Business Description
Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems. It also provides medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising 3-D cardiac mapping and navigation solutions, ablation catheters, diagnostic catheters, mapping catheters, intracardiac ultrasound catheters, delivery sheaths, and other accessories; spinal cord stimulator systems for the management of chronic pain; indirect decompression systems; and deep brain stimulation systems. In addition, the company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as various peripheral vessels; and structural heart therapies. Further, it provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy and acoustic pulse thrombolysis systems, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, ablation systems, cryotherapy ablation systems, and micro and drainage catheters to treat cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.
Business History
Generated: Jun 5, 2026 12:53pmPrice Overview
Last updated: Jun 3, 2026 6:57pm (9d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 1.96
Total Equity: $24.23B
Shares: 1,494,500,000
Total Debt: $11.85B
Cash: $2.05B
EBITDA: $3.73B
Total Debt: $11.85B
Cash: $2.05B
Revenue: $20.07B
Revenue: $20.07B
Revenue: $20.07B
Total Equity: $24.23B
Tax Rate: 14.6%
Equity: $24.23B
Total Debt: $11.85B
Cash: $2.05B
Current Liabilities: $5.44B
Long-Term Debt: $11.46B
Total Debt: $11.85B
Total Equity: $24.23B
Shares: 1,494,500,000
Shares: 1,494,500,000
CapEx: -$876.00M
Shares: 1,494,500,000
Stock Price: $47.69
Net Income: $2.89B
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 3, 2026 7:03pm (9d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $11.9B | $12.7B | $14.2B | $16.7B | $20.1B |
| Cost of Revenue | $4.4B | $5.0B | $5.4B | $6.5B | $6.2B |
| Gross Profit | $7.5B | $7.7B | $8.8B | $10.3B | $13.9B |
| Operating Expenses | $5.5B | $5.9B | $6.7B | $7.6B | $9.9B |
| Operating Income | $1.9B | $1.8B | $2.2B | $2.6B | $4.0B |
| Net Income | $1.0B | $698.0M | $1.6B | $1.9B | $2.9B |
| EBITDA | $2.5B | $2.7B | $3.5B | $3.9B | $3.7B |
| EPS | $0.69 | $0.45 | $1.08 | $1.26 | $1.96 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 3, 2026 6:57pm (9d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $1.9B | $928.0M | $865.0M | $414.0M | $2.0B |
| Total Current Assets | $6.3B | $5.8B | $6.5B | $6.9B | $8.8B |
| Total Assets | $32.2B | $32.5B | $35.1B | $39.4B | $43.7B |
| Current Liabilities | $4.3B | $3.8B | $4.9B | $6.4B | $5.4B |
| Long-Term Debt | $8.8B | $8.9B | $8.6B | $8.8B | $11.5B |
| Total Liabilities | $15.6B | $14.9B | $15.6B | $17.4B | $19.2B |
| Total Equity | $16.6B | $17.6B | $19.3B | $21.8B | $24.2B |
| Retained Earnings | -$1.4B | -$750.0M | $819.0M | $2.7B | $5.6B |
Cash Flow (Annual)
Last updated: Jun 3, 2026 7:03pm (9d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $1.9B | $1.5B | $2.5B | $3.4B | $4.5B |
| Capital Expenditure | -$554.0M | -$612.0M | -$800.0M | -$790.0M | -$876.0M |
| Free Cash Flow | $1.3B | $914.0M | $1.7B | $2.6B | $3.7B |
| Acquisitions (net) | -$1.4B | -$1.5B | -$1.8B | -$4.6B | -$1.6B |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | $0 | $136.0M | $0 | $0 | $0 |
| Net Change in Cash | $171.0M | -$1.0B | -$82.0M | -$449.0M | $1.5B |
Analyst Estimates (Annual)
Last updated: Jun 3, 2026 6:57pm (9d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$23.4B $22.9B – $24.4B
|
$25.3B $25.3B – $25.3B
|
$28.1B $27.6B – $28.9B
|
$30.6B $30.1B – $31.5B
|
| EBITDA |
$5.1B $5.0B – $5.3B
|
$5.5B $5.5B – $5.5B
|
$6.1B $6.0B – $6.3B
|
$6.7B $6.6B – $6.9B
|
| Net Income |
$5.6B $5.5B – $5.7B
|
$6.3B $5.6B – $7.0B
|
