What Happened?
Shares of medical device company Boston Scientific (NYSE:BSX) fell 13.9% in the afternoon session after the company reported fourth-quarter 2025 results that beat Wall Street estimates but provided a mixed forecast that concerned investors.
The medical device maker posted quarterly revenue of $5.29 billion and adjusted earnings per share of $0.80, surpassing analyst expectations for $5.27 billion in revenue and $0.78 in earnings. Despite the solid performance, investor attention shifted to the company's outlook. While the full-year 2026 adjusted earnings forecast, with a midpoint of $3.46 per share, was in line with consensus, the guidance for the upcoming first quarter fell slightly short of Wall Street's projections. This weaker near-term outlook appeared to overshadow the otherwise strong quarterly results, leading to a significant sell-off in the shares.
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What Is The Market Telling Us
Boston Scientific’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for Boston Scientific and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 20 days ago when the stock dropped 4.6% on the news that the company agreed to acquire Penumbra in a transaction valued at approximately $14.5 billion, marking its largest deal in two decades.
The acquisition, a mix of cash and stock, aimed to expand Boston Scientific's portfolio of cardiovascular devices, particularly in high-growth vascular and neurovascular markets. However, the market reacted negatively to the news. To finance the roughly $11 billion cash portion of the deal, the company planned to use a combination of cash on hand and new debt. Boston Scientific also stated that the acquisition was expected to be dilutive, or reduce, its adjusted earnings per share in the first full year after the deal's closing.
Boston Scientific is down 16.2% since the beginning of the year, and at $79.40 per share, it is trading 26.6% below its 52-week high of $108.14 from September 2025. Investors who bought $1,000 worth of Boston Scientific’s shares 5 years ago would now be looking at an investment worth $2,048.
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