Boston Scientific Q3 2025 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue: $5.065 billion, representing a 20.3% year-over-year growth.

Organic Revenue Growth: 15.3%, exceeding guidance of 12% to 14%.

Adjusted EPS: $0.75, up 19% and above the guidance range of $0.70 to $0.72.

Adjusted Operating Margin: 28%, an increase of 80 basis points from the previous year.

Free Cash Flow: $1.163 billion for the quarter; full-year expectation of approximately $3.5 billion.

Gross Margin: 71%, a 60 basis point improvement year-over-year.

2Strategic Updates and Business Highlights

Segment Performance:

Cardiovascular: 23% growth, with strong contributions from AGENT Drug-Coated Balloon and WATCHMAN device.

MedSurg: 8% growth, driven by Endoscopy and Neuromodulation.

Urology: 27% operational growth, although Axonics performance was below expectations.

Peripheral Interventions: 16% operational growth, impacted by pricing pressures in China.

Acquisitions: Announced agreement to acquire Nalu Medical, expected to close in H1 2026, expanding the pain management portfolio.

Product Innovations: Continued strong performance from FARAPULSE in electrophysiology, with expanded labeling for persistent AF.

3Forward Guidance and Outlook

Q4 2025 Guidance:

Organic growth expected to be 11% to 13%.

Adjusted EPS guidance raised to $0.77 to $0.79.

Full-Year 2025 Guidance:

Adjusted EPS expected to be $3.02 to $3.04, reflecting 20% to 21% growth.

Full-year operational revenue growth projected at approximately 19%.

Long-Term Goals: Targeting 10%+ average organic revenue growth from 2026 to 2028, with annual adjusted operating margin expansion of approximately 50 basis points.

4Bad News, Challenges, or Points of Concern

EMEA Performance: Declined 2% operationally due to the discontinuation of the ACURATE valve and ERP implementation issues leading to a $30 million backorder.

Axonics Performance: Below expectations, with a focus on improving commercial execution.

Competitive Pressures: Anticipated competition in the drug-coated balloon market, particularly with AGENT.

China VBP: Ongoing price pressures impacting growth, although the company remains optimistic about double-digit growth in the region.

5Notable Q&A Insights

WATCHMAN as a Growth Driver: Management emphasized WATCHMAN's potential, expecting a 20% CAGR over the long-range plan, supported by upcoming clinical data and increased market penetration.

China Market Dynamics: Management expressed confidence in sustaining double-digit growth in China despite VBP pressures, driven by product launches and expanding customer coverage.

CRM Business Outlook: Anticipated growth in the CRM segment with upcoming product launches, including the Denali platform and EMPOWER leadless pacemaker.

ASC Potential: Management sees potential for 40% of AF ablations to occur in ASCs, which could alleviate procedural backlogs and enhance growth. Overall, Boston Scientific reported strong financial performance in Q3 2025, driven by robust growth across multiple segments, while also addressing challenges in specific markets and segments. The company remains optimistic about its future growth trajectory, bolstered by strategic acquisitions and product innovations.