Boston Scientific(BSX) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights Boston Scientific reported strong Q2 2025 financial results exceeding guidance, alongside significant regulatory approvals and strategic acquisitions Q2 2025 Performance Summary 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] 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 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] - Obtained CE Mark for the WATCHMAN FLX™ Pro Left Atrial Appendage Closure Device, which is optimized for healing and improved visualization[6] - Completed the acquisition of Intera Oncology Inc., adding a hepatic artery infusion pump and a chemotherapy drug to its portfolio[6] - Completed the acquisition of SoniVie Ltd., developer of the TIVUS™ Intravascular Ultrasound System for treating hypertension[6] Detailed Financial Performance Net sales growth was primarily driven by strong Cardiovascular segment performance and significant expansion in the United States market Net Sales by Business Segment 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 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 Boston Scientific raised its full-year and Q3 2025 guidance, projecting strong net sales growth and increased adjusted EPS Full Year 2025 Guidance 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 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) 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 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 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 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 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][26] - 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][28] - 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][31]