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.

BSX 10-Q Quarterly Report Q1 FY2026 — Revenue, Net Income, EPS

Summary

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 billion, 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.

Financial Highlights

48 data points

Beta

Revenue

$5.20B

0.7% Gross Margin

Net Income

$1.34B

0.3% Net Margin

EPS (Diluted)

$0.90

Total Assets

$44.35B

Cash & Equivalents

$1.45B

Free Cash Flow

$171.00M

Financial Statements

Beta

Revenue	$5.20B
Cost of Revenue	$1.59B
Gross Profit	$3.61B
SG&A Expenses	$1.78B
Operating Expenses	$2.51B
Operating Income	$1.10B
Interest Expense	$90.00M
Net Income	$1.34B
EPS (Basic)	$0.90
EPS (Diluted)	$0.90
Shares Outstanding (Basic)	1.48B
Shares Outstanding (Diluted)	1.50B

Key Highlights

1Net sales grew 11.6% to $5.203 billion in Q1 2026, compared to $4.663 billion in Q1 2025.
2Net 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.
3Gross 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.
4Operating income increased to $1.101 billion, a 19.5% rise from $921 million in the prior year quarter.
5The 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.
6Acquisition of Nalu Medical, Inc. completed in January 2026 for approximately $523 million, adding to the Neuromodulation division.
7The 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.

BOSTON SCIENTIFIC CORP Quarterly Report for Q1 Ended Mar 31, 2026

Summary

Financial Highlights

Key Highlights

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