Company Performance - Boston Scientific reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and up from $0.62 per share a year ago, representing an earnings surprise of +4.17% [1] - The company posted revenues of $5.06 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.48%, compared to revenues of $4.12 billion in the same quarter last year [2] - Over the last four quarters, Boston Scientific has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Boston Scientific shares have increased approximately 15.5% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $4.85 billion, and for the current fiscal year, it is $2.91 on revenues of $19.5 billion [7] - The outlook for the industry, particularly the Medical - Products sector, is currently in the bottom 30% of Zacks industries, which may impact stock performance [8]

Financial Performance - The company's reported net sales reached $5061 billion, demonstrating a 228% increase year-over-year[21] - Operational net sales grew by 216% year-over-year[14] - Organic net sales increased by 174% compared to the previous year[14] - Reported earnings per share (EPS) stood at $053, compared to $022 in Q2 2024[18] - Adjusted EPS was $075, up from $062 in Q2 2024[18] - The company's free cash flow reached $1129 million in Q2 2025, compared to $660 million in Q2 2024[35] Segment Performance - MedSurg segment reported net sales of $1716 billion, a 157% increase year-over-year[22] - Cardiovascular segment reported net sales of $3345 billion, a 268% increase year-over-year[25] - Cardiology segment net sales increased by 293% to $2647 billion[27] - Electrophysiology (EP) net sales surged by 961% to $840 million[27] Guidance - The company projects Q3 2025 reported net sales growth of 17%-19% and organic net sales growth of 12%-14%[18] - Q3 2025 reported EPS is expected to be $044-$046, with adjusted EPS of $070-$072[18] - For the full year 2025, the company anticipates reported net sales growth of 18%-19% and organic net sales growth of 14%-15%[18] - Full year 2025 reported EPS is projected to be $189-$193, with adjusted EPS of $295-$299[18]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Boston Scientific reported strong Q2 2025 financial results exceeding guidance, alongside significant regulatory approvals and strategic acquisitions [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Boston Scientific reported exceptional results for the second quarter of 2025, with net sales of $5.061 billion, representing a 22.8% reported growth and 17.4% organic growth. Both GAAP and adjusted EPS significantly increased year-over-year and surpassed the company's guidance, reflecting strong commercial execution and margin expansion Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $5.061B | $4.120B | +22.8% Reported | | GAAP Net Income | $797M | $324M | +146.0% | | GAAP EPS | $0.53 | $0.22 | +140.9% | | Adjusted EPS | $0.75 | $0.62 | +21.0% | - The company's performance exceeded its own guidance ranges for sales growth and earnings per share[2](index=2&type=chunk) Q2 2025 Performance vs. Guidance | Metric | Q2 2025 Actual | Q2 2025 Guidance | | :--- | :--- | :--- | | Reported Net Sales Growth | 22.8% | 17.5% to 19.5% | | Organic Net Sales Growth | 17.4% | 13.0% to 15.0% | | GAAP EPS | $0.53 | $0.45 to $0.47 | | Adjusted EPS | $0.75 | $0.71 to $0.73 | [Recent Corporate & Clinical Developments](index=2&type=section&id=Recent%20Corporate%20%26%20Clinical%20Developments) During the quarter, Boston Scientific achieved significant regulatory and clinical milestones, including FDA approval for the FARAPULSE™ PFA System for persistent AF and a CE Mark for the WATCHMAN FLX™ Pro device. The company also expanded its portfolio by completing the acquisitions of Intera Oncology Inc. and SoniVie Ltd - Received FDA approval to expand the use of the FARAPULSE™ Pulsed Field Ablation (PFA) System for treating symptomatic persistent atrial fibrillation (AF)[6](index=6&type=chunk) - Obtained CE Mark for the WATCHMAN FLX™ Pro Left Atrial Appendage Closure Device, which is optimized for healing and improved