Financial Analysis

NOTE B ACQUISITIONS AND STRATEGIC INVESTMENTS Our consolidated financial statements include the operating results for acquired entities from the respective dates of acquisition. We have not presented supplemental pro forma financial information for completed acquisitions or divestitures given their results are not material to our consolidated financial statements. Further, transaction costs were immaterial to our consolidated financial statements and were expensed as incurred. On January 27, 2026, we completed our acquisition of 100 percent of Nalu Medical, Inc. (Nalu Medical), a privately held medical technology company focused on developing and commercializing innovative and minimally invasive solutions for patients with chronic pain. We had been an investor in Nalu Medical since 2017 and previously held an equity stake of approximately nine percent. The transaction to acquire the remaining stake consisted of an upfront cash payment of approximately $517 million, net of cash acquired. The Nalu Medical business will be integrated into our Neuromodulation division. On January 15, 2026, we announced our entry into a definitive agreement to acquire 100 percent of Penumbra, Inc. (Penumbra), a publicly traded medical technology company primarily focused on thrombectomy products for use in peripheral vascular procedures in the removal of blood clots and blockages. The purchase price is valued at $374 per share, or approximately $14.500 billion. The transaction is expected to be co …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

NOTE I COMMITMENTS AND CONTINGENCIES We are involved in various legal proceedings, including intellectual property, product liability, securities and commercial claims and disputes, employment matters, environmental matters, governmental inquiries, investigations and proceedings, and other legal matters that arise from time to time in the ordinary course of our business, including those described below. In recent years, we have successfully negotiated closure of several long-standing legal matters and have received favorable rulings in several other matters, however, there continues to be outstanding litigation and disputes. Adverse outcomes in one or more of these matters could have a material adverse effect on our ability to sell certain products and on our operating margins, financial position, results of operations and/or liquidity. Intellectual property rights, particularly patents and trade secrets, play a significant role in product development and differentiation. From time to time, we face litigation initiated against us by others, including our competitors, claiming that our current or former product offerings infringe patents owned or licensed by them. Intellectual property litigation is inherently complex and unpredictable. In addition, competing parties frequently file multiple suits to leverage patent portfolios across product lines, technologies and geographies and to balance risk and exposure between the parties. In some cases, several competitors are parties …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE Q EMPLOYEE RETIREMENT PLANS Defined Benefit Pension Plans Domestic Retirement Plans Following our 2006 acquisition of Guidant Corporation (Guidant), we assumed the Guidant Supplemental Retirement Plan, a frozen, non-qualified defined benefit plan for certain former officers and employees of Guidant. The Guidant Supplemental Retirement Plan was partially funded through a Rabbi Trust that contains segregated company assets within restricted cash used to pay the benefit obligations related to the plan. We also maintain an Executive Retirement Plan, a defined benefit plan covering executive officers and other key contributors. Participants may retire with benefits once retirement conditions have been satisfied. Other International Retirement Plans In addition, we maintain retirement plans covering certain international employees. We use a December 31 measurement date for these plans and record the net unfunded and underfunded portion as a liability within non-current liabilities, with the current portion within accrued expenses, on the consolidated balance sheets, recognizing changes primarily through OCI. As of December 31, 2025 and 2024, the funded status of our plans was unfunded or underfunded in aggregate. The outstanding obligation is as follows: As of December 31, 2025 ( in millions) Accumulated Benefit Obligation (ABO) Projected Benefit Obligation (PBO) Fair value of Plan Assets Unfunded/Underfunded PBO Recognized Domestic Retirement Plans $ 58 $ 62 $ $ 62 Other Inte …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

