By Siddhi Mahatole
July 29 (Reuters) – Medical device maker Boston Scientific cut its annual profit forecast on Wednesday, citing slower growth for its Watchman heart device and tougher competition in its U.S. electrophysiology business.
Shares were down nearly 3% in morning trade.
The company’s updated outlook deepened investor concerns after it warned in May of pressure from softer-than-expected uptake of its heart device Watchman, a key growth driver.
“We now expect the second half to be more pressured than we originally anticipated,” CEO Michael Mahoney told analysts, calling the updated outlook a “realistic view” of the back half of the year.
Mahoney said the forecast cut reflected weakness in Watchman and greater-than-expected competitive pressure in the U.S. electrophysiology market, which has led to market share losses. He said both trends were expected to persist into 2027.
“We’re clearly not pleased with this change. It’s not the outcome that we planned for,” Mahoney said.
Growth in procedures using its Watchman heart device has slowed sharply as physicians increasingly combine the implant with other cardiac treatments and as shifting clinical evidence disrupts referrals.
RESETTING EXPECTATIONS
J.P. Morgan analyst Robbie Marcus said the magnitude of the forecast cut appeared aimed at setting a more achievable bar for the second half and reducing concerns that Boston Scientific could miss third- and fourth-quarter expectations.
The company said it expects earnings and revenue growth to improve meaningfully in 2028.
Boston Scientific now expects 2026 adjusted earnings of $3.28 to $3.32 per share, compared with its prior forecast of $3.34 to $3.41. Analysts were expecting $3.36 per share, according to LSEG data.
On Monday, Boston Scientific’s board approved a new company-wide restructuring plan to cut costs and support future growth.
It posted second-quarter adjusted profit of 86 cents per share, above analysts’ estimate of 83 cents per share
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Tasim Zahid)
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