Insights / Company Diagnostics
Medical devices
BSX

Boston Scientific

Top-quartile growth and above-median margins; the observed gaps are SG&A at 34.3% of revenue and inventory at 173 days.

Boston Scientific cut its 2026 sales and earnings guidance for the second quarter in a row and announced a global restructuring with $700M to $800M of pre-tax charges, MedTech Dive reported on July 29, 2026.
Source

Point-in-time analysis. The report was generated on the run date shown below from the filing named, and the news context reflects reporting available on that date. This page is not updated as events move on.

Input
Form 10-K, fiscal year 2025 (year ended December 31, 2025)
Processing time
6
minutes
Output
40
page PDF report and Excel model
Run date
September 16, 2026
Business health score
73
/ 100
Addressable estimate
$578.4M addressable estimate (observed gap $1,337.2M)
Revenue
$20,074M (FY2025)
Operating margin
18%
Data quality
100
Summary

Boston Scientific closed fiscal 2025 with revenue of $20,074M, up 19.9%, net income of $2,892M and free cash flow of $3,658M on $4,534M of operating cash flow. Against the medtech peer set the company is above the median on gross, operating and net margin, top quartile on growth, and conservatively levered at 0.5x debt to equity. Electrophysiology grew 74.6% to $3.3B on FARAPULSE, and the cardiovascular segment reached $13.3B, two thirds of sales.

The observed gaps are on the cost side. SG&A at 34.3% of revenue trails the 28% median by 6.3 points, a $1,264.7M gap on the FY2025 revenue base; the report treats $505.9M of it as addressable through commercial-model rationalization and post-acquisition integration, and labels the share an estimate. Inventory of $2,943M turns 2.11x against a 2.8x median, which implies $725M of excess stock; the annual carrying benefit of releasing it is $72.5M, and the release is a one-time cash event rather than recurring profit.

The first 100-day move is a zero-based review of the commercial structure. The questions for management are the function-level SG&A roadmap, FARAPULSE capacity, and the defence of WATCHMAN share. Receivables were not available in the filed data, so the working-capital picture is partial.

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Top three value levers
01
SG&A rationalization and post-acquisition integration. Addressable estimate $505.9M (observed gap $1,264.7M). High complexity, 24 months.
02
Inventory optimization and working capital release. Annual carrying benefit $72.5M on a one-time cash release of $725M. Medium complexity, 18 months.
03
Electrophysiology global scaling and FARAPULSE market penetration. Unsized; directional. Medium complexity, 18 months.
Peer benchmark
Revenue grew 19.9% to $20,074M, top quartile against a medtech median of 5.5%. Gross margin of 69%, operating margin of 18% and net margin of 14.4% are all above their medians of 60%, 17% and 13%. R&D at 10.2% of revenue matches the 10% median. SG&A at 34.3% and inventory at 173 days are both below average against medians of 28% and 155 days.
First action in the 100-day plan
Establish an SG&A rationalization task force with the CFO, COO and regional sales leaders to run a zero-based review of the commercial structure and identify redundant functions from recent acquisitions.
Not covered by this diagnostic:
Receivables are not carried in the filed data available to the report, so the working-capital analysis rests on inventory and payables only and the cash conversion cycle is not computed. The company's July 2026 cost programme is post-period and appears from market intelligence; the addressable SG&A estimate here is independent of it.
This analysis is generated by the ValueChaser platform from the company's public Form 10-K. It is not investment advice, does not reflect any non-public information and is not affiliated with or endorsed by the company. Figures are as computed by the platform from the filing indicated above.