It has been about a month since the last earnings report for Boston Scientific (BSX). Shares have lost about 5.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Boston Scientific due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Boston Scientific Corporation before we dive into how investors and analysts have reacted as of late.
Boston Scientific Q3 Earnings Beat Estimates, Guidance Up
Boston Scientific posted third-quarter 2025 adjusted earnings per share of 75 cents, up 19% from the year-ago figure. The figure beat the Zacks Consensus Estimate by 5.6% and exceeded the company’s adjusted earnings per share guidance of 70-72 cents.
The quarter’s adjustments included certain amortization expenses, goodwill and other intangible asset impairment charges and acquisition/divestitures-related net charges, among others. Reported earnings per share for the third quarter was 51 cents, reflecting a 59.4% jump from the year-ago quarter’s 22 cents.
Q3 Revenue Details
Revenues totaled $5.07 billion, up 20.3% year over year on a reported basis and 19.4% on an operational basis. Organic growth, adjusted for foreign currency fluctuations and certain recent acquisitions and divestments, was 15.3%.
The top line surpassed the Zacks Consensus Estimate by 1.9% and exceeded the company’s guidance of 17-19%.
Following the earnings announcement, shares of BSX climbed 0.1% in pre-market trading today.
Q3 Revenues by Regions
In the third quarter, revenues rose 27% in the United States on a reported basis (same operationally).
Reported revenues rose 2.6% in Europe, the Middle East and Africa (EMEA) region (down 2% operationally) and 17.1% in the Asia Pacific zone (up 16.9% operationally).
Reported revenues increased 10.4% in Latin America and Canada (up 9.6% operationally). Reported revenue growth in emerging markets was 11.8% (up 11.5% operationally).
Revenues by Segments
Boston Scientific recently reorganized its operational structure and aggregated its core businesses into two reportable segments — MedSurg and Cardiovascular. Both these segments generate revenues from the sale of Medical Devices.
MedSurg
MedSurg revenues in the third quarter totaled $1.72 billion, up 16.4% year over year on a reported basis (up 7.6% organically).
Within this, the Endoscopy unit generated revenues of $747 million, up 9% organically.
Urology revenues amounted to $682 million, reflecting organic growth of 5.4%.
The Neuromodulation business reported $293 million in revenues, highlighting an 8.6% rise organically year over year.
Cardiovascular
The company generates maximum revenues from this segment. Revenues in the third quarter totaled $3.34 billion, up 22.4% (reportedly) and 19.4% (organically) year over year.
Within this, Cardiology business sales totaled $2.64 billion (up 23.1% year over year organically) in the third quarter.
The Peripheral Interventions unit generated $702 million in sales, up 6.3%.
Margin Performance
The gross margin expanded 110 basis points (bps) year over year to 69.9%. There was a 16.1% rise in the cost of products sold to $1.52 billion in the reported quarter.
Selling, general and administrative expenses rose 11.5% to $1.74 billion. Research and development expenses rose 26.3% to $514 million. Royalty expenses of $12 million increased 140% year over year. The adjusted operating margin expanded 324 bps to 25.2% in the reported quarter.
Updates 2025 Outlook
For 2025, Boston Scientific now anticipates net sales to grow approximately 20% (compared with the earlier guidance of 18-19%) on a reported basis and 15.5% on an organic basis (earlier 14-15%). The Zacks Consensus Estimate is currently pegged at $19.85 billion, indicating an 18.6% rise from the 2024 reported figure.
Full-year adjusted earnings per share is now expected in the range of $3.02-$3.04 (previously $2.95-$2.99). The Zacks Consensus Estimate for the same is currently pegged at $2.98.
For the fourth quarter of 2025, revenue growth is projected in the range of approximately 14.5-16.5% on a reported basis (up 11-13% organically). Adjusted earnings are expected in the range of 77-79 cents per share.
The Zacks Consensus Estimate for fourth-quarter earnings and revenues is pegged at 76 cents per share and $5.16 billion, respectively.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Boston Scientific has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Boston Scientific has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Boston Scientific Corporation (BSX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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