Boston Scientific (NYSE:BSX) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Company ParticipantsDavid Roman - Managing DirectorFrederick Wise - Managing DirectorJonathan Monson - CFOKenneth Stein - CMOLauren Tengler - Head of Investor RelationsMichael Mahoney - CEOPatrick Wood - Managing DirectorTravis Steed - Managing DirectorConference Call ParticipantsChris Pasquale with Nephron Research - Partner & Senior AnalystDanielle Antalffy - Senior AnalystJoanne Lynch - AnalystJoshua Jennings - Managing Dire ...

Boston Scientific (NYSE:BSX) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Company ParticipantsDavid Roman - Managing DirectorFrederick Wise - Managing DirectorJonathan Monson - CFOKenneth Stein - CMOLauren Tengler - Head of Investor RelationsMichael Mahoney - CEOPatrick Wood - Managing DirectorTravis Steed - Managing DirectorConference Call ParticipantsChris Pasquale with Nephron Research - Partner & Senior AnalystDanielle Antalffy - Senior AnalystJoanne Lynch - AnalystJoshua Jennings - Managing Dire ...

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenue reached $5.286 billion, representing a 15.9% reported growth compared to Q4 2024, with operational revenue growth of 14.3% after excluding a $74 million foreign exchange tailwind [18] - Full year 2025 consolidated revenue was $20.074 billion, marking a 19.9% reported growth versus 2024, with operational revenue growth of 19.2% after excluding a $114 million foreign exchange tailwind [19] - Adjusted EPS for Q4 2025 was $0.80, a 15% increase from 2024, exceeding guidance [18] - Full year 2025 adjusted EPS was $3.06, growing 22% versus 2024, also exceeding guidance [19] - Adjusted gross margin for Q4 was 70.7%, with a full year adjusted gross margin of 70.6%, reflecting a 30 basis point expansion [20] Business Line Data and Key Metrics Changes - Urology sales grew 13% operationally in Q4 and 23% operationally for the full year, but performance was below expectations [4] - Endoscopy achieved organic growth of 8% in both Q4 and for the full year, driven by endoluminal surgery and imaging systems [4] - Neuromodulation grew 10% in Q4 and delivered 8% organic growth for the full year, with strong performance from the brain franchise [5] - Cardiovascular segment delivered 16% growth operationally in Q4 and 22% operationally for the full year [6] - Watchman business grew 29% in Q4 and maintained strong double-digit growth for the full year [12] Market Data and Key Metrics Changes - U.S. operational growth was 17% in Q4 and 26% for the full year, with strong performance in EP, Watchman, and ICTX [2] - Asia Pacific region grew 15% operationally in Q4 and 14% for the full year, led by Japan and China [3] - Europe, Middle East, and Africa grew 5% in Q4 and 3% for the full year, with high single-digit growth excluding Acclarent discontinuation [2] Company Strategy and Development Direction - The company anticipates continued momentum in EP and Watchman, with expectations for higher growth in the second half of 2026 [3] - Strategic acquisitions, including Penumbra and Valencia Technologies, are aimed at entering high-growth markets and expanding product offerings [24][6] - The company is focused on maintaining a strong pipeline of innovative products and expanding its market share in key segments [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10%-11% organic revenue growth for 2026, with adjusted EPS growth of 12%-14% [27] - The company expects to face challenges in the first half of 2026 due to product removals and market adjustments but anticipates stronger performance in the latter half [25][43] - Management highlighted the importance of ongoing investments in R&D and strategic M&A to drive long-term growth [61] Other Important Information - The company reported free cash flow of $3,659 million for the full year 2025, exceeding expectations [22] - The legal reserve was $242 million as of December 31, with $46 million already funded [24] - The company maintains a strong balance sheet with cash on hand of $1.965 billion and a gross debt leverage ratio of 1.9 times [23] Q&A Session Summary Question: Concerns about U.S. EP and Watchman performance - Management reassured that Q4 results exceeded internal targets, with EP growing 35% and Watchman growing 29%, indicating strong market share gains [30][34] Question: Impact of recent trials on Watchman - Management confirmed no negative impact from recent trials and emphasized robust uptake of Watchman procedures [36][38] Question: Expectations for EP growth in 2026 - Management expects EP growth to exceed 15%, driven by new product approvals and market expansion [41][42] Question: Diversification of growth drivers - Management highlighted strong performance expected in Neuromod, Urology, and Endoscopy, with ongoing investments to ensure consistent growth across all business units [59][60]