NOTE E CONTRACTUAL OBLIGATIONS AND COMMITMENTS Borrowings and Credit Arrangements The debt maturity schedule for our long-term debt obligations is presented below: Issuance Date Maturity Date As of December 31, Coupon Rate (1) (in millions, except interest rates) 2025 2024 March 2026 Senior Notes February 2019 March 2026 255 3.750% December 2027 Senior Notes (3) November 2019 December 2027 1,058 935 0.625% March 2028 Senior Notes (3) March 2022 March 2028 881 779 1.375% March 2028 Senior Notes February 2018 March 2028 344 344 4.000% March 2029 Senior Notes February 2019 March 2029 272 272 4.000% March 2029 Senior Notes (3) February 2024 March 2029 881 779 3.375% June 2030 Senior Notes May 2020 June 2030 1,200 1,200 2.650% March 2031 Senior Notes (3) March 2022 March 2031 881 779 1.625% March 2031 Senior Notes (3) February 2025 March 2031 999 3.000% March 2032 Senior Notes (3) February 2024 March 2032 1,469 1,299 3.500% March 2034 Senior Notes (3) March 2022 March 2034 588 519 1.875% March 2034 Senior Notes (3) February 2025 March 2034 764 3.250% November 2035 Senior Notes (2) November 2005 November 2035 350 350 6.250% March 2039 Senior Notes February 2019 March 2039 450 450 4.550% January 2040 Senior Notes December 2009 January 2040 300 300 7.375% March 2049 Senior Notes February 2019 March 2049 650 650 4.700% Unamortized Debt Issuance Discount and Deferred Financing Costs 2026 - 2049 (76) (70) Finance Lease Obligation Various 125 126 Long-term debt $ 11,137 $ 8,968 (1) Coupo …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate our revenue from contracts with customers by business unit and geographic region (in millions). Generally, we allocate revenue from contracts with customers to geographic regions based on the location where the sale originated. We have revised prior periods to conform to current year presentation. Year Ended December 31, 2025 2024 2023 Businesses U.S. Int'l Total U.S. Int'l Total U.S. Int'l Total Endoscopy $ 1,802 $ 1,115 $ 2,916 $ 1,651 $ 1,036 $ 2,687 $ 1,511 $ 970 $ 2,482 Urology 2,000 709 2,709 1,557 643 2,200 1,369 595 1,964 Neuromodulation 914 285 1,199 847 259 1,106 736 240 976 MedSurg 4,715 2,108 6,824 4,054 1,939 5,993 3,617 1,805 5,422 Interventional Cardiology & Vascular Therapies 2,007 2,632 4,639 1,607 2,592 4,199 1,436 2,355 3,791 Watchman 1,791 167 1,958 1,371 145 1,516 1,155 119 1,274 Electrophysiology 2,311 1,014 3,325 1,256 648 1,904 370 430 800 Cardiac Rhythm Management 1,425 907 2,332 1,403 876 2,279 1,405 813 2,218 Interventional Oncology & Embolization 615 381 996 518 338 856 442 294 736 Cardiovascular 8,149 5,101 13,250 6,156 4,599 10,755 4,808 4,011 8,819 Total Net Sales $ 12,864 $ 7,210 $ 20,074 $ 10,210 $ 6,538 $ 16,747 $ 8,425 $ 5,816 $ 14,240 Refer to Note M Segment Reporting for information on our reportable segments. Year Ended December 31, Geographic Regions 2025 2024 2023 U.S. $ 12,864 $ 10,210 $ 8,425 Europe, Middle East and Africa 3,451 3,228 2,856 Asia-Pacific 3,080 2,686 2,400 Latin America and Cana …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE K STOCK INCENTIVE AND PURCHASE PLANS Employee and Director Stock Incentive Plans In 2020, our Board of Directors and stockholders approved amendments to our 2011 Long-Term Incentive Plan effective October 1, 2020 (Amended and Restated 2011 LTIP), authorizing for issuance up to 171 million shares of our common stock. The Amended and Restated 2011 LTIP covers officers, directors, employees and consultants and provides for the grant of restricted or unrestricted common stock, restricted stock units (RSUs), options to acquire our common stock, stock appreciation rights, performance awards (market-based and performance-based RSUs) and other stock and non-stock awards. Shares reserved under our current and former stock incentive plans totaled approximately 132 million as of December 31, 2025. The Executive Compensation and Human Resources Committee (the Committee) of the Board of Directors, consisting of independent, non-employee directors, may authorize the issuance of common stock and cash awards under the