Boston Scientific (BSX) AI Stock Analysis

• Market Cap: $113.19B
• Dividend Yield: N/A
• Average Volume (3M): 17.47M
• Price to Earnings (P/E): 39.0
• Beta (1Y): 0.86
• Revenue Growth: 21.62%
• EPS Growth: 54.80%
• Country: US
• Employees: 53,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.80
• Shares Outstanding: 1,483,885,500
• 10 Day Avg. Volume: 13,981,904
• 30 Day Avg. Volume: 17,470,229
• PEG Ratio: 0.88
• Price to Book (P/B): 5.82
• Price to Sales (P/S): 7.03
• P/FCF Ratio: 38.59
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 6.01
• Enterprise Value/Gross Profit: 8.71
• Enterprise Value/Ebitda: 24.59
• 1Y Price Target: $108.38
• Price Target Upside: 45.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 3.46
• Revenue Forecast (FY): $22.27B

• Rating: 71 Outperform
• Price Target: $83.00 ▲(11.29% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by strong underlying financial performance and a bullish earnings-call outlook with solid growth, margin expansion, and free-cash-flow guidance. These positives are tempered by very weak technicals (sharp downtrend/negative momentum) and a premium valuation (high P/E), with incremental execution/regulatory risk from the Penumbra deal.

Positive Factors

Sustained Revenue Growth & Margin Expansion

Boston Scientific's multi-year revenue climb to ~$20.7B and strong organic growth demonstrate durable market penetration across multiple therapy areas. Concurrent gross (~70.6%) and adjusted operating margin expansion signal scalable operations that support ongoing R&D, clinical investment, and reinvestment without sacrificing profitability.

Solid Cash Generation and FCF Conversion

Robust operating cash flow (~$4.5B) and free cash flow (~$3.7B) with high FCF conversion provide durable internal funding for product development, tuck-in M&A, and debt servicing. Strong cash generation underpins capital allocation flexibility and supports management's ability to execute strategic initiatives over the next several years.

High-Value EP Franchise & Clinical Adoption

Exceptional EP franchise growth driven by PFA adoption is a structural advantage: high penetration (~70% in U.S. AF ablations) and rapid uptake create sustained procedural share and recurring consumable demand. Clinical catalysts and mapping system adoption support durable outperformance versus market growth and long-term franchise value accumulation.

Negative Factors

Elevated Absolute Debt Load

Although leverage metrics improved, the absolute debt stock (~$11.4B) remains sizable and reduces financial flexibility. Higher indebtedness increases sensitivity to interest-rate or refinancing shocks, constrains free cash deployment for opportunistic investments, and could limit agility if organic growth moderates or M&A uses additional leverage.

Product Removals / Regulatory Execution Risk

The AXIOS manufacturing-related removal and the ACURATE discontinuation are structural execution risks: product availability disruptions depress procedure volumes, interrupt commercial momentum, and can erode clinician confidence. Reintroduction timelines and regulatory/quality remediation create multi-quarter revenue uncertainty and operational distraction.

Underperformance in Key Legacy Segments

Stagnation in core CRM (flat to +1% organic growth) and subpar urology performance reflect pockets of commercial and integration weakness. Durable underperformance in legacy, lower-growth franchises could limit company-wide growth resilience, making achievement of sustained 10%+ organic targets and margin expansion harder without clear remediation.

Boston Scientific Business Overview & Revenue Model

Company Description

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems. It also provides medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising 3-D cardiac mapping and navigation solutions, ablation catheters, diagnostic catheters, mapping catheters, intracardiac ultrasound catheters, delivery sheaths, and other accessories; spinal cord stimulator systems for the management of chronic pain; indirect decompression systems; and deep brain stimulation systems. In addition, the company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as various peripheral vessels; and structural heart therapies. Further, it provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy and acoustic pulse thrombolysis systems, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, ablation systems, cryotherapy ablation systems, and micro and drainage catheters to treat cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

How the Company Makes Money

Boston Scientific generates revenue primarily through the sale of its medical devices, which are used in a variety of procedures across multiple specialties. The company operates through several key segments, including Cardiovascular, Rhythm Management, MedSurg, and Neuromodulation, each contributing to its overall revenue. Major revenue streams include sales of implantable devices, surgical tools, and diagnostic equipment. Additionally, Boston Scientific benefits from strategic partnerships and collaborations with healthcare providers, hospitals, and research institutions, which enhance its distribution capabilities and expand its market reach. The company also invests in research and development to innovate and introduce new products, which serves as a significant driver of future revenue growth.

Boston Scientific Financial Statement Overview

Summary

Strong multi-year revenue growth and materially improved profitability (net margin ~14% in 2025) support a high score. Balance sheet leverage has improved, but absolute debt is still meaningful (~$11.4B). Cash generation is solid, though 2025 free cash flow dipped slightly and OCF-to-net-income remains below 1.0, signaling some cash timing/working-capital pressure.

Income Statement

Revenue shows a strong multi-year uptrend (from $9.9B in 2020 to $20.1B in 2025), with consistently positive growth since 2021, though 2025 growth slowed to ~3.7%. Profitability has improved materially: net margin moved from a loss in 2020 to ~14.4% in 2025, and operating profitability expanded meaningfully versus earlier years. A watch item is that 2025 EBITDA is lower than 2024 despite higher revenue, suggesting some cost/investment pressure even as EBIT and net income improved.

