BOSTON SCIENTIFIC CORP

Previous wording

Boston Scientific Corporation is a global developer, manufacturer and marketer of medical devices that are used in a broad range of interventional medical specialties. Our mission is to transform lives through innovative medical solutions that improve the health of patients around the world. As a medical technology leader for more than 40 years, we have advanced the practice of less-invasive medicine by helping physicians and other medical professionals diagnose and treat a wide range of diseases and medical conditions and improve patients’ quality of life by providing alternatives to surgery and other medical procedures that are typically traumatic to the body. We advance science for life by providing a broad range of high performance solutions to address unmet patient needs and reduce the cost of healthcare. When used in this report, the terms "we," "us," "our" and "the Company" mean Boston Scientific Corporation and its divisions and subsidiaries.

Current wording

Boston Scientific Corporation is a global developer, manufacturer and marketer of medical devices that are used in a broad range of interventional medical specialties. Our mission is to transform lives through innovative medical solutions that improve the health of patients around the world. As a medical technology leader for more than 45 years, we have advanced the practice of less-invasive medicine by helping physicians and other medical professionals diagnose and treat a wide range of diseases and medical conditions and improve patients’ quality of life by providing alternatives to surgery and other medical procedures that are typically traumatic to the body. We advance science for life by providing a broad range of high performance solutions to address unmet patient needs and reduce the cost of healthcare. When used in this report, the terms "we," "us," "our" and "the Company" mean Boston Scientific Corporation and its divisions and subsidiaries.

Previous wording

Our net sales for the second quarter of 2025 were $5.061 billion, compared to $4.120 billion for the second quarter of 2024. This increase of $941 million, or 22.8 percent, included operational 1 net sales growth of 21.6 percent and the positive impact of 120 basis points from foreign currency fluctuations. Operational net sales growth included organic 2 net sales growth of 17.4 percent and the positive impact of 420 basis points from certain acquisitions during the period for which there are less than a full period of comparable net sales. Those acquisitions included Silk Road Medical, Inc. (Silk Road Medical) and Axonics, Inc. (Axonics), during the third and fourth quarters of 2024, respectively, and Intera Oncology®, Inc. (Intera) during the second quarter of 2025. The increase in our net sales was primarily driven by strong commercial execution across our businesses, particularly in our Electrophysiology business unit, which was led by the rapid adoption of our Farapulse™ Pulsed Field Ablation System which launched in the U.S. in 2024. Refer to Quarterly Results and Business Overview for a discussion of our net sales by business.

Current wording

Our net sales for the third quarter of 2025 were $5.065 billion, compared to $4.209 billion for the third quarter of 2024. This increase of $855 million, or 20.3 percent, included operational 1 net sales growth of 19.4 percent and the positive impact of 90 basis points from foreign currency fluctuations. Operational net sales growth included organic 2 net sales growth of 15.3 percent and the positive impact of 420 basis points from certain acquisitions during the period for which there are less than a full period of comparable net sales. Those acquisitions included Silk Road Medical, Inc. (Silk Road Medical) and Axonics, Inc. (Axonics), during the third and fourth quarters of 2024, respectively, and Intera Oncology®, Inc. (Intera) during the second quarter of 2025. The increase in our net sales was primarily driven by strong commercial execution across our businesses, particularly in our Electrophysiology business unit, which was led by the continued growth of our Farapulse™ Pulsed Field Ablation System which launched in the U.S. in 2024 and in our Watchman business unit, which was led by the adoption of concomitant procedures in the U.S. Refer to Quarterly Results and Business Overview for a discussion of our net sales by business.

Previous wording

Our reported net income attributable to Boston Scientific common stockholders for the second quarter of 2025 was $797 million, or $0.53 per diluted share. Our reported results for the second quarter of 2025 included certain charges and/or credits totaling $330 million (after-tax), or $0.22 per diluted share. Excluding these items, adjusted net income attributable to Boston Scientific common stockholders 3 was $1.127 billion, or $0.75 per diluted share.

Current wording

Our reported net income attributable to Boston Scientific common stockholders for the third quarter of 2025 was $755 million, or $0.51 per diluted share. Our reported results for the third quarter of 2025 included certain charges and/or credits totaling $369 million (after-tax), or $0.25 per diluted share. Excluding these items, adjusted net income attributable to Boston Scientific common stockholders 3 was $1.124 billion, or $0.75 per diluted share.

Previous wording

Our net sales for the first six months of 2025 were $9.724 billion, compared to $7.977 billion for the first six months of 2024. This increase of $1.747 billion, or 21.9 percent, included operational 1 net sales growth of 21.9 percent and the neutral impact of less than one basis point from foreign currency fluctuations. Operational net sales growth included organic 2 net sales growth of 17.8 percent and the positive impact of 410 basis points from certain acquisitions during the period for which there are less than a full period of comparable net sales. Those acquisitions included the endoluminal vacuum therapy portfolio of B. Braun Medical Inc. (Braun), Silk Road Medical and Axonics during the first, third and fourth quarters of 2024, respectively, and Intera during the second quarter of 2025. The increase in our net sales was primarily driven by strong commercial execution across our businesses, particularly in our Electrophysiology business unit, which was led by the rapid adoption of our Farapulse™ Pulsed Field Ablation System which launched in the U.S. in early 2024. Refer to Quarterly Results and Business Overview for a discussion of our net sales by business.

Current wording

Our net sales for the first nine months of 2025 were $14.788 billion, compared to $12.186 billion for the first nine months of 2024. This increase of $2.602 billion, or 21.4 percent, included operational 1 net sales growth of 21.0 percent and the positive impact of 30 basis points from foreign currency fluctuations. Operational net sales growth included organic 2 net sales growth of 16.9 percent and the positive impact of 410 basis points from certain acquisitions during the period for which there are less than a full period of comparable net sales. Those acquisitions included the endoluminal vacuum therapy portfolio of B. Braun Medical Inc. (Braun), Silk Road Medical and Axonics during the first, third and fourth quarters of 2024, respectively, and Intera during the second quarter of 2025. The increase in our net sales was primarily driven by strong commercial execution across our businesses, particularly in our Electrophysiology business unit, which was led by the continued growth of our Farapulse™ Pulsed Field Ablation System which launched in the U.S. in early 2024 and in our Watchman business unit, which was led by the adoption of concomitant procedures in the U.S. Refer to Quarterly Results and Business Overview for a discussion of our net sales by business.

