By Padmanabhan Ananthan
Oct 28 (Reuters) – Boston Scientific lowered its full-year profit forecast on Wednesday and warned that revenue and earnings growth could be challenging in 2027, citing pricing pressure in China and weakness in its key heart-device businesses.
Shares of the company were down 5.3% by afternoon.
“We anticipate continued top-line pressure into 2027, which we expect will make it challenging to grow revenue and adjusted earnings per share,” CFO Jon Monson said in a conference call.
The medtech company now expects 2026 adjusted profit in the range of $3.16 to $3.18, compared with a previous range of $3.28 to $3.32. Analysts on average expect earnings of $3.23 per share, according to data compiled by LSEG.
The company expects fourth-quarter sales to fall about 3% to 1% year over year and adjusted earnings of 77 to 79 cents per share, below analysts’ estimate of 83 cents per share.
Chief Executive Mike Mahoney said, “there will be additional price headwinds in China in ’27, and the growth likely won’t be enough to offset the pressure from electrophysiology and Watchman next year.”
Farapulse and Watchman are among Boston Scientific’s major growth drivers. The Watchman implant, which prevents blood clots and strokes has come under pressure in recent quarters due to softer uptake.
The company said China’s volume-based procurement program, which purchases medical devices in bulk at sharply lower prices, is expected to pressure growth through 2027, particularly in its endoscopy business.
Boston Scientific now expects to complete its $14.5 billion purchase of Penumbra in the first quarter of 2027, later than planned, citing longer regulatory reviews. The company said higher interest rates will increase the cost of financing the deal, making it a bigger drag on earnings.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Diti Pujara)
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