Balance Sheet

Leverage looks manageable for the sector: debt-to-equity improved over time (about 0.62 in 2020 to ~0.47 in 2025) while equity expanded steadily, indicating a strengthening capital base. Returns on equity also improved (negative in 2020 to ~11.9% in 2025), consistent with better earnings power. The main risk is the absolute debt load rising to ~$11.4B by 2025, which reduces flexibility if growth slows or financing costs rise.

Cash Flow

Cash generation is solid and improving: operating cash flow increased to ~$4.5B in 2025 and free cash flow to ~$3.7B. Free cash flow has generally tracked earnings well (free cash flow running at ~81% of net income in 2025), supporting earnings quality. However, free cash flow growth turned negative in 2025 (down ~3.1% YoY), and operating cash flow relative to net income remains below 1.0 (about 0.83 in 2025), implying working-capital or cash timing headwinds.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.07B	16.75B	14.24B	12.68B	11.89B
Gross Profit	13.85B	10.27B	8.83B	7.71B	7.46B
EBITDA	3.73B	3.94B	3.45B	2.74B	2.52B
Net Income	2.89B	1.85B	1.59B	698.00M	1.04B
Balance Sheet
Total Assets	43.67B	39.40B	35.14B	32.47B	32.23B
Cash, Cash Equivalents and Short-Term Investments	2.04B	414.00M	865.00M	928.00M	1.93B
Total Debt	12.42B	11.15B	9.49B	9.28B	9.45B
Total Liabilities	19.20B	17.39B	15.61B	14.90B	15.61B
Stockholders Equity	24.23B	21.77B	19.28B	17.57B	16.62B
Cash Flow
Free Cash Flow	3.66B	2.65B	1.70B	914.00M	1.32B
Operating Cash Flow	4.53B	3.44B	2.50B	1.53B	1.87B
Investing Cash Flow	-2.64B	-5.69B	-2.57B	-2.01B	-1.60B
Financing Cash Flow	-395.00M	1.81B	5.00M	-548.00M	-95.00M

Boston Scientific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSX, the sentiment is Negative. The current price of 74.58 is below the 20-day moving average (MA) of 82.29, below the 50-day MA of 89.54, and below the 200-day MA of 98.98, indicating a bearish trend. The MACD of -4.96 indicates Positive momentum. The RSI at 28.42 is Positive, neither overbought nor oversold. The STOCH value of 49.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSX.

Boston Scientific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EW	79 Outperform	$45.83B	42.60	―	―	0.19%	65.58%
SYK	72 Outperform	$144.40B	44.93	15.08%	0.95%	10.95%	-18.32%
BSX	71 Outperform	$113.19B	39.05	12.60%	―	21.62%	54.80%
MDT	71 Outperform	$126.27B	27.47	―	2.76%	5.34%	13.15%
ABT	65 Neutral	$197.00B	30.37	13.03%	1.88%	6.37%	142.39%
ZBH	65 Neutral	$19.47B	27.68	5.60%	1.05%	5.47%	-23.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Boston Scientific Corporate Events

Boston Scientific announces planned board director departure

On February 2, 2026, Boston Scientific announced that long-serving director Yoshiaki Fujimori, who joined the board in July 2016 and currently chairs the Risk, Science and Technology Committee, has informed the company he will not stand for re-election at the 2026 Annual Meeting of Stockholders, though he will continue in his roles until that meeting. The company emphasized that Fujimori’s decision was not due to any disagreement with Boston Scientific, and the board, together with its Nominating and Governance Committee, will continue to assess its size and composition and consider whether adding new directors after his departure is in the best interest of the company and its stakeholders.

The most recent analyst rating on (BSX) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Boston Scientific stock, see the BSX Stock Forecast page.

Boston Scientific to Acquire Penumbra in Cash-Stock Merger

On January 14, 2026, Boston Scientific entered into a definitive agreement to acquire Penumbra, Inc. via a merger in which Penumbra will become a wholly owned subsidiary, with Penumbra shareholders able to elect either cash of $374 per share or 3.8721 Boston Scientific shares per Penumbra share, subject to proration that targets roughly 73% cash and 27% stock. The deal includes detailed treatment of Penumbra stock options and restricted stock units, customary closing conditions such as antitrust and other regulatory approvals, Penumbra shareholder approval, stock exchange listing of new Boston Scientific shares, and mutual covenants restricting Penumbra from soliciting competing bids except under a fiduciary out, alongside substantial reverse and standard termination fees that underscore both parties’ commitment and highlight regulatory and competitive risks for investors and other stakeholders.

The most recent analyst rating on (BSX) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on Boston Scientific stock, see the BSX Stock Forecast page.

Boston Scientific Approves 2026 Bonus Plan

On November 18, 2025, Boston Scientific‘s Board of Directors approved the 2026 Annual Bonus Plan and two performance share programs, aiming to align executive compensation with company performance and shareholder interests. The bonus plan and performance share programs, effective from January 1, 2026, to December 31, 2028, are designed to incentivize employees based on company-wide metrics such as global sales, earnings, and sustainability goals, with potential impacts on executive compensation through policies like the Dodd-Frank Clawback Policy.

The most recent analyst rating on (BSX) stock is a Buy with a $132.00 price target. To see the full list of analyst forecasts on Boston Scientific stock, see the BSX Stock Forecast page.