Boston Scientific Shares Under Pressure as Growth Momentum Slows

Boston Scientific US1011371077

Despite reporting robust full-year 2025 results, Boston Scientific faced a negative market reaction, with investor confidence shaken by a growth deceleration in its key electrophysiology unit and a tempered outlook for the coming year. While the company posted strong double-digit revenue growth overall, the performance in certain core segments fell short of elevated market expectations.

The medical device manufacturer disclosed the following figures:

• Q4 Revenue: $5.286 billion (a 15.9% increase)
• Q4 Adjusted EPS: $0.80
• Full-Year 2025 Revenue: $20.074 billion (up 19.9%)
• Q4 Electrophysiology Growth: Approximately 37%
• 2026 Revenue Growth Guidance: 10.5% to 11.5%

Electrophysiology Growth and Legal Scrutiny

A primary concern for analysts was the performance of the electrophysiology division. Although it generated $890 million in sales during the fourth quarter, the 37% year-over-year increase represents a noticeable slowdown from the growth rates seen in prior quarters. Technologies like pulsed field ablation (PFA) have been viewed as major growth engines, making this moderation a point of focus for investors.

Compounding the issue, the stock's decline following the earnings release has attracted legal attention. Several law firms have announced investigations into whether the company may have violated securities laws. Such actions are not uncommon in the U.S. following significant share price movements, but they contribute to an atmosphere of uncertainty around the stock.

A More Measured Outlook for 2026

Management's forecast for the current fiscal year 2026 reflects a more conservative stance. The company anticipates organic revenue growth in the range of 10% to 11%. For adjusted earnings per share, Boston Scientific is targeting $3.43 to $3.49. This guidance suggests the exceptional growth rates of the previous year are unlikely to be sustained in the near term.

The question now is whether expansion into new areas can offset the cooling momentum in the core business. The company is leaning on strategic acquisitions for this purpose. The planned takeover of Nalu Medical is intended to bolster its chronic pain management portfolio within the neuromodulation segment. Management expects this integration to drive growth exceeding 25% for neuromodulation in 2026.

The Nalu Medical acquisition is projected to begin contributing positively to adjusted EPS starting in 2027. In upcoming quarterly reports, investors will be closely monitoring the progress of this integration and watching to see if electrophysiology growth can stabilize at its current level.

@ boerse-global.de | US1011371077 BOSTON