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    BSX
    Earnings call· Dec 2025(Q4 FY25)

    BOSTON SCIENTIFIC Q4 FY25 earnings call BSX

    Feb 4, 2026 Source

    Executive summary

    Boston Scientific Q4 FY25 — Strong Organic Growth and Differentiated Performance

    Boston Scientific delivered a strong Q4 FY25, surpassing financial goals with robust organic sales growth and significant adjusted EPS expansion, driven by innovation across key business units like EP and WATCHMAN. The company provided optimistic 2026 guidance, anticipating continued differentiated performance and margin expansion, despite some near-term product-specific headwinds. Strategic M&A and pipeline advancements are expected to sustain long-term growth.

    Highlights

    6
    • Q4 organic sales grew 13%, achieving the high end of guidance.

    • Full year 2025 organic sales grew 15.8%, exceeding guidance of approximately 15.5%.

    • Full year adjusted EPS grew 22% to $3.06, exceeding the high end of guidance.

    • Adjusted operating margin expanded by 100 basis points to 28% for the full year.

    • WATCHMAN business delivered outstanding 29% growth in Q4.

    • Global EP performance showed 35% organic growth in Q4, resulting in 73% growth for the full year.

    Concerns

    3
    • Urology performance was below expectations in 2025, with full year organic growth of 5%.

    • Product removal for certain sizes of AXIOS device initiated in December, impacting Q1 and H1 2026 endoscopy growth.

    • ACURATE discontinuation resulted in an approximate 150 basis point impact to Q1 2026 revenue growth.

    Guidance & targets

    17
    CategoryTargetConfidence
    Q1 2026 Reported Revenue Growth
    10.5% to 12%
    high materiality
    High
    Q1 2026 Operational and Organic Revenue Growth
    8.5% to 10%
    high materiality
    High
    Full Year 2026 Reported Revenue Growth
    10.5% to 11.5%
    high materiality
    High
    Full Year 2026 Operational and Organic Growth
    10% to 11%
    high materiality
    High
    Q1 2026 Adjusted EPS
    $0.78 to $0.80
    high materiality
    High
    Full Year 2026 Adjusted EPS
    $3.43 to $3.49
    high materiality
    High
    Full Year 2026 Adjusted Gross Margin
    Roughly in line with full year 2025
    medium materiality
    Medium
    Full Year 2026 Adjusted Operating Margin Expansion
    50 to 75 basis points
    high materiality
    High
    Full Year 2026 Adjusted Below-the-Line Expense
    Approximately $440 million
    medium materiality
    High
    Full Year 2026 Adjusted Tax Rate
    Approximately 12.5%
    medium materiality
    High
    Q1 2026 Adjusted Tax Rate
    Approximately 12%
    medium materiality
    High
    Full Year 2026 Free Cash Flow
    Approximately $4.2 billion
    high materiality
    High
    Long-Range Plan Sales Growth
    10% plus
    high materiality
    High
    Long-Range Plan Adjusted Operating Margin Expansion
    150 basis points
    high materiality
    High
    Long-Range Plan Leveraged Double-Digit EPS Growth
    Double-digit
    high materiality
    High
    Long-Range Plan Free Cash Flow Conversion
    70% to 80%
    medium materiality
    High
    EP Market Growth
    Approximately 15%
    medium materiality
    Medium

    Segment performance

    13
    SegmentRevenueYoYQoQMargin
    U.S.
    Exceptional performance across business units, particularly EP, WATCHMAN and ICTx.
    17% operational (Q4), 26% operational (FY25)
    Europe, Middle East, Africa (EMEA)
    Excluding the impact of ACURATE discontinuation, full year EMEA growth would have been high single digits. EP grew strong double digits in Q4. Growth expected to be higher in H2 2026.
    5% operational (Q4), 3% operational (FY25)
    Asia Pacific
    Led by mid-teens growth across Japan and China. Japan driven by WATCHMAN and EP (OPAL placements, FARAPULSE utilization). China had double-digit growth driven by EP, WATCHMAN and ICTx.
    15% operational (Q4), 14% operational (FY25)
    Urology
    Performance below expectations in 2025. Expects return to market growth in 2026 with supply chain issues resolved and new product launches.
    3% organic (Q4), 5% organic (FY25)
    Endoscopy
    Driven by endoluminal surgery, imaging systems and endobariatric franchises. Endobariatric received positive reimbursement support for ESG procedures. Lower growth expected in H1 2026 due to AXIOS product removal.
    8% organic (Q4), 8% organic (FY25)
    Neuromodulation
    Brain franchise led by Cartesia X and Illumina 3D. Pain franchise strengthened by Nalu acquisition and expanded reimbursement for Intracept procedure.
    Brain franchise growth: low double digits (FY25)Pain franchise growth: high single digits (FY25)
    10% organic (Q4), 8% organic (FY25)
    Cardiovascular
    Overall strong performance. Agreement to acquire Penumbra announced.
    16% operational/organic (Q4), 21% organic (FY25)
    Interventional Cardiology Therapies (ICTx)
    Coronary therapies delivering double-digit growth. AGENT DCB a standout performer. Reporting structure reorganized to Interventional Cardiology & Vascular Therapies.
    Coronary therapies growth: double-digit (Q4 & FY)Drug-eluting technology growth: >20% (FY25)
    10% (Q4), 8% (FY25)
    Peripheral Vascular
    Arterial growth driven by TCAR and ENROUTE launch in China. Venous growth driven by Varithena and EKOS. First U.S. cases with SEISMIQ IVL System completed.
    Arterial growth: double-digit (Q4)Venous growth: low double-digit (Q4)
    6% organic (Q4), 15% operational (Q4)
    Interventional Oncology & Embolization
    Q4 organic growth driven by embolization and cancer therapies portfolio, with ongoing strength in cryoablation. Expects to outpace market growth with new product offerings like TheraSphere 360 Y-90 Management Platform.
    $1 billion (FY25 sales)12% organic (Q4), 12% organic (FY25)
    Cardiac Rhythm Management (CRM)
    Demand for conduction system pacing offerings. Expects growth closer to market in 2026 driven by bioenvelope addition and diagnostics momentum.
    Diagnostics franchise growth: high single digits (FY25)Diagnostics franchise as % of CRM: nearly 20% (FY25)High-voltage business growth: low single digits (Q4)Low-voltage business growth: flat (Q4)
    1% organic (Q4), 1% organic (FY25)
    WATCHMAN
    Outstanding performance with strong double-digit growth across major global markets. Driven by strong adoption of concomitant procedures. Strategic partnership with Siemens Healthineers announced.
    Concomitant procedures: >25,000 patients treated
    29% (Q4)
    Electrophysiology (EP)
    Global growth driven by PFA catheter utilization supported by OPAL placements and commercial organization. Expects to outpace 15% market growth in 2026.
    PFA catheter utilization: highPFA penetration in AF ablations: ~70% (U.S. 2025), ~50% (globally 2025)
    35% organic (Q4), 73% organic (FY25)

    Operational metrics

    12
    Litigation charge
    $194 million
    Q4 2025

    Relating to the full resolution of a legacy IP-related matter, impacting GAAP operating margin.

    Gross debt leverage ratio
    1.9x
    as of 2025-12-31

    Affirmed A- equivalent credit rating by major agencies.

    Cash on hand
    $1.965 billion
    as of 2025-12-31

    Available cash balance.

    Legal reserve
    $242 million
    as of 2025-12-31

    Total legal reserve with a portion already funded.

    Foreign exchange tailwind
    $74 million
    Q4 2025

    Impact on reported revenue growth, 160 basis points.

    Foreign exchange tailwind
    $114 million
    Full Year 2025

    Impact on reported revenue growth, 70 basis points.

    Closed acquisitions contribution to sales
    160 basis points
    Q4 2025

    Contribution to total sales growth.

    Closed acquisitions contribution to sales
    340 basis points
    Full Year 2025

    Contribution to total sales growth.

    Adjusted interest and other expenses
    $99 million
    Q4 2025

    Slightly favorable to expectations, primarily due to higher interest income.

    Adjusted interest and other expenses
    $430 million
    Full Year 2025

    Slightly favorable to expectations, primarily due to higher interest income.

    Fully diluted weighted average shares outstanding
    1.496 billion
    Q4 2025

    Shares outstanding for the quarter.

    Fully diluted weighted average shares outstanding
    1.494 billion
    Full Year 2025

    Shares outstanding for the full year.

    Industry KPIs

    9
    MetricValueDetails
    System utilizationHigh%
    Market growth outgrowth15%%
    New product launch rampOngoing
    Procedure volume growth>25,000patients
    FCF conversion leverage guidance80%%
    Installed base system placementsOngoingplacements
    Segment franchise organic growthVaries by segment%
    Sales force commercial capacity buildScaled
    Indicated addressable patient population5 millionpatients

    Product announcements

    5
    ProductTypeDetails
    FARAPOINT PFA Catheterlaunch
    Intracept EDGE Styletlaunch
    ENROUTElaunch
    TheraSphere 360 Y-90 Management Platformlaunch
    FARAWAVE NAV devicemilestone

    Deals & partnerships

    4
    Valencia Technologies Corporationacquisition

    Expected to close in the first half of 2026, subject to customary closing conditions. Expands pelvic health portfolio.

    Penumbraacquisition

    Expected to close in 2026, subject to customary closing conditions. Offers a highly differentiated portfolio in high-growth segments (mechanical thrombectomy and neurovascular) where Boston Scientific lacks offerings.

    Nalu Medicalacquisition

    Acquisition recently closed, complementary to neuromodulation pain franchise.

    Siemens Healthineerspartnership

    Strategic partnership to develop and commercialize their next-generation 4D ICE catheter called AcuNav, intended to offer physicians an innovative imaging option for stand-alone WATCHMAN or FARAWATCH procedures.

    Risks & headwinds

    5
    ACURATE discontinuation impact on EMEA growthQ1 2026 and Full Year 2025

    Approximate 150 basis point impact to Q1 2026 revenue growth. Full year EMEA growth would have been high single digits without it.

    Mitigation: Impact expected to annualize, leading to higher EMEA growth in H2 2026.

