Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Boston Scientific delivered revenue of $5.442 billion in Q2 FY2026, an increase of 7.5% year-over-year, as growth in Interventional Cardiology and Electrophysiology offset headwinds in Urology. Gross margin expanded to 70.7%, driven by a higher-margin product mix, tariff recoveries, and lower inventory charges, helping operating income surge 43.8%. The company continued to invest in innovation with R&D spending up 5%, while also returning $2 billion to shareholders via an accelerated share repurchase. Looking ahead, the pending $14.5 billion acquisition of Penumbra could accelerate growth but adds integration risk, and operating cash flow was flat as higher earnings were consumed by working capital needs.
Revenue
$5.44B
+7.53% YoY
EPS (Diluted)
$0.61
+15.09% YoY
Gross Margin
70.7%
+3.1 pts YoY
Operating Income
$1.18B
+43.83% YoY
Source: SEC XBRL
Boston Scientific (BSX) reported Q2 FY2026 revenue of $5.44B, up 7.5% year over year. Operating margin was 21.6%, up 5.4 points from 16.2% a year earlier. BSX's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.86 | 0.84 | Beat +2.9% |
| Mar 2026 | 0.80 | 0.79 | Beat +0.7% |
| Dec 2025 | 0.80 | 0.79 | Beat +1.6% |
| Sep 2025 | 0.75 | 0.72 | Beat +4.1% |
Adjusted (non-GAAP) EPS of $0.86 versus the $0.84 analyst consensus — a +2.9% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.61.
2 reported segments · SEC XBRL
Segment revenue totals $5.44B, which is the $5.44B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Gross margin rose to 70.7% from 67.7% a year ago, driven by increased sales of higher-margin products, a benefit from the recovery of previously incurred tariffs, and a decrease in inventory charges, only partially offset by unfavorable foreign currency effects.
Source: 10-Q Item 2 MD&A - Gross Profit
Reported net sales growth in the Cardiovascular segment was led by the coronary therapies franchise (notably the AGENT Drug-Coated Balloon) and the Electrophysiology business (FARAPULSE PFA System), though the latter experienced increased competition and a deceleration of certain WATCHMAN procedures.
Source: 10-Q Item 2 MD&A - Results of Operations
The planned acquisition of Penumbra, valued at approximately $14.5 billion, is expected to close in the second half of 2026, subject to FTC review and other closing conditions. The deal will be funded through $11 billion in cash and newly issued debt, plus shares, and would be integrated into the Cardiovascular division.
Source: 10-Q Item 2 MD&A - Contractual Obligations and Commitments
An accelerated share repurchase agreement was executed in May 2026 for $2 billion, resulting in the delivery of approximately 40 million shares. With a total authorization of $5 billion, $3 billion remained available as of June 30, 2026.
Source: 10-Q Item 2 MD&A - Equity
During the first six months of 2026, a discrete tax benefit of $384 million was recognized to reflect a change in the anticipated future tax rate at which the company expects to recover certain capitalized expenses, significantly lowering the reported effective tax rate to -1.0% for that period.
Source: 10-Q Item 2 MD&A - Tax Rate
Compiled by AI from 10-Q Item 2 of this filing · 1 high, 3 medium, 1 low
The pending $14.5 billion acquisition of Penumbra presents significant integration, execution, and financial risks. Financing the transaction will require $11 billion in new debt and cash, which could strain the balance sheet and distract management. Delays in regulatory approval or failure to achieve expected synergies could materially impact results.
Source: 10-Q Item 2 MD&A - Contractual Obligations and Commitments
The Electrophysiology business unit faces increasing competition, which has already led to a deceleration of certain WATCHMAN procedures and could pressure future market share and pricing. Competitor advances in pulsed-field ablation or alternative technologies may erode the growth trajectory of the FARAPULSE system.
Source: 10-Q Item 2 MD&A - Results of Operations
Ongoing trade policy changes, including tariff impositions and delays, create uncertainty around supply chain costs and global demand. While the company benefited from a tariff recovery in Q2, further disruptions or retaliatory trade measures could raise manufacturing and distribution expenses and affect international sales.
Source: 10-Q Item 2 MD&A - Macroeconomic Environment
Gross margin expansion was partially driven by a favorable product mix towards higher-margin offerings. A shift in sales mix toward lower-margin products, potential pricing pressures, or slower adoption of key growth drivers could reverse recent margin gains and reduce profitability.
Source: 10-Q Item 2 MD&A - Gross Profit
The company is subject to material legal proceedings that could result in substantial liabilities or restrictions on operations. While specific details are not in the quarterly report, ongoing litigation risks and regulatory scrutiny could lead to financial charges or reputational harm.
Source: 10-Q Item 2 MD&A - Legal Matters
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.44 $B | 5.06 $B | +7.53% |
Cost of Revenue $B | 1.59 $B | 1.64 $B | -2.63% |
Gross Profit $B | 3.85 $B | 3.42 $B | +12.38% |
Operating Income $B | 1.18 $B | 0.82 $B | +43.83% |
EPS (Basic) $ | 0.62 $ | 0.54 $ | +14.81% |
EPS (Diluted) $ | 0.61 $ | 0.53 $ | +15.09% |
SG&A Expense $B | 1.80 $B | 1.72 $B | +5.07% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Boston Scientific delivered strong Q1 2026 results with revenue of $5.20B (+11.6% YoY), operating income of $1.10B (+19.5% YoY), and EPS nearly doubling to $0.90, though operating cash flow declined 35.7% to $348M.
Boston Scientific (BSX) delivered a strong FY2025 with revenue surging 19.9% to $20.1B, operating income jumping 38.8% to $3.6B, and EPS rising 55.6% to $1.96, driven by robust top-line growth and meaningful margin expansion.
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