Amended and Restated 2011 LTIP in recognition of the achievement of long-term performance objectives established by the Committee. Non-qualified options issued to employees are generally granted with an exercise price equal to the market price of our stock on the grant date, vest over a three or four -year service period and have a ten -year contractual life. In the case of qualified options, if the recipient owns more than ten percent of the voting power of all classes of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE D HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS Derivative Instruments and Hedging Activities Our risk from changes in currency exchange rates consists primarily of monetary assets and liabilities; forecasted intercompany and third-party transactions; and net investments in certain subsidiaries. We employ derivative and nonderivative instruments, primarily forward currency contracts, to reduce the risk to our earnings and cash flows associated with changes in currency exchange rates. The success of our currency risk management program depends, in part, on forecasted transactions denominated primarily in euro, Chinese renminbi, Japanese yen, British pound sterling, Korean won, Australian dollar and Swiss franc. Certain of our currency derivative instruments are designated as cash flow hedges under FASB ASC Topic 815, and are intended to protect the U.S. dollar value of forecasted transactions. We also designate certain forward currency contracts as net investment hedges to hedge a portion of our net investments in certain of our entities with functional currencies denominated in euro, Chinese renminbi and Japanese yen. We designate certain euro-denominated debt as net investment hedges to hedge a portion of our net investments in certain of our entities with functional currencies denominated in euro. As of December 31, 2025 and 2024, we designated as a net investment hedge our 900 million in aggregate principal amount of 0.625% senior notes issued in November 2019 and du …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE C GOODWILL AND OTHER INTANGIBLE ASSETS The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for intangible assets subject to amortization and accumulated goodwill impairment charges are as follows: As of December 31, 2025 As of December 31, 2024 (in millions) Gross Carrying Amount Accumulated Amortization/ Write-offs Gross Carrying Amount Accumulated Amortization/ Write-offs Technology-related $ 14,692 $ (9,346) $ 14,327 $ (8,605) Patents 493 (382) 481 (381) Other intangible assets 2,482 (1,732) 2,380 (1,612) Amortizable intangible assets $ 17,667 $ (11,461) $ 17,188 $ (10,598) Goodwill $ 28,182 $ (9,900) $ 26,989 $ (9,900) IPR&D 813 94 Indefinite-lived intangible assets $ 813 $ 94 The increase in our balance of goodwill and intangible assets is related primarily to our recent acquisitions. Refer to Note B Acquisitions and Strategic Investments for further detail. Intangible asset impairment charges were $46 million in 2025, $386 million in 2024 and $58 million in 2023. The impairment charges recorded in 2024 were primarily 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 Cardiovascular business. Intangible assets acquired from Cryterion were impaired due to strong commercial adoption of our Farapulse Pulsed Field Ablation System and the resulting lower revenue proje …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE H INCOME TAXES Our Income (loss) before income taxes consisted of the following: Year Ended December 31, (in millions) 2025 2024 2023 Domestic $ (311) $ (261) $ (394) Foreign 3,696 2,542 2,379 Total $ 3,385 $ 2,282 $ 1,985 The related expense (benefit) for income taxes consisted of the following: Year Ended December 31, (in millions) 2025 2024 2023 Current Federal $ 242 $ 310 $ 189 State 22 31 15 Foreign 241 184 116 Total Current 505 526 320 Deferred Federal (66) (131) (82) State (53) (52) (22) Foreign 107 92 176 Total Deferred (12) (90) 73 Total expense (benefit) for income taxes $ 493 $ 436 $ 393 We adopted ASC Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) on a prospective basis beginning with the year ended December 31, 2025. The reconciliation of income taxes at the federal statutory rate to the reported rate for income taxes pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows: Year Ended December 31, 2025 (in