BSX · Earnings call · 2026Q3T · Full report
Gross Margin Drivers
BOSTON SCIENTIFIC CORP · 2026-10-28 · Importance 43 · Surprise 32 · In source text
Q3 adjusted gross margin was 68.0%, down 300 basis points year over year, primarily because the cyber-related disruption caused unfavorable manufacturing absorption. Management expects full-year 2026 adjusted gross margin to be below 2025, reflecting less favorable product mix, investment in global supply chain and quality systems, and the cyber incident. For 2027, management expects significant gross-margin pressure from WATCHMAN and EP mix, escalating China pricing pressure, and continued supply-chain and quality-system investment.
Key facts
- Boston Scientific expects significant gross-margin pressure in 2027 from WATCHMAN and EP mix, escalating China pricing pressure, and continued supply-chain and quality-system investment.
- Boston Scientific expects FY2026 adjusted gross margin below FY2025, reflecting less favorable mix, global supply chain and quality-system investment, and the cyber incident.
- Q3 2026 adjusted gross margin was 68.0%, down 300 basis points year over year, primarily due to unfavorable manufacturing absorption during the cyber disruption.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | probable | — | Boston Scientific expects significant gross-margin pressure in 2027 from WATCHMAN and EP mix, escalating China pricing pressure, and… |