    AXIOS device product removal impact on Endoscopy growthH1 2026

    Lower endo growth anticipated in H1 2026.

    Mitigation: Working to bring these unique devices back to market in full by midyear.

    Urology business underperformance2025

    Full year 2025 organic growth of 5%, below expectations.

    Mitigation: Expects return to market growth in 2026 with supply chain issues behind and new product launches, strengthening sacral neuromodulation franchise.

    Competitive launches in EP market2026

    Anticipated some share loss in PFA given new entrants.

    Mitigation: Company expects to maintain clear market leadership in PFA and grow faster than the overall EP market (expected 15% growth).

    Annualization of tariffsFull Year 2026

    Expected to largely offset favorable product mix in full year 2026 adjusted gross margin.

    Mitigation: Balanced by favorable product mix and investments in global supply chain.

    Q&A highlights

    6

    Expressed concern about U.S. EP being flat sequentially and WATCHMAN missing slightly, given they are key growth drivers. Asked for clarification on Q4 performance versus expectations and how to level set 2026 expectations, noting Street estimates for EP market growth are higher than management's.

    Mike Mahoney stated Q4 EP results exceeded internal targets, growing 35% while competitors grew less, suggesting the market grew 18-20% in Q4, not 25%. He acknowledged some share loss was anticipated due to new entrants but expressed confidence in maintaining market leadership. WATCHMAN grew 29%, similar to Q3, and concomitant procedures continue to drive growth. He emphasized the overall company's ability to exceed guidance and consensus.

    We think the market in Q4 was closer to 18% to 20% growth rather than what some other companies have claimed at 25%.

    asked by Robert Marcus · answered by Michael Mahoney

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Q4 and Full Year 2025 Performance

    Boston Scientific exceeded its financial goals for 2025, achieving over $20 billion in sales and mid-teens growth for the second consecutive year. Q4 organic sales grew 13%, reaching the high end of guidance, while full year organic sales grew 15.8%, surpassing the 15.5% guidance. Adjusted EPS for Q4 was $0.80, and for the full year, it reached $3.06, both exceeding guidance. The company also expanded adjusted operating margins by 100 basis points to 28% for the full year.

    02

    2026 Outlook and Strategic Investments

    The company projects continued strong performance in 2026, guiding to 10% to 11% organic growth and 12% to 14% adjusted EPS growth for the full year. This guidance includes investments in the global supply chain and accounts for the annualization of tariffs. Strategic acquisitions like Valencia Technologies and Penumbra are expected to close in 2026, further enhancing the company's portfolio in high-growth segments, and are seen as strategically and financially attractive.

    03

    Regional Performance Highlights

    The U.S. market demonstrated exceptional performance, growing 17% operationally in Q4 and 26% for the full year, driven by EP, WATCHMAN, and ICTx. Asia Pacific grew 15% operationally in Q4, with strong contributions from Japan (WATCHMAN, EP, FARAPULSE) and China (EP, WATCHMAN, ICTx). EMEA growth was impacted by the ACURATE discontinuation but is expected to improve in the second half of 2026 once the impact annualizes.

    04

    Business Unit Performance and Challenges

    While EP and WATCHMAN continued their strong growth trajectories, some business units faced challenges. Urology was below expectations in 2025 due to supply chain issues and integration complexities, though a return to market growth is anticipated in 2026 with new product launches. Endoscopy will see lower growth in H1 2026 due to a product removal for certain AXIOS device sizes, with a return to full market by midyear. Neuromodulation, PI, and CRM are expected to show stronger performance in 2026.

    05

    Cardiovascular Segment Reorganization and Pipeline

    The Cardiovascular segment delivered robust growth, with Interventional Cardiology Therapies sales growing 10% in Q4. The company reorganized its Peripheral Interventions divisions, aligning peripheral vascular with Interventional Cardiology Therapies to form Interventional Cardiology & Vascular Therapies, aiming to amplify commercial and R&D opportunities. Key pipeline advancements include the FRACTURE trial for SEISMIQ IVL System and the HI-PEITHO study for EKOS.

    06

    EP and WATCHMAN Momentum

    Global EP organic growth was 35% in Q4, driven by PFA catheter utilization and OPAL placements. The company expects the EP market to grow approximately 15% in 2026 and aims to outpace this growth. WATCHMAN delivered 29% growth in Q4, benefiting from strong adoption of concomitant procedures. The upcoming CHAMPION trial results are highly anticipated, with potential to expand the indicated patient population significantly if positive, from 5 million to 20 million globally.

    07

    Clinical Trial Milestones

    Enrollment was completed for the FRACTURE trial (SEISMIQ IVL System) with data anticipated later in 2026, and the SIMPLAAFY clinical trial (WATCHMAN post-procedural alternatives) with data expected in H2 2026. The CHAMPION trial (WATCHMAN FLX vs. OAC) results will be presented as a late breaker at ACC, potentially positioning WATCHMAN as a first-line therapy for stroke prevention. Enrollment also began in the SYNCHRONICITY trial for conduction system pacing.

    AI-generated summary of the company’s earnings call. Not investment advice.