Boston Scientific shares fall as key segment's performance spooks investors

By Kamal Choudhury

Feb 4 (Reuters) - ⁠Boston Scientific on Wednesday ⁠reported ‍lower-than-expected quarterly sales in its key electrophysiology division, dragging the medical device maker's shares as much as 17% down — the ‍steepest single‑day percentage drop in over 25 years.

The segment, which ​includes devices to treat heart rhythm disorders through minimally invasive procedures, is seen as ​central to the company's growth story.

The Massachusetts-based company's electrophysiology segment recorded $890 million in sales for the fourth quarter, falling short of the Street's $933 million estimate, according to RBC ​analysts.

Wall Street analysts said investors were concerned about the sales of the segment.

"Their worries were not misplaced," said Citi analyst Joanne Wuensch.

Meanwhile, ​sales of Watchman, the company's stroke prevention device for patients with atrial fibrillation, came in about ‌1% below consensus, largely due to weaker U.S. demand, at least three analysts said.

"Investors now have reason to question ​the trajectory of these two key growth ⁠drivers moving forward," J.P. Morgan said, referring to the two businesses.

Boston Scientific executives, however, said the quarterly sales ‌exceeded their internal targets.

CEO Michael Mahoney said he's "really pleased" with the 35% organic growth for the electrophysiology segment that outperformed competitors.

"As we look to 2026, we anticipate ‌that the (electrophysiology) market will grow approximately 15%, and we expect to outpace that market ‌growth," Mahoney said.

Boston Scientific projected adjusted earnings per share of $3.43 to $3.49 for the year, with the midpoint narrowly missing analyst expectations of $3.47 per share, according to data ‍compiled by LSEG.

Quarterly sales of $5.29 billion and adjusted earnings of 80 cents per share were almost in line ⁠with estimates of $5.28 billion and 78 cents per share respectively.

Boston also expects organic revenue growth of 10% to 11% for 2026, marking a deceleration from the 15.8% organic growth in 2025.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Tasim Zahid and Sahal Muhammed)

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