Boston Scientific Corp.

Q2 performance beat, but guidance was cut (key “good vs bad”) - Organic sales +7% YoY, topping the guided 5% to 7% range; total company organic momentum driven by Interventional Cardiology, Endoscopy, and Neuromodulation. - Adjusted EPS $0.86, +15% YoY, above the high end of guidance ($0.82–$0.84), aided mainly by favorable discrete tax items. - Adjusted operating margin 28.4%; GAAP margin 21.6% impacted by ~$75M product liability charge and ~$80M of IEEPA tariff refunds.

Full-year 2026 guidance updated lower—especially due to EP and WATCHMAN - 2026 organic revenue forecast: 5% to 6% (previously higher; guidance now reflects “more pressured” 2H). - 2026 adjusted EPS: $3.28 to $3.32 (+7% to 8% YoY)—still growth, but the trajectory is constrained versus prior expectations. - Why the cut: concentrated in two franchises: - WATCHMAN: U.S. market slowed sharply; management attributes it to compounding clinical evidence impacting referral patterns plus operational inefficiencies from rapid concomitant adoption. - Electrophysiology (EP): U.S. competitive share movement was under-called; despite being a PFA leader, share declined as PFA adoption reached high penetration in the U.S.

Second-half 2026 outlook specifics (what investors should watch) - 2H growth profile: - EP: expected flat globally in 2H 2026; U.S. sequential decline in Q3 vs Q2, leading to full-year EP growth flat to low-single digits. - WATCHMAN: mid- to high-single-digit YoY decline in 2H 2026 globally; U.S. Q3 expected mid-single-digit sequential decline, implying flat full-year growth. - Management emphasized no assumed improvement in WATCHMAN in 2027 until market dynamics actually change.