$7.1B $6.9B – $7.4B
|
$7.8B $7.6B – $8.1B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 3, 2026 7:03pm (9d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +6.7% | +12.3% | +17.6% | +19.9% |
| Gross Profit Growth | +3.4% | +14.5% | +16.3% | +34.9% |
| Operating Income Growth | -5.1% | +19.6% | +20.8% | +50.7% |
| Net Income Growth | -32.9% | +128.2% | +16.4% | +55.7% |
| EBITDA Growth | +8.9% | +26.0% | +14.0% | -5.2% |
Insider Trading (Recent)
Last updated: Jun 3, 2026 7:02pm (9d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-05-28 | Mahoney Michael F | G-Gift | 386,755.00 | $0.00 | $0 |
| 2026-05-20 | Pegus Cheryl | P-Purchase | 1,770.00 | $56.49 | $99,987 |
| 2026-05-20 | LUDWIG EDWARD J | P-Purchase | 3,580.00 | $56.68 | $202,914 |
| 2026-05-20 | Habiger David C | P-Purchase | 2,250.00 | $55.92 | $125,819 |
| 2026-05-19 | Habiger David C | P-Purchase | 2,200.00 | $56.95 | $125,279 |
| 2026-05-07 | Zane Ellen M | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-07 | WICHMANN DAVID S | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-07 | Weber Christophe Pierre | A-Award | 1,140.00 | $0.00 | $0 |
| 2026-05-07 | Weber Christophe Pierre | A-Award | 2,660.00 | $0.00 | $0 |
| 2026-05-07 | Weber Christophe Pierre | A-Award | 1,767.00 | $0.00 | $0 |
| 2026-05-07 | Smith Cathy R | A-Award | 2,209.00 | $0.00 | $0 |
| 2026-05-07 | Smith Cathy R | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-07 | Pegus Cheryl | A-Award | 1,281.00 | $0.00 | $0 |
| 2026-05-07 | Pegus Cheryl | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-07 | Morano Susan E | A-Award | 1,281.00 | $0.00 | $0 |
| 2026-05-07 | Morano Susan E | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-07 | Mega Jessica L | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-07 | LUDWIG EDWARD J | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-07 | Habiger David C | A-Award | 3,800.00 | $0.00 | $0 |
| 2026-05-02 | O'Connor Padraig Andrew | M-Exempt | 1,802.00 | $0.00 | $0 |
Narrative Economics
Delvantic AI Findings
The raw numbers tell a coherent acceleration story that doesn't quite match the "fallen angel" framing. Annual revenue went $14.24B → $16.75B → $20.07B (17.6% then 19.8% YoY), gross margin expanded from 62.0% in 2023 to 69.0% in 2025, and FCF hit $3.66B on $4.53B operating cash flow. The Q1 2026 print at $5.20B revenue and a 25.7% net margin (NI $1.34B) is the standout — but that margin is roughly double the prior four quarters (12.4–15.7%) and almost certainly contains a one-time item (tax benefit, divestiture gain, or legal reversal). Strip that out and normalized Q1 NI is probably ~$800M, in line with the Q2-Q4 2025 run-rate. The models are quietly leaning on that 25.7% margin without flagging it; I wouldn't.
On valuation: at $49.71 and a $73.89B cap, BSX trades at 20.7x TTM earnings, 7.0x sales, and ~20x FCF ($73.9B / $3.66B). That is not a "fallen angel" multiple — that's a full premium med-device multiple, in line with where BSX has historically traded when growing well. The synthesis claim of $73.85 signal-adjusted fair value (+48.6%) assumes the 20% revenue growth and 770bps margin expansion persist. They won't. FARAPULSE is the single biggest driver of the EP acceleration, and Medtronic's PulseSelect plus J&J's Varipulse are now competing directly; pricing and share both normalize from here. A more defensible model: revenue grows 11-13% into 2026, op margin holds ~20%, and earnings grow ~15%. That supports a fair value in the $55-62 range, not $74. The pre-flight model's own thesis — that the market is pricing mean reversion — is probably correct pricing, not a mispricing.
