Boston Scientific Caps Strong 2025 with Double-Digit Growth, Eyes Further Expansion Through Strategic Acquisitions
Boston Scientific delivered a powerful finish to 2025, with fourth-quarter results surpassing expectations and setting the stage for what executives project will be another year of industry-leading growth in 2026. The medical technology giant's performance underscores its successful strategy of innovation complemented by strategic mergers and acquisitions.
The company reported fourth-quarter consolidated revenue of $5.286 billion, marking a 15.9% increase year-over-year. On an organic basis, which excludes the impact of foreign currency fluctuations and recent acquisitions, growth was a robust 12.7%. For the full year, revenue reached $20.074 billion, up 19.9%.
Profitability metrics also shone. Adjusted earnings per share (EPS) for Q4 came in at $0.80, a 15% jump and above the guided range. Full-year adjusted EPS hit $3.06, up 22%, marking the third consecutive year of 20%-plus growth. The company expanded its adjusted operating margin by 100 basis points for the year to 28.0%.
"These results reflect the strength and diversity of our portfolio," said CEO Mike Mahoney during the earnings call. "From electrophysiology and structural heart to neuromodulation, we are seeing strong demand globally. Our disciplined capital allocation, focused on tuck-in M&A, is directly enhancing our growth profile."
That M&A strategy was a focal point. Boston Scientific highlighted the recent close of its Nalu Medical acquisition and announced agreements to acquire Valencia Technologies and, notably, Penumbra—a move that significantly bolsters its cardiovascular and neurovascular portfolios. The Penumbra deal, expected to close in 2026, was cited by management as a potential further accelerant to long-term goals.
Looking ahead, Boston Scientific provided 2026 guidance that signals a deliberate shift from hyper-growth to sustained, high-single-digit to low-double-digit expansion. The company forecasts full-year organic revenue growth of 10% to 11% and adjusted EPS of $3.43 to $3.49, representing 12%-14% growth. Executives acknowledged a "toughest comp of the year" dynamic in the first quarter due to product transitions but expect momentum to rebuild in the second half.
The strong cash generation—2025 free cash flow grew 38% to $3.659 billion—provides ample fuel for its strategic priorities. Leadership reiterated that tuck-in acquisitions remain the top capital allocation priority, followed by share repurchases.
Analyst & Investor Reaction:
"The consistency is remarkable," said David Chen, a medtech portfolio manager at Horizon Capital. "Hitting over 20% adjusted EPS growth for three straight years in this market is exceptional. The 2026 guidance, while a deceleration, sets a credible and still industry-leading baseline, especially with the Penumbra integration ahead."
"I'm concerned about the guidance reset," countered Sarah Jenkins, an independent investor and frequent commentator on healthcare stocks. "After years of 'beat and raise,' guiding Q1 organic growth down to 8.5%-10% feels like a warning shot. They're blaming 'toughest comps' and product transitions, but is demand softening? The market might not be as forgiving of this slowdown as management hopes."
"The margin story is what's underappreciated," noted Dr. Arjun Mehta, a healthcare consultant. "Expanding operating margins while integrating acquisitions and investing in R&D is a tough balancing act. It shows incredible operational discipline. The 50-75 basis points of further expansion guided for 2026 is a key lever for their double-digit EPS target."
Boston Scientific, founded in 1979 and headquartered in Marlborough, Massachusetts, develops and markets less-invasive medical devices for a range of conditions in cardiology, neurology, urology, and more.
This analysis is based on the company's fourth-quarter and full-year 2025 earnings report and conference call. The original news item was published by MarketBeat.