Edwards Lifesciences reported third‑quarter 2025 revenue of $1.553 billion, up 6.2% on a GAAP basis and 8% in constant currency compared with $1.464 billion in Q3 2024. The company’s adjusted gross profit margin fell to 77.9% from 80.7% in the prior year, while the adjusted operating margin improved to 27.5% from 31.4%. Cash and cash equivalents stood at $3.0 billion and debt was $600 million, giving the company a strong balance sheet and a $2.1 billion share‑repurchase authorization.
The transcