Financial Data and Key Metrics Changes - In Q3 2025, total company operational sales grew 19%, and organic sales grew 15%, exceeding the guidance range of 12%-14% [6][22] - Q3 adjusted EPS was $0.75, reflecting a 19% increase and surpassing the guidance range of $0.70-$0.72 [6][22] - Adjusted operating margin for Q3 was 28%, with an expectation to expand full-year adjusted operating margin by approximately 100 basis points [6][23][26] Business Line Data and Key Metrics Changes - Urology sales grew 27% operationally and 5% organically, driven by international business and Global Stone Management [9] - Endoscopy grew 9%, with double-digit growth in key products [10] - Neuromodulation sales increased by 9%, supported by strong performance in the brain franchise [10] - Peripheral interventions sales grew 16% operationally and 6% organically, with low double-digit growth in the U.S. [11] - Cardiology sales grew 23%, with interventional cardiology therapy sales growing 3% [14] Market Data and Key Metrics Changes - U.S. operational sales grew 27%, while Europe, Middle East, and Africa (EMEA) declined 2% due to specific headwinds [7][8] - Asia-Pacific grew 17% operationally, led by strong growth in Japan and China [8] - WATCHMAN sales grew 35%, reflecting strong market penetration and adoption [15][16] Company Strategy and Development Direction - The company is focused on strategic tuck-in M&A in high-growth adjacencies, with the recent agreement to acquire Nalu Medical to expand into peripheral nerve pain [11][24] - The company aims for 10%+ average organic revenue growth from 2026 to 2028, with a target of 70%-80% annual free cash flow conversion [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining above-market growth, with expectations for continued strong performance in the cardiovascular and MedSurg segments [6][7] - The company anticipates improvements in backorders and operational performance in Europe in the fourth quarter [8] - Management remains optimistic about the growth potential of WATCHMAN and electrophysiology, projecting a 20% CAGR over the long-range plan [32][48] Other Important Information - The company experienced a backorder of approximately $30 million due to an ERP system upgrade, impacting various business lines [8][76] - The company expects to close the acquisition of Nalu Medical in the first half of 2026 [11][24] Q&A Session Summary Question: Is WATCHMAN a key growth driver? - Management confirmed that WATCHMAN is a significant growth driver, with expectations for continued market expansion and strong performance [32] Question: What is the outlook for the China market? - Management indicated that the China business is performing well, with expectations for double-digit growth despite price pressures [39] Question: How will the new product cycle impact CRM growth? - Management expressed confidence in the upcoming product cycle, including the Denali platform and EMPOWER leadless pacemaker, to strengthen CRM growth [86] Question: What are the dynamics outside EP and WATCHMAN? - Management highlighted strong growth in other divisions, including neuromodulation and endoscopy, and emphasized ongoing investments in these areas [58]

Financial Data and Key Metrics Changes - In Q3 2025, total company operational sales grew 19%, and organic sales grew 15%, exceeding the guidance range of 12% to 14% [5][20] - Q3 adjusted EPS was $0.75, reflecting a 19% increase and surpassing the guidance range of $0.70 to $0.72 [5][20] - Adjusted operating margin for Q3 was 28%, with an expected full-year adjusted EPS guidance of $3.02 to $3.04, representing growth of 20% to 21% [6][25] Business Line Data and Key Metrics Changes - Urology sales grew 27% operationally and 5% organically, driven by international business and Global Stone Management [8] - Endoscopy grew 9%, with double-digit growth in key products, particularly in the U.S. [9] - Neuromodulation sales increased by 9%, supported by strong performance in the brain franchise and pain franchise [9][10] - Cardiology sales grew 23%, with interventional cardiology therapy sales growing 3% [12] Market Data and Key Metrics Changes - U.S. operational sales grew 27%, while Europe, Middle East, and Africa (EMEA) declined 2% due to specific headwinds [6][7] - Asia-Pacific grew 17% operationally, led by strong growth in Japan and China [7][8] - Watchman sales grew 35%, reflecting strong uptake in the U.S. [14] Company Strategy and Development Direction - The company is focused on strategic tuck-in M&A in high-growth adjacencies, with recent acquisitions including Nalu Medical [20][24] - The company aims for 10% plus average organic revenue growth from 2026 to 2028, with a target of 50 basis points of annual adjusted operating margin expansion [26] - The company is investing in innovative solutions across both AF and non-AF segments to outpace market growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining above-market growth, particularly in the U.S. and Asia-Pacific [5][6] - The company anticipates improvements in backorders and expects to recover from ERP implementation challenges in Europe [7][10] - Management remains optimistic about the growth potential of Watchman and EP technologies, projecting a 20% CAGR over the long-range plan [32][44] Other Important Information - The company expects full-year 2025 reported revenue growth of approximately 20%, with operational revenue growth of about 19% [24] - Free cash flow for Q3 was $1.163 billion, with expectations of approximately $3.5 billion for the full year [23] Q&A Session Summary Question: Is Watchman a key growth driver? - Management confirmed that Watchman is a significant growth driver, with expectations of continued strong performance and market penetration [30][32] Question: What is the outlook for the China market? - Management indicated that the China business is performing well, with expectations of double-digit growth despite VBP price pressures [36][38] Question: How will the new product cycle impact CRM growth? - Management expressed confidence in the upcoming Denali platform and Empower leadless pacemaker, which are expected to enhance growth in the CRM segment [78][80] Question: What are the drivers for growth outside of EP and Watchman? - Management highlighted strong performance in neuromodulation, endoscopy, and the potential for Urology to improve in 2026 [55][56]

Financial Data and Key Metrics Changes - In Q3 2025, total company operational sales grew 19% and organic sales grew 15%, exceeding the guidance range of 12% to 14% [6][27] - Q3 adjusted EPS was $0.75, a 19% increase, surpassing the guidance range of $0.70 to $0.72 [6][27] - Adjusted operating margin for Q3 was 28%, an increase of 80 basis points year-over-year [27][28] Business Line Data and Key Metrics Changes - Urology sales grew 27% operationally and 5% organically, driven by international business and global stone management franchise [10] - Endoscopy sales increased by 9%, with double-digit growth in key products [12] - Neuromodulation sales grew 9%, supported by strong performance in the brain franchise [12] - Peripheral Interventions sales grew 16% operationally and 6% organically, with low single-digit growth in arterial business impacted by China VBP [14] Market Data and Key Metrics Changes - U.S. operational sales grew 27%, with strong performance across cardiovascular businesses, endoscopy, and neuromodulation [8] - Europe, Middle East, and Africa (EMEA) saw a decline of 2% operationally due to specific headwinds, but excluding these, growth would have been in high single digits [8] - Asia Pacific grew 17% operationally, led by strong growth in Japan and China [9] Company Strategy and Development Direction - The company is focused on expanding its innovative portfolio and maintaining above-market growth, with a full-year organic growth guidance raised to approximately 15.5% [7][30] - The acquisition of Nalu Medical is expected to enhance the company's portfolio in the pain management space [13][92] - The company aims to be market share leaders in electrophysiology (EP) and continues to invest in innovative solutions to drive growth [24][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained above-market growth, particularly in the U.S. and China, despite challenges in EMEA [8][46] - The company anticipates continued strong performance in the WATCHMAN market, projecting approximately 20% growth over the long-range plan [39][50] - Management noted that there are no signals of procedural pull-forward due to external pressures, indicating consistent demand [44] Other Important Information - The company expects full-year 2025 reported revenue growth of approximately 20%, with operational revenue growth of about 19% [30] - Adjusted gross margin for Q3 was 71%, reflecting a 60 basis point improvement year-over-year [28] - Free cash flow for Q3 was $1,163 million, with expectations of approximately $3,500 million for the full year [29] Q&A Session Summary Question: Is WATCHMAN a key growth driver? - Management confirmed that WATCHMAN is a significant growth driver, with expectations of continued market expansion and strong adoption rates [36][39] Question: What is the outlook for the China business? - Management indicated that the China business is performing well, with mid-teens growth expected to continue despite VBP pressures [42][46] Question: How will the new product cycle impact CRM growth? - Management expressed confidence in the upcoming product cycle, including the Denali platform and leadless pacemaker, which are expected to enhance growth in the CRM segment [98][100] Question: What is the impact of the $30 million back order? - The back order primarily affected the MedSurg and Peripheral Interventions businesses, but management expects it to normalize by the end of the year [85][86]

