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Boston Scientific has restored its manufacturing, order fulfillment and shipping operations after a disruption by last month’s cyberattack.
The company late Wednesday said products are moving through its distribution network at or above normal levels as the Marlborough, Mass., company works to fulfill customer orders, reduce backlogs and accelerate the delivery of products.
Boston Scientific earlier this week said it likely won’t meet its financial guidance for the third quarter and full year due to the hack, which affected its ability to manufacture, and its ability to process and ship customer orders.
The company said independent assessments from CrowdStrike and other cybersecurity experts since the Aug. 25 breach haven’t found any evidence of ongoing threat activity or evidence of compromise to its systems or product technologies.
Boston Scientific said an August cyberattack continues to disrupt manufacturing and shipping of its medical devices, making it likely the company will miss third-quarter and full-year sales and adjusted per-share earnings guidance. Operations have not been fully restored, according to a Tuesday SEC filing. The company expects to recover some affected revenue as global operations ramp up, customer orders are filled and backlogs decline, but said the total impact remains unknown. Boston Scientific plans to provide more details on the financial effects of the attack on Oct. 28.
Asian chip stocks were poised to gain after the Philadelphia Semiconductor Index rose 1.3%, though broader markets faced pressure as escalating Middle East attacks pushed Brent crude near $100. US strikes targeted areas near Iran’s Kharg Island and Jask, while Iran reported a tanker hit and warned crews near Kuwaiti and Bahraini piers to abandon vessels. WTI rose 1.2% to $94.17. Money markets priced a greater than 50% chance of a Federal Reserve rate increase this month. Friday’s US inflation report is expected to show August CPI rising 0.4% and core CPI 0.2%. The yen strengthened, while US stock futures were little changed.
Medical-device maker Boston Scientific said that it is unlikely to meet its sales growth and earnings expectations for the year, citing a major cyberattack disclosed last month that left it unable to fill orders. Boston Scientific's shares fell more than 4% Tuesday morning and are now down 52% from a year earlier. The company said the cyberattack affected manufacturing and the full impact isn’t yet known.
Analysts didn't think the attack would likely lead to long-term loss of market share.
“Some of the cyber security incidents have been resolved with relatively low incidence” in the med-tech industry, Citi analyst Joanne Wuensch wrote shortly after the incident.
Boston Scientific said it likely won’t meet its financial guidance due to the cyberattack that has disrupted its operations, sending shares of the medical-technology company down sharply in premarket trading.
Boston Scientific on Tuesday said it continues to make progress in restoring many of its systems that were affected by the hack, including substantial restoration of its distribution network, but that it expects to miss its sales and adjusted per-share earnings guidance for the third-quarter and full year.
Shares of the Marlborough, Mass., company were recently down 4% to $45.90 in early trading.
Boston Scientific last month reported unauthorized activity on some of its systems that have affected its ability to manufacture and to process and ship customer orders.
The company said its major distribution centers are now processing and shipping customer orders at or above normal operating levels, and that its sterilization facilities are operational, with manufacturing resumed across most plants around the world.
The company said it expects to recover some of the lost revenue as it continues to ramp operations, fulfill customer orders and reduce remaining backlogs, adding that it will provide updated guidance for fiscal 2026 when it reports its third-quarter results on Oct. 28.
Boston Scientific in late July said it was expecting sales growth of 3% to 5% in the third quarter and 5.5% to 6.5% for the full year. The company also forecast adjusted earnings of 80 cents to 82 cents a share for the quarter and $3.28 to $3.32 a share for the year.
Analysts polled by FactSet, on average, are expecting adjusted profits of 81 cents a share for the third quarter and $3.30 a share for the year.
Boston Scientific said it doesn’t expect the cyberattack will have a material impact on its long-term financial condition.
Boston Scientific Corp. said that fallout from a cybersecurity incident has impacted its ability to ship its products to customers and will cause the medical devices company to miss its sales growth and earnings estimates for the year.
The company doesn’t expect to meet its third-quarter and full-year estimates for net sales or adjusted earnings per share, Boston Scientific said in a regulatory filing on Tuesday. It disclosed the incident in a filing last month.
Investors will get an update on the Boston Scientific’s new outlook on Oct. 28. The company is making progress in restoring affected systems, including large parts of its distribution and shipping network, though “the timeline for a full operational recovery is uncertain,” it said. It hasn’t found evidence of ongoing unauthorized access to its systems, and the investigation is continuing.