millions) Amount Percent U.S. Federal Statutory Tax Rate $ 711 21.0 % State and Local Income Taxes, Net of Federal Income Tax Effects (1) (39) (1.2) % Foreign Tax Effects Costa Rica Statutory Tax Rate Differential (349) (10.3) % Ireland Statutory Tax Rate Differential (136) (4.0) % Other 27 0.8 % Other Foreign Jurisdictions 4 0.1 % Effect of Cross-Border Tax Laws Global Intangible Low-Taxed Income 328 9.7 % Other (29) (0.9) % Tax Credits Research and Devel …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE F LEASES We have operating and finance leases for real estate including corporate offices, land, warehouse space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). We recognize lease expense on a straight-line basis over the lease term for short-term leases that we do not record on our balance sheet. If there is a change in our assessment of the lease term and, as a result, the remaining lease term extends more than 12 months from the end of the previously determined lease term, or we subsequently become reasonably certain that we will exercise an option to purchase the underlying asset, the lease no longer meets the definition of a short-term lease and is accounted for as either an operating or finance lease and recognized on the balance sheet. In accordance with FASB ASC Topic 842, we account for the lease components and the non-lease components as a single lease component, with the exception of our warehouse leases. Our leases have remaining lease terms of less than 1 year to approximately 51 years, some of which may include options to extend the leases for up to 10 years. If we are reasonably certain we will exercise an option to extend the lease, the time period covered by the extension option is included in the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

NOTE N REVENUE We generate revenue primarily from the sale of single-use medical devices and present revenue net of sales taxes within our consolidated statements of operations. In the fourth quarter of 2025, we reorganized our business structure into four operating segments. The following tables disaggregate our revenue from contracts with customers by business unit and geographic region (in millions). Generally, we allocate revenue from contracts with customers to geographic regions based on the location where the sale originated. We have revised prior periods to conform to current year presentation. Year Ended December 31, 2025 2024 2023 Businesses U.S. Int'l Total U.S. Int'l Total U.S. Int'l Total Endoscopy $ 1,802 $ 1,115 $ 2,916 $ 1,651 $ 1,036 $ 2,687 $ 1,511 $ 970 $ 2,482 Urology 2,000 709 2,709 1,557 643 2,200 1,369 595 1,964 Neuromodulation 914 285 1,199 847 259 1,106 736 240 976 MedSurg 4,715 2,108 6,824 4,054 1,939 5,993 3,617 1,805 5,422 Interventional Cardiology & Vascular Therapies 2,007 2,632 4,639 1,607 2,592 4,199 1,436 2,355 3,791 Watchman 1,791 167 1,958 1,371 145 1,516 1,155 119 1,274 Electrophysiology 2,311 1,014 3,325 1,256 648 1,904 370 430 800 Cardiac Rhythm Management 1,425 907 2,332 1,403 876 2,279 1,405 813 2,218 Interventional Oncology & Embolization 615 381 996 518 338 856 442 294 736 Cardiovascular 8,149 5,101 13,250 6,156 4,599 10,755 4,808 4,011 8,819 Total Net Sales $ 12,864 $ 7,210 $ 20,074 $ 10,210 $ 6,538 $ 16,747 $ 8,425 $ 5,816 $ …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE M SEGMENT REPORTING We aggregate our core businesses into two reportable segments: MedSurg and Cardiovascular, each of which generates revenues from the sale of medical devices. In accordance with FASB ASC Topic 280, Segment Reporting, we identified our reportable segments based on the nature of our products, production processes, type of customer, selling and distribution methods and regulatory environment, as well as the economic characteristics of each of our operating segments. In the fourth quarter of 2025, we reorganized our operating segments; this change had no impact on our reportable segments. Our chief operating decision maker (CODM) is our President and Chief Executive Officer. We measure and evaluate our reportable segments based on their respective net sales, cost of goods sold, selling, general and administrative expenses, research and development expenses, operating income, excluding intersegment profits, and operating income as a percentage of net sales, all based on internally-derived standard