Core Insights - Boston Scientific reported quarterly earnings of $0.75 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and showing an increase from $0.63 per share a year ago, resulting in an earnings surprise of +5.63% [1] - The company achieved revenues of $5.07 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.94%, and up from $4.21 billion year-over-year [2] - Boston Scientific has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise of +5.63% indicates strong performance relative to expectations, with a previous quarter's surprise of +4.17% [1][2] - The company has maintained a favorable trend in estimate revisions leading up to the earnings release, contributing to a Zacks Rank 2 (Buy) for the stock [6] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $5.16 billion, and for the current fiscal year, it is $2.98 on revenues of $19.85 billion [7] - The sustainability of stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Industry Context - The Medical - Products industry, to which Boston Scientific belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

Company Performance - Boston Scientific reported Q3 sales of $5.07 billion, reflecting a year-over-year growth of 20.3% [1] - Electrophysiology sales reached $865 million in Q3, marking a significant year-over-year growth of 64.2% [2][4] - The company's cardiovascular sales totaled $3.34 billion, with a growth rate of 22.4% year-over-year [1] Product Insights - The growth in electrophysiology sales was primarily driven by the pulsed field ablation (PFA) portfolio, particularly the Farapulse system [2] - The Farapulse PFA system has been utilized in over 500,000 procedures, maintaining its position as the leading PFA technology [4] - Sales of the Farapulse system grew in double digits in the U.S. during Q3, aided by the adoption of the Opal mapping system [4] Market Outlook - Boston Scientific anticipates that PFA's global penetration will reach 50% by the end of 2025 and approximately 80% by 2028 [6] - The global electrophysiology market is projected to grow from an estimated $13 billion in 2025 to $20 billion in 2028 [6] - The company aims to continue expanding its market share in electrophysiology and maintain a strong leadership position in PFA through innovative products and resources [5]

Safe Harbor for Forward-Looking Statements and Use of Document Safe Harbor for forward-looking statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements may be identified by words like "anticipate," "expect," "project," "believe," "plan," "estimate," "may," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions ...

Core Viewpoint - Boston Scientific raised its annual profit forecast following a strong performance in the third quarter, driven by high demand for its heart devices [1] Company Summary - Boston Scientific exceeded third-quarter profit estimates, indicating robust market demand for its medical devices, particularly in the cardiovascular segment [1]

Core Viewpoint - The article discusses the concept of the "Death Cross" as a bearish signal in stock trading, indicating a potential trend shift and the need for investors to be cautious about their positions in certain stocks. Group 1: Death Cross Overview - The Death Cross occurs when a stock's 50-day moving average falls below its 200-day moving average, signaling weakening short-term momentum and a possible trend shift [2][3] - This indicator is recognized by traders across various timelines and investment goals, serving as a signal to take profits or enter short positions [3] - Historical data shows that Death Crosses on major indices like the S&P 500 have preceded long-term bear markets in 2000, 2007, and 2022 [3] Group 2: Company Analysis - Boston Scientific - Boston Scientific has a current stock price of $99.88, with a P/E ratio of 59.45 and a price target of $121.61 [6] - The company reported a 22% year-over-year sales growth in Q2 2025, but the stock has declined 3% over the last three months, indicating market indifference to its performance [7] - The stock has formed a Death Cross, breaking through key support levels, and faces fundamental challenges due to its high valuation, trading at nearly 60x earnings [9] Group 3: Company Analysis - Darden Restaurants - Darden Restaurants, with a stock price of $187.67 and a P/E ratio of 20.11, operates popular chains like Olive Garden and Longhorn Steakhouse [10] - The company is experiencing pressure from rising labor and input costs, which is affecting its competitive pricing in the full-service casual dining segment [11] - DRI shares have broken through the 50-day SMA support level, indicating a loss of upward momentum, and may continue to struggle unless the restaurant industry improves [13] Group 4: Company Analysis - Stryker - Stryker's stock is priced at $379.96, with a P/E ratio of 50.33 and a price target of $431.76 [14] - Despite consistent earnings beats, the stock has only increased 3% in the last 12 months due to reliance on elective procedures and exposure to macroeconomic trends [15] - A Death Cross is forming for Stryker as it approaches the 200-day SMA, suggesting potential further downside if the price is rejected at this level [17]