Previous wording

Our Endoscopy business develops and manufactures devices to diagnose and treat a broad range of gastrointestinal (GI) conditions with innovative, less-invasive technologies. Net sales of Endoscopy products of $737 million during the second quarter and $1.410 billion during the first six months of 2025 represented 15 percent and 14 percent of our consolidated net sales, respectively. Endoscopy net sales increased $61 million, or 9.1 percent, during the second quarter and $92 million, or 7.0 percent, during the first six months of 2025, compared to the prior year periods. During the second quarter of 2025, this increase included operational net sales growth of 7.8 percent and the positive impact of 130 basis points from foreign currency fluctuations, compared to the prior year period. During the first six months of 2025, this increase included operational net sales growth of 6.9 percent and a neutral impact of less than one basis point from foreign currency fluctuations, compared to the prior year period.

Current wording

Our Endoscopy business develops and manufactures devices to diagnose and treat a broad range of gastrointestinal (GI) conditions with innovative, less-invasive technologies. Net sales of Endoscopy products of $747 million during the third quarter and $2.157 billion during the first nine months of 2025 represented 15 percent of our consolidated net sales in both periods. Endoscopy net sales increased $69 million, or 10.1 percent, during the third quarter and $160 million, or 8.0 percent, during the first nine months of 2025, compared to the prior year periods. During the third quarter of 2025, this increase included operational net sales growth of 9.0 percent and the positive impact of 110 basis points from foreign currency fluctuations, compared to the prior year period. During the first nine months of 2025, this increase included operational net sales growth of 7.6 percent and the positive impact of 40 basis points from foreign currency fluctuations, compared to the prior year period.

Previous wording

Operational net sales growth during the second quarter of 2025 included organic net sales growth of 7.8 percent. Operational net sales growth during the first six months of 2025 included organic net sales growth of 6.7 percent and the positive impact of 20 basis points from our acquisition of the endoluminal vacuum therapy portfolio of Braun during the first quarter of 2024. Organic net sales growth in both periods was primarily driven by our biliary franchise led by our AXIOS™ Stent and Delivery System, and our endoluminal surgery franchise.

Current wording

Operational net sales growth during the third quarter of 2025 included organic net sales growth of 9.0 percent. Operational net sales growth during the first nine months of 2025 included organic net sales growth of 7.5 percent and the positive impact of 10 basis points from our acquisition of the endoluminal vacuum therapy portfolio of Braun during the first quarter of 2024. Organic net sales growth in both periods was primarily driven by our biliary franchise led by our AXIOS™ Stent and Delivery System, and our core GI and endoluminal surgery franchises.

Previous wording

Our Urology business develops and manufactures devices to treat various urological conditions for both male and female anatomies, including kidney stones, benign prostatic hyperplasia (BPH), prostate cancer, erectile dysfunction and incontinence. Net sales of Urology products of $676 million during the second quarter and $1.310 billion during the first six months of 2025 represented 13 percent of our consolidated net sales in both periods. Urology net sales increased $152 million, or 28.9 percent, during the second quarter and $272 million, or 26.2 percent, during the first six months of 2025, compared to the prior year periods. During the second quarter of 2025, this increase included operational net sales growth of 28.0 percent and the positive impact of 80 basis points from foreign currency fluctuations, compared to the prior year period. During the first six months of 2025, this increase included operational net sales growth of 26.3 percent and a negative impact of 10 basis points from foreign currency fluctuations, compared to the prior year period.

Current wording

Our Urology business develops and manufactures devices to treat various urological conditions for both male and female anatomies, including kidney stones, benign prostatic hyperplasia (BPH), prostate cancer, erectile dysfunction and incontinence. Net sales of Urology products of $682 million during the third quarter and $1.992 billion during the first nine months of 2025 represented 13 percent of our consolidated net sales in both periods. Urology net sales increased $150 million, or 28.1 percent, during the third quarter and $422 million, or 26.9 percent, during the first nine months of 2025, compared to the prior year periods. During the third quarter of 2025, this increase included operational net sales growth of 27.5 percent and the positive impact of 60 basis points from foreign currency fluctuations, compared to the prior year period. During the first nine months of 2025, this increase included operational net sales growth of 26.7 percent and a positive impact of 20 basis points from foreign currency fluctuations, compared to the prior year period.

Previous wording

Operational net sales growth included organic net sales growth of 6.3 percent during the second quarter of 2025 and 5.4 percent during the first six months of 2025, and the positive impact of 2,170 and 2,090 basis points, respectively, from our acquisition of Axonics during the fourth quarter of 2024. Organic net sales growth in both periods was primarily driven by our stone management and prosthetic urology franchises.

Current wording

Operational net sales growth included organic net sales growth of 5.4 percent during the third quarter and first nine months of 2025, and the positive impact of 2,210 and 2,130 basis points, respectively, from our acquisition of Axonics during the fourth quarter of 2024. Organic net sales growth in both periods was primarily driven by our stone management franchise.

Previous wording

Our Neuromodulation business develops and manufactures devices to treat various neurological movement disorders and manage chronic pain. Net sales of Neuromodulation products of $303 million during the second quarter and $574 million during the first six months of 2025 represented 6 percent of our consolidated net sales in both periods. Neuromodulation net sales increased $20 million, or 7.2 percent, during the second quarter and $35 million, or 6.5 percent, during the first six months of 2025, compared to the prior year periods. During the second quarter of 2025, this increase included operational net sales growth of 6.6 percent and the positive impact of 60 basis points from foreign currency fluctuations, compared to the prior year period. During the first six months of 2025, this increase included operational net sales growth of 6.7 percent and a negative impact of 10 basis points from foreign currency fluctuations, compared to the prior year period.

