Boston Scientific’s shares tumble 18% despite strong FY25 growth

Core Insights - Boston Scientific reported revenue of $20 billion for fiscal year 2025, with Q4 2025 revenue reaching $5.2 billion, a 15.9% increase compared to Q4 2024 [1][3] - Despite strong growth, the company's shares fell 11% at market open on February 4, 2026, and further declined by 7.2% by market close on the same day [2] Financial Performance - In Q4 2025, the cardiovascular portfolio generated $3.4 billion in revenue, marking an 18.2% increase from Q4 2024 [3] - For FY25, the cardiovascular segment contributed $13.3 billion, reflecting a growth margin of 23.2% compared to $10.8 billion in FY24 [3] Segment Analysis - The electrophysiology (EP) segment, including the Farapulse system, reported Q4 revenues of $890 million, a year-over-year growth of 37.1%, but flat compared to Q3 2025's $865 million [5] - The Watchman franchise achieved Q4 sales of $535 million, a 29.4% increase from Q4 2024, but only a slight rise from $512 million in Q3 2025 [6] Market Outlook - Boston expects growth in 2026 to be in the range of 10.5% to 11.5%, with earnings projected between $3.43 and $3.49 per share [6] - The company anticipates a 15% growth in the EP market for 2026 [6] Analyst Insights - Analysts expressed concerns regarding flat sales in the EP and Watchman segments, which are critical growth drivers for the company [7] - CEO Mike Mahoney indicated that the market growth in Q4 was likely closer to 18% to 20%, rather than the 25% claimed by other companies [8]