Boston Scientific Corporation (NYSE: BSX)

Boston Scientific’s Q2 2025 financial performance was exceptional, with net sales of $5.061 billion representing 22.8% reported growth and 17.4% organic growth, significantly exceeding the company’s guidance range of 13-15%. The strong performance included a 120 basis point tailwind from foreign exchange, which was favorable versus expectations. Excluding this $50 million foreign exchange benefit, operational revenue growth was 21.6% in the quarter.

The company’s profitability metrics showed substantial improvement, with GAAP EPS surging 141% to $0.53 from $0.22 in the prior year period. This remarkable growth was driven by strong operational performance across both segments and effective cost management. Adjusted EPS of $0.75 grew 21% versus 2024, exceeding the high end of guidance range of $0.71-$0.73, primarily driven by exceptional sales performance.

Adjusted gross margin for the second quarter was 69.4%, representing a 100 basis point decline versus Q2 2024, primarily driven by negative impact from inventory charges related to the worldwide discontinuation of the ACURATE valve. Despite this headwind, the company maintained strong profitability with an adjusted operating margin of 27.6%, demonstrating operational leverage and disciplined cost management.

The strong financial performance was broad-based, with growth contributions from strategic acquisitions adding 420 basis points to total growth. Recent acquisitions including Intera Oncology, SoniVie, and Bolt Medical are already contributing meaningfully to the company’s revenue base while expanding its technological capabilities in key therapeutic areas.

Net income attributable to common stockholders reached $797 million ($0.53 per share), more than doubling from $324 million ($0.22 per share) in the prior year period. This exceptional growth reflects both strong operational performance and the company’s effective capital allocation strategy, positioning Boston Scientific for continued outperformance.

Cardiovascular Segment delivered outstanding performance with net sales of $3.345 billion, up 26.8% on a reported basis and 23.2% organically. This segment, representing 66% of total net sales, was led by exceptional growth in Electrophysiology, which surged 96.1% on a reported basis, driven primarily by the continued strong adoption of the FARAPULSE Pulsed Field Ablation (PFA) System.

Within Cardiovascular, the Cardiology business generated $2.65 billion in sales, growing 27.9% organically. Key contributors included the AGENT Drug-Coated Balloon for coronary in-stent restenosis and strong performance in the imaging franchise. The WATCHMAN franchise continued its robust growth trajectory, benefiting from strong concomitant uptake and market share expansion in left atrial appendage closure.

Peripheral Interventions showed solid growth of 18.3% reported, with strong performance across multiple franchises including Interventional Oncology and embolization products. The completion of the SoniVie acquisition during the quarter added ultrasound-based renal denervation therapy for hypertension treatment, expanding Boston Scientific’s capabilities in this high-growth area.

MedSurg Segment demonstrated solid performance with net sales of $1.716 billion, growing 15.7% on a reported basis and 7% organically. This segment, representing 34% of total net sales, showed balanced growth across its three main business units, with particularly strong performance in Urology.

The Urology business within MedSurg delivered exceptional growth of 28.9% on a reported basis, driven by strong performance in both Stone Management and Prosthetic Urology franchises. The Endoscopy business grew 9.1% reported (7.8% organic), with the U.S. business achieving double-digit growth well above market rates, despite some competitive pressures in international markets.

Neuromodulation showed improvement with 7.2% reported growth (6.6% organic). The integration of Axonics continued to progress, with management expecting stronger performance in the second half of 2025 as commercial model changes stabilize and inventory levels normalize. The business is positioned for very strong performance in 2026.

United States led regional performance with exceptional 30.7% growth in reported net sales, reflecting strong adoption of key innovation platforms including FARAPULSE, continued robust WATCHMAN performance, and broad-based strength across therapeutic areas. The U.S. market’s outperformance demonstrates Boston Scientific’s competitive positioning and the successful execution of its go-to-market strategies.

The strong U.S. performance was driven by several factors: accelerating adoption of the FARAPULSE PFA System following its FDA approval, continued growth in the WATCHMAN franchise with expanding concomitant procedures, and exceptional growth in the Urology business. The company’s direct commercial presence and clinical education initiatives have enabled rapid market penetration for new innovations.

