Boston Scientific (BSX) Earnings Transcript

Core Insights - Boston Scientific achieved over $20 billion in sales for 2025, marking a mid-teens growth for the second consecutive year, driven by innovation and execution across business units [6][30] - The company reported a Q4 operational sales growth of 14% and organic sales growth of 13%, exceeding guidance [6][29] - Full year 2025 adjusted EPS grew 22% to $3.06, surpassing guidance, with operational sales growth of 19% and organic sales growth of 16% [7][30] Financial Performance - Q4 consolidated revenue reached $5.286 billion, representing a 15.9% reported growth, with operational revenue growth of 14.3% [29] - Full year 2025 consolidated revenue was $20.74 billion, a 19.9% increase, with operational revenue growth of 19.2% [30] - Adjusted gross margin for Q4 was 70.7%, with a full year adjusted gross margin of 70.6%, reflecting a 30 basis point expansion [31] Business Unit Highlights - The U.S. market saw a 17% growth in Q4 and 26% for the full year, particularly strong in EP, WATCHMAN, and ICTx [8] - The Cardiovascular segment delivered 16% operational growth in Q4 and 22% operational growth for the full year [14] - WATCHMAN business grew 29% in Q4, with strong adoption of concomitant procedures [22] Regional Performance - Europe, Middle East, and Africa (EMEA) grew 5% in Q4 and 3% for the full year, with high single-digit growth expected excluding the impact of product discontinuation [9] - Asia Pacific region grew 15% operationally in Q4 and 14% for the full year, driven by strong performance in Japan and China [10][11] Future Outlook - For Q1 2026, the company expects organic growth of 8.5% to 10% and for the full year, guidance is set at 10% to 11% [8][36] - Adjusted EPS for 2026 is projected to be between $3.43 and $3.49, indicating a growth of 12% to 14% [38] - The company anticipates continued momentum in EP and WATCHMAN, with expectations for the market to grow approximately 15% in 2026 [26][72] Strategic Acquisitions - Boston Scientific announced agreements to acquire Penumbra and Valencia Technologies, expected to close in 2026, enhancing its portfolio in high-growth segments [15][35] - The acquisition of Nalu Medical has been completed, complementing the neuromodulation pain franchise [35]