visualization[6](index=6&type=chunk) - Completed the acquisition of Intera Oncology Inc., adding a hepatic artery infusion pump and a chemotherapy drug to its portfolio[6](index=6&type=chunk) - Completed the acquisition of SoniVie Ltd., developer of the TIVUS™ Intravascular Ultrasound System for treating hypertension[6](index=6&type=chunk) [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) Net sales growth was primarily driven by strong Cardiovascular segment performance and significant expansion in the United States market [Net Sales by Business Segment](index=3&type=section&id=Net%20Sales%20by%20Business%20Segment) The Cardiovascular segment was the largest and fastest-growing business, with reported sales increasing by 26.8% to $3.345 billion. The MedSurg segment also posted strong results with 15.7% reported growth. On an organic basis, Cardiology was the standout performer with 27.9% growth Q2 2025 Net Sales by Business Segment (in millions) | Business Segment | Q2 2025 Sales | Q2 2024 Sales | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | :--- | | **MedSurg** | **$1,716** | **$1,483** | **15.7%** | **7.0%** | | Endoscopy | $737 | $676 | 9.1% | 7.8% | | Urology | $676 | $525 | 28.9% | 6.3% | | Neuromodulation | $303 | $282 | 7.2% | 6.6% | | **Cardiovascular** | **$3,345** | **$2,637** | **26.8%** | **23.2%** | | Cardiology | $2,647 | $2,047 | 29.3% | 27.9% | | Peripheral Interventions | $698 | $590 | 18.3% | 7.0% | | **Total Net Sales** | **$5,061** | **$4,120** | **22.8%** | **17.4%** | [Net Sales by Region](index=3&type=section&id=Net%20Sales%20by%20Region) The United States was the primary driver of growth, with sales increasing 30.7% to $3.224 billion. The Asia-Pacific (APAC) region also delivered strong performance with 18.0% reported growth. Emerging Markets grew 11.6% on a reported basis Q2 2025 Net Sales by Region (in millions) | Region | Q2 2025 Sales | Q2 2024 Sales | Reported Growth | Operational Growth | | :--- | :--- | :--- | :--- | :--- | | U.S. | $3,224 | $2,466 | 30.7% | 30.7% | | EMEA | $878 | $822 | 6.8% | 1.8% | | APAC | $790 | $670 | 18.0% | 15.4% | | LACA | $169 | $162 | 4.0% | 8.9% | | **Total Net Sales** | **$5,061** | **$4,120** | **22.8%** | **21.6%** | | Emerging Markets | $758 | $680 | 11.6% | 12.1% | [Financial Outlook](index=4&type=section&id=Financial%20Outlook) Boston Scientific raised its full-year and Q3 2025 guidance, projecting strong net sales growth and increased adjusted EPS [Full Year 2025 Guidance](index=4&type=section&id=Full%20Year%202025%20Guidance) The company raised its full-year 2025 guidance, projecting net sales growth of approximately 18% to 19% on a reported basis and 14% to 15% organically. Adjusted EPS is now estimated to be in the range of $2.95 to $2.99, with GAAP EPS expected between $1.89 and $1.93 Full Year 2025 Guidance | Metric | Low Estimate | High Estimate | | :--- | :--- | :--- | | Reported Net Sales Growth | 18.0% | 19.0% | | Organic Net Sales Growth | 14.0% | 15.0% | | GAAP EPS | $1.89 | $1.93 | | Adjusted EPS | $2.95 | $2.99 | [Third Quarter 2025 Guidance](index=4&type=section&id=Third%20Quarter%202025%20Guidance) For the third quarter of 2025, Boston Scientific anticipates reported net sales growth between 17% and 19% (12% to 14% organic). The company forecasts GAAP EPS of $0.44 to $0.46 and adjusted EPS of $0.70 to $0.72 Third Quarter 2025 Guidance | Metric | Low Estimate | High Estimate | | :--- | :--- | :--- | | Reported Net Sales Growth | 17.0% | 19.0% | | Organic Net Sales Growth | 12.0% | 14.0% | | GAAP EPS | $0.44 | $0.46 | | Adjusted EPS | $0.70 | $0.72 | [Consolidated Financial Statements (GAAP)](index=6&type=section&id=Consolidated%20Financial%20Statements%20%28GAAP%29) The consolidated financial statements highlight significant year-over-year growth in net sales, operating income, and net income for the second quarter of 2025 [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, the company's net sales grew to $5.061 billion from $4.120 billion in the prior-year period. This top-line growth, combined with managed