BSX · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

BOSTON SCIENTIFIC CORP · 2026-11-02 · Importance 33 · Surprise 32 · No source text

Third-quarter gross profit was $3.428 billion, down from $3.542 billion a year earlier, and gross margin declined from 69.9% to 66.7%. The 3.2-percentage-point quarterly margin decline included a 1.7-point adverse impact from abnormal production variances related to the cybersecurity incident and a 1.1-point impact from other items, including inventory charges and period expenses. Nine-month gross margin increased from 68.8% to 69.0%, despite a 0.5-point adverse foreign-currency impact and a 0.5-point impact from incident-related production variances. The nine-month improvement reflected recovery of previously incurred tariffs, lower inventory charges, and reduced acquisition-related inventory step-up adjustments.

Key facts

• Third-quarter gross profit was $3.428 billion in 2026 versus $3.542 billion in 2025; nine-month gross profit was $10.890 billion versus $10.175 billion. source
• Gross margin was 66.7% in the third quarter of 2026 versus 69.9% a year earlier, and 69.0% for the first nine months of 2026 versus 68.8% in 2025. source
• Third-quarter 2026 gross margin was reduced by idle-time manufacturing and supply-chain costs related to the cybersecurity incident and by investment in global supply chain and quality systems. source
• Nine-month 2026 gross margin was affected by cybersecurity-related costs and unfavorable foreign currency, offset by recovery of previously incurred tariffs, lower inventory charges, and lower acquisition inventory step-up impacts. source

Impact estimates