Boston Scientific Corporation

(New York Stock Exchange)
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Somewhat Bearish -25

Should Becton Dickinson Stock Holders Look At Boston Scientific Instead? - Trefis

Guidance lowered Operational disruption AI-generated analysis

πŸ“‰ Boston Scientific lowered its fiscal 2026 revenue growth forecast to a midpoint of 6.0%, down from 7.8% in April.

⚠️ A cyberattack disrupting manufacturing and shipments is expected to have a material impact on Boston Scientific's third-quarter and full-year 2026 results.

πŸ“ˆ Becton Dickinson raised its adjusted EPS forecast for fiscal 2026, projecting revenue growth toward the high end of its low single-digit range.

πŸ’° Boston Scientific recorded an operating margin of 21.0% over the four quarters to June 30, 2026, compared with 14.4% for Becton Dickinson.

πŸ“‰ Boston Scientific management expects operating margins to come under pressure in 2027 due to gross margin pressure from WATCHMAN and electrophysiology.

🏦 Boston Scientific trades at 18.0 times earnings, significantly lower than Becton Dickinson's 55.7 times earnings multiple.

πŸ’Έ Becton Dickinson maintains a dividend yield of 2.2%, whereas Boston Scientific does not pay any dividends.

πŸ“Š Boston Scientific revenue grew 16.2% on average over the last three twelve-month periods compared to 7.1% for Becton Dickinson.

πŸ” Investors are advised to watch Boston Scientific's Q3 2026 revenue report expected around October 28, 2026.

Bullish Signals
  • Boston Scientific recorded a strong operating margin of 21.0% over the four quarters to June 30, 2026, significantly outperforming Becton Dickinson's 14.4%.
  • The company demonstrated robust revenue growth averaging 16.2% over the last three twelve-month periods compared to 7.1% for its competitor.
Risk Factors
  • Boston Scientific lowered its fiscal 2026 revenue growth forecast to a midpoint of 6.0%, down from 7.8% in its April release.
  • A cyberattack that disrupted manufacturing and shipments is likely to have a material impact on the company's third-quarter and full-year 2026 results.
  • Management expects operating margins to come under pressure in 2027 due to gross margin pressure from WATCHMAN, electrophysiology, and the first effects of its Penumbra deal.
  • The U.S. market for the WATCHMAN device has slowed sharply, with rivals taking share from the company's electrophysiology business.
Full Analysis
This article compares the financial outlook and operational metrics of Boston Scientific (BSX) and Becton Dickinson (BDX), focusing on recent guidance changes and market positioning. Boston Scientific has lowered its fiscal 2026 revenue growth forecast to a midpoint of 6.0% due to a sharp slowdown in its WATCHMAN device market and share losses in electrophysiology. Additionally, the company warned that a cyberattack disrupting manufacturing and shipments will materially impact its third-quarter and full-year 2026 results. In contrast, Becton Dickinson raised its adjusted EPS forecast for fiscal 2026 but expects low single-digit revenue growth in 2027, citing headwinds from its Alaris business. While Boston Scientific currently boasts a higher operating margin of 21.0% compared to Becton Dickinson's 14.4%, management anticipates pressure on these margins in 2027 due to gross margin compression in key segments like WATCHMAN and the effects of its Penumbra deal. The analysis highlights that Boston Scientific trades at a lower price-to-earnings multiple of 18.0 versus 55.7 for Becton Dickinson, though it pays no dividends compared to Becton Dickinson's 2.2% yield. Investors are advised to monitor Boston Scientific's Q3 2026 revenue report expected around October 28, 2026, as the company had previously guided for 3% to 5% growth before the cyberattack warning.