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Boston Scientific
S&P 500
$74.5B
Market Cap
49.1
P/E
1.65
PEG
9.3%
ROCE
12.4%
ROE
0.47
D/E
18.0%
OPM
-54.7%
% from 52W High
11
α RS
🔍 BSX is showing a high-conviction setup because it matches 9 of 37 tracked screener presets, Sector RRG has Health Care in the Leading quadrant with the trail still strengthening, and an ECS of 55.6 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RRG ECS
Sources
Conviction 9/37 · Health Care in Leading quadrant · ECS 55.6
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Currency-adjusted total returns for BSX including FX impact
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📈 Price History
Ratio Health
Excellent
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Average
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By Category
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About

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide.

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📈 Growth Pattern
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⭐ Superinvestors Holding BSX
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 3.69M $231.4M 0.30% Mar 2026
Jim Simons Renaissance Technologies LLC 3.15M $197.8M 0.31% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Mixed quarter Investor Presentation One-Pager? Q2 2026
Revenue
$5.44B
+7.0% organic / +7.5% reported YoY
Adjusted Operating Margin
28.4%
+0.7pp YoY
Net Income
$0.91B
+13.8% YoY
Adjusted EPS
$0.86
+15% YoY
What Went Right
  • Q2 organic revenue growth of 7% came in at top end of 5%-7% guidance; adjusted EPS of $0.86 beat the $0.82-$0.84 range
  • Neuromodulation grew 12% with double-digit growth in both pain and brain; Interventional Cardiology grew 15%
  • APAC grew 11% operationally, with double-digit growth in Japan, China and Korea
What to Watch
  • WATCHMAN U.S. growth slowed sharply to 3% (global +4%), with standalone procedures down low-teens; second-half global WATCHMAN expected to decline mid-to-high single digits
  • EP U.S. growth slowed to 3% on competitive share pressure; second-half global EP expected flat, with limited EPS growth in 2027
  • Urology grew only 1%, below expectations; full-year urology growth lowered to flat/low single-digit; restructuring announced to save $500M by 2029
Management Guidance
  • Q3 2026: organic/reported revenue growth of 3%-5%; adjusted EPS of $0.80-$0.82
  • FY 2026: organic revenue growth of 5%-6%; reported growth of 5.5%-6.5%; adjusted EPS of $3.28-$3.32 (7%-8% growth)
  • FY 2026 adjusted operating margin expansion of 0-25 bps; adjusted tax rate ~11.5%; free cash flow ~$3.8B
  • Expected limited EPS growth in 2027; recovery and meaningful growth expected in 2028
Investor Lens
The near-term investment thesis is clearly weaker after this call: guidance was cut for the second time, with WATCHMAN and EP — two key growth engines — facing structural slowdowns and intensified competition. Management is now assuming no WATCHMAN improvement in 2027 and only a modest EP rebound in late 2027, implying a prolonged growth drought. That said, ~75% of the business is still growing ~6%, and a pipeline of large catalysts (FARAWAVE Ultra, ICE, IVL, TAVR, Penumbra) is slated for 2027-2028, suggesting the growth algorithm can normalize over time. The stock will likely trade on execution and evidence that WATCHMAN/EP trends stabilize before confidence in 2028 rebuilds.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Solid Q2 beat overshadowed by a sharp organic guidance cut; 5%-6% FY26
Revenue
Second-quarter revenue reached $5.442B, up 7.0% organic and 7.5% reported year-on-year, meeting top end of guidance. MedSurg grew 5.4% organic; Cardiovascular grew 7.8% organic. Strength was led by Interventional Cardiology (+15%), Neuromodulation (+12%), and ICVT/IO&E.
Profitability
GAAP net income attributable to Boston Scientific was $907M, up from $797M a year ago, with GAAP EPS of $0.61. Adjusted EPS of $0.86 grew 15%, beating guidance, helped by favourable discrete tax items.
Margins
Adjusted gross margin improved 80 bps to 70.3%. Adjusted operating margin expanded 70 bps to 28.4%, in line with expectations. GAAP operating margin was 21.6%, reflecting a $75M product liability charge and $80M of IEEPA tariff refunds.
Balance Sheet
Free cash flow was $1.29B in Q2, from $1.475B operating cash flow less $184M net capex. Cash on hand was $539M; gross debt leverage was 2.0x. The company completed a $2B ASR (approximately 40M shares repurchased) and invested $1.5B in MiRus.
Key Risks
Management flagged that WATCHMAN's U.S. market slowdown is driven by compounding clinical evidence and soft referrals; no improvement is assumed in 2027. EP is losing U.S. share to competitors and PFA penetration (~80% of AFib ablations) limits offset. Urology's recovery is taking longer than expected, and CRM remains pressured by portfolio gaps.
Outlook
Q3 2026 organic revenue growth guided to 3%-5% with adjusted EPS of $0.80-$0.82. FY2026 organic growth now 5%-6% (from prior guidance) and adjusted EPS $3.28-$3.32, with 2027 expected to show limited EPS growth before a 2028 recovery.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Q2 2026 saw 7% organic sales growth and 15% adjusted EPS growth, exceeding guidance. Full-year 2026 outlook was revised down due to WATCHMAN and EP headwinds, with organic revenue now expected to grow 5%-6% and adjusted EPS 7%-8%. Restructuring and new launches are set to drive recovery by 2028.
Q1 2026 Q1 2026 2026-04-22
Q1 2026 delivered 9.4% organic sales growth and 6% adjusted EPS growth, but full-year guidance was reduced due to headwinds in EP, WATCHMAN, and Urology. Management expects improvement in the second half, with key product launches and commercial investments supporting future growth.
Q4 2025 Q4 2025 2026-02-04
Delivered strong Q4 and full-year growth, exceeding guidance in revenue and EPS, with standout performances in EP, Watchman, and cardiovascular. 2026 guidance targets 10%-11% organic growth and 12%-14% EPS growth, supported by innovation, acquisitions, and market leadership.
Q3 2025 Q3 2025 2025-10-22
Q3 2025 saw 19% operational and 15% organic sales growth, with strong U.S. and Asia-Pac performance, and standout results in cardiovascular and MedSurg. Full-year guidance was raised for both revenue and EPS, while WATCHMAN and EP drove significant growth.
Q2 2025 Q2 2025 2025-07-23
Q2 2025 saw 22% operational sales growth and 23% adjusted EPS growth, with cardiovascular and MedSurg segments outperforming expectations. Full-year organic growth and EPS guidance were raised, despite headwinds from tariffs and the ACURATE valve exit. WATCHMAN and FARAPULSE drove strong global momentum.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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