Boston Scientific disclosed Tuesday the cyberattack that recently hit the company is likely to affect third-quarter and full-year results.
The medical device maker believes it is unlikely to meet net sales growth and adjusted earnings per share guidance ranges provided in July for the third quarter and full year, according to a new filing with the Securities and Exchange Commission.
“The Company anticipates recovering some portion of the impacted revenue as it continues to ramp operations globally, fulfill customer orders and reduce remaining backlogs, however the full impacts are not yet known,” Boston Scientific said in the filing.
Boston Scientific plans to provide updated operational and financial outlooks for the remainder of the year, including the anticipated effect from the cyberattack, on its next earnings call, which is scheduled for Oct. 28. It does not expect the attack to have a material impact on long-term financial conditions.
Last month, the company detected a cyberattack that affected its ability to manufacture products, as well as process and ship customers’ orders. Boston Scientific has been working to restore operations over the past several weeks but is still not fully operational. The company reaffirmed in its latest securities filing that there is still not a timeline for full recovery.
Boston Scientific, in a Saturday statement posted to its website, said that it continues to make progress on restoring global operations. Its distribution network has been substantially restored, and major distribution centers are now processing and shipping products at or above operating levels. Manufacturing has also been restored across most of the company’s global facilities.
Furthermore, all sterilization facilities are operational and processing products.
Boston Scientific’s cyberattack is one in a string of incidents that have hit the medical device industry over the past six months. Numerous companies in the space, including Stryker, Medtronic, Intuitive and Abbott, have disclosed attacks with effects that ranged from data exposure to operational disruption.
Comparisons to Stryker
Much like Boston Scientific, Stryker in March was hit by an attack that disrupted the company’s manufacturing, ordering and shipping; the attack ultimately cut into its first-quarter results.
J.P. Morgan analysts wrote in a note to investors that there are notable differences between the effects of the two attacks. First, Stryker experienced lost sales from capital items, compared with Boston Scientific’s more disposable/usable product lineup. “If you miss the procedure you miss the sale, which means Stryker will likely recapture more vs. [Boston Scientific],” the analysts wrote.
Second, Stryker had nine to 10 months left in the year to recapture any missed sales, whereas Boston Scientific has just four months.
Stifel analysts wrote that Boston Scientific’s update is not surprising, but added that “with this announcement coming just two weeks after the initial attack, it also clearly underscores the attack’s negative impact on [Boston Scientific’s] operations.”
The pressure on sales and earnings guidance from the cyberattack comes amid ongoing challenges for Boston Scientific. The company already cut its forecast two times this year as key businesses continue to struggle.
“At this point, we suspect that both investors and the stock ‘view’ 2026 as being something of a lost year for Boston Scientific,” the Stifel analysts wrote.
Boston Scientific’s stock fell more than 4% to $45.73 Tuesday morning.