Current wording

Our Neuromodulation business develops and manufactures devices to treat various neurological movement disorders and manage chronic pain. Net sales of Neuromodulation products of $293 million during the third quarter and $866 million during the first nine months of 2025 represented 6 percent of our consolidated net sales in both periods. Neuromodulation net sales increased $24 million, or 9.1 percent, during the third quarter and $60 million, or 7.4 percent, during the first nine months of 2025, compared to the prior year periods. During the third quarter of 2025, this increase included operational net sales growth of 8.6 percent and the positive impact of 50 basis points from foreign currency fluctuations, compared to the prior year period. During the first nine months of 2025, this increase included operational net sales growth of 7.3 percent and a positive impact of 10 basis points from foreign currency fluctuations, compared to the prior year period.

Previous wording

Operational net sales growth in both periods was primarily driven by our Intracept™ Intraosseous Nerve Ablation System and our deep brain stimulation franchise.

Current wording

Operational net sales growth in both periods was primarily driven by our Intracept™ Intraosseous Nerve Ablation System, and our spinal cord stimulation and deep brain stimulation franchises.

Previous wording

Our Cardiology business develops and manufactures devices and medical technologies for diagnosing and treating a variety of diseases and abnormalities of the heart. Net sales of Cardiology products of $2.647 billion during the second quarter and $5.077 billion for the first six months of 2025 represented 52 percent of our consolidated net sales in both periods. Cardiology net sales increase $600 million, or 29.3 percent, during the second quarter and $1.158 billion, or 29.5 percent, during the first six months of 2025, compared to the prior year periods. During the second quarter of 2025, this increase included operational net sales growth of 27.9 percent and the positive impact of 140 basis points from foreign currency fluctuations, compared to the prior year period. During the first six months of 2025, this increase included operational net sales growth of 29.5 percent and a positive impact of 10 basis points from foreign currency fluctuations, compared to the prior year period.

Current wording

Our Cardiology business develops and manufactures devices and medical technologies for diagnosing and treating a variety of diseases and abnormalities of the heart. Net sales of Cardiology products of $2.641 billion during the third quarter and $7.717 billion for the first nine months of 2025 represented 52 percent of our consolidated net sales in both periods. Cardiology net sales increased $512 million, or 24.0 percent, during the third quarter and $1.669 billion, or 27.6 percent, during the first nine months of 2025, compared to the prior year periods. During the third quarter of 2025, this increase included operational net sales growth of 23.1 percent and the positive impact of 100 basis points from foreign currency fluctuations, compared to the prior year period. During the first nine months of 2025, this increase included operational net sales growth of 27.2 percent and a positive impact of 40 basis points from foreign currency fluctuations, compared to the prior year period.

Previous wording

Operational net sales growth in both periods was primarily driven by growth of our Electrophysiology business unit, led by our Farapulse™ Pulsed Field Ablation (PFA) System, continued market penetration of Left Atrial Appendage Closure (LAAC) procedures with our WATCHMAN FLX™ LAAC Device and our WATCHMAN FLX™ Pro LAAC Device, as well as our coronary therapies franchise led by the ongoing U.S. launch of our AGENT™ Drug-Coated Balloon. In the second quarter of 2025, we announced the discontinuation of worldwide sales of the ACURATE Neo2™ and ACURATE Prime™ Aortic Valve Systems and that we would no longer pursue U.S. FDA approval for ACURATE or approval in other geographies. We made the decision based on discussions with regulators which had resulted in increased clinical and regulatory requirements to maintain regulatory approvals in global markets and to obtain approvals in new regions. The additional investments needed to satisfy these requirements were prohibitive and we will instead focus our resources and efforts on the remainder of the portfolio.

Current wording

Operational net sales growth in both periods was primarily driven by growth of our Electrophysiology business unit, led by our Farapulse™ Pulsed Field Ablation (PFA) System, continued market penetration of Left Atrial Appendage Closure (LAAC) procedures with our WATCHMAN™ LAAC Devices, as well as our coronary therapies franchise led by our AGENT™ Drug-Coated Balloon. As previously disclosed, in the second quarter of 2025, we announced the discontinuation of worldwide sales of the ACURATE Neo2™ and ACURATE Prime™ Aortic Valve Systems and that we would no longer pursue U.S. FDA approval for ACURATE or approval in other geographies. We will instead focus our resources and efforts on the remainder of the portfolio.

Previous wording

Our Peripheral Interventions business develops and manufactures products to diagnose and treat peripheral arterial and venous diseases, as well as products to diagnose, treat and ease various forms of cancer. Net sales of Peripheral Interventions products of $698 million during the second quarter and $1.354 billion during the first six months of 2025 represented 14 percent of our consolidated net sales in both periods. Peripheral Interventions net sales increased $108 million, or 18.3 percent, during the second quarter and $190 million, or 16.4 percent, during the first six months of 2025, compared to the prior year periods. During the second quarter of 2025, this increase included operational net sales growth of 17.1 percent and the positive impact of 110 basis points from foreign currency fluctuations, compared to the prior year period. During the first six months of 2025, this increase included operational net sales growth of 16.5 percent and a negative impact of 10 basis points from foreign currency fluctuations, compared to the prior year period.

Current wording

Our Peripheral Interventions business develops and manufactures products to diagnose and treat peripheral arterial and venous diseases, as well as products to diagnose, treat and ease various forms of cancer. Net sales of Peripheral Interventions products of $702 million during the third quarter and $2.056 billion during the first nine months of 2025 represented 14 percent of our consolidated net sales in both periods. Peripheral Interventions net sales increased $101 million, or 16.7 percent, during the third quarter and $291 million, or 16.5 percent, during the first nine months of 2025, compared to the prior year periods. During the third quarter of 2025, this increase included operational net sales growth of 15.8 percent and the positive impact of 90 basis points from foreign currency fluctuations, compared to the prior year period. During the first nine months of 2025, this increase included operational net sales growth of 16.3 percent and a positive impact of 20 basis points from foreign currency fluctuations, compared to the prior year period.