Core Viewpoint - Boston Scientific Corporation (BSX) is a global medical device company with a market cap of $138.8 billion, focusing on innovative technologies across various medical specialties, including cardiovascular and gastrointestinal conditions [1] Financial Performance - BSX shares have underperformed the broader market, decreasing 8.3% over the past 52 weeks, while the S&P 500 Index gained 15% [2] - Year-to-date, BSX shares have declined 1.6%, compared to the S&P 500's 1.9% return [2] - The company's stock also lagged behind the State Street Health Care Select Sector SPDR ETF's 5.3% rise over the past year [3] Recent Developments - On October 22, 2025, BSX shares rose nearly 4% after reporting Q3 2025 adjusted EPS of $0.75 and revenue of $5.07 billion, exceeding expectations [4] - The company raised its 2025 adjusted EPS forecast to a range of $3.02 - $3.04 and guided Q4 adjusted EPS of $0.77 - $0.79, above consensus estimates [4] - Strong demand for heart devices, particularly a 23.1% increase in electrophysiology sales driven by the Watchman and Farapulse systems, contributed to investor optimism [4] Analyst Ratings and Forecasts - Analysts expect BSX's adjusted EPS to grow 21.1% year-over-year to $3.04 for the fiscal year ending December 2025 [5] - The company has a promising earnings surprise history, beating consensus estimates in the last four quarters [5] - Among 31 analysts covering BSX, the consensus rating is a "Strong Buy," with 26 "Strong Buy" ratings, three "Moderate Buys," and two "Holds" [5] Price Targets - Bernstein analyst Lee Hambright maintained a "Buy" rating on BSX with a price target of $130 [6] - The mean price target of $125.53 indicates a 33.8% premium to BSX's current price levels [6] - The highest price target of $140 suggests a potential upside of 49.3% [6]

Boston Scientific (NYSE:BSX) FY Conference January 13, 2026 12:00 PM ET Company ParticipantsMike Mahoney - Chairman and CEOKen Stein - Senior VP and Chief Medical OfficerJon Monson - EVP and CFOConference Call ParticipantsRobbie Marcus - Medtech Senior AnalystRobbie MarcusHello, everyone. Welcome. I'm Robbie Marcus, the MedTech Analyst at JPMorgan. Really happy to host Boston Scientific. We have Mike Mahoney, CEO, Jon Monson, CFO, and Dr. Stein, Chief Medical Officer. We're going to do a fireside chat here. ...

Core Insights - Parnassus Investments reported that the S&P 500 Index increased by 8.12% in Q3 2025, driven by investor optimism regarding monetary easing, strong consumer demand, and solid corporate earnings [1] - The Parnassus Core Equity Fund (Investor Shares) returned 2.57% in Q3 2025, underperforming the S&P 500 Index, and has a year-to-date return of 9.89% compared to the index's 14.83% [1] Company Highlights - Boston Scientific Corporation (NYSE:BSX) experienced a one-month return of -4.86% but gained 5.89% over the last 52 weeks, with a market capitalization of $142.952 billion as of December 22, 2025 [2] - The company reported consolidated revenue of $5.065 billion for Q3 2025, reflecting a 20.3% growth compared to Q3 2024 [4] Investment Strategy - The Parnassus Core Equity Fund made strategic moves in the Health Care sector by trimming positions in Eli Lilly and Stryker to initiate a position in Boston Scientific Corporation, citing its first-mover advantage and robust clinical data as key growth drivers [3] - Management's focus on disciplined R&D and M&A has led to organic sales growth and margin expansion, positioning Boston Scientific for durable growth [3]

Boston Scientific Corporation (NYSE:BSX) is one of the best healthcare AI stocks to buy now. On December 12, TD Cowen reaffirmed a Buy rating on Boston Scientific Corporation (NYSE:BSX) and kept a $115 price target. The firm went a step further to name Boston Scientific their “Best Idea for 2026.” TD Cowen Names Boston Scientific (BSX) Top 2026 Pick, Reaffirms Buy Image: Courtesy of Boston Scientific TD Cowen called Boston Scientific “the most attractive growth story in the medical devices sector.” The ...

