BSX · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

BOSTON SCIENTIFIC CORP · 2026-08-03 · Importance 54 · Surprise 40 · No source text

Gross profit increased to $3.848 billion in the second quarter of 2026 from $3.424 billion in the prior-year quarter and to $7.462 billion for the first six months from $6.633 billion. Gross margin expanded to 70.7% from 67.7% in the quarter and to 70.1% from 68.2% year to date. Higher-margin product sales contributed 0.6 percentage points in the quarter and 0.7 points year to date, while foreign-currency movements reduced margin by 0.4 and 0.6 points, respectively. The remaining improvement reflected an $83 million IEEPA tariff refund benefit and lower inventory charges, plus reduced acquisition-related inventory step-up adjustments year to date.

Key facts

• Gross profit for the second quarter of 2026: $3,848 million, compared to $3,424 million for the second quarter of 2025. source
• Gross profit for the first six months of 2026: $7,462 million, compared to $6,633 million for the first six months of 2025. source
• Gross profit margin for the period ended June 30, 2026 was 70.7% for the three months and 70.1% for the six months, compared to 67.7% and 68.2% in the comparable 2025 periods. source
• In the Q2 2026 non-GAAP reconciliation, the IEEPA tariff refund adjustment reduced income before income taxes by $83 million and net income attributable to Boston Scientific common stockholders by $77 million, impacting adjusted EPS by $0.05 for the three months ended June 30, 2026. source
• In Q2 2026 gross profit margin benefited from increased sales of higher margin products, the IEEPA tariff recovery benefit, and a decrease in inventory charges, slightly offset by an unfavorable foreign currency impact. source

Impact estimates