currency exchange rates to exclude the impact of foreign currency, which may be updated from year to year. We exclude from segment expenses and segment operating income certain corporate-related expenses and certain transactions or adjustments that our CODM considers to be non-operational, such as amounts related to amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE A SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Our consolidated financial statements include the accounts of Boston Scientific Corporation's wholly owned subsidiaries and entities for which we have a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. In the first quarter of 2023, we acquired a majority stake investment in Acotec Scientific Holdings Limited (Acotec) and have elected to consolidate their financial statements on a one quarter lag. When used in this report, the terms ""we,"" ""us,"" ""our"" and ""the Company"" mean Boston Scientific Corporation and its divisions and subsidiaries. We assess the terms of our investment interests to determine if any of our investees meet the definition of a variable interest entity (VIE) . Based on our assessments under the applicable guidance, we did not have controlling financial interests in any VIEs and, therefore, did not consolidate any VIEs during 2025, 2024 or 2023. Basis of Presentation The accompanying consolidated financial statements and notes thereto have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and with the instructions to Form 10-K and Regulation S-X. Amounts reported in millions within this Annual Report on Form 10-K are computed based on the amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Cert …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE J STOCKHOLDERS' EQUITY Preferred Stock We are authorized to issue 50 million shares of preferred stock in one or more series and to fix the powers, designations, preferences and relative participating, option or other rights thereof, including dividend rights, conversion rights, voting rights, redemption terms, liquidation preferences and the number of shares constituting any series, without any further vote or action by our stockholders. On May 27, 2020, we completed an offering of 10,062,500 shares of 5.50% Mandatory Convertible Preferred Stock, Series A (MCPS) at a price to the public and liquidation preference of $100 per share. The net proceeds from the MCPS offering were approximately $975 million after deducting underwriting discounts and commissions and offering expenses. On June 1, 2023 (the Mandatory Conversion Date), all outstanding shares of MCPS automatically converted into shares of common stock, with a conversion rate of 2.3834. An aggregate of approximately 24 million shares of common stock were issued upon conversion of the MCPS. Prior to the Mandatory Conversion Date in 2023, the Audit Committee of our Board of Directors, pursuant to authority delegated to such committee by our Board of Directors, declared, and we paid, cash dividends of $28 million, or $1.3750 per MCPS share to holders representing dividend periods through May 2023. Following the mandatory conversion of the MCPS, there were no outstanding shares of MCPS. Common Stock We are authorized …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE B ACQUISITIONS AND STRATEGIC INVESTMENTS Our accompanying unaudited consolidated financial statements include the operating results for acquired entities from the respective dates of acquisition. We have not presented supplemental pro forma financial information for completed acquisitions or divestitures given their results are not material to our accompanying unaudited consolidated financial statements. Further, transaction costs were immaterial to our accompanying unaudited consolidated financial statements and were expensed as incurred. On October 17, 2025, we announced our entry into a definitive agreement to acquire 100 percent of Nalu Medical, Inc. (Nalu Medical), a privately held medical technology company focused on developing and commercializing innovative and minimally invasive solutions for patients with chronic pain. We have been an investor in Nalu Medical since 2017 and currently hold an equity stake of approximately nine percent. The transaction price to acquire the remaining stake is expected to result in an upfront cash payment of approximately $533 million upon closing. The transaction is expected to close during the first half of 2026, subject to customary closing conditions. The Nalu Medical business will be integrated into our Neuromodulation division. 2025 Acquisitions On July 11, 2025, we completed our acquisition of 100 percent of Anrei Medical (HZ) Co., Ltd. (Anrei Medical), a privately held company that specializes in the design and production o …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

