Company diagnostic
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.
Why now
In the news
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.
Business health score
66
Out of 100
Addressable estimate
$578.4M addressable estimate (observed gap $1,337.2M)
Revenue
$20,074M (FY2025)
Operating margin
18%
As reported
Filing
Form 10-K, fiscal year 2025 (year ended December 31, 2025)
Run
September 16, 2026
Processing
6
minutes
Output
40
-page PDF and Excel model
Data quality
90
Point-in-time analysis from the filing and run date shown. The news context reflects reporting available on that date, and this page is not updated as events move on.
Score by dimension
Financial health
82
Growth potential
72
Strategic readiness
68
Market position
75
Innovation and digital
21
Operational efficiency
59
First 100-day action
Conduct a detailed SG&A cost-structure audit across all 10 business divisions, identifying duplicative functions, regional management layers and discretionary spending categories.
How it compares
- Revenue growth: 19.9% vs peer median 5.5% (Top quartile)
- Gross margin: 69% vs peer median 60% (Better than median)
- Operating margin: 18% vs peer median 17% (Better than median)
- Net margin: 14.4% vs peer median 13% (Better than median)
- R&D, % of revenue: 10.2% vs peer median 10% (In line with median)
- SG&A, % of revenue: 34.3% vs peer median 28% (Behind median)
- Inventory days: 173 days vs peer median 155 days (Behind median)
- Debt to equity: 0.5x vs peer median 0.6x (Better than median)
Top three levers
Lever 1
SG&A rationalization and commercial operations restructuring
Why this lever
SG&A at 34.3% of revenue trails the 28% medtech median by 6.3 points. Recent acquisitions leave overlapping commercial and support functions, which is where the report looks first.
Size
$505.9M
Observed gap $1,264.7M
Lever 2
Inventory optimization and working capital acceleration
Why this lever
Inventory turns 2.11x against a 2.8x median, implying about $725M of excess stock. Releasing it is a one-time cash event; the recurring benefit is the carrying cost.
Size
$72.5M a year
Carrying benefit on a one-time $725M cash release
Lever 3
Electrophysiology market share defense and FARAPULSE capacity expansion
Why this lever
Electrophysiology grew 74.6% to $3.3B in FY2025 on FARAPULSE. The report treats capacity and share defense as a growth lever without sizing it.
Size
Directional
Not sized in the report
Questions for management
- What is the function-by-function roadmap for SG&A rationalization, with cost targets and timeline?
- What is the manufacturing capacity plan for FARAPULSE to support 25% to 30% incremental electrophysiology growth?
- How will WATCHMAN market share be defended as procedure growth slows and physician adoption varies?
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.
What this report does not cover
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.
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