Previous wording

Operational net sales growth included organic net sales growth of 7.0 percent during the second quarter of 2025 and 7.2 percent during the first six months of 2025, and the positive impact of 1,020 and 930 basis points, respectively, from our acquisition of Silk Road Medical during the third quarter of 2024 and Intera during the second quarter of 2025. Organic net sales growth in both periods was primarily driven by our interventional oncology franchise led by our Therasphere™ Y-90 Radioactive Glass Microspheres and EMBOLD™ Fibered Coil, as well as our venous portfolio within our vascular franchise led by our Varithena™ Polidocanol Injectable Foam and EKOS™ Ultrasound Assisted Thrombolysis systems.

Current wording

Operational net sales growth included organic net sales growth of 6.3 percent during the third quarter of 2025 and 6.9 percent during the first nine months of 2025, and the positive impact of 950 and 940 basis points, respectively, from our acquisition of Silk Road Medical during the third quarter of 2024 and Intera during the second quarter of 2025. Organic net sales growth in both periods was primarily driven by our interventional oncology franchise led by our EMBOLD™ Fibered Coil, as well as our venous portfolio within our vascular franchise led by our Varithena™ Polidocanol Injectable Foam and EKOS™ Ultrasound Assisted Thrombolysis systems.

Previous wording

Our Emerging Markets' net sales represented 15 percent of our consolidated net sales during the second quarter and first six months of 2025, respectively, and 16 percent and 17 percent during the second quarter and first six months of 2024, respectively. During the second quarter of 2025, our Emerging Markets net sales grew 11.6 percent on a reported basis, which included operational net sales growth of 12.1 percent and a negative impact of 50 basis points from foreign currency fluctuations, compared to the prior year period. During the first six months of 2025, our Emerging Markets net sales grew 9.1 percent on a reported basis, which included operational net sales growth of 10.9 percent and a negative impact of 190 basis points from foreign currency fluctuations, compared to the prior year period. Operational net sales growth in both periods was primarily driven by growth in China, fueled by the breadth of our portfolio and focus on innovation and strong commercial execution.

Current wording

Our Emerging Markets' net sales represented 15 percent of our consolidated net sales during the third quarter and first nine months of 2025, respectively, and 16 percent and 17 percent during the third quarter and first nine months of 2024, respectively. During the third quarter of 2025, our Emerging Markets net sales grew 11.8 percent on a reported basis, which included operational net sales growth of 11.5 percent and a positive impact of 20 basis points from foreign currency fluctuations, compared to the prior year period. During the first nine months of 2025, our Emerging Markets net sales grew 10.0 percent on a reported basis, which included operational net sales growth of 11.2 percent and a negative impact of 110 basis points from foreign currency fluctuations, compared to the prior year period. Operational net sales growth in both periods was primarily driven by growth in China, fueled by the breadth of our portfolio and focus on innovation and strong commercial execution.

Previous wording

As a global developer, manufacturer and marketer of medical devices, our business is subject to local and international macroeconomic trends as well as geopolitical factors. While global supply chain conditions have continued to improve, we have experienced, and may continue to experience, increases in cost and limited availability of certain raw materials, components, and other inputs necessary to manufacture and distribute our products due to constraints and inflation within the global supply chain, as well as increases in wage costs and the cost and time to distribute our products. Uncertainty around inflationary pressures, interest rates, trade and tariff policies, foreign currency fluctuations and changes in tax laws, as well as actions by governments in response thereto, could create additional economic challenges which could negatively impact our business operations and results. We anticipate incurring incremental costs under the current schedule of reciprocal tariffs on U.S. imports recently announced by the U.S. government, as well as the subsequent increase in tariffs introduced by China on U.S. manufactured products. While some of the announced tariffs have been paused and the U.S. and other governments continue negotiations on such measures, these and any further tariff increases on our products by the U.S., China or any other country or region, as well as sanctions or other measures that restrict international trade could have a material adverse impact on our business operations and results. We continue to monitor the situation while exploring opportunities to mitigate the impacts of such tariffs. There can be no guarantee that we will be able to offset the impact of tariffs, the ultimate impact of which will depend on various factors, including the timing, scope, duration and nature of any tariffs, any other trade restrictions or opportunities to mitigate such impacts. In addition, geopolitical developments and uncertainties, including related to various ongoing global conflicts and tensions, may create economic, supply chain, transportation, energy, and other challenges, including disruptions to business operations, which could negatively impact our business and results of operations.

Current wording

As a global developer, manufacturer and marketer of medical devices, our business is subject to local and international macroeconomic trends as well as geopolitical factors. While global supply chain conditions have continued to improve, we have experienced, and may continue to experience, increases in cost and limited availability of certain raw materials, components, and other inputs necessary to manufacture and distribute our products due to constraints and inflation within the global supply chain, as well as increases in wage costs and the cost and time to distribute our products. Uncertainty around inflationary pressures, interest rates, trade and tariff policies, foreign currency fluctuations and changes in tax laws, as well as actions by governments in response thereto, could create additional economic challenges which could negatively impact our business operations and results. We continue to anticipate incurring incremental costs under the current schedule of tariffs on U.S. imports announced by the U.S. government, as well as the subsequent increase in tariffs introduced by China on U.S. manufactured products. While some of the announced tariffs have been adjusted and the U.S. and other governments continue negotiations on such measures, these and any further tariff increases on our products by the U.S., China or any other country or region, as well as sanctions or other measures that restrict international trade, could have a material adverse impact on our business operations and results. We continue to monitor the evolving situation while exploring opportunities to mitigate the impacts of such tariffs. There can be no guarantee that we will be able to offset the impact of tariffs, the ultimate impact of which will depend on various factors, including the timing, scope, duration and nature of any tariffs, any other trade restrictions or opportunities to mitigate such impacts. In addition, geopolitical developments and uncertainties, including related to various ongoing global conflicts and tensions, may create economic, supply chain, transportation, energy, and other challenges, including disruptions to business operations, which could negatively impact our business and results of operations.