NOTE H COMMITMENTS AND CONTINGENCIES The medical device market in which we participate is largely technology driven. As a result, intellectual property rights, particularly patents and trade secrets, play a significant role in product development and differentiation. Over the years, there has been litigation initiated against us by others, including our competitors, claiming that our current or former product offerings infringe patents owned or licensed by them. Intellectual property litigation is inherently complex and unpredictable. In addition, competing parties frequently file multiple suits to leverage patent portfolios across product lines, technologies and geographies and to balance risk and exposure between the parties. In some cases, several competitors are parties in the same proceeding, or in a series of related proceedings, or litigate multiple features of a single class of devices. These dynamics frequently drive settlement not only for individual cases, but also for a series of pending and potentially related and unrelated cases. Although monetary and injunctive relief is typically sought, remedies and restitution are generally not determined until the conclusion of the trial court proceedings and can be modified on appeal. Accordingly, the outcomes of individual cases are difficult to time, predict or quantify and are often dependent upon the outcomes of other cases in other geographies. During recent years, we successfully negotiated closure of several long-st …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE E CONTRACTUAL OBLIGATIONS AND COMMITMENTS Borrowings and Credit Arrangements We had total debt outstanding of $11.600 billion as of September 30, 2025 and $10.746 billion as of December 31, 2024, with current obligations of $483 million as of September 30, 2025 and $1.778 billion as of December 31, 2024. The debt maturity schedule for our long-term debt obligations is presented below: (in millions, except interest rates) Issuance Date Maturity Date As of Coupon Rate (1) September 30, 2025 December 31, 2024 March 2026 Senior Notes February 2019 March 2026 255 3.750% December 2027 Senior Notes (3) November 2019 December 2027 1,055 935 0.625% March 2028 Senior Notes (3) March 2022 March 2028 880 779 1.375% March 2028 Senior Notes February 2018 March 2028 344 344 4.000% March 2029 Senior Notes February 2019 March 2029 272 272 4.000% March 2029 Senior Notes (3) February 2024 March 2029 880 779 3.375% June 2030 Senior Notes May 2020 June 2030 1,200 1,200 2.650% March 2031 Senior Notes (3) March 2022 March 2031 880 779 1.625% March 2031 Senior Notes (3) February 2025 March 2031 997 3.000% March 2032 Senior Notes (3) February 2024 March 2032 1,466 1,299 3.500% March 2034 Senior Notes (3) March 2022 March 2034 586 519 1.875% March 2034 Senior Notes (3) February 2025 March 2034 762 3.250% November 2035 Senior Notes (2) November 2005 November 2035 350 350 6.500% March 2039 Senior Notes February 2019 March 2039 450 450 4.550% January 2040 Senior Notes December 2009 January 2040 300 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables disaggregate our revenue from contracts with customers by business unit and geographic region (in millions). Generally, we allocate revenue from contracts with customers to geographic regions based on the location where the sale originated. Three Months Ended September 30, 2025 2024 Businesses U.S. Int'l Total U.S. Int'l Total Endoscopy $ 462 $ 285 $ 747 $ 417 $ 261 $ 678 Urology 511 171 682 379 153 532 Neuromodulation 230 63 293 211 57 268 MedSurg 1,202 519 1,722 1,007 472 1,479 Interventional Cardiology Therapies 256 429 686 212 449 661 Watchman 470 43 512 342 38 380 Cardiac Rhythm Management 354 224 578 349 213 561 Electrophysiology 607 258 865 366 160 527 Cardiology 1,687 954 2,641 1,269 859 2,129 Peripheral Interventions 405 297 702 316 285 602 Cardiovascular 2,092 1,251 3,343 1,586 1,145 2,731 Total Net Sales $ 