BSX

Boston Scientific is compounding faster as it scales, not slower. Revenue has climbed from $11.9B (FY2021) to $20.1B (FY2025), and the FY2025 print of +19.9% is the strongest growth in the five-year history shown. Profitability is expanding alongside the top line: gross margin sits at 69.0%, operating income grew +38.8% to $3.61B (18.0% margin), and net income jumped +56.7% to $2.89B, lifting diluted EPS +55.2% to $1.94. Operating cash flow of $4.53B (+32.0%) comfortably funds the $876M capex, so the growth is cash-generative rather than accounting-driven. ROE of 11.9% is modest, but that partly reflects a large equity base inflated by acquisition goodwill rather than weak operations.

The balance sheet is sound and the filing language reinforces it. Total debt of $11.4B is almost entirely fixed-rate ($11.39B), insulating BSX from rate moves, and the credit-agreement leverage ratio was just 1.92x against a 4.50x covenant maximum at 12/31/25 — ample headroom, with management stating it expects to comply for the next 12 months. Current debt fell sharply to $299M (from $1.78B), cash nearly quintupled to $1.97B, and the current ratio is a healthy 1.6x ($8.79B / $5.44B). This is a company financing aggressive M&A (Axonics closed Nov-2024; a definitive merger agreement to acquire Penumbra was signed Jan-14-2026) from a position of financial strength, not stress.