The contrarian read the models underweight: where is the 55% drawdown from $109.50 coming from if fundamentals are this strong? The drawdown itself is the tell. Either (a) the $109.50 print was a momentum overshoot during the FARAPULSE launch hype and $49.71 is the rational re-rate, or (b) something in the forward guide or competitive setup spooked institutional holders that doesn't yet show in the trailing prints. Insider activity is mildly supportive — four small open-market purchases on 5/19-5/20 totaling ~9,800 shares — but these are tiny dollar amounts (~$500K combined) and dwarfed by the 386,755-share gift the same week, which is often a tax-optimized disposition disguise. Calling this "significant insider buying" is generous. Also: the balance sheet tile is missing total debt and equity, which matters because BSX has historically carried $8-10B net debt from its acquisition cadence (Axonics, Silk Road), and the EV/EBITDA of 17.5x reflects that — not cheap on an EV basis.
I dissent from the synthesis "undervalued" call and partially agree with Market Forces' "trade the cycle" framing. The fair value isn't $73.85; it's closer to $55-58 on normalized assumptions, which makes $49.71 modestly cheap but not the 48.6% gift the composite implies. The market-narrative layer correctly identifies this as "contested" but then anchors to the DCF anyway — that's having it both ways. The decelerating quarterly trend flagged in revenue confidence (5.06 → 5.07 → 5.29 → 5.20) is the most important signal in the file and contradicts the 19.9% YoY headline: sequentially, growth has essentially stalled at ~$5.1-5.3B per quarter for four quarters running. The YoY number flatters because Q1 2025 was a soft comp. If Q2 2026 prints another ~$5.2-5.3B, the YoY rate compresses to ~4-5% and the multiple compresses with it. That's the asymmetric risk nobody in the model stack is pricing.
GPT Critique
Upon examining the raw data for Boston Scientific Corporation, several elements stand out. The company has demonstrated robust revenue growth, with annual revenues rising from $11.89 billion in 2021 to $20.07 billion in 2025, marking a consistent upward trajectory. The gross margin improvement from 62.0% in 2023 to 69.0% in 2025 signifies operational efficiency gains, potentially driven by product innovations such as FARAPULSE. However, the Q1 2026 net income margin of 25.7% is a significant outlier compared to previous quarters, suggesting a possible one-time benefit. This anomaly warrants caution when extrapolating future earnings based solely on this quarter.
Addressing Claude Opus's analysis, I agree with the assertion that the 25.7% margin likely includes non-recurring items, which should not be relied upon for future projections. Opus's skepticism about the composite valuation of $73.85 also resonates with me. The competitive landscape, particularly with new entries from Medtronic and J&J, suggests that the high growth and margin expansion seen recently may not be sustainable. I concur with Opus's valuation range of $55-62, considering the expected normalization of margins and revenue growth rates.
However, I diverge from Opus's evaluation regarding the insider activity. While Opus downplays the significance of recent insider purchases, I see these transactions, albeit small, as a positive signal of management's confidence, especially in the context of a broader market drawdown. The narrative of a 55% drawdown from $109.50 to $49.71 does indeed suggest a correction from an overhyped peak rather than an indication of undervaluation at current levels, aligning with Opus's view that the market is rationally re-rating the stock.
A careful skeptic might argue that both Opus and I are underestimating the potential for Boston Scientific to capitalize on its recent innovations and expand into new markets, which could justify a higher valuation. They might also suggest that the competitive pressures are already priced in and that the market has overreacted to short-term headwinds.
Advanced Analysis Forensic deep-dive · two lenses
The two lenses tell a clear story: business quality is a strong 83 (margin inflection is real, cash-backed, clean Beneish, insiders buying), but valuation only scores -15 with ~15-20% upside to a $58-59 composite — not a layup. I trust the anchored P/E and composite over the $76 DCF (that's extrapolating peak EP/Watchman margins) and I respect the $21 EPV floor as a reminder that I'm paying entirely for cycle continuation. So this isn't a table-pound; it's a 'pay fair price for a great business' situation.
