus TAVR valve in my script. So there's just numerous -- first of all, they have excellent momentum now, and that's being driven by our complex PCI portfolio, our imaging capabilities and our AGENT drug-coated balloon, which we're looking to continue to widen indication and expansions with our current trial. So that business is performing at a very high level. And then as we look over the years here, we're excited to enter the IVL market, which is a multibillion-dollar market in 2027 in coronary. We're making a lot of momentum on our hypertension enrollment in our trial, and we expect to finish that hopefully by the end of this year or first quarter of 2028. And so we expect to launch that product no later than 2028 and which we think will be a very nice timing based on potential enhancements that continue to need to be made in the reimbursement landscape. And then we'll have the closing of Penumbra. So there's just a number of large adjacencies that we're moving into in that sector, and they're riding continued momentum. And as Jon said, with this restructuring, we are clearly protecting these high-growth markets that will allow us to enable to grow to high-end performance again in '28 and beyond. Operator: The next question comes from Jayson Bedford with Raymond James. Jayson Bedford: I may have missed this in answering an earlier question, but what do you think your WAMGR is today just given the slowdown in the LAAC market? And then just a quick one. What can be done in Sacral Neuromodulation? I'm just curious, is it more market or share related? Michael Mahoney: Yes. We would estimate our WAMGR is probably 7% to 8%. So tick down probably 1 point. Keep in mind, WATCHMAN is a great product for us, but it's less than 10% of our revenue. So we would call our WAMGR in the 7% to 8% range. And hopefully, that will enhance over time based on the closing of Penumbra and the potential entry into some of these other markets that I mentioned. On Urology, we're frustrated with our results year-to-date. We do anticipate kind of flattish growth, maybe up 1% for the full year. And that business, we're confident, and we've been saying this for a while, but we're confident that's going to improve in 2027. We have 3 key launches in our core stone portfolio over the coming 2 or 3 quarters. We expect to get closer to at-market growth in 2027 in that area. And in Sacral Neuromodulation, as we've discussed on numerous calls, we had a significant kind of disruption of the commercial capabilities. And those gaps have been filled. We've trained and hired and are now in the field activating a number of new clinical and sales reps. So we anticipate that business should get better as the quarters progress here in '26 and with a more mature team in 2027. So we aim for our Urology business to kind of get closer to their Urology market growth rate in 2027. Operator: I understand that there is time for one last questioner, that will come from Josh Jennings with TD Cowen. Joshua Jennings: I wanted to follow up on Jayson's WAMGR question. It -- does that hold for 2027? And just hoping for an updated outlook on the U.S. EP market growth? And does Boston expect FARAWAVE to maintain leadership in the AFib ablation catheter segment in front of the FARAWAVE Ultra launch? And just an update on how Boston is doing in the non-ablation catheter segments of the U.S. EP market. Sorry, multilayered, but I appreciate you taking it. Michael Mahoney: I think the 7% to 8% call for the WAMGR is, I think, the appropriate number. In terms of PFA leadership, we have it now. We have lost some share in the U.S. We continue to do extremely well in Europe and Asia Pac, where the PFA penetration is not quite as high. And we've seen all the competitive launches there. But we do continue to expect some competitive launches will impact performance in second half '26, which is the guide. And then we see that continued trend occurring through first half '27, and that's when we launch our next-generation Ultra and eventually our ICE device. So we expect that business to strengthen in second half '27 and in '28. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Lauren Tengler for any closing remarks. Lauren Tengler: Thanks for joining us today. We appreciate your interest in Boston Scientific. If we were unable to get to your question or you have any additional follow-ups, please don't hesitate to reach out to the Investor Relations team. Before you disconnect, Drew will give you all of the pertinent details for the replay. Thank you, everyone. Operator: Thank you. Please note, a recording will be available in 1 hour by dialing either 1 (877) 344-7529 or 1 (412) 317-0088 using replay code 114-7211 until August 5, 2026, at 11:59 p.m. Eastern Time. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Boston Scientific, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boston Scientific wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Boston Scientific (BSX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

