BSX US S&P 500Russell 1000 Earnings call · transcribed from the recording
Boston Scientific (BSX) · Q3 2026 results and valuation
Share price: $45.13 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 28 Oct 2026 and 29 Jul 2026
Net income down 35.9% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−35.9%
Net income vs Q2 2026
Outlook given
Net income 580.0M vs 905.0M
Revenue −5.6%
Against the same quarter last year (Q3 2025) it is −23.2%, so it is not just seasonal.
2 · How management spoke
Typical
Less upbeat than 59% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Guidance
Operational and organic revenue growth were also 1.5% in the quarter, below its third quarter guidance range... ...quarter consolidated revenue of…
Valuation
Is Boston Scientific undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 16.5% growth a year (3-year revenue growth), the model's fair value is $88.29 a share — the stock trades 49% below it. Today's price assumes 8.5% growth a year.
Current price
$45.13
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.5% for 10 yrs
Fair value / share
$88.29
Buy below
$66.22
Price vs fair value
Undervalued 49%
Price vs buy-below price
Undervalued 32%
Management expects
Revenue +1.5% · from the Q3 2026 report: “As a result, operational and organic revenue growth were also 1.5% in the quarter, below our third quarter guidance range... ...quarter consolidated revenue of…”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
Boston Scientific expects its underlying business dynamics in Q4 to persist into 2027, and believe its fourth quarter guidance provides a reasonable baseline…
Source quote
“We expect our underlying business dynamics in Q4 to persist into 2027, and believe our fourth quarter guidance provides a reasonable baseline... As Mike outlines, we anticipate continued top-line pressure into 2027, which we expect will make it challenging to grow revenue and adjusted earnings per share, excluding Penumbra. Importantly, we're taking decisive actions to drive greater focus, speed, and accountability, most...”
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Guidance
To that end, Boston Scientific is guiding to organic revenue declines of minus 1 to minus 3 percent for fourth quarter 26, and adjusted EPS of 77 cents to 79 cents.
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Guidance
Boston Scientific expects full year 2026 adjusted gross margin to be below full year 2025, reflecting a less favorable product mix, investment in its global supply chain and quality...
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Figure
Boston Scientific has a very strong cadence of launches in 27 and 28 and anticipate entering several new markets over the next few years...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“In addition to Tuck and M &we're leveraging strategic partnerships to advance innovation, ensuring we're directing capital toward high-growth opportunities.”
“23 to 25, we experienced a very high growth cycle, much on the heels of our base business being strong and the tremendous growth of our Watchmen and EP.”
“So we expect the overall Rhythm Solutions business with a stronger growth in CRM and improving cadence of effective launches in EP and Watchman to significantly improve the growth profile...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.14B | 5.44B | −5.6% | 5.07B | +1.4% |
| Gross profit | 3.43B | 3.85B | −10.9% | 3.54B | −3.2% |
| Operating income | 828.0M | 1.18B | −29.7% | 1.05B | −21.0% |
| Net income | 580.0M | 905.0M | −35.9% | 755.0M | −23.2% |
| EPS | 0.40 | 0.61 | −34.4% | 0.51 | −21.6% |
| P/E today 18.0 | 18.4 | 17.3 | +1.1 | 52.2 | −33.8 |
Topics
Most discussed now
- New Turning to Q4, Boston Scientific anticipates that it will be a 200 to 300 basis points of impact from the cyber...
- Please note that on the call, operational revenue excludes the impact of foreign currency fluctuations and organic revenue further…
- Guidance excludes its previously announced agreement to acquire Penumbra, which Boston Scientific expects to close in early 2027.
- Despite these challenges, Boston Scientific remains focused on taking the necessary actions to drive improved financial performance.
- 23 to 25, Boston Scientific experienced a very high growth cycle, much on the heels of its base business being strong...
Faded since Q2 2026
- Fading Adjusted gross margin for the second quarter was 70.3%, which represented an 80 basis point increase versus the second quarter...
- Dropped The adjacencies that Boston Scientific may enter, I talked about the MiRus TAVR valve in my script.
- Fading Boston Scientific has had a strong record of growing above Boston Scientific's weighted average market growth rates while delivering…
- Fading Quarter adjusted operating margin was 28.4%, which was in line with expectations and represented 70 basis points of expansion...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Director or officer change; Other events · SEC 8-K
- Director or officer change · SEC 8-K
- 1.05 · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Restructuring costs · SEC 8-K
- Other events · SEC 8-K