Boston Scientific Beats on Q3 Earnings, Raises 2025 View, Stock Up

Core Insights - Boston Scientific Corporation (BSX) reported third-quarter 2025 adjusted earnings per share (EPS) of 75 cents, a 19% increase year-over-year, surpassing the Zacks Consensus Estimate by 5.6% and exceeding the company's guidance of 70-72 cents [1][8] - Total revenues for the quarter reached $5.07 billion, reflecting a 20.3% year-over-year increase on a reported basis and 19.4% on an operational basis, exceeding the Zacks Consensus Estimate by 1.9% [3][8] Revenue Breakdown - Revenue growth was driven by a 27% increase in the United States, a 2.6% rise in Europe, the Middle East and Africa (EMEA), a 17.1% increase in the Asia Pacific region, and a 10.4% rise in Latin America and Canada [4] - Organic growth, adjusted for foreign currency fluctuations and acquisitions/divestitures, was reported at 15.3% [3] Segment Performance - MedSurg segment revenues totaled $1.72 billion, up 16.4% year-over-year, with notable contributions from the Endoscopy unit ($747 million, up 9% organically), Urology ($682 million, up 5.4%), and Neuromodulation ($293 million, up 8.6%) [6] - The Cardiovascular segment generated $3.34 billion in revenues, reflecting a 22.4% increase year-over-year [7][9] Margin and Expense Analysis - Gross margin expanded by 110 basis points to 69.9%, while the cost of products sold rose by 16.1% to $1.52 billion [10] - Selling, general and administrative expenses increased by 11.5% to $1.74 billion, and research and development expenses rose by 26.3% to $514 million [11] Future Outlook - For 2025, Boston Scientific anticipates net sales growth of approximately 20% and adjusted EPS in the range of $3.02-$3.04, an increase from previous guidance [12][13] - Fourth-quarter revenue growth is projected between 14.5-16.5% on a reported basis, with adjusted earnings expected in the range of 77-79 cents per share [13][14] Strategic Developments - The company achieved several milestones, including regulatory approval in Japan for the FARAPULSE PFA System and the initiation of the AGENT DCB STANCE trial [16] - Boston Scientific completed an asset acquisition with Elutia, Inc. for the antibiotic-eluting EluPro BioEnvelope and CanGaroo Envelope [17]