3,294 $ 1,770 $ 5,065 $ 2,593 $ 1,616 $ 4,209 Nine Months Ended September 30, 2025 2024 Businesses U.S. Int'l Total U.S. Int'l Total Endoscopy $ 1,338 $ 818 $ 2,157 $ 1,227 $ 769 $ 1,996 Urology 1,478 514 1,992 1,098 473 1,570 Neuromodulation 661 205 866 616 191 807 MedSurg 3,478 1,537 5,015 2,941 1,433 4,373 Interventional Cardiology Therapies 740 1,373 2,114 608 1,370 1,977 Watchman 1,306 117 1,423 996 107 1,103 Cardiac Rhythm Management 1,066 679 1,746 1,054 658 1,713 Electrophysiology 1,706 729 2,435 795 460 1,255 Cardiology 4,818 2,899 7,717 3,452 2,595 6,048 Peripheral Interventions 1,183 873 2,056 924 841 1,765 Cardiovascular 6,002 3,7 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE D HEDGING ACTIVITIES AND FAIR VALUE MEASUREMENTS Derivative Instruments and Hedging Activities We address market risk from changes in foreign currency exchange rates and interest rates through risk management programs which include the use of derivative and nonderivative financial instruments. We operate these programs pursuant to documented corporate risk management policies and do not enter into derivative transactions for speculative purposes. Our derivative instruments do not subject our earnings to material risk, as the gains or losses on these derivatives generally offset losses or gains recognized on the hedged item. We manage concentration of counterparty credit risk by limiting acceptable counterparties to major financial institutions with investment grade credit ratings, limiting the amount of credit exposure to individual counterparties and by actively monitoring counterparty credit ratings and the amount of individual credit exposure. We also employ master netting arrangements that limit the risk of counterparty non-payment on a particular settlement date to the net gain that would have otherwise been received from the counterparty. Although not completely eliminated, we do not consider the risk of counterparty default to be significant as a result of these protections. Further, none of our derivative instruments are subject to collateral or other security arrangements, nor do they contain provisions that are dependent on our credit ratings from any credit ra …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE C GOODWILL AND OTHER INTANGIBLE ASSETS The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for intangible assets subject to amortization and accumulated goodwill impairment charges are as follows: As of September 30, 2025 As of December 31, 2024 (in millions) Gross Carrying Amount Accumulated Amortization/ Write-offs Gross Carrying Amount Accumulated Amortization/ Write-offs Technology-related $ 14,634 $ (9,145) $ 14,327 $ (8,605) Patents 492 (384) 481 (381) Other intangible assets 2,451 (1,700) 2,380 (1,612) Amortizable intangible assets $ 17,577 $ (11,228) $ 17,188 $ (10,598) Goodwill $ 28,114 $ (9,900) $ 26,989 $ (9,900) IPR&D $ 813 $ 94 Indefinite-lived intangible assets $ 813 $ 94 The increase in our balance of goodwill and intangible assets is related primarily to our recent acquisitions. Refer to Note B Acquisitions and Strategic Investments for further detail. The following represents a roll forward of our goodwill balance by reportable segment: (in millions) MedSurg Cardiovascular Total Balance as of December 31, 2024 $ 7,483 $ 9,606 $ 17,089 Goodwill acquired 159 850 1,008 Impact of foreign currency fluctuations and purchase price adjustments 44 72 117 Balance as of September 30, 2025 $ 7,686 $ 10,528 $ 18,214 Goodwill and Other Intangible Asset Impairments We did not record any goodwill impairment charges in the first nine months of 2025 or 2024. We test our goodwill balances in the second quarter of e …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE G INCOME TAXES The following table provides a reconciliation of our reported tax rate to the rate from continuing operations: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Reported tax rate 19.5 % 30.0 % 17.2 % 24.4 % Impact of certain receipts/charges (1) (1.4) % (12.3) % 0.9 % (6.0) % Rate from continuing operations 18.1 % 17.7 % 18.1 % 18.3 % (1) These receipts/charges are taxed at different rates than our rate from continuing operations. Our reported tax rate is affected by recurring items such as the amount of our earnings subject to differing tax rates in foreign jurisdictions and the impact of certain receipts and charges that are taxed at rates that differ from our rate from continuing operations. 