Medical device company Boston Scientific (NYSE: BSX) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 22.8% year on year to $5.06 billion. Guidance for next quarter’s revenue was optimistic at $4.97 billion at the midpoint, 2.2% above analysts’ estimates. Its non-GAAP profit of $0.75 per share was 3.4% above analysts’ consensus estimates.

Is now the time to buy Boston Scientific? Find out by accessing our full research report, it’s free.

"This was another excellent quarter — marked by exceptional top-line performance — that delivered margin expansion and prioritized investment for future growth," said Mike Mahoney, chairman and chief executive officer, Boston Scientific.

Company Overview

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Boston Scientific’s sales grew at a solid 12.7% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Boston Scientific’s annualized revenue growth of 17.5% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

Boston Scientific also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, Boston Scientific’s organic revenue averaged 15.6% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, Boston Scientific reported robust year-on-year revenue growth of 22.8%, and its $5.06 billion of revenue topped Wall Street estimates by 3.4%. Company management is currently guiding for a 18% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 11.4% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is attractive given its scale and implies the market is forecasting success for its products and services.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

Boston Scientific has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 13.2%, higher than the broader healthcare sector.

Analyzing the trend in its profitability, Boston Scientific’s operating margin rose by 13.3 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 3.4 percentage points on a two-year basis. These data points are very encouraging and shows momentum is on its side.

This quarter, Boston Scientific generated an operating margin profit margin of 16.2%, up 3.6 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Boston Scientific’s EPS grew at an astounding 18.4% compounded annual growth rate over the last five years, higher than its 12.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Boston Scientific’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Boston Scientific’s operating margin expanded by 13.3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q2, Boston Scientific reported EPS at $0.75, up from $0.62 in the same quarter last year. This print beat analysts’ estimates by 3.4%. Over the next 12 months, Wall Street expects Boston Scientific’s full-year EPS of $2.83 to grow 7.2%.

Key Takeaways from Boston Scientific’s Q2 Results

We enjoyed seeing Boston Scientific beat analysts’ organic revenue expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. The icing on the cake was management raising full-year EPS guidance. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 1.1% to $104.40 immediately after reporting.

Boston Scientific had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.