Boston Scientific (BSX 4.20%), a leader in medical devices for cardiovascular and surgical markets, reported its second-quarter 2025 results on July 23, 2025. The company posted revenue and earnings well above Wall Street expectations for the period, with revenue of $5.06 billion topping analyst estimates of $4.89 billion. Adjusted (non-GAAP) earnings per share (EPS) landed at $0.75, also ahead of the projected $0.73. Both numbers exceeded the upper end of Boston Scientific's own guidance. Management characterized the quarter as one marked by strong sales growth, led by outperformance in its Cardiovascular segment, while acknowledging margin pressures ahead from newly enacted tariffs and special attention needed for international and MedSurg business trends.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.75 | $0.73 | $0.62 | 21.0% |
| Revenue (GAAP) | $5.06 billion | $4.89 billion | $4.12 billion | 22.8% |
| Revenue vs. Guidance Midpoint (Non-GAAP) | 22.8% reported(Guidance midpoint: 18.5%) | |||
| EPS (GAAP) | $0.53 | $0.22 | 140.9% | |
| Revenue – Cardiovascular segment | $3.35 billion | $2.64 billion | 26.8% | |
| Revenue – MedSurg segment | $1.72 billion | $1.48 billion | 15.7% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Strategic Priorities
Boston Scientific develops and markets a wide range of medical technologies, supplying hospitals and physicians around the world. Its two main business segments are Cardiovascular, which covers devices for heart and blood vessel conditions, and MedSurg, which provides a lineup of minimally invasive tools for surgery, urology, endoscopy, and pain management. The company's top-selling families include the WATCHMAN FLX left atrial appendage closure device (helps prevent strokes in certain heart patients), and WaveWriter Alpha spinal cord stimulators (pain management devices).
The company has recently concentrated efforts on four pillars: building category leadership, investing in research and development, entering adjacent medical fields through acquisitions, and strengthening its global reach. Success depends on robust new product launches, winning regulatory approvals, integrating acquisitions, and achieving scale in fast-growth regions. Maintaining high gross margins, while navigating regulatory and cost challenges such as tariffs and supply chain pressures, is critical for Boston Scientific as it seeks to balance growth and profitability.
Quarterly Highlights: Financial Performance and Business Drivers
Revenue for the quarter came in $168 million above consensus, reflecting strong demand for core product lines. Net income attributable to Boston Scientific stockholders totaled $797 million, up sharply from $324 million in the same quarter last year. Adjusted net income rose to $1.13 billion. The adjusted gross margin stood at 69.5 %, a slight drop from early 2025 levels, as management called out tariff impacts likely to affect the second half of the year. Operating income also improved, despite higher outlays for research and development and selling, general, and administrative expenses (SG&A).
The Cardiovascular segment led growth, with sales climbing to $3.35 billion, a year-over-year gain of 26.8 %. This was driven by high adoption of WATCHMAN and FARAPULSE, a pulsed-field ablation system for cardiac rhythm disorders. WATCHMAN, as a left atrial appendage closure device, captured more share due to new regulatory indications and a growing trend of doctors performing the procedure alongside related cardiac ablations. Peripheral Interventions also contributed, posting steady gains with therapies for artery and vein conditions.
Within the MedSurg segment, revenue increased to $1.72 billion, a 15.7 % rise from a year prior. The Urology group reported 28.9 % reported growth due to prior acquisitions, though organic growth was slowed by supply chain disruptions. Endoscopy products, which allow doctors to look inside the digestive tract and treat diseases with minimally invasive tools, gained 9.1 %. Neuromodulation devices, like WaveWriter Alpha for pain and deep brain stimulation, also saw incremental growth, following a slow start in earlier periods. However, management noted that supply constraints in Urology would continue through the rest of the year.
Regionally, U.S. sales showed the highest acceleration, up 30.7 %, accounting for the majority of overall revenue growth. International results were mixed. Europe, Middle East, and Africa (EMEA) saw only a 6.8 % lift; Asia–Pacific was stronger at 18 %, led by demand in Japan and China. However, China faces ongoing margin pressure from "volume-based pricing" initiatives that require suppliers to cut prices in government contracts. Supply chain headwinds and lower momentum in certain emerging markets were called out as operational risks for the company.
Products, Acquisitions, and Research Focus
Boston Scientific continued advancing its product pipeline and completed several acquisitions. FARAPULSE, a pulsed field ablation system for treating atrial fibrillation, gained expanded U.S. Food and Drug Administration (FDA) approval to treat additional types of persistent heart rhythm irregularities, strengthening the company's electrophysiology (heart rhythm) franchise. The WATCHMAN FLX Pro device secured a key regulatory "CE mark" in Europe, expanding its reach for stroke prevention.
The company closed two acquisitions this quarter, adding Intera Oncology (specializing in hepatic artery infusion pumps for targeted cancer therapy) and SoniVie Ltd. (ultrasound-based device for treating hypertension through renal denervation procedures). These bring new capabilities in high-growth therapy areas, with further potential as clinical trials progress and regulatory clearances are secured. Integration is ongoing, and management highlighted the need for market adoption as a crucial factor for success.
Research and development expense ramped up to $526 million in the quarter, compared to $383 million a year ago. This investment supported new clinical trials and developmental work for key platforms, such as next-generation pulsed field ablation catheters and pipeline products in neuromodulation and oncology.
Tariff costs are set to rise by $200 million for the full year, as U.S.–China trade actions take effect in the second half. Management intends to counter cost headwinds via revenue growth and targeted spending reductions. No changes to the company's global manufacturing footprint are currently planned, but margin expansion is expected to slow until tariffs are absorbed into operating expenses.
Looking Ahead: Guidance and Focus Areas
For the third quarter of fiscal 2025, leadership projects revenue growth of 17–19 % and organic growth of 12–14 %. GAAP EPS is guided to $0.44–$0.46 and adjusted EPS to $0.70–$0.72. For the full year, Boston Scientific expects reported revenue growth of 18–19 %, organic sales growth of 14–15 %, GAAP EPS of $1.89–$1.93, and adjusted EPS of $2.95–$2.99.
Risks flagged by management include the scale and timing of tariff impacts, supply chain disruptions (mostly in Urology), and continued pricing pressures in China and other international markets. Capital allocation remains focused on strategic mergers and acquisitions, with integration and ramp of recent deals under close watch. Regulatory decisions for pipeline products, especially in the U.S., will play a critical role in future revenue streams. Boston Scientific does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