ALAMEDA, Calif., July 30, 2026 /PRNewswire/ -- Penumbra, Inc. (NYSE: PEN), the world's leading thrombectomy company, today reported financial results for the second quarter ended June 30, 2026. Revenue of $390.0 million in the second quarter of 2026, an increase of 14.9% compared to the second quarter of 2025. Global thrombectomy revenue of $259.0 million in the second quarter of 2026, an increase of 12.5% compared to the second quarter of 2025. Global embolization and access revenue of $131.1 million in the second quarter of 2026, an increase of 20.0% compared to the second quarter of 2025. Gross profit margin of 67.9% in the second quarter of 2026, an increase of 1.9% compared to the second quarter of 2025. Total operating expenses of $223.9 million in the second quarter of 2026, comprised of R&D of $25.4 million and SG&A of $198.5 million, which includes $6.9 million of acquisition-related expenses associated with the pending acquisition of Penumbra, Inc. by Boston Scientific Corporation. Income from operations of $41.0 million and net income of $34.8 million in the second quarter of 2026. Full Year 2026 Financial Outlook and Webcast and Conference Call InformationGiven the pending acquisition of Penumbra, Inc. by Boston Scientific Corporation (NYSE: BSX), the Company will not be providing financial guidance for the full year 2026 or hosting a conference call to discuss financial results for the three months ended June 30, 2026. About PenumbraPenumbra, Inc., the world's leading thrombectomy company, is focused on developing the most innovative technologies for challenging medical conditions such as ischemic stroke, venous thromboembolism such as pulmonary embolism, and acute limb ischemia. Our broad portfolio, which includes computer assisted vacuum thrombectomy (CAVT), centers on removing blood clots from head-to-toe with speed, safety and simplicity. By pioneering these innovations, we support healthcare providers, hospitals and clinics in more than 100 countries, working to improve patient outcomes and quality of life. For more information, visit www.penumbrainc.com and connect on Instagram, LinkedIn and X. Forward-Looking StatementsExcept for historical information, certain statements in this press release are forward-looking in nature and are subject to risks, uncertainties and assumptions about us. Our business and operations are subject to a variety of risks and uncertainties and, consequently, actual results may differ materially from those projected by any forward-looking statements. Factors that could cause actual results to differ from those projected include, but are not limited to: the risk that the pending acquisition by Boston Scientific Corporation will not be completed in the expected timeframe or at all, including the risk that required regulatory approvals will not be obtained; potential adverse effects to our business during the pendency of the acquisition, such as employee departures or diversion of management's attention from our business; failure to sustain or grow profitability or generate positive cash flows; failure to effectively introduce and market new products; delays in product introductions; significant competition; inability to further penetrate our current customer base, expand our user base and increase the frequency of use of our products by our customers; inability to achieve or maintain satisfactory pricing and margins; manufacturing difficulties; permanent write-downs or write-offs of our inventory or other assets; product defects or failures; unfavorable outcomes in clinical trials; inability to maintain our culture as we grow; fluctuations in foreign currency exchange rates; potential adverse regulatory actions; and the potential impact of any acquisitions, mergers, dispositions, joint ventures or investments we may make. These risks and uncertainties, as well as others, are discussed in greater detail in our filings with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 25, 2026. There may be additional risks of which we are not presently aware or that we currently believe are immaterial which could have an adverse impact on our business. Any forward-looking statements are based on our current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change. Investor RelationsPenumbra, [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/penumbra-inc-reports-second-quarter-2026-financial-results-302838410.html