Previous wording

Our Gross profit was $3.424 billion for the second quarter of 2025, $2.850 billion for the second quarter of 2024, $6.633 billion for the first six months of 2025 and $5.498 billion for the first six months of 2024. The following is a reconciliation of our gross profit margin and a description of the drivers of the changes from period to period:

Current wording

Our Gross profit was $3.542 billion and $10.175 billion for the third quarter and first nine months of 2025, respectively, and $2.897 billion and $8.395 billion for the third quarter and first nine months of 2024, respectively. The following is a reconciliation of our gross profit margin and a description of the drivers of the changes from period to period:

Previous wording

Gross profit margin decreased in the second quarter and first six months of 2025, as compared to the same periods in the prior year. The primary factors that impacted gross profit margin in the second quarter and first six months of 2025 were inventory charges of approximately $85 million resulting from the global discontinuation of the ACURATE platform and other period expenses, partially offset by increased sales of higher margin products.

Current wording

In the third quarter of 2025, the primary factors that impacted gross profit margin were increased sales of higher margin products, partially offset by increased levels of tariffs and other period expenses. In the first nine months of 2025, the primary factors that impacted gross profit margin were inventory charges of approximately $90 million resulting from the global discontinuation of the ACURATE platform, increased levels of tariffs and other period expenses, partially offset by increased sales of higher margin products.

Previous wording

During the second quarter of 2025, SG&A expenses increased $269 million, or 19 percent, compared to the prior year period and were 120 basis points lower as a percentage of net sales. During the first six months of 2025, SG&A expenses increased $502 million, or 18 percent compared to the prior year period and were 120 basis points lower as a percentage of net sales. The increase in SG&A expenses in the second quarter and first six months of 2025 was driven in part by higher selling costs driven by higher global net sales and costs to support product launches, including the Farapulse™ Pulsed Field Ablation System in our Electrophysiology business unit, and was also due to comparatively higher acquisition-related and restructuring-related expenses.

Current wording

During the third quarter of 2025, SG&A expenses increased $179 million, or 11 percent, compared to the prior year period and were 270 basis points lower as a percentage of net sales. During the first nine months of 2025, SG&A expenses increased $681 million, or 16 percent compared to the prior year period and were 170 basis points lower as a percentage of net sales. The increase in SG&A expenses in the third quarter and first nine months of 2025 was driven by selling expenses associated with higher net sales and product launches, including the Farapulse™ Pulsed Field Ablation System in our Electrophysiology business unit.

Previous wording

We remain committed to advancing medical technologies and investing in meaningful R&D projects across our businesses. During the second quarter of 2025, R&D expenses increased $143 million, or 37 percent, compared to the prior year period and 110 basis points higher as a percentage of net sales. During the first six months of 2025, R&D expenses increased $221 million, or 29 percent, compared to the prior year period and 60 basis points higher as a percentage of net sales. R&D expenses increased in both periods as a result of investments across our businesses in order to maintain a pipeline of new products that we believe will contribute to profitable sales growth.

Current wording

We remain committed to advancing medical technologies and investing in meaningful R&D projects across our businesses. During the third quarter of 2025, R&D expenses increased $107 million, or 26 percent, compared to the prior year period and were 40 basis points higher as a percentage of net sales. During the first nine months of 2025, R&D expenses increased $327 million, or 28 percent, compared to the prior year period and were 50 basis points higher as a percentage of net sales. The increase in R&D expenses in both periods was driven by investments across our businesses, including those required to support the development and clinical evidence necessary to bring newly acquired technologies to market and maintain a pipeline of products that we believe will contribute to profitable sales growth.

Previous wording

During the second quarter of 2025, Amortization expense increased $12 million, or 6 percent, compared to the prior year period. In the first six months of 2025, Amortization expense increased $18 million, or 4 percent, compared to the prior year period.

Current wording

During the third quarter of 2025, Amortization expense increased $20 million, or 10 percent, compared to the prior year period. In the first nine months of 2025, Amortization expense increased $38 million, or 6 percent, compared to the prior year period.

Previous wording

In 2025, we recorded Intangible asset impairment charges of $46 million in the second quarter and first six months. In 2024, we recorded Intangible asset impairment chargesof $276 million in the second quarter and first six months. The impairment charges recorded in 2024 were associated with amortizable intangible assets established in connection with our acquisitions of Cryterion Medical, Inc. (Cryterion) and Devoro Medical, Inc. (Devoro), which were integrated into our Electrophysiology and Peripheral Interventions business units, respectively. Intangible assets acquired from Cryterion were impaired due to strong commercial adoption of our Farapulse™ Pulsed Field Ablation System and the resulting lower revenue projections and cannibalization of our cryoablation business in major markets like the U.S. Intangible assets acquired from Devoro were impaired following management's decision to cancel the related program in the second quarter of 2024.

Current wording

In 2025, we recorded Intangible asset impairment charges of less than $1 million in the third quarter and $46 million in the first nine months. In 2024, we did not record any Intangible asset impairment charges in the third quarter and recorded Intangible asset impairment chargesof $276 million in the first nine months. The impairment charges recorded in 2024 were associated with amortizable intangible assets established in connection with our acquisitions of Cryterion Medical, Inc. (Cryterion) and Devoro Medical, Inc. (Devoro), which were integrated into our Electrophysiology and Peripheral Interventions business units, respectively. Intangible assets acquired from Cryterion were impaired due to strong commercial adoption of our Farapulse™ Pulsed Field Ablation System and the resulting lower revenue projections and cannibalization of our cryoablation business in major markets like the U.S. Intangible assets acquired from Devoro were impaired following management's decision to cancel the related program in the second quarter of 2024.

Previous wording

(1)Plans detailing specific employee impacts will be developed for each affected region and business, working with employee representative bodies where required under local laws.

