VALUATION HIGHLIGHTS

1. Rhythm Management constitutes 37% of the Trefis price estimate for Boston Scientific's stock.
2. Cardiovascular constitutes 36% of the Trefis price estimate for Boston Scientific's stock.
3. MedSurg constitutes 26% of the Trefis price estimate for Boston Scientific's stock.

WHAT HAS CHANGED?

Latest Earnings: Q4 and Full Year 2025

Boston Scientific reported Q4 2025 revenue of $5.286 billion, a 15.9% increase year-over-year, which slightly exceeded analyst estimates of $5.27 billion. Adjusted EPS for the quarter was $0.80, up 15% and beating the consensus of $0.78. For the full year 2025, total revenue reached $20.074 billion, representing 19.9% reported growth and 15.8% organic growth. Performance was headlined by the Cardiovascular segment, which grew 18.2% in Q4, fueled by continued momentum in Electrophysiology (up 35% organically) and the WATCHMAN franchise (up 29%). Despite the beat, the stock experienced a sharp pullback following the report as investors reacted to a reset in 2026 organic growth guidance to 10%-11%.

Note: Boston Scientific's FY'25 ended on Dec. 31, 2025.

Strategic Acquisitions of Axonics and Penumbra

In late 2025 and early 2026, Boston Scientific significantly expanded its portfolio through major M&A activity. The company closed its $3.7 billion acquisition of Axonics, adding sacral neuromodulation (SNM) technologies for urinary and bowel dysfunction to its Urology business. Additionally, management announced an agreement to acquire Penumbra's neurovascular business, a move intended to bolster its Interventional Oncology and Embolization division. These acquisitions, alongside the purchase of Valencia Technologies, signal a strategic pivot toward high-growth therapeutic adjacencies to sustain double-digit top-line growth as the Electrophysiology market begins to normalize.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Boston Scientific's value that present opportunities for upside or downside to the current Trefis price estimate:

Cardiovascular

• Electrophysiology and PFA Leadership: The FARAPULSE Pulsed Field Ablation (PFA) system remains the primary valuation driver. In 2025, Global EP sales surged 73% for the full year. While Q4 growth of 35% showed slight sequential flattening, Boston Scientific maintains a dominant U.S. market leader position. Upside exists if the upcoming FARAPOINT approval and expansion into ambulatory surgical centers accelerate market penetration beyond the 15% industry growth projected for 2026.


• WATCHMAN Franchise Expansion: The WATCHMAN business achieved $535 million in Q4 sales, growing 29.4% year-over-year. Future value is heavily tied to the CHAMPION-AF clinical trial results. Positive data could expand the indicated patient population to first-line therapy, potentially doubling the addressable market and providing significant upside to current long-term revenue forecasts.

For additional details, select a division from the interactive Trefis split for Boston Scientific at the top of the page.

BUSINESS SUMMARY

Boston Scientific is a global leader in less-invasive medical devices, organized into two primary segments: Cardiovascular and MedSurg. The company has successfully pivoted its portfolio toward high-growth "category leadership" areas, most notably in Electrophysiology with its PFA technology and Structural Heart with the WATCHMAN device. Its business model relies on a heavy R&D reinvestment strategy and aggressive M&A to enter underpenetrated clinical adjacencies, such as neuromodulation and specialized urology, ensuring a consistent pipeline of high-margin innovation.

SOURCES OF VALUE

The Cardiovascular segment remains the most significant source of value, contributing roughly 66% of total revenue and the bulk of the company's recent growth.

Pulsed Field Ablation Dominance

Boston Scientific's FARAPULSE system has set a new standard for safety and efficiency in treating atrial fibrillation. By being a first-mover in the U.S. PFA market, the company has established a deep "moat" through clinical trust and rapid hospital integration, making it difficult for late entrants to displace their installed base.

Structural Heart Category Leadership

The WATCHMAN franchise maintains an estimated 90% share of the Left Atrial Appendage Closure (LAAC) market. This dominance is supported by over a decade of clinical data and a specialized sales force that creates a high barrier to entry for competitors like Abbott and Medtronic.

KEY TRENDS

Rapid Adoption of Pulsed Field Ablation

The industry is undergoing a paradigm shift from thermal ablation (cryo and radiofrequency) to PFA. Boston Scientific is positioned at the forefront of this macro trend, which is expected to drive the global PFA market to over $5 billion by 2035.

Consolidation in MedTech Adjacencies

Boston Scientific is aggressively pursuing a "tuck-in" acquisition strategy to diversify its revenue streams. By acquiring leaders in niche markets like Axonics (Urology) and Silk Road Medical (Vascular), the company is reducing its dependence on any single product line and optimizing its global commercial infrastructure.

Shift to Ambulatory Surgical Centers

Cost-containment pressures in healthcare are pushing procedures out of traditional hospitals and into Ambulatory Surgical Centers (ASCs). Boston Scientific is adapting its commercial model to target these centers, particularly for high-volume procedures like WATCHMAN and kidney stone management.