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Introduction & Market Context
Boston Scientific Corp (NYSE:BSX) reported strong financial results for the first quarter of 2025, with significant growth across all key metrics. The medical device company’s shares jumped 6.45% in premarket trading to $101.18 following the release of its quarterly presentation on April 23, 2025, reflecting investor enthusiasm for the company’s performance and raised guidance.
The company’s Q1 results demonstrated robust growth in both its major segments, with particularly exceptional performance in its Electrophysiology business, which grew by more than 140% year-over-year. This growth comes amid continued expansion of Boston Scientific’s product portfolio and strategic acquisitions.
Quarterly Performance Highlights
Boston Scientific reported total net sales of $4.663 billion for Q1 2025, representing a 20.9% increase on a reported basis and an 18.2% increase on an organic basis compared to the same period last year. Adjusted earnings per share rose to $0.75, a 34% increase from $0.56 in Q1 2024, while reported EPS grew to $0.45 from $0.33 year-over-year.
As shown in the following comprehensive overview of the company’s financial performance:
The company’s profitability metrics also showed significant improvement, with adjusted gross margin expanding by 170 basis points to 71.5% and adjusted operating margin increasing by 270 basis points to 28.9%. These margin improvements reflect the company’s operational efficiency and favorable product mix.
Boston Scientific’s revenue breakdown reveals the strong contribution from both major segments. The following chart illustrates the distribution of sales between the Cardiovascular and MedSurg segments:
The Cardiovascular segment, which represents 66% of total net sales, grew by 26.2% year-over-year to $3.085 billion. This segment’s growth was primarily driven by the exceptional performance of the Electrophysiology business, which increased by 143.2% on a reported basis. The MedSurg segment, accounting for 34% of total sales, grew by 11.7% to $1.577 billion, with strong performances in Urology and Endoscopy.
Detailed Financial Analysis
A closer examination of Boston Scientific’s segment performance reveals varying growth rates and margin profiles across its business units. The Cardiovascular segment showed particularly strong adjusted operating margin improvement, expanding by 620 basis points to 33.6% compared to Q1 2024.
The following table provides a detailed breakdown of the Cardiovascular segment’s performance:
Within the Cardiovascular segment, Electrophysiology was the standout performer with 145.0% operational growth, followed by WATCHMAN at 23.7% and Interventional Cardiology Therapies at 9.0%. The strong performance in Electrophysiology likely reflects market share gains and increased adoption of the company’s innovative products.
The MedSurg segment, while growing at a slower rate than Cardiovascular, still delivered solid performance with 11.7% year-over-year growth. However, its adjusted operating margin decreased slightly by 110 basis points to 33.1%.
The following table details the MedSurg segment’s performance:
Boston Scientific’s cash flow metrics showed substantial improvement, with free cash flow reaching $354 million in Q1 2025 compared to negative $15 million in Q1 2024. The company’s working capital metrics remained stable, with Days Sales Outstanding at 52 days and Days Inventory on Hand at 178 days.
The following table illustrates the company’s working capital and cash flow metrics:
The company’s balance sheet remains solid, with a debt to adjusted EBITDA ratio of 2.2x, indicating a manageable leverage position that provides flexibility for future investments and acquisitions.
Strategic Initiatives
Boston Scientific highlighted several operational achievements during the quarter, including the commencement of enrollment in clinical trials for the FARAFLEX™ Mapping and Pulsed Field Ablation Catheter, the initiation of the OPTION-A clinical trial in the Asia-Pacific region, and the publication of results from the SINGLE SHOT CHAMPION clinical trial.
The company also completed the acquisition of Bolt Medical (TASE:BLWV) and agreed to acquire SoniVie Ltd., demonstrating its continued focus on strategic M&A to enhance its product portfolio and market position.
Boston Scientific emphasized its approach to corporate responsibility, focusing on three key areas: Innovative Care, Empowered People, and Healthier Planet. This framework underscores the company’s commitment to sustainability and responsible business practices.
The following image illustrates Boston Scientific’s corporate responsibility approach:
Forward-Looking Statements
Boston Scientific provided optimistic guidance for both Q2 2025 and the full year. For Q2 2025, the company expects reported net sales growth of 17.5% to 19.5% and organic net sales growth of 13% to 15% compared to Q2 2024. Adjusted EPS is projected to be between $0.71 and $0.73.
For the full year 2025, Boston Scientific raised its guidance, now expecting reported net sales growth of 15% to 17% and organic net sales growth of 12% to 14%. The company projects adjusted EPS to be in the range of $2.87 to $2.94, representing strong year-over-year growth.
The following table shows a detailed comparison of Q1 2025 net sales versus Q1 2024, along with organic growth rates:
Boston Scientific’s performance across its business units demonstrates the company’s strong market position and effective execution of its growth strategy. The exceptional growth in Electrophysiology, combined with solid performance in other segments and improved profitability, positions the company well for continued success in 2025.
With a robust product pipeline, ongoing clinical trials, and strategic acquisitions, Boston Scientific appears well-positioned to maintain its growth momentum and expand its market share in key therapeutic areas. The company’s strong start to 2025, as evidenced by its Q1 results, provides a solid foundation for achieving its raised full-year guidance.
Full presentation:
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