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. 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 primar …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE M NEW ACCOUNTING PRONOUNCEMENTS Periodically, new accounting pronouncements are issued by the FASB or other standard setting bodies. Recently issued standards typically do not require adoption until a future effective date. Prior to their effective date, we evaluate the pronouncements to determine the potential effects of adoption on our accompanying unaudited consolidated financial statements. Standards to be Implemented In December 2023, the FASB issued ASC Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which aims to enhance the transparency and decision usefulness of income tax disclosures. Update No. 2023-09 modifies the rules on income tax disclosures to require entities to annually disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state, and foreign). Update No. 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. Update No. 2023-09 is effective for fiscal years beginning after December 15, 2024 and we will adopt this ASU in the fourth quarter of 2025. Prospective or retrospective application is permitted. We expect to adopt Update No. 2023-09 prospectively. As this accounting standard update impacts disclosures …

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NOTE K REVENUE We generate revenue primarily from the sale of single-use medical devices and present revenue net of sales taxes within our accompanying unaudited consolidated statements of operations. Our business structure is organized into five operating segments. The following tables disaggregate our revenue from contracts with customers by business unit and geographic region (in millions). Generally, we allocate revenue from contracts with customers to geographic regions based on the location where the sale originated. Three Months Ended September 30, 2025 2024 Businesses U.S. Int'l Total U.S. Int'l Total Endoscopy $ 462 $ 285 $ 747 $ 417 $ 261 $ 678 Urology 511 171 682 379 153 532 Neuromodulation 230 63 293 211 57 268 MedSurg 1,202 519 1,722 1,007 472 1,479 Interventional Cardiology Therapies 256 429 686 212 449 661 Watchman 470 43 512 342 38 380 Cardiac Rhythm Management 354 224 578 349 213 561 Electrophysiology 607 258 865 366 160 527 Cardiology 1,687 954 2,641 1,269 859 2,129 Peripheral Interventions 405 297 702 316 285 602 Cardiovascular 2,092 1,251 3,343 1,586 1,145 2,731 Total Net Sales $ 3,294 $ 1,770 $ 5,065 $ 2,593 $ 1,616 $ 4,209 Nine Months Ended September 30, 2025 2024 Businesses U.S. Int'l Total U.S. Int'l Total Endoscopy $ 1,338 $ 818 $ 2,157 $ 1,227 $ 769 $ 1,996 Urology 1,478 514 1,992 1,098 473 1,570 Neuromodulation 661 205 866 616 191 807 MedSurg 3,478 1,537 5,015 2,941 1,433 4,373 Interventional Cardiology Therapies 740 1,373 2,114 608 1,370 1,977 Watc …

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NOTE J SEGMENT REPORTING We aggregate our core businesses into two reportable segments: MedSurg and Cardiovascular, each of which generates revenues from the sale of medical devices. In accordance with FASB ASC Topic 280, Segment Reporting , we identified our reportable segments based on the nature of our products, production processes, type of customer, selling and distribution methods and regulatory environment, as well as the economic characteristics of each of our operating segments. Our chief operating decision maker (CODM) is our President and Chief Executive Officer. We measure and evaluate our reportable segments based on their respective net sales, cost of goods sold, selling, general and administrative expenses, research and development expenses, operating income, excluding intersegment profits, and operating income as a percentage of net sales, all based on internally-derived standard currency exchange rates to exclude the impact of foreign currency, which may be updated from year to year. We exclude from segment expenses and segment operating income certain corporate-related expenses and certain transactions or adjustments that our CODM considers to be non-operational, such as amounts related to amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and European Union (EU) Medi …

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