operating expenses, resulted in operating income of $819 million and net income attributable to common stockholders of $797 million, or $0.53 per diluted share, a substantial increase from $324 million, or $0.22 per share, in Q2 2024 Consolidated Statements of Operations Highlights (in millions) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net sales | $5,061 | $4,120 | | Gross profit | $3,424 | $2,850 | | Operating income | $819 | $520 | | Net income attributable to Boston Scientific common stockholders | $797 | $324 | | Diluted net income per common share | $0.53 | $0.22 | [Non-GAAP Financial Measures & Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company provides non-GAAP financial measures to offer a clearer view of underlying business performance by adjusting for specific non-recurring or non-cash items [Reconciliation of GAAP to Non-GAAP Results](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) The company's adjusted EPS for Q2 2025 was $0.75, compared to a GAAP EPS of $0.53. The primary adjustments included $0.13 for amortization expense, $0.10 for restructuring charges, and a credit of ($0.06) for acquisition/divestiture-related items. These adjustments reconcile the reported GAAP net income of $797 million to an adjusted net income of $1,127 million Q2 2025 GAAP to Adjusted EPS Reconciliation | Description | Impact per Share | | :--- | :--- | | **Reported GAAP EPS** | **$0.53** | | Amortization expense | $0.13 | | Goodwill and other intangible asset impairment charges | $0.02 | | Acquisition/divestiture-related net charges (credits) | ($0.06) | | Restructuring and restructuring related net charges (credits) | $0.10 | | EU MDR implementation costs | $0.01 | | Deferred tax expenses (benefits) | $0.03 | | Other | ($0.00) | | **Adjusted EPS** | **$0.75** | [Explanation of Non-GAAP Measures](index=10&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Boston Scientific uses non-GAAP financial measures such as operational net sales, organic net sales, and adjusted net income/EPS to supplement its GAAP reporting. Management believes these measures provide greater transparency into underlying business trends by excluding items like foreign currency fluctuations, amortization of intangible assets, restructuring costs, and acquisition-related charges. These metrics are used internally for performance evaluation, resource allocation, and setting operational goals - Non-GAAP measures are used to exclude certain charges/credits, such as amortization expense, acquisition-related costs, restructuring charges, and EU MDR implementation costs[25](index=25&type=chunk)[26](index=26&type=chunk) - Operational net sales exclude the impact of foreign currency fluctuations, while organic net sales exclude both currency impacts and the effect of certain acquisitions/divestitures[25](index=25&type=chunk)[28](index=28&type=chunk) - Management utilizes these non-GAAP measures to evaluate period-over-period performance, analyze business trends, assess performance relative to competitors, and establish operational goals and forecasts[30](index=30&type=chunk)[31](index=31&type=chunk)

Core Insights - Boston Scientific Corporation reported net sales of $5.061 billion for Q2 2025, representing a growth of 22.8% on a reported basis, 21.6% on an operational basis, and 17.4% on an organic basis compared to the previous year [1][7][10] - The company achieved a GAAP net income of $797 million, or $0.53 per share, compared to $324 million, or $0.22 per share, a year ago, with adjusted EPS of $0.75 compared to $0.62 a year ago [1][7][10] Financial Performance - The second quarter financial results showed significant growth across various segments, with MedSurg growing by 15.7% reported, Cardiovascular by 26.8% reported, and Urology by 28.9% reported [6][7] - The net sales growth by region included a 30.7% increase in the U.S., 6.8% in EMEA, 18.0% in APAC, and 11.6% in Emerging Markets [7][8] Strategic Developments - The company received FDA approval to expand the use of the FARAPULSE™ Pulsed Field Ablation System for treating