Financial Data and Key Metrics Changes - The electrophysiology (EP) business has experienced significant growth, with FARAPULSE driving growth at approximately twice the market rate since its introduction in the EU in 2021 [2][4] - The U.S. market penetration for FARAPULSE has quickly surpassed 50%, indicating strong adoption and market presence [4][5] Business Line Data and Key Metrics Changes - The FARAPULSE ecosystem, including FARAWAVE catheter and Opal mapping system, has been pivotal in driving success across global markets [2][3] - The Watchman franchise is projected to be a long-term growth engine for the company, with expectations of over 20% growth depending on the outcomes of OPTION and CHAMPION trials [14][17] Market Data and Key Metrics Changes - The global electrophysiology market is valued at $13 billion, with $9 billion attributed to atrial fibrillation (AF) and $4 billion to other indications [9] - The renal denervation market is being re-evaluated, with hypertension being a common condition affecting one in four adult Americans, presenting a significant opportunity for device-based therapies [38] Company Strategy and Development Direction - The company is focused on expanding its leadership in the electrophysiology market while exploring adjacent markets such as diabetes [9][10] - There is a strategic emphasis on category leadership across various medical technology segments, including interventional cardiology and structural heart [62][63] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the competitive landscape in cardiology, emphasizing the importance of understanding competition and focusing on their ecosystem of products [10][12] - The company is preparing for a shift of inpatient procedures to outpatient settings, aligning with CMS goals to enhance accessibility [47][48] Other Important Information - The company is investing in artificial intelligence to enhance product development and operational efficiency, with applications in imaging and electrophysiology [59][61] - The upcoming CHAMPION trial is expected to significantly expand the eligible patient population for the Watchman device, potentially tripling its total addressable market to $6 billion by 2030 [17][18] Q&A Session Summary Question: What is the growth outlook for the Watchman franchise? - The Watchman franchise is expected to grow over 20% long-term, contingent on positive outcomes from the OPTION and CHAMPION trials [14][17] Question: How does the company view the competitive landscape in electrophysiology? - The company recognizes the competitive nature of the market but believes it has a strong understanding of upcoming competition and is focused on its product ecosystem [10][12] Question: What is the timeline for the Seismic device and clinical data? - The Seismic device is currently enrolling in the Fracture ID study, with completion anticipated in Q1 2026 and a commercial launch expected in the first half of 2027 [30][31] Question: How does the company plan to address the access issues in renal denervation? - The company plans to focus on educating both physicians and patients about the therapy, which is crucial for market development [45][46] Question: What are the expectations for the CRM market? - The CRM market is currently the lowest growth area for the company, but a complete revamp of the CRM portfolio is underway, aiming for at or above market growth [50][52]