Boston Scientific Corporation BSX delivered a solid second quarter, but management highlighted a tougher path ahead as pressure in WATCHMAN and electrophysiology changed the company’s near-term outlook. Executives reduced full-year expectations while emphasizing cost actions and future product catalysts. The call focused on market shifts, competitive dynamics and the steps Boston Scientific is taking to return to stronger growth beyond 2027. Management also addressed analyst concerns around WATCHMAN demand and EP share trends. Michael Mahoney, chairman, president & CEO, said the updated outlook reflects pressure concentrated in WATCHMAN and electrophysiology, while the broader portfolio continues to perform. He noted that roughly 75% of revenues are growing around 6%. Mahoney said WATCHMAN growth slowed due to changing referral patterns following new clinical evidence, while EP faced greater-than-expected competitive share movement in the U.S. market. The company expects these dynamics to weigh on 2026 and create a challenging 2027 before improvement from new launches and investments. Boston Scientific expects full-year 2026 organic revenue growth of 5% to 6% and adjusted EPS of $3.28 to $3.32. Third-quarter organic revenue growth is projected at 3% to 5%, with adjusted EPS of $0.80 to $0.82. Jonathan Monson, executive VP & CFO, said the second-half outlook assumes flat EPS growth, a mid- to high-single-digit decline in global WATCHMAN sales and approximately 6% growth from the base business. The company also expects full-year adjusted operating margin expansion of 0 to 25 basis points, reflecting pressure from product mix and investments in supply chain and quality systems. BSX reported second-quarter revenues of $5.44 billion, up 7.5% year over year, surpassing the Zacks Consensus Estimate of $5.38 billion. Adjusted EPS rose 15% to $0.86 and beat the consensus mark of $0.83. Boston Scientific Corporation price-consensus-eps-surprise-chart | Boston Scientific Corporation Quote Mahoney highlighted strength in Interventional Cardiology, Neuromodulation, Interventional Oncology and Vascular businesses. Interventional Cardiology grew 15%, supported by coronary therapies, drug-coated balloons, imaging and complex PCI. Boston Scientific also reported strong regional performance, including operational growth of 6% in the United States and 11% in Asia-Pacific. Boston Scientific emphasized upcoming growth opportunities tied to product launches and strategic investments. Management pointed to seven major launches expected to address more than $25 billion in total addressable markets in 2028. The company highlighted opportunities including SEISMIQ intravascular lithotripsy, hypertension treatment, Penumbra integration, ICE imaging, FARAWAVE Ultra and potential MiRus TAVR expansion. Mahoney said the company expects Interventional Cardiology and cardiovascular technologies broadly to become major growth drivers over the coming years. BSX announced a restructuring program designed to deliver approximately $500 million in run-rate savings exiting 2029. Management expects savings to come initially from SG&A and later from the cost of goods sold. Monson said more than half of the savings are expected to be realized exiting 2027, supporting stronger margin expansion and EPS growth beginning in 2028. The company completed its $2 billion accelerated share repurchase program and invested $1.5 billion in MiRus, including an option related to its TAVR business. A JPMorgan analyst asked whether the revised outlook reflected conservatism or current trends. Mahoney said the changes were primarily driven by WATCHMAN and EP conditions observed entering the second half. Management told analysts that EP performance should improve with future launches, including FARAWAVE Ultra and ICE market entry, while WATCHMAN recovery depends on market conditions and education efforts. BSX management maintained confidence in long-term growth while acknowledging near-term challenges. Executives emphasized disciplined spending, continued investment in priority businesses and execution against 2026 guidance. The company expects improvement in revenue and EPS trends in 2028 and beyond, supported by restructuring benefits and new product platforms. Boston Scientific has a Zacks Rank #4 (Sell), with a Value Score of B, Growth Score of C, Momentum Score of D and VGM Score of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Rank focuses on earnings estimate revisions, while Style Scores evaluate characteristics such as value, growth and momentum. These indicators are designed to complement the Zacks Rank when assessing stocks. The Zacks Rank can change as analysts update earnings estimates following quarterly results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Organic Sales Growth: 7% in Q2 2026, driven by Interventional Cardiology, Endoscopy, and Neuromodulation. Adjusted EPS: $0.86, a 15% increase, exceeding guidance range of $0.82 to $0.84. Adjusted Operating Margin: 28.4% in Q2 2026. Full Year 2026 Organic Revenue Guidance: 5% to 6% growth. Full Year 2026 Adjusted EPS Guidance: $3.28 to $3.32, representing 7% to 8% growth. Regional Performance: US grew 6%, EMEA grew 4%, Asia Pac grew 11% operationally. Neuromodulation Sales Growth: 12% in Q2 2026. Endoscopy Sales Growth: 7% in Q2 2026. Interventional