drug refractory, symptomatic persistent atrial fibrillation [7] - Boston Scientific commenced enrollment in the ReMATCH IDE clinical trial for evaluating the FARAWAVE™ and FARAPOINT™ PFA Catheters [7] - The company completed acquisitions of Intera Oncology® Inc. and SoniVie Ltd., enhancing its product offerings in the medical device sector [7] Guidance - For the full year 2025, Boston Scientific estimates net sales growth of approximately 18% to 19% on a reported basis and 14% to 15% on an organic basis [10][11] - The company projects GAAP EPS in the range of $1.89 to $1.93 and adjusted EPS of $2.95 to $2.99 for the full year [10][11]

Core Insights - Boston Scientific (BSX) is scheduled to announce its earnings on July 23, 2025, with historical data indicating a 60% chance of positive returns the day after earnings announcements [2][7] - The current consensus estimates for BSX's upcoming earnings are $0.72 per share on revenue of $4.89 billion, showing improvement from the previous year's earnings of $0.62 per share on revenues of $4.12 billion [3] - BSX has a market capitalization of $153 billion, with revenues of $18 billion, operating profits of $3.2 billion, and net income of $2.0 billion over the past twelve months [4] Historical Performance - Over the past five years, BSX has recorded 20 earnings data points, resulting in 12 positive and 8 negative one-day returns, with a median positive return of 3.2% and a median negative return of -1.2% [7] - The likelihood of positive one-day returns increases to 67% when considering the last three years instead of five [7] Trading Strategies - Traders may consider positioning before the earnings announcement based on historical probabilities, while also assessing the relationship between immediate and medium-term returns post-announcement [6] - Analyzing the correlation between short-term and medium-term returns can provide a less risky trading strategy, particularly if the 1D and 5D returns show high correlation [8]

Core Viewpoint - Boston Scientific (BSX) is expected to report quarterly earnings of $0.72 per share, reflecting a 16.1% increase year-over-year, with revenues projected at $4.89 billion, an 18.7% increase compared to the previous year [1]. Financial Performance Estimates - Analysts anticipate 'Net Sales- MedSurg- Worldwide' to reach $1.68 billion, indicating a 13.1% increase from the prior-year quarter [4]. - The estimated 'Net Sales- Cardiovascular- Worldwide' is projected at $3.21 billion, representing a 21.7% increase year-over-year [4]. - 'Net Sales- Cardiovascular- Cardiology- Worldwide' is expected to be $2.52 billion, showing a 23.3% increase from the previous year [5]. - 'Net Sales- Cardiovascular- Peripheral Interventions- Worldwide' is forecasted at $689.56 million, indicating a 16.9% year-over-year change [5]. - 'Geographic Revenue- U.S.' is likely to reach $3.06 billion, reflecting a 24.1% increase year-over-year [6]. - 'Net Sales- Cardiovascular- Peripheral Interventions- International' is projected at $309.92 million, indicating a 10.3% increase from the prior year [6]. - 'Net Sales- MedSurg- Neuromodulation- United States' is expected to be $220.82 million, showing a 3.2% increase year-over-year [7]. - 'Net Sales- MedSurg- Neuromodulation- International' is forecasted at $70.31 million, reflecting a 3.4% increase [7]. - 'Net Sales- MedSurg- Endoscopy- United States' is projected at $445.09 million, indicating a 7.3% increase year-over-year [8]. - 'Net Sales- MedSurg- Endoscopy- International' is expected to reach $273.79 million, reflecting a 4.9% increase [8]. - 'Net Sales- MedSurg- Urology- United States' is forecasted at $492.40 million, indicating a significant 35.7% increase year-over-year [8]. - 'Net Sales- MedSurg- Urology- International' is projected at $177.83 million, reflecting a 9.8% increase [9]. Market Performance - Over the past month, shares of Boston Scientific have returned +3.2%, compared to the Zacks S&P 500 composite's +5.4% change [9]. - Currently, BSX holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [9].