Financial Data and Key Metrics Changes - The company reported strong growth in the electrophysiology (EP) business, with growth rates approximately double the market average, driven by the FARAPULSE ecosystem [2][5] - The approval of persistent atrial fibrillation (AF) in the U.S. is expected to further enhance market penetration [5] Business Line Data and Key Metrics Changes - The FARAPULSE product line has seen significant adoption, particularly in the U.S. where penetration quickly surpassed 50% [4] - The Watchman franchise is projected to grow at over 20% annually, contingent on positive outcomes from the OPTION and CHAMPION trials [13][17] Market Data and Key Metrics Changes - The global electrophysiology market is valued at $13 billion, with $9 billion attributed to AF and $4 billion to other indications [9] - The renal denervation market is being revisited due to evolving clinical data and the high prevalence of hypertension, with one in four adult Americans affected [37] Company Strategy and Development Direction - The company aims to maintain category leadership across various medical device segments, including interventional cardiology and electrophysiology [67] - There is a focus on expanding the FARAPULSE ecosystem and entering adjacent markets, with a strong emphasis on innovation and product development [1][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a highly competitive landscape in cardiology but expresses confidence in their understanding of upcoming competition and their strategic positioning [10][12] - The company is preparing for a shift of inpatient procedures to outpatient settings, aligning their product ecosystem accordingly [48][49] Other Important Information - The company is actively investing in artificial intelligence to enhance product development and operational efficiency [61][64] - The upcoming CHAMPION trial is expected to significantly impact the Watchman market, potentially expanding the eligible patient population to approximately 20 million globally [17] Q&A Session Summary Question: What is the long-term growth outlook for the Watchman franchise? - The Watchman franchise is expected to grow over 20% annually, depending on the outcomes of the OPTION and CHAMPION trials [13][17] Question: How does the company view the competitive landscape in electrophysiology? - The company recognizes the competitive nature of the market but believes their unique product offerings and ecosystem will maintain their leadership position [10][12] Question: What is the timeline for the Seismic device in interventional cardiology? - The Seismic device is currently enrolling in the Fracture ID study, with a commercial launch anticipated in the first half of 2027 [30]

Summary of Boston Scientific Conference Call Company Overview - **Company**: Boston Scientific - **Key Executives Present**: Dr. Ken Stein (Chief Medical Officer), Lauren Tengler (Head of Investor Relations) Key Industry Insights 1. Growth Drivers - Focus on key growth drivers including the Watchman device and the ablation portfolio [2][10] - Anticipated sustained double-digit growth for Watchman despite recent trial results [8][11] 2. Recent Trial Results - The closure trial for left atrial appendage closure (LAAC) was negative, failing to meet non-inferiority to best medical therapy [2][4] - High procedural-related complications and early bleeding were significant issues in the trial [4][5] - Only half of the devices used in the trial were Watchman devices, with many being older generation devices known for higher risks [3][4] 3. Positive Outcomes from Trials - Despite the negative closure trial, there was an equivalent rate of ischemic stroke in high-risk populations compared to best medical therapy [4][5] - The PROG-17 trial showed more favorable outcomes for LAAC, indicating potential operator experience differences [5][6] 4. Market Dynamics - The company sees no impact on Watchman growth from recent trials, as they provide patients with more reasons to seek AF ablation [10][11] - The proportion of Watchman implants that are concomitant procedures is expected to reach 25% by the end of 2025 [20][21] 5. Future Trials and Expectations - The Champion trial is expected to present results in the first half of 2026, which could reinforce confidence in current indications and expand market growth [12][15] - A positive outcome from Champion could lead to changes in reimbursement and guidelines, enhancing market penetration [16][17] Product Insights 1. Watchman Device - Watchman is accelerating in the U.S. market, particularly due to the OPTION trial and improved CMS coverage [19][20] - The device is being increasingly offered to high-risk stroke patients undergoing ablation procedures [20][21] 2. FARAPulse Technology - FARAPulse is gaining traction in both de novo paroxysmal and persistent AF ablation procedures [29][30] - The company is seeing a shift towards lower redo rates in ablation procedures, with single-digit redo rates reported [30][31] 3. Competitive Landscape - Boston Scientific's Opal mapping system is positioned to compete effectively against incumbents, offering unique advantages for PFA procedures [32][33] - The company anticipates that the AF ablation market will continue to grow, driven by underpenetration and the increasing use of new technologies [34] 4. Other Growth Areas - The company is optimistic about its renal denervation technology and the potential for ultrasound-based devices to improve safety and efficacy [36][37] - Other promising areas include drug-coated balloons and interventional oncology, particularly with Y90 beads for treating solid tumors [39][40] Conclusion - Boston Scientific is positioned for continued growth in the healthcare sector, particularly in electrophysiology and ablation technologies, despite recent challenges in clinical trials. The company is focused on leveraging positive trial outcomes and expanding its product offerings to capture a larger market share.