Current wording

(1)Plans detailing specific employee impacts will be developed for each affected region and business, working with employee representative

Previous wording

(4)Comprised of other costs directly related to the restructuring program, including program management, accelerated depreciation and fixed asset write-offs.

Current wording

(4)Comprised of other costs directly related to the restructuring program, including program management, accelerated depreciation and fixed

Previous wording

In addition, on May 28, 2025, we announced the discontinuation of worldwide sales of the ACURATE neo2™ and ACURATE Prime™ Aortic Valve Systems and that we would no longer pursue U.S. FDA approval for ACURATE or approval in other geographies. The decision resulted in total pre-tax restructuring and restructuring-related net charges of approximately $110 million in the second quarter of 2025. We estimate the majority of the charges were recorded during the second quarter of 2025, and we expect the remaining activity to be substantially complete by the end of 2025.

Current wording

In addition, on May 28, 2025, we announced the discontinuation of worldwide sales of the ACURATE neo2™ and ACURATE Prime™ Aortic Valve Systems and that we would no longer pursue U.S. FDA approval for ACURATE or approval in other geographies. The decision resulted in total pre-tax restructuring and restructuring-related net charges of approximately $90 million in the first nine months of 2025. We expect the remaining activity to be substantially complete by the end of 2025.

Previous wording

We record certain legal and product liability charges, credits and costs of defense, which we consider to be unusual or infrequent and significant as Litigation-related net charges (credits) within our accompanying unaudited consolidated financial statements. We did not record any litigation-related net charges (credits) during the second quarter and first six months of 2025 or 2024. All other legal and product liability charges, credits and costs are recorded within SG&A expenses.

Current wording

We record certain legal and product liability charges, credits and costs of defense, which we consider to be unusual or infrequent and significant as Litigation-related net charges (credits) within our accompanying unaudited consolidated financial statements. We did not record any litigation-related net charges (credits) during the third quarter and first nine months of 2025 or 2024. All other legal and product liability charges, credits and costs are recorded within SG&A expenses.

Previous wording

Interest expense increased during the second quarter and first six months of 2025 compared to the prior year period primarily due toincreased debt from the registered public offering of €1.500 billion in aggregate principal amount of euro-denominated senior notes (the 2025 Eurobonds) during the first quarter of 2025. Our average borrowing rate increased during the second quarter and first six months of 2025 compared to the prior year period. Refer to Liquidity and Capital Resources and Note E – Contractual Obligations and Commitments to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding our debt obligations.

Current wording

Interest expense increased during the third quarter and first nine months of 2025 compared to the prior year period primarily due to a higher average borrowing rate and higher average outstanding debt balances. Refer to Liquidity and Capital Resources and Note E – Contractual Obligations and Commitments to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding our debt obligations.

Previous wording

In the second quarter and first six months of 2025, the principal reasons for the difference between the rate from continuing operations and our reported tax rate relates to certain acquisition-related net charges, and discrete tax benefits primarily related to stock-based compensation.

Current wording

In the third quarter and first nine months of 2025, the principal reason for the difference between the rate from continuing operations and our reported tax rate relates to certain acquisition-related net charges and certain discrete tax benefits primarily related to stock-based compensation.

Previous wording

In the second quarter of 2024, the principal reasons for the difference between the rate from continuing operations and our reported tax rate relates to impairment charges. Additionally, there were certain discrete tax benefits primarily related to stock-based compensation as well as charges for unrecognized tax benefits. In the first six months of 2024, the principal reasons for the difference between the rate from continuing operations and our reported tax rate relates to certain acquisition-related net charges as well as impairment charges. Additionally, there were certain discrete tax benefits primarily related to stock-based compensation.

Current wording

In the third quarter of 2024, the principal reason for the difference between the rate from continuing operations and our reported tax rate relates to certain acquisition-related net charges. In the first nine months of 2024, the principal reasons for the difference between the rate from continuing operations and our reported tax rate relate to certain acquisition-related net charges, impairment charges and certain discrete tax benefits primarily related to stock-based compensation.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. It includes significant changes to corporate income taxes including extending and modifying many provisions of the Tax Cuts and Jobs Act. Provisions of the OBBBA impacting the Company include the immediate expensing of U.S. performed research and development expenditures as well as modifications to the taxation of our international operations. Certain provisions will take effect beginning in 2026, while others apply retroactively to January 1, 2025. We are still assessing the impact of the OBBBA, but we currently expect an immaterial impact to our overall effective tax rate, financial condition, results of operations, and cash flow in 2025.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. It includes significant changes to corporate income taxes including extending and modifying many provisions of the Tax Cuts and Jobs Act. Provisions of the OBBBA impacting the Company include the immediate expensing of U.S. performed research and development expenditures as well as modifications to the taxation of our international operations. Certain provisions will take effect beginning in 2026, while others apply retroactively to January 1, 2025. Based on our current analysis of OBBBA, we expect an immaterial impact to our overall effective tax rate, financial condition, results of operations, and cash flow in 2025.

Previous wording

Our financial results are affected by the selection and application of accounting policies and methods. During the second quarter and first six months of 2025, there were no material changes to the application of critical accounting policies previously disclosed in our most recent Annual Report on Form 10-K.

Current wording

Our financial results are affected by the selection and application of accounting policies and methods. During the third quarter and first nine months of 2025, there were no material changes to the application of critical accounting policies previously disclosed in our most recent Annual Report on Form 10-K.

Previous wording

As of June 30, 2025, we had $534 million of unrestricted Cash and cash equivalents on hand, including approximately $89 million held by Acotec Scientific Holdings Limited, a less than wholly owned entity of which we acquired a majority stake investment during the first quarter of 2023. The balance is comprised of $146 million invested in money market funds and time deposits and $388 million in interest bearing and non-interest-bearing bank accounts. We invest excess cash on hand in short-term financial instruments that earn at market interest rates while mitigating principal risk through instrument and counterparty diversification, as well as what we believe to be prudent instrument selection. We limit our direct exposure to securities in any one industry or issuer.