↘️ Amgen (AMGN): Shares of the biotechnology company, a major contributor to the Dow, shed 10%, its sharpest drop in 25 years. The move came after the Swiss drugmaker Novartis (CH:NOVN) said late Friday that an experimental medicine failed to reduce cardiovascular risk in a late-stage clinical trial. Amgen is working on a rival treatment. U.S.-traded shares in Novartis, which also reported another trial setback Tuesday, tumbled 14%.
↗️ Intel (INTC): The chip maker's stock rose 9%, aided by an analyst upgrade and reports that the company is planning to hike prices on CPUs.
↗️ Qualcomm (QCOM): The semiconductor company's stock rose 3.2% after it announced a new collaboration with Amazon.com (AMZN). The e-commerce giant's shares slipped 0.6%.
↗️ D-Wave Quantum (QBTS); Rigetti Computing (RGTI), Quantinuum (QNT): The U.S. government is taking minority stakes in the quantum-computing companies with a combined $300 million CHIPS Act deal. D-Wave led gains, rising 6.6%.
↗️ Bloom Energy (BE): The fuel-cell maker is among the companies that will join the S&P 500 later this month, S&P Dow Jones Indices announced late Friday, sending its shares 9.6% higher. Meanwhile, Nike (NKE) will be deleted from the S&P 100. Its share price was down 0.8%.
↗️ Corning (GLW): The company that provides glass screens for phones and fiber for data centers announced an agreement with Verizon for broadband expansion. Corning shares added 7.6%. The telecom provider's stock advanced 0.5%.
↘️ Boston Scientific (BSX): Shares in the medical-technology company slipped 5.9% after it said it likely won’t meet its financial guidance because of a cyberattack that has disrupted its operations.
↘️ Coinbase Global (COIN), Robinhood Markets (HOOD), Strategy (MSTR): Shares of companies tied to cryptocurrencies were 3% or more lower as bitcoin’s price slipped to trade below $78,500.
European authorities have linked Russia to recent drone incursions, sabotage, cyberattacks and other “gray zone” operations intended to spread fear among Ukraine’s allies. New U.S. intelligence assessments say Russia could test NATO within several years through a limited cyberattack or land incursion. Separately, an Aug. 25 cyberattack disrupted activation of some Boston Scientific heart-monitoring devices, though they continue recording episodes. McKesson reported customer data theft involving third-party applications, while Hasbro said a March attack compromised employee information, cost $11 million and reduced revenue by about $25 million. U.S. Cyber Command officials were scheduled to discuss with House staff a rise in suicides linked to the unit.
Hello. Alabama’s attorney general wants answers after OpenAI models went rogue during a test run and hacked a real-world company.
The state this week subpoenaed OpenAI and CEO Sam Altman, looking for details about the incident as well as every employee involved, plus those who raised safety concerns.
On Wednesday, the company released a lengthy report that addressed some, but not all, of the issues Alabama raised. Read the full story from my colleague Angus Loten.
More news below.
A cyberattack at medical-device maker Boston Scientific has triggered a global outage of key operational technology, leaving the company unable to fill orders. The company, which reported $20 billion in revenue in 2025, said it doesn’t know when it will be able to restore systems. Read the full story from WSJ Pro.
Takedown: U.S. officials say they have disrupted a China-linked hacking operation that broke into U.S. government networks and critical infrastructure, while hiding its tracks on a global network of hacked devices, cloud-computing infrastructure and even clandestine networks. (WSJ)
Number of U.S. water facilities targeted in a spate of cyberattacks last month, according to the Cybersecurity and Infrastructure Security Agency. That’s a much wider operation than was previously known. (NBC Chicago)
Further reading from WSJ Pro:
The Los Angeles County Museum of Art is notifying visitors and employees that their personal data was breached in a cyberattack more than a year ago. For some individuals, medical information was also exposed. (Bleeping Computer)
The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at [email protected].
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A cyberattack at medical-device maker Boston Scientific has triggered a global outage of key operational technology, leaving the company unable to fill orders. The company, which reported $20 billion in revenue in 2025, said it doesn’t know when it will be able to restore systems.
Boston Scientific detected the attack Tuesday, according to a filing with the U.S. Securities and Exchange Commission. “The incident has caused, and is expected to continue to cause, disruptions and limitations of access to certain of the Company’s information systems and business applications that support aspects of the Company’s operations,” the filing said. A spokeswoman for Boston Scientific declined to add anything beyond the SEC filing
Shares were down nearly 4.2% in early trading Wednesday, to $47.78.
