Shares of Boston Scientific declined 2.6% to $74.29 in Monday morning trading, extending losses from the previous week. The drop occurred even as the broader market, tracked by the SPDR S&P 500 ETF Trust (SPY), advanced approximately 0.6%.
The medical device manufacturer remains under pressure following a significant market reassessment last week. Investors have retreated from what was perceived as a high-growth narrative with minimal tolerance for setbacks. While some selling appears systematic, the overall sentiment has turned persistently cautious.
Market focus is centered on the company's electrophysiology business, which produces devices for minimally invasive heart rhythm disorder treatments. This segment, along with the Watchman left atrial appendage closure device for stroke risk reduction, is considered crucial to Boston Scientific's growth outlook. The company reported fourth-quarter electrophysiology sales of $890 million, falling short of the $933 million analyst consensus.
Following the quarterly report, several financial institutions reduced their price targets while maintaining generally positive ratings. Citigroup lowered its target to $102 from $130, JPMorgan cut to $100 from $135, and Wells Fargo adjusted to $94 from $125.
Boston Scientific posted Q4 net sales of $5.286 billion and adjusted earnings per share of $0.80. For 2026, management forecasts organic net sales growth between 10% and 11%, with adjusted EPS projected in the range of $3.43 to $3.49.
The key risk identified by analysts is whether the electrophysiology shortfall reflects temporary timing issues or more enduring competitive pressures, which can rapidly impact procedure-driven businesses. Any further softening in U.S. demand for the Watchman device would likely maintain investor skepticism toward the company's growth objectives.
With Boston Scientific widely held across major healthcare portfolios, the downturn has broader implications beyond a single stock story. The next significant catalyst for the heart-rhythm business is expected at the Heart Rhythm 2026 conference in Chicago from April 23-26, where new clinical data and product updates may provide clarity on whether the company's momentum in this critical segment is stabilizing.
