Boston Scientific's stock dropped 4.1 percent after the company warned that a network security incident disrupting its operations would likely prevent it from meeting its 2026 financial targets. Management plans to issue revised full-year guidance alongside third-quarter results on Oct. 28.
Boston Scientific shares fell 4.1 percent after the medical-device maker said a cyberattack will likely cause it to miss its 2026 sales and earnings guidance.
The Marlborough, Massachusetts-based company, which trades on the New York Stock Exchange under the ticker BSX, said it continues to make progress restoring systems affected by the hack, including substantial restoration of its distribution network. Shares were recently trading at $45.90, down 4 percent in early trading.
Boston Scientific last month reported unauthorized activity on some of its systems that affected its ability to manufacture and to process and ship customer orders. The company said its major distribution centers are now processing and shipping customer orders at or above normal operating levels, and its sterilization facilities are operational, with manufacturing resumed across most plants worldwide.
The company had guided in late July to third-quarter sales growth of 3 percent to 5 percent and full-year growth of 5.5 percent to 6.5 percent. It also forecast adjusted earnings of 80 cents to 82 cents a share for the quarter and $3.28 to $3.32 a share for the year. Analysts polled by FactSet, on average, expect adjusted profits of 81 cents a share for the third quarter and $3.30 a share for the year.
Boston Scientific said it expects to recover some of the lost revenue as it continues to ramp operations, fulfill customer orders and reduce remaining backlogs. The company will provide updated fiscal 2026 guidance when it reports third-quarter results on Oct. 28.
The company said it does not expect the cyberattack to have a material impact on its long-term financial condition. The disruption highlights operational risks facing medical-device manufacturers such as Medtronic and Abbott Laboratories, which increasingly rely on connected manufacturing and distribution networks to deliver products to hospitals and clinics worldwide.
The guidance cut reflects the operational disruption from the cyber event, even as Boston Scientific works to restore normal operations across its global footprint. The stock's decline to $45.90 in early trading signals that investors are pricing in a meaningful near-term revenue shortfall, with the company's recovery timeline and the extent of lost sales to be quantified when management reports third-quarter results on Oct. 28.
This article is for informational purposes only and does not constitute investment advice.