The outage hits Boston Scientific at a precarious moment. Just last month, setbacks with two heart-disease products knocked the stock and led executives to slash full-year forecasts, trimming sales growth expectations by up to 2 percentage points and cutting adjusted earnings-per-share targets by more than 10 cents, at $3.28 to $3.32.
Boston Scientific said in July it planned to lay off staff as part of a new, three-year restructuring plan that includes transferring some production lines to different facilities.
Shares of medical-device maker Boston Scientific are down 4.5% Wednesday on concerns that a cyber-attack against the company could hurt near-term revenue.
The incident, which Boston Scientific said it detected Tuesday, caused a network outage and disruption to operations, including the ability to process and ship orders, a spokeswoman said. The Marlborough, Mass., company, which makes devices for heart disease, is investigating and working to restore affected functions but doesn’t have a timeline for full restoration.
Evercore ISI analysts noted that a similar cyberattack against medical-device maker Stryker in March took about three weeks for the company to recover from. If a similar timeline applies to Boston Scientific, it could reduce third-quarter revenue and cause the company to modify full-year guidance, the analysts said in a note.
The breach comes amid an increase in hacking activity worldwide that has frequently targeted health-care companies. Organizations faced an average 2,336 cyberattacks a week in July, according to a recent report from cyber-threat intelligence provider Check Point Research, up nearly 14% since May.
Boston Scientific logged higher second-quarter results and cut its full-year outlook as it begins a new restructuring plan announced earlier this week.
Shares were up 4.6% to $48.18 in premarket trading.
The medical-device maker on Wednesday posted a profit of $907 million, or 61 cents a share, compared with $797 million, or 53 cents a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were 86 cents, ahead of the 83 cents anticipated by analysts, according to FactSet.
Revenue rose 7.5% to $5.44 billion. Analysts surveyed by FactSet forecast revenue of $5.36 billion.
MedSurg, the company’s business focused on gastrointestinal and urological devices, saw sales rise 5.9% in the quarter, while its cardiovascular segment’s revenue increased 8.3%.
Boston Scientific now expects annual sales will grow 5.5% to 6.5%, down from 7% to 8.5% previously. It also cut its adjusted earnings-per-share guidance to a range of $3.28 to $3.32, from the prior $3.34 to $3.41.
For the current third quarter, the Marlborough, Mass., company projects revenue will increase 3% to 5%, with adjusted earnings per share estimated at 80 cents to 82 cents. Analysts forecast 84 cents a share.
Earlier this week, Boston Scientific said it planned to lay off staff as part of a new restructuring plan. It expects to incur pretax charges of about $700 million to $800 million from the restructuring, it said on Monday.
The company said it is aiming to optimize supply chains by transferring some production lines to different facilities. It also wants to streamline its organizational structure, it said. The plan is scheduled to be completed by the end of 2029.
The Centers for Medicare and Medicaid Services and the US Food and Drug Administration announced a new “Rapid” coverage pathway for breakthrough medical devices that addresses unmet medical needs and already receives expedited FDA review. The agencies said the program could shorten insurance coverage decisions to as little as two months, from more than a year, by aligning CMS coverage with FDA approval earlier in development. CMS said eligible devices include artificial heart valves, heart-rhythm devices and nerve-stimulation implants. Forty devices are already eligible, with about 20 more potentially able to participate.
Medical-device maker Boston Scientific slashed its forecast of full-year 2026 revenue Wednesday, citing softer-than-expected sales in areas like kidney-stone devices and its Watchman heart-rhythm device.
Yet the company’s share price surged 8% Wednesday, on pace for its largest percent increase since March 2020.
It turns out investors were already expecting a guidance cut and the revised, lower targets now appear achievable. What’s more, the company said it plans to buy back about $2 billion of its shares in the second quarter, which Evercore ISI analyst Vijay Kumar said was a sign of confidence.
Boston Scientific, which makes a range of devices for heart disease and other conditions, was riding high through late last year, buoyed by the success of its new Farapulse cardiac ablation system.
But the stock is down more than 30% year-to-date on a slowdown in its ablation business and Watchman. Investors have questioned whether Boston Scientific could hit its initial targets of full-year sales growth of up to 11.5%.
On Wednesday, the company lowered that target to sales growth of up to 8.5%. Analysts said the new guidance amounted to a reset, and appears conservative enough to leave room for Boston Scientific to exceed it.