Current wording

As of September 30, 2025, we had $1.275 billion of unrestricted Cash and cash equivalents on hand, including approximately $61 million held by Acotec Scientific Holdings Limited, a less than wholly owned entity of which we acquired a majority stake investment during the first quarter of 2023. The balance is comprised of $382 million invested in money market funds and time deposits and $893 million in interest bearing and non-interest-bearing bank accounts. We invest excess cash on hand in short-term financial instruments that earn at market interest rates while mitigating principal risk through instrument and counterparty diversification, as well as what we believe to be prudent instrument selection. We limit our direct exposure to securities in any one industry or issuer.

Previous wording

In 2021, we entered into our $2.750 billion revolving credit facility (as amended, supplemented or otherwise modified from time to time, the 2021 Revolving Credit Facility) with a global syndicate of commercial banks. The 2021 Revolving Credit Facility has a maturity date of May 10, 2029. This facility provides backing for our commercial paper program, and outstanding commercial paper directly reduces borrowing capacity under the 2021 Revolving Credit Facility. There was $197 million outstanding under our commercial paper program as of June 30, 2025. There were no amounts outstanding under the 2021 Revolving Credit Facility as of June 30, 2025, resulting in an additional $2.553 billion of available liquidity.

Current wording

In 2021, we entered into our $2.750 billion revolving credit facility (as amended, supplemented or otherwise modified from time to time, the 2021 Revolving Credit Facility) with a global syndicate of commercial banks. The 2021 Revolving Credit Facility has a maturity date of May 10, 2029. This facility provides backing for our commercial paper program, and outstanding commercial paper directly reduces borrowing capacity under the 2021 Revolving Credit Facility. There were no amounts outstanding under our commercial paper program as of September 30, 2025. There were no amounts outstanding under the 2021 Revolving Credit Facility as of September 30, 2025, resulting in an additional $2.750 billion of available liquidity.

Previous wording

During the first six months of 2025, cash provided by (used for) operating activities increased $850 million compared to the prior year period primarily due to comparatively higher sales and corresponding operating income, slower inventory buildup, and lower income tax payments.

Current wording

During the first nine months of 2025, cash provided by (used for) operating activities increased $1.191 billion compared to the prior year period primarily due to comparatively higher sales and corresponding operating income and slower inventory buildup.

Previous wording

During the first six months of 2025, cash provided by (used for) investing activities included net cash payments of $1.248 billion for the acquisition of Bolt Medical, Inc., SoniVie Ltd., Cortex, Inc. and Intera, andpurchases of property, plant and equipment and internal use softwareof $344 million. During the first six months of 2024, cash used for investing activities included purchases of property, plant and equipment and internal use software of $334 million as well aspayments for investments and acquisitions of certain technologies, net of investment proceeds of $139 million. For more information on our acquisitions, refer to Note B – Acquisitions and Strategic Investments to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Current wording

During the first nine months of 2025, cash provided by (used for) investing activities included net cash payments of $1.504 billion for acquisitions of businesses, primarily related to Bolt Medical, Inc., SoniVie Ltd., Cortex, Inc., Intera, and Anrei Medical (HZ) Co., Ltd, andpurchases of property, plant and equipment and internal use softwareof $525 million. During the first nine months of 2024, cash used for investing activities included net cash payments of $1.222 billion for acquisitions of businesses, primarily related to Silk Road Medical, purchases of property, plant and equipment and internal use software of $513 million as well aspayments for investments and acquisitions of certain technologies, net of investment proceeds of $264 million. For more information on our acquisitions, refer to Note B – Acquisitions and Strategic Investments to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

During the first six months of 2025, cash provided by (used for) financing activities included the registered public offering of €1.500 billion in aggregate principal amount of euro-denominated senior notes (the 2025 Eurobonds). The 2025 Eurobonds offering resulted in cash proceeds of $1.558 billion, net of investor discounts and issuance costs. We used the net proceeds from the 2025 Eurobonds offering to fund the repayment at maturity of AMS Europe’s €1.000 billion 0.750% Senior Notes due March 2025 and to pay accrued and unpaid interest with respect to such notes. Additionally, we used the remaining net proceeds for general corporate purposes, including, among other things, short term investments, reduction of short term debt, funding of working capital and acquisitions. During the second quarter of 2025, we also repaid at maturity our$500 million 1.900% Senior Notes due June 2025 and accrued and unpaid interest with respect to such notes. For more information, refer to Note E – Contractual Obligations and Commitments to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q. Cash provided by (used for) financing activities in the first six months of 2024 included a registered public offering of €2.000 billion in aggregate principal amount of euro-denominated senior notes (the 2024 Eurobonds). The 2024 Eurobonds offering resulted in cash proceeds of $2.145 billion, net of investor discounts and issuance costs. We primarily used the net proceeds from the 2024 Eurobonds offering to fund a portion of the purchase price of our acquisition of Axonics and to pay related fees and expenses, and for general corporate purposes. We also used the net proceeds to fund the repayment at maturity of $504 million of our 3.450% Senior Notes due March 2024 and to pay accrued and unpaid interest with respect to such notes.

