Boston Scientific Hit by Cyberattack, Says Unable to Meet 2026 Guidance

Boston Scientific Corporation expects that a cybersecurity incident in August that disrupted global operations will have a significant impact on its third-quarter and full-year 2026 financial results.

As a result, the company expects it will be unable to achieve its previously issued net sales and earnings guidance.

Operational Disruption and Recovery Efforts

Unauthorized activity was detected in certain company systems on August 25, triggering a network outage that affected access to operating systems and business applications.

These system failures hindered the company's ability to manufacture, process, and ship customer orders.

In response, management activated containment protocols and engaged third-party cybersecurity professionals to investigate the intrusion.

The company stated that no evidence of ongoing unauthorized access to its systems has been found, but the investigation remains ongoing. Boston Scientific has not disclosed whether any data was compromised.

Major distribution centers are currently processing and shipping customer orders at normal or above-normal operating levels.

Additionally, sterilization facilities and most global manufacturing plants have resumed operations, though the timeline for full system restoration remains unclear.

Financial Outlook and Subsequent Updates

Due to the disruption, the company believes it will not meet the adjusted earnings per share and net sales growth expectations issued in late July.

On July 29, the medical device maker provided guidance for third-quarter net sales growth of approximately 3%-5% on both reported and organic bases, translating to sales of $5.217 billion to $5.318 billion, versus a market consensus estimate of $5.358 billion. The company also projected adjusted earnings per share of 80 to 82 cents, compared to a consensus estimate of 83 cents.

The company now states it is unlikely to achieve either range.

While management expects to recover some deferred revenue through clearing backlogs and completing pending orders, the full financial impact remains unclear.

Executives plan to detail the revised financial and operational outlook during the third-quarter earnings call scheduled for October 28.

Despite near-term headwinds, the company expects the cyberattack will not cause long-term material damage to its overall financial condition.

BSX stock performance: Boston Scientific shares fell 5.31% on Tuesday to close at $45.26.