Core Insights - Boston Scientific (BSX) is expected to report its second-quarter 2025 results on July 23, with prior EPS of 75 cents exceeding estimates by 11.94% [1] - The company has consistently surpassed earnings estimates over the last four quarters, with an average surprise of 8.79% [1] Revenue and EPS Estimates - The Zacks Consensus Estimate for BSX's Q2 2025 revenues is $4.89 billion, reflecting an 18.7% increase year-over-year [2] - The EPS estimate for Q2 2025 is projected at 72 cents, indicating a 16.1% rise compared to the previous year [2] Performance Influencers - The MedSurg division is anticipated to maintain strong sales momentum, particularly in the Endoscopy business, driven by the Axios platform and technologies like OverStitch and Mantis clip [4] - The Urology business is expected to benefit from its core stone management franchise and the integration of the Axonics acquisition [5] - Neuromodulation growth is likely supported by the Brain and Pain franchises, with positive trends from Deep Brain Stimulation and the Intercept product [6] Segment Performance - MedSurg revenues are estimated at $1.68 billion, a 13.1% year-over-year increase [7] - The Cardiovascular unit is projected to perform well, with revenues expected to rise 8.3% year-over-year to $719.95 million [14] - Key contributors to Cardiovascular growth include the AGENT Drug-Coated Balloon and the completion of the SoniVie acquisition [10][11] Earnings Expectations - Boston Scientific has an Earnings ESP of +0.88%, indicating a higher likelihood of beating estimates [15] - The company holds a Zacks Rank of 2 (Buy), suggesting favorable conditions for earnings performance [16]

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].

Core Viewpoint - Boston Scientific (BSX) is showing potential for investment due to its recent technical movements and positive earnings estimate revisions [1][4]. Technical Analysis - BSX has crossed above the 20-day moving average, indicating a short-term bullish trend [1][2]. - The stock has increased by 5.4% over the past four weeks, suggesting upward momentum [4]. Earnings Estimates - There have been no downward revisions in earnings estimates for the current fiscal year in the past two months, with one estimate being revised higher [4]. - The consensus estimate for BSX has also increased, reinforcing the positive outlook [4][5]. Investment Sentiment - BSX is currently rated as a Zacks Rank 2 (Buy), indicating strong potential for continued gains [4]. - The combination of positive technical indicators and earnings estimate revisions suggests that investors should monitor BSX for further opportunities [5].

Core Insights - The integration of generative AI and agentic AI in medical devices is transforming clinical workflows and patient care, with generative AI focusing on content creation and design optimization, while agentic AI enables autonomous decision-making based on real-time data [1][3] Group 1: AI Integration in Medical Devices - Generative AI is used to create synthetic medical images for training diagnostic tools, enhancing datasets [1] - Agentic AI supports predictive maintenance in medical equipment, reducing downtime through fault detection and automated service scheduling [3] - AI-powered tools like Nuance Communications's Dragon Ambient eXperience improve clinical documentation by transcribing doctor-patient conversations into structured notes [2] Group 2: Key Factors Driving AI Adoption - There is a rising demand for precision and personalized medicine, with AI enabling individualized diagnostics and treatments based on patient-specific data [5] - The regulatory environment is favorable, with over 700 AI-enabled devices approved by the FDA, significantly increasing from 2020 [6] Group 3: Medical Device Stocks to Watch - Boston Scientific Corporation (BSX) is investing in AI for improved procedural outcomes, with a projected 2025 sales growth rate of 16.4% and earnings expected to grow by 15.9% [8][7] - Johnson & Johnson (JNJ) employs AI in surgical robotics and digital surgery analytics, with a historical earnings growth rate of 5.5% and projected sales growth of 2.8% for 2025 [11][10] - GE HealthCare Technologies Inc. (GEHC) leads in FDA-cleared AI devices, with a projected sales growth rate of 3.2% for 2025 and a focus on enhancing imaging through AI solutions [13][12]