My play: open a starter position here at ~$48-49, roughly 1/3 of target weight, because I don't want to miss owning a high-quality compounder with accelerating fundamentals and quiet insider buying. I add aggressively below $44 (the value lens's true attractive zone, ~25% discount), and I'd back up the truck closer to $40 if multiple compression ever hands it to me. Above $55 I stop adding and just hold. What flips me to aggressive sooner: segment disclosure confirming Farapulse/Watchman strength is broadening rather than concentrating, plus any deleveraging progress against that $9.8B net debt. What flips me to the sidelines: a single quarter of EP growth deceleration or competitive share loss to J&J/Medtronic in PFA — that removes the entire margin of safety given the EPV floor. Target full position ~2-3% of book, built in tranches.
Boston Scientific is firing on all cylinders as a business. Revenue compounded from $11.89B (2021) to $20.07B (2025) — roughly 14% CAGR with a step-function in 2025 (+19.8% YoY). More importantly, profitability is inflecting hard: gross margin jumped from ~61-63% to 69% in 2025, operating margin from 16.2% to 19.8%, net income from $1.04B to $2.89B, and FCF from $1.32B to $3.66B. This is operating leverage actually showing up, not a one-time accrual reversal — OCF/NI of 1.8x and accruals of -3.1% of assets corroborate that earnings are cash-backed.
Earnings integrity is clean (Beneish -2.59, Altman Z 3.34 safe zone, no mechanical red flags). Dilution is modest — diluted shares went from 1.43B to 1.49B over five years (~1% CAGR), and SBC at only 1.5% of revenue is low for medtech. The blemish: buybacks recapture just 11% of SBC, so per-share count drifts up rather than down, and net debt sits at -$9.8B against only $2.05B liquid cash (the legacy of acquisition-heavy growth typical of this industry).
Insider behavior is a positive tell: four open-market purchases ($554K) across multiple directors (Habiger, Ludwig, Pegus) in May 2026 with zero open-market sales — uncommon at a large-cap medtech and a credible signal of conviction. CEO Mahoney's 386.8K-share gift is a charitable/estate move, not a sale.
Verify before trusting this (6)
- Segment/product disclosure: how much of 2025 growth and margin expansion came from Farapulse (PFA) and Watchman vs. broader portfolio
- Competitive trajectory in PFA vs. Medtronic PulseSelect and J&J Varipulse — durability of the share gain
- Debt maturity ladder and refinancing schedule given the -$9.8B net debt position
- M&A pipeline and goodwill/intangibles balance — confirm margin gains aren't masking acquisition amortization roll-off
- Organic vs. acquired revenue split in 2025 to validate the underlying growth rate
- R&D as % of revenue trend to confirm innovation reinvestment isn't being sacrificed for margin
The e2e composite fair value of $58.49 vs a $49.69 price implies ~18% upside, while the signal-adjusted $73.85 (~49% upside) leans heavily on DCF ($76.74) that assumes the current product-cycle margin expansion persists. I'd sanity-check that down: the EPV floor of $21.44 says strip away growth and there is no static cash-flow cushion here — you are paying for the franchise and the cycle. The anchored P/E of $59 is the most defensible reference point and roughly matches the composite.
Quality is genuinely high (clean earnings, FCF $3.66B, OCF/NI 1.8x), which lifts deserved value into the upper-$50s/low-$60s — but the market knows this. The 'fallen-angel' framing is a stretch when the stock is near all-time highs operationally; the discount to DCF reflects normal medtech multiple compression risk if the EP/Watchman cycle decelerates. So: a modest margin of safety (~15-20%) on a high-quality compounder, not a fat one. Worth owning, not a table-pound.
Verify before trusting this (4)
- Whether 2025 operating-margin step-up is sustainable or a peak (guidance, segment mix on next call)
- Farapulse/EP growth durability and competitive response from MDT, JNJ
- Watchman volume trends and any reimbursement changes
- M&A pace and dilution — large deals could reset the deserved-value math