Boston Scientific Corporation Q1 FY2026 earnings call

• First quarter was solid with 9.4% organic sales growth, 6% adjusted EPS growth, 28% adjusted operating margin. • 2026 has been more challenging, guiding 5%-7% organic growth for Q2 and reducing full-year guidance to 6.5%-8%. • Regionally, U.S. grew 11%, Europe and Middle East Africa 1%, AsiaPAC 12%. • Business units: Urology had tough Q1, expect improvement; Endoscopy grew 7%; Neuromodulation strong; Cardiovascular grew 11%; Interventional oncology grew 15%; Cardiac rhythm management declined; Watchman grew 19% but outlook adjusted; EP grew 22% but outlook adjusted. • Mentioned acquisitions like Valencia Technologies and pending Penumbra acquisition

Total company organic sales growth 9.4% in Q1. U.S. grew 11% with double-digit growth in five out of eight business units. Europe and Middle East Africa grew 1% operationally. AsiaPAC grew 12% operationally. Urology had 1% organic sales growth in Q1, expected low to mid-single digits full-year. Endoscopy sales grew 7% organically. Neuromodulation organic sales grew 15%. Cardiovascular-delivered organic sales grew 11%. Interventional oncology organic sales grew 15%. Cardiac rhythm management sales declined 3% in Q1. Watchman grew 19% organically in Q1, expected global mid-teens growth full-year. EP organic sales grew 22%, expected global ~10% growth full-year with U.S. mid-single-digit and international ~20% growth

• Full-year 2026 reported revenue growth expected 7.0%-8.5%, operational and organic growth 6.5%-8.0%. • Q2 2026 reported revenue growth expected 5.5%-7.5%, operational and organic growth 5.0%-7.0%. • Full-year 2026 adjusted EPS expected $3.34-$3.41, growth 9%-11%. • Q2 adjusted EPS expected $0.82-$0.84. • Guidance excludes Penumbra acquisition closing

• Unanticipated headwinds and changing business patterns impacting growth. • Increased competition in certain markets like EP affecting share. • Commercial disruptions in urology's sacral neuromodulation business. • Evolving practice patterns and reimbursement dynamics impacting Watchman growth. • Risks related to forward-looking statements and potential material differences from projections

Q: Asked about what prompted the guidance lowering, impact of Watchman, EP, urology.

A: Mike discussed contributors to guide down like Watchman's declining trend, EP share erosion, urology's tough quarter.

Q: Asked about quarters ahead for EP, Watchman, urology.

A: Said Q2 is toughest quarter, with Watchman and EP having challenging comps, urology expected to improve in second half.

Q: Asked about EP market share and outlook.

A: Said global EP expected ~10% growth, U.S. mid-single-digit, international ~20%, with increased competition but confidence in PFA leadership.

Q: Asked about Watchman outlook and addressing concerns.

A: Discussed factors like practice pattern changes, commercial investments, marketing to address Watchman's growth.

Q: Asked about non-EP and Watchman business.

A: Talked about Interventional Cardiology and Vascular Therapies, Interventional Oncology, MedSurge's performance and product launches.

Q: Asked about WAMGR and LRP.

A: Said WAMGR was adjusted, LRP details not yet finalized but confident in margin improvement and EPS growth.

Q: Asked about EPS guidance revision and profitability.

A: Said less margin benefit, focusing on OpEx leverage through spend controls and org structure optimization.

Q: Asked about urology's sacro-neuromodulation business.

A: Discussed commercial turnover issues and steps taken to improve.

Q: Asked about buyback and Penumbra deal.

A: Said funding buyback with cash on hand, committed to Penumbra deal.

Q: Asked about Watchman standalone growth outlook.

A: Stated global Watchman expected mid-teens growth, U.S. low to mid-single digits