Why did reported EPS rise so sharply, and how much of it reflects core operations?

GAAP EPS of $0.53 compares with adjusted EPS of $0.75. The gap reflects roughly $0.22 per share of excluded items, mainly amortization ($0.13), restructuring ($0.10), and deferred tax expense ($0.03), partly offset by a $0.06 acquisition-related credit. Reported EPS also benefited from $213M in 'Other, net' income, most of which relates to a $230M acquisition/divestiture-related gain. Investors should focus on adjusted EPS for run-rate performance, but should note that recurring restructuring charges have appeared in several recent periods.

Is the strong growth broad-based or concentrated?

Growth is concentrated in Cardiovascular, which grew 23.2% organically, with Cardiology at 27.9%, while MedSurg grew only 7.0% organically. Geographically, the U.S. grew 30.7%, APAC 15.4% operationally, and LACA 8.9%, while EMEA grew just 1.8% operationally. The U.S. is carrying much of the growth, which raises questions about international performance and about how sustainable the U.S. pace is.

Why does full-year guidance imply slower organic growth in the second half?

Full-year organic growth guidance of 14-15% compares with first-half organic growth that was higher (Q2 alone was 17.4%). Third-quarter organic guidance of 12-14% implies deceleration. Management has not explicitly attributed this in the release, but it could reflect tougher comparisons, the ACURATE valve discontinuation, or conservatism. The earnings call should clarify the drivers.

How much do acquisitions and currency affect the reported growth figures?

Currency was a small headwind of about 1.2 points in Q2 and is expected to be about 0.5 points for the full year. Acquisitions and divestitures contributed a net 4.2 points of reported growth in Q2, and are expected to add about 3.5 points for the full year and 4.5 points in Q3. Organic growth, which excludes these effects, is the cleaner measure of underlying demand.

What are the main risks flagged for the company's outlook?

The release's forward-looking statements cite economic conditions, tariff and trade policy changes, reimbursement and regulatory conditions, supply chain and cost increases, labor costs, clinical trial outcomes, integration of acquisitions, and competition. The ACURATE discontinuation, the recent impairment, and the lower second-half organic guidance are company-specific items worth monitoring, along with progress in the ReMATCH and other clinical trials.

BSX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 23, 2025. Cited figures are marked; the original filing is the authoritative source.

Boston Scientific (BSX) reported second-quarter 2025 net sales of $5.061 billion^a, up 22.8% on a reported basis, 21.6% operationally and 17.4% organically, all year over year and each above the company's own guidance ranges (17.5-19.5% reported; 13-15% organic).

Growth was led by Cardiovascular, up 26.8% reported and 23.2% organic, with Cardiology up 27.9% organically and the U.S. up 30.7%. MedSurg grew 15.7% reported but only 7.0% organically, with Urology and Peripheral Interventions affected by divestiture effects. GAAP EPS was $0.53^b (versus $0.22 a year ago), boosted by $213 million of 'Other, net' income, while adjusted EPS was $0.75 versus $0.62 and above the $0.71-0.73 guidance.

Operating margin on a GAAP basis was roughly 16% (819/5,061), with gross margin of about 67.7%, and the quarter included a $46 million^c impairment charge and $83 million in restructuring charges tied to discontinuing the ACURATE aortic valve systems. Management raised its full-year 2025 outlook on a reported basis to 18-19% sales growth and 14-15% organic growth, with adjusted EPS guidance of $2.95-2.99 and GAAP EPS of $1.89-1.93. The third-quarter guide calls for 17-19% reported and 12-14% organic growth, with adjusted EPS of $0.70-0.72 and GAAP EPS of $0.44-0.46.

The Q3 organic range is noticeably lower than the Q2 result, which investors may want to probe on the earnings call. Acquisitions (Intera Oncology and SoniVie) were completed during the quarter and are reflected in the reported-to-organic gap, which is about 4.2 points in Q2 and about 4.5 points in Q3 guidance. Heavy R&D spend (up roughly 37%^d year over year) and SG&A growth reflect the company's stated prioritization of investment for future growth.

02—Key points

Key Highlights

Net sales of $5.061B, up 22.8% reported and 17.4% organic, beating the company's guidance ranges of 17.5-19.5% reported and 13-15% organic
Cardiovascular segment grew 26.8% reported and 23.2% organic, driven by Cardiology at 27.9% organic growth; MedSurg grew 15.7% reported but 7.0% organic
Adjusted EPS of $0.75 vs. $0.62 a year ago and above the $0.71-0.73 guidance; GAAP EPS of $0.53 vs. $0.22, aided by $213M in 'Other, net' income
Raised full-year 2025 guidance to 18-19% reported and 14-15% organic sales growth; adjusted EPS $2.95-2.99 and GAAP EPS $1.89-1.93
Q3 2025 guidance of 17-19% reported and 12-14% organic growth, with adjusted EPS of $0.70-0.72 and GAAP EPS of $0.44-0.46
Discontinued worldwide sales of ACURATE neo2 and ACURATE Prime aortic valve systems, generating $83M in Q2 restructuring charges and a $46M intangible impairment
Regulatory and pipeline progress: FDA label expansion for FARAPULSE PFA in drug-refractory persistent AF, CE mark for WATCHMAN FLX Pro, and completed acquisitions of Intera Oncology and SoniVie

03—Questions

Frequently Asked Questions

Why did reported EPS rise so sharply, and how much of it reflects core operations?
GAAP EPS of $0.53 compares with adjusted EPS of $0.75. The gap reflects roughly $0.22 per share of excluded items, mainly amortization ($0.13), restructuring ($0.10), and deferred tax expense ($0.03), partly offset by a $0.06 acquisition-related credit. Reported EPS also benefited from $213M in 'Other, net' income, most of which relates to a $230M acquisition/divestiture-related gain. Investors should focus on adjusted EPS for run-rate performance, but should note that recurring restructuring charges have appeared in several recent periods.
Is the strong growth broad-based or concentrated?
Growth is concentrated in Cardiovascular, which grew 23.2% organically, with Cardiology at 27.9%, while MedSurg grew only 7.0% organically. Geographically, the U.S. grew 30.7%, APAC 15.4% operationally, and LACA 8.9%, while EMEA grew just 1.8% operationally. The U.S. is carrying much of the growth, which raises questions about international performance and about how sustainable the U.S. pace is.
Why does full-year guidance imply slower organic growth in the second half?
Full-year organic growth guidance of 14-15% compares with first-half organic growth that was higher (Q2 alone was 17.4%). Third-quarter organic guidance of 12-14% implies deceleration. Management has not explicitly attributed this in the release, but it could reflect tougher comparisons, the ACURATE valve discontinuation, or conservatism. The earnings call should clarify the drivers.
How much do acquisitions and currency affect the reported growth figures?
Currency was a small headwind of about 1.2 points in Q2 and is expected to be about 0.5 points for the full year. Acquisitions and divestitures contributed a net 4.2 points of reported growth in Q2, and are expected to add about 3.5 points for the full year and 4.5 points in Q3. Organic growth, which excludes these effects, is the cleaner measure of underlying demand.
What are the main risks flagged for the company's outlook?
The release's forward-looking statements cite economic conditions, tariff and trade policy changes, reimbursement and regulatory conditions, supply chain and cost increases, labor costs, clinical trial outcomes, integration of acquisitions, and competition. The ACURATE discontinuation, the recent impairment, and the lower second-half organic guidance are company-specific items worth monitoring, along with progress in the ReMATCH and other clinical trials.

04—Continue

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