A maker of medical devices for less-invasive procedures, Boston Scientific builds tools like the WATCHMAN heart implant, the FARAPULSE system for treating irregular heartbeats, and devices for endoscopy, urology, and pain management, sold in more than a hundred countries. Founded in 1979 by John Abele and Pete Nicholas, the company began as a holding company for a steerable-catheter maker and took its name from its Massachusetts roots plus the founders' commitment to scientific rigor. The two founders reportedly met while watching their children play soccer.
Q2 2026 gross margin expanded 3.1 points to 70.7% as revenue rose 7.5% to $5.442B
expanded to 70.7%, the highest in the reported quarterly series. rose 7.5% to $5.442B and was $0.61 as and growth plus a benefit lifted profitability. The company is carrying record margin into a $14.5B acquisition it must finance.
Key takeaways
expanded 3.1 points to 70.7%, driven by higher-margin product sales, a benefit, and lower charges, partially offset by unfavorable foreign exchange.
Reported grew 7.5% (7.0% organic) to $5.442B, led by up 8.3% and up 12.7%, while was nearly flat at 1.1% growth.
Reported increased 13.8% to $905M and was $0.61, while grew 14.6% to $0.86 excluding , restructuring, and a one-time IEEPA .
Section summaries
Management's Discussion and Analysis
Q2 2026 sales rose 7.5% to $5.4B driven by Cardiovascular and Neuromodulation, with gross margin expanding to 70.7%.
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Reported grew 7.5% (7.0% organic) to $5.442 billion, led by Cardiovascular (+8.3%) and Neuromodulation (+12.7%), while Urology was nearly flat (+1.1%).
SG&A expenses rose 5% to $1.803B but fell 80 as a percentage of sales; R&D spending increased 5% to $554M to support the product pipeline.
The company entered new credit agreements for the pending $14.5B acquisition, executed a $2B , and held $1.311B available under its .
What changed
Q2 2026 of 70.7% is up 3.1 points and 1.2 points from Q1 2026's 69.5%, reversing the ACURATE-driven dip to 67.7% in Q2 2025 that earlier filings flagged to watch.
growth slowed to 7.5% from 22.8% in Q2 2025 and 11.6% in Q1 2026, with the prior filings' flagged procedure deceleration now visible in 's 8.3% rise versus 29.3% a year earlier.
Legal accrual was not updated this quarter from the $306M reported at Q3 2025; the Al Mann Foundation arbitration over royalties from December 2025 was not reflected in this filing.
was $10.9B at Q2 2026, down 0.7% from Q1 and 1.7% , ahead of the flagged $14.5B acquisition financing flagged in the FY2025 10-K.
rose 14.6% to $1.474B and 323.6% from Q1 2026's $348M, recovering from the prior quarter's working-capital-driven decline.
What to watch
Q3 2026 against 70.7% as benefit laps and integration begins.
trajectory after the $14.5B acquisition closes in H2 2026 and new financing is drawn.
Next legal accrual reading after $306M as Al Mann Foundation arbitration outcome and transvaginal mesh claims resolve.
growth rate in Q3 2026 as procedure deceleration and competitive pressure develop.
expanded 300 to 70.7%, driven by higher-margin product sales, a tariff refund benefit, and lower charges, partially offset by unfavorable FX.
SG&A expenses rose 5% to $1.803 billion but declined 80 as a percentage of sales, while R&D spending increased 5% to $554 million to support the product pipeline.
Reported increased 13.8% to $907 million; adjusted grew 14.6% to $0.86, excluding , restructuring, and a one-time IEEPA tariff refund.
The company entered new credit agreements to support the pending $14.5B acquisition, executed a $2B , and held $1.311B in available liquidity under its .
Quantitative and Qualitative Disclosures About Market Risk
Currency risk is the primary market exposure, managed via a $14.4B derivative program; interest rate risk is limited with 87% of debt at fixed rates.
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The company is exposed to currency risk from foreign-currency firm commitments, intercompany/third-party transactions, and net investments in foreign subsidiaries.
It uses both nonderivative means (European manufacturing) and derivative instruments to manage currency exposure, with $14.384 billion in currency derivatives outstanding as of June 30, 2026.
A 10% appreciation of the U.S. dollar would increase the of currency derivatives by $854 million; a 10% would decrease it by $1.042 billion, with offsetting impacts on hedged items.
Interest rate risk stems mainly from U.S. dollar and euro borrowings, partially offset by U.S. dollar cash investments; no interest rate derivatives were outstanding as of June 30, 2026.
Fixed-rate debt totaled $10.859 billion, representing approximately 87% of total debt on an , consisting of senior notes.
The company does not enter derivatives for speculation and manages counterparty risk by contracting with a diversified group of major financial institutions.
Refer to Note H – Commitments and Contingencies to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
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Refer to Note H – Commitments and Contingencies to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
In addition to other information contained elsewhere in this report, you should carefully consider the factors discussed in Item 1A. Risk Factors in our most recent Annual Report on Form 10-K, which could materially affect our business, financial condition or future results.
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In addition to other information contained elsewhere in this report, you should carefully consider the factors discussed in Item 1A. Risk Factors in our most recent Annual Report on Form 10-K, which could materially affect our business, financial condition or future results.