Current wording

During the first nine months of 2025, cash provided by (used for) financing activities included the registered public offering of €1.500 billion in aggregate principal amount of euro-denominated senior notes (the 2025 Eurobonds). The 2025 Eurobonds offering resulted in cash proceeds of $1.558 billion, net of investor discounts and issuance costs. We used the net proceeds from the 2025 Eurobonds offering to fund the repayment at maturity of AMS Europe’s €1.000 billion 0.750% Senior Notes due March 2025 and to pay accrued and unpaid interest with respect to such notes. Additionally, we used the remaining net proceeds for general corporate purposes, including, among other things, short term investments, reduction of short term debt, funding of working capital and acquisitions. During the second quarter of 2025, we also repaid at maturity our$500 million 1.900% Senior Notes due June 2025 and accrued and unpaid interest with respect to such notes. During the first nine months of 2025, cash provided by (used for) financing activities also included proceeds from the issuances of common stock pursuant to employee stock compensation and purchase plansof $262 million, partially offset by repayments of commercial paper of $196 million. For more information, refer to Note E – Contractual Obligations and Commitments to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Previous wording

The financial covenant requirement, as amended on May 10, 2024, provides for an exclusion from the calculation of consolidated EBITDA, through maturity, of certain charges and expenses. The credit agreement amendment reset the starting date for purposes of calculating such permitted exclusions related to restructuring charges and restructuring-related expenses from December 31, 2022 to March 31, 2024. Permitted exclusions include up to $500 million in cash and non-cash restructuring charges and restructuring-related expenses associated with our current or future restructuring plans. As of June 30, 2025, we had $113 million of the restructuring charge exclusion remaining. In addition, any cash litigation payments (net of any cash litigation receipts), as defined by the agreement, are excluded from the calculation of consolidated EBITDA, provided that the sum of any excluded net cash litigation payments does not exceed $1.000 billion plus all accrued legal liabilities as of December 31, 2022. As of June 30, 2025, we had $1.414 billion of the litigation exclusion remaining.

Current wording

The financial covenant requirement, as amended on May 10, 2024, provides for an exclusion from the calculation of consolidated EBITDA, through maturity, of certain charges and expenses. The credit agreement amendment reset the starting date for purposes of calculating such permitted exclusions related to restructuring charges and restructuring-related expenses from December 31, 2022 to March 31, 2024. Permitted exclusions include up to $500 million in cash and non-cash restructuring charges and restructuring-related expenses associated with our current or future restructuring plans. As of

Previous wording

We received $147 million during the first six months of 2025 and $106 million during the first six months of 2024 in proceeds from stock issuances related to our stock option and employee stock purchase plans. Proceeds from the exercise of employee stock options and employee stock purchases vary from period to period based upon, among other factors, fluctuations in the trading price of our common stock and in the exercise and stock purchase patterns of our employees.

Current wording

We received $262 million during the first nine months of 2025 and $202 million during the first nine months of 2024 in proceeds from stock issuances related to our stock option and employee stock purchase plans. Proceeds from the exercise of employee stock options and employee stock purchases vary from period to period based upon, among other factors, fluctuations in the trading price of our common stock and in the exercise and stock purchase patterns of our employees.

Previous wording

We did not repurchase any shares of our common stock during the first six months of 2025 or 2024. On December 14, 2020, our Board of Directors approved a new stock repurchase program authorizing the repurchase of up to $1.000 billion of our common stock. As of June 30, 2025, we had the full amount remaining available under the authorization.

Current wording

We did not repurchase any shares of our common stock during the first nine months of 2025 or 2024. On December 14, 2020, our Board of Directors approved a new stock repurchase program authorizing the repurchase of up to $1.000 billion of our common stock. As of September 30, 2025, we had the full amount remaining available under the authorization.

Previous wording

•Restructuring and restructuring-related net charges (credits) - These adjustments primarily represent severance and other compensation-related charges, fixed asset write-offs, contract cancellations, project management fees, facility shut down costs, costs to transfer manufacturing lines between geographically dispersed facilities and other direct costs associated with our restructuring plans. These restructuring plans each consist of distinct initiatives that are fundamentally different from our ongoing, core cost reduction initiatives in terms of, among other things, the frequency with which each action is performed and the required planning, resourcing, cost and timing. Examples of such initiatives include the movement of business activities, facility consolidations and closures and the transfer of product lines between manufacturing facilities, which, due to the highly regulated nature of our industry, requires a significant investment in time and cost to create duplicate manufacturing lines, run product validations and seek regulatory approvals. Restructuring plans take place over a defined timeframe and have a distinct project timeline that requires, and begins subsequent to, approval by our Board of Directors. In contrast to our ongoing cost reduction initiatives, restructuring plans typically result in duplicative cost and exit costs over the defined timeframe and are not considered part of our core, ongoing operations. In addition, during the second quarter of 2025, we incurred restructuring and restructuring-related net charges associated with management's decision to discontinue worldwide sales of the ACURATE neo2 TM and ACURATE Prime TM Aortic Valve Systems. These restructuring plans and activities are incremental to the core activities that arise in the ordinary course of our business. Restructuring and restructuring-related net charges (credits) are excluded from management's assessment of operating performance and from our operating segments' measures of profit and loss used for making operating decisions and assessing performance.

Current wording

•Restructuring and restructuring-related net charges (credits) - These adjustments primarily represent severance and other compensation-related charges, fixed asset write-offs, contract cancellations, project management fees, facility shut down costs, costs to transfer manufacturing lines between geographically dispersed facilities and other direct costs associated with our restructuring plans. These restructuring plans each consist of distinct initiatives that are fundamentally different from our ongoing, core cost reduction initiatives in terms of, among other things, the frequency with which each action is performed and the required planning, resourcing, cost and timing. Examples of such initiatives include the movement of business activities, facility consolidations and closures and the transfer of product lines between manufacturing facilities, which, due to the highly regulated nature of our industry, requires a significant investment in time and cost to create duplicate manufacturing lines, run product validations and seek regulatory approvals. Restructuring plans take place over a defined timeframe and have a distinct project timeline that requires, and begins subsequent to, approval by our Board of Directors. In contrast to our ongoing cost reduction initiatives, restructuring plans typically result in duplicative cost and exit costs over the defined timeframe and are not considered part of our core, ongoing operations. In addition, during the second and third quarter of 2025, we incurred restructuring and restructuring-related net charges (credits) associated with management's decision to discontinue worldwide sales of the ACURATE neo2 TM and ACURATE Prime TM Aortic Valve Systems. These restructuring plans and activities are incremental to the core activities that arise in the ordinary course of our business. Restructuring and restructuring-related net charges (credits) are excluded from management's assessment of operating performance and from our operating segments' measures of profit and loss used for making operating decisions and assessing performance.