Cardiology Growth: 15% in Q2 2026. Vascular Therapies Growth: 8% in Q2 2026. Cardiac Rhythm Management Sales Decline: 2% in Q2 2026. WATCHMAN Growth: 4% in Q2 2026, with international growth of 18% and US growth of 3%. Electrophysiology Sales Growth: 9% in Q2 2026. Consolidated Revenue: $5.442 billion in Q2 2026, 7.5% reported growth. Adjusted Gross Margin: 70.3% in Q2 2026. Free Cash Flow: $1.29 billion in Q2 2026. Cash on Hand: $539 million as of June 30, 2026. Gross Debt Leverage Ratio: 2.0x as of June 30, 2026. Warning! GuruFocus has detected 5 Warning Sign with MAS. Is BSX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Boston Scientific Corp (NYSE:BSX) reported a solid second quarter with organic sales growth of 7%, driven by strong performance in Interventional Cardiology, Endoscopy, and Neuromodulation. The company exceeded its adjusted EPS guidance range with a 15% growth, reaching $0.86, primarily due to favorable tax results. Neuromodulation sales grew 12%, with double-digit growth in both pain and brain segments, supported by successful integration of Nalu. Interventional Cardiology business achieved 15% growth, driven by double-digit growth in coronary therapies and strong performance in DCB, Imaging, and Complex PCI. Boston Scientific Corp (NYSE:BSX) announced a restructuring program aimed at delivering approximately $500 million in run rate savings by 2029, enabling sustainable cost efficiencies and strategic reinvestment. The company updated its full-year 2026 guidance, expecting more pressure in the second half than originally anticipated, with organic revenue growth revised to 5% to 6%. WATCHMAN sales growth slowed sharply due to compounding clinical evidence impacting referral patterns, leading to a revised outlook of flat to low single-digit growth for the full year. Electrophysiology (EP) faced unexpected competitive pressures in the US market, resulting in a revised outlook of flat growth for the second half of 2026. Urology sales grew only 1%, falling short of expectations due to slower recovery in sacral neuromodulation and market pressure in stone management. Cardiac Rhythm Management sales declined 2% in the quarter, with competitive pressure and portfolio gaps impacting performance. Q: How do you frame the latest guidance update, particularly with respect to EP and WATCHMAN? Is this based on conservatism or trends you're seeing? Any early commentary on 2027? A: Michael Mahoney, CEO: We are pleased with our Q2 results, with 75% of our business growing at 6%. The guidance reduction is primarily driven by EP and WATCHMAN. For EP, we expect a rebound in the second half of 2027 and aim for stronger performance in 2028. WATCHMAN is expected to decline mid- to high single digits in the second half of 2026, with no assumed improvement in 2027. We aim to improve 2027 versus the second half of 2026. Q: Regarding WATCHMAN, how are you thinking about new competition next year and the 20% cut to the physician fee? Do you still expect the first-line label based on the 3-year CHAMPION data? A: Michael Mahoney, CEO: We expect the WATCHMAN market to decline mid- to high single digits in the second half of 2026. For 2027, we assume the market remains consistent with current trends. We anticipate a competitor in 2027, which may lead to some share erosion. We still expect the first-line label based on CHAMPION data. Q: Can you confirm if 2026 revenue growth of 5% to 6% organic is a good starting place for 2027, and what are the new products driving growth into 2028? A: Michael Mahoney, CEO: We aim to improve 2027 versus the second half of 2026. For 2028, we expect significant growth driven by new product launches, including IVL, hypertension, Penumbra, ICE imaging, FARAWAVE Ultra, and potentially Mirus. These launches represent a $25 billion TAM opportunity. Q: Could you expand on the restructuring comments and its impact on the P&L? Where will savings be reinvested? A: Jonathan Monson, CFO: The restructuring program targets $500 million in savings over the next three years, with over half realized by 2027. Savings will materialize in SG&A first, then COGS. We will reinvest in high-growth opportunities to drive operating margin expansion and EPS growth in 2028 and beyond. Q: What can be done to address the shifting referral patterns for WATCHMAN due to compounding clinical evidence? A: Ken Stein, Chief Medical Officer: We are focusing on educating on the totality of clinical data and expanding physician education. Upcoming data from the SIMPLIFY trial and iterations of the WATCHMAN device will help address concerns. We believe the data supports an update to our labeling and CMS coverage decision. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Boston Scientific Corporation BSX reported second-quarter 2026 adjusted earnings of 86 cents per share, up 14.7% year over year. The figure beat the Zacks Consensus Estimate by 3.61%. Revenues rose 7.5% on a reported basis to $5.44 billion and surpassed the consensus estimate by 1.07%. Cardiovascular growth, double-digit gains in Asia-Pacific (“APAC”) and Latin America and Canada (“LACA”) and strong Neuromodulation sales supported the quarter. Following the earnings announcement, shares of BSX rose 3.4% in pre-market trading today. Cardiovascular revenues totaled $3.62 billion, increasing 8.3% on a reported basis and 7.8% on an operational and organic basis. The segment generated roughly two-thirds of Boston Scientific’s quarterly revenues and remained the primary growth contributor. MedSurg revenues rose 5.9% to $1.82 billion, with operational and organic growth of 5.4%. Within the segment, Endoscopy sales increased 7.6% to $793 million, while Neuromodulation revenues climbed 12.7% to $341 million. Urology revenues advanced 1.1% to $684 million, marking the slowest growth among the company’s reported businesses. U.S. revenues increased 6.2% to $3.43 billion. The domestic market remained Boston Scientific’s largest region, generating nearly 63% of consolidated sales. Boston Scientific Corporation price-consensus-eps-surprise-chart | Boston Scientific Corporation Quote APAC revenues rose 11.2% to $878 million, while LACA sales surged 22.4% to $206 million. LACA operational growth was 16.2%. Europe, Middle East and Africa (“EMEA”) revenues increased 6.1% to $932 million, although operational growth was lower at 4.2% due to currency effects. The gross margin expanded approximately 306 basis points (bps) year over year to 70.7%. The cost of products sold declined 2.6% to $1.59 billion in the reported quarter. Selling, general and administrative expenses rose 5.1% to $1.80 billion. Research and development expenses increased 5.3% to $554 million, while royalty expenses plunged 14.3% to $12 million. Adjusted operating margin expanded approximately 71 bps to 28.4%. Boston Scientific presented data from the FRACTURE trial of the SEISMIQ 4CE coronary intravascular lithotripsy catheter. The study met its primary endpoints, demonstrating procedural success and high freedom from major adverse cardiac events at 30 days. The AVANT GUARD study also met its safety and effectiveness endpoints. FARAPULSE pulsed field ablation demonstrated statistical superiority over anti-arrhythmic drugs in patients with persistent atrial fibrillation who had not received prior treatment for the condition. The company invested $1.5 billion in MiRus LLC for an approximately 34% equity stake and an exclusive option to acquire its transcatheter aortic valve replacement business. MiRus is developing the investigational SIEGEL balloon-expandable TAVR system. BSX also completed its previously announced $2 billion accelerated share repurchase program. The transaction resulted in the repurchase of approximately 40 million shares, reducing the company’s outstanding share base. Boston Scientific now expects reported sales growth of 5.5-6.5%, down from its prior forecast of 7-8.5%. Organic sales growth is now projected at 5-6% compared with the earlier range of 6.5-8%. The Zacks Consensus Estimate is currently pegged at $21.59 billion, indicating a 7.6% rise from the 2025 figure. The company also reduced its full-year adjusted earnings forecast to $3.28-$3.32 per share from the earlier $3.34-$3.41. The Zacks Consensus Estimate is currently pegged at $3.35. For the third quarter, management forecasts reported and organic sales growth of 3-5%. Adjusted earnings are expected between 80 cents and 82 cents per share. The Zacks Consensus Estimate for third-quarter revenues and earnings is projected at $5.39 billion and 84 cents, respectively. Boston Scientific exited the second quarter of 2026 with both earnings and revenues beating estimates. Despite navigating a dynamic environment, the company remained focused on disciplined execution and prioritized investments in the highest-impact opportunities. The expansion of both gross and adjusted operating margins also bodes well. However, the lowered top- and bottom-line outlook for 2026 is discouraging. During the quarter, Boston Scientific announced clinical trial results that were presented in late-breaking sessions at Heart Rhythm 2026. This includes the AVANT GUARD study of FARAPULSE Pulsed Field Ablation for the treatment of persistent atrial fibrillation in patients who had not previously been treated for their condition. The company also secured the FDA’s 510(k) clearance for the TruSelect 2.6 Microcatheter, expanding its embolization portfolio. Boston Scientific currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Quest Diagnostics DGX and Medpace MEDP. Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%. Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%. DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%. Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%. MEDP has an historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research