Asia-Pacific delivered solid 18.0% growth in reported net sales, reflecting the company’s continued expansion in key growth markets. The region benefited from ongoing market development initiatives, regulatory approvals for key products, and increasing healthcare access in developing markets. Boston Scientific’s localized approach to product development and distribution continues to drive share gains.

Europe, Middle East & Africa showed healthy growth of 15.5% on a reported basis, with particular strength in established European markets. The rollout of FARAPULSE across European markets continued to gain momentum, while established franchises like WATCHMAN maintained strong performance. The company’s investment in clinical education and physician training programs continues to support adoption of innovative technologies.

The broad-based geographic growth demonstrates Boston Scientific’s global scale and the universal appeal of its innovation platforms. The company’s ability to successfully launch and scale new technologies across diverse regulatory and reimbursement environments highlights the strength of its global commercial infrastructure and clinical development capabilities.

Boston Scientific continued to advance its strategic priorities through innovation, regulatory approvals, and strategic acquisitions during Q2 2025:

Key Product Launches and Approvals

• FARAPULSE PFA System Expansion: Received FDA approval to expand labeling for treating drug refractory, symptomatic persistent atrial fibrillation, significantly expanding the addressable market for this breakthrough technology
• WATCHMAN FLX Pro: Received CE mark approval for the next-generation Left Atrial Appendage Closure Device, enhancing the company’s market-leading position in structural heart interventions
• Clinical Trial Progress: Commenced enrollment in the REMATCH IDE clinical trial to evaluate FARAWAVE and FARAPOINT PFA Catheters, expanding the clinical evidence base for PFA technology

Strategic Acquisitions

• Intera Oncology: Completed acquisition adding hepatic artery infusion pump technology, strengthening the Interventional Oncology portfolio
• SoniVie Ltd.: Acquired ultrasound-based renal denervation therapy (TIVUS System) for hypertension treatment, entering a significant new therapeutic area
• Integration Excellence: Successfully integrating recent acquisitions including Axonics (Neuromodulation) and Bolt Medical (Intravascular Lithotripsy), with synergies beginning to materialize

R&D and Innovation Focus

Boston Scientific continued to invest heavily in R&D, focusing on next-generation technologies across its key therapeutic areas. The company’s innovation pipeline includes advanced catheter technologies, AI-enhanced diagnostic tools, and minimally invasive treatment platforms that address significant unmet clinical needs.

The company’s commitment to clinical excellence was demonstrated through multiple ongoing clinical trials, regulatory submissions, and collaborative research initiatives with leading medical institutions. This robust clinical development program supports both near-term product launches and long-term competitive positioning.

Digital health initiatives continued to gain traction, with the company developing connected device platforms and data analytics capabilities that enhance clinical outcomes and operational efficiency. These investments position Boston Scientific at the forefront of the digital transformation in healthcare.

Based on the strong Q2 2025 performance and continued momentum across its businesses, Boston Scientific raised its full-year 2025 guidance:

Updated 2025 Full-Year Guidance

• Net Sales Growth: 18-19% reported (raised from 15-17%)
• Organic Growth: 14-15% (raised from 12-14%)
• Adjusted EPS: $2.95-$2.99 (representing 18-19% growth)
• Adjusted Operating Margin: Expected expansion of 75-100 basis points
• Free Cash Flow: Strong generation expected to continue

Q3 2025 Guidance

• Organic Growth: 12-14%
• Adjusted EPS: $0.70-$0.72
• Continued momentum across key business segments

The raised guidance reflects management’s confidence in the sustainability of current growth drivers, including continued FARAPULSE adoption, WATCHMAN market expansion, and strength across the MedSurg portfolio. The company expects particular strength in the second half of 2025 as new product launches gain traction and recent acquisitions reach full integration.

Key factors supporting the improved outlook include the expanding addressable market for FARAPULSE with new indications, accelerating adoption in international markets, continued WATCHMAN growth in both hospital and ASC settings, and the recovery trajectory in Neuromodulation following the Axonics integration.

The company also noted that previously anticipated tariff headwinds of approximately $200 million have been reduced to $100 million based on current schedules, providing additional support for margin expansion and earnings growth. Tax rate impacts from recent legislation have also been largely mitigated, supporting the improved EPS outlook.