Core Insights - The medical device company reported increased sales in the third quarter and has raised its full-year earnings guidance due to ongoing growth in its cardiovascular segment [1] Group 1 - The company experienced higher third-quarter sales [1] - The company raised its full-year earnings guidance [1] - Growth in the cardiovascular segment contributed to the positive performance [1]

Financial Performance - Boston Scientific reported net sales of $5.065 billion for Q3 2025, a 20.3% increase on a reported basis compared to the prior year[2]. - GAAP net income attributable to common stockholders was $755 million, or $0.51 per share, up from $469 million, or $0.32 per share, a year ago[2]. - Adjusted EPS for the period was $0.75, compared to $0.63 in the prior year[2]. - Net sales for Q3 2025 reached $5,065 million, a 20.4% increase from $4,209 million in Q3 2024[19]. - Gross profit for the nine months ended September 30, 2025, was $10,175 million, up 21.3% from $8,395 million in the same period of 2024[19]. - Operating income for Q3 2025 was $1,048 million, representing a 43.0% increase compared to $733 million in Q3 2024[19]. - Net income attributable to Boston Scientific common stockholders for Q3 2025 was $755 million, a 60.9% increase from $469 million in Q3 2024[19]. - Basic net income per share for Q3 2025 was $0.51, compared to $0.32 in Q3 2024, reflecting a 59.4% increase[19]. - The company reported a net income of $2,222 million for the nine months ended September 30, 2025, a 73.0% increase from $1,284 million in the same period of 2024[23]. - Adjusted net income for Q3 2025 was $1,303 million, compared to $1,082 million in Q3 2024, indicating a 20.4% increase[21]. Sales Growth - The Cardiovascular segment saw a reported sales growth of 22.4%, while MedSurg grew by 16.4%[2]. - U.S. sales increased by 27.0% to $3.294 billion, while EMEA sales grew by 2.6%[6]. - Full year 2025 net sales growth is estimated at approximately 20% on a reported basis and 15.5% on an organic basis[8]. - For Q4 2025, the company estimates net sales growth in the range of 14.5% to 16.5% on a reported basis[9]. - Q4 2025 estimated net sales growth is projected between 14.5% and 16.5%, with a full year estimate of approximately 20.0%[25]. Research and Development - Research and development expenses for Q3 2025 were $514 million, up 26.3% from $407 million in Q3 2024[19]. - The company received PMDA approval in Japan for expanded labeling of the FARAPULSE™ Pulsed Field Ablation System[5]. - Boston Scientific commenced enrollment in the AGENT DCB STANCE trial to assess the AGENT™ Drug-Coated Balloon[5]. - The company completed an asset acquisition with Elutia, Inc. for the EluPro™ BioEnvelope and CanGaroo® Envelope[5]. Operational Insights - Total operating expenses for the nine months ended September 30, 2025, were $7,387 million, a 14.2% increase from $6,467 million in the same period of 2024[19]. - The impact of foreign currency fluctuations is expected to reduce Q4 2025 net sales growth by 2.0% and full year impact by around 1.0%[25]. - Operational growth for Q4 2025 is estimated at 12.5% to 14.5%, with a full year estimate of about 19.0%[25]. - Organic growth for Q4 2025 is projected between 11.0% and 13.0%, with a full year estimate of approximately 15.5%[25]. Earnings Projections - Q4 2025 GAAP earnings per share (EPS) is estimated to be between $0.48 and $0.52, while full year EPS is projected between $1.97 and $2.01[26]. - Adjusted EPS for Q4 2025 is expected to range from $0.77 to $0.79, with full year adjusted EPS estimated between $3.02 and $3.04[26]. Non-GAAP Measures - The company utilizes non-GAAP financial measures to provide additional insights into operational performance, excluding certain charges and impacts from foreign currency fluctuations[27]. - Adjusted net income calculations exclude charges such as amortization expense and restructuring-related costs, providing a clearer view of operational performance[28]. - Management emphasizes the importance of non-GAAP measures for evaluating performance trends and making operational decisions[32]. - The company believes that presenting both GAAP and non-GAAP measures enhances transparency for investors regarding operational performance[33].