01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Boston Scientific Corporation reported robust financial results for the first quarter of 2026, demonstrating significant growth in net sales and net income.
Net sales increased by 11.6% year-over-year to $5.203 billiona, driven by strong performance across its MedSurg and Cardiovascular segments, with notable contributions from Electrophysiology and Interventional Cardiology. The company also experienced a substantial increase in net income attributable to common stockholders, which more than doubled to $1.341 billion, primarily due to higher sales and a significant discrete tax benefit.
This strong performance underscores the company's continued market leadership and effective commercial strategies. Investors should note the ongoing strategic acquisition of Penumbra, Inc., which is progressing through regulatory review and is expected to close in the second half of 2026, indicating a continued focus on strategic growth and market expansion.
02—Key points
Key Highlights
- Net sales grew 11.6% to $5.203 billion in Q1 2026, compared to $4.663 billion in Q1 2025.
- Net income attributable to Boston Scientific common stockholders surged by 98.8% to $1.341 billion ($0.90 per diluted share) from $674 million ($0.45 per diluted share) in the prior year period.
- Gross profit margin improved to 69.4% in Q1 2026, up from 68.8% in Q1 2025, driven by higher-margin product sales and reduced impact from acquisition-related inventory step-ups.
- Operating income increased to $1.101 billion, a 19.5% rise from $921 million in the prior year quarter.
- The company announced a definitive agreement to acquire Penumbra, Inc. for approximately $14.5 billion, a significant strategic move expected to close in the second half of 2026.
- Acquisition of Nalu Medical, Inc. completed in January 2026 for approximately $523 million, adding to the Neuromodulation division.
- The company ended the quarter with a strong liquidity position, including $1.453 billion in cash and cash equivalents and substantial available borrowing capacity under its credit facilities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Boston Scientific Corp kept $0.26.
- Revenue$5.20B100.0%
- Cost of revenue−$1.59B30.5%
- Gross profit$3.61B69.5%
- Operating costs−$2.51B48.3%
- Operating income$1.10B21.2%
- Interest, other & tax$240.0M4.6%
- Net income$1.34B25.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $5.20B$4.66B | +11.6% |
| Cost of Revenue | $1.59B$1.45B | +9.4% |
| Gross Profit | $3.61B$3.21B | +12.6% |
| SG&A Expenses | $1.78B$1.60B | +11.5% |
| Operating Expenses | $2.51B$2.29B | +9.8% |
| Operating Income | $1.10B$921.00M | +19.5% |
| Interest Expense | $90.00M$82.00M | +9.8% |
| Net Income | $1.34B$674.00M | +99.0% |
| EPS (Basic) | $0.90$0.46 | +95.7% |
| EPS (Diluted) | $0.90$0.45 | +100.0% |
| Shares Outstanding (Basic) | 1.48B1.48B | +0.5% |
| Shares Outstanding (Diluted) | 1.50B1.49B | +0.1% |
05—Questions
Frequently Asked Questions
What were the key drivers of Boston Scientific's sales growth in the first quarter of 2026?
Sales growth was primarily driven by strong commercial execution and innovation across key business units, particularly within the Electrophysiology and Interventional Cardiology and Vascular Therapies units. The Farapulse™ Pulsed Field Ablation (PFA) System, WATCHMAN™ Left Atrial Appendage Closure Devices, and AGENT™ Drug-Coated Balloon were highlighted as significant contributors.
How did the proposed acquisition of Penumbra, Inc. progress during the quarter?
Boston Scientific announced its definitive agreement to acquire Penumbra, Inc. for approximately $14.5 billion. During the quarter, both companies received a Second Request from the FTC for additional information, and they are cooperating with the review. The transaction is anticipated to close in the second half of 2026.
What is the company's outlook for liquidity and financial flexibility?
Boston Scientific maintains a strong liquidity position with $1.453 billion in cash and cash equivalents as of March 31, 2026. The company also entered into new revolving credit agreements totaling $5 billion and has a $6 billion term loan credit agreement to fund the Penumbra acquisition, indicating ample financial resources to support operations, investments, and strategic growth initiatives.
Were there any significant non-GAAP adjustments impacting net income?
Yes, the reported net income was significantly impacted by a discrete tax benefit of $384 million related to a change in the anticipated future tax rate for certain capitalized expenses, which contributed to the substantial year-over-year increase in net income. Non-GAAP adjustments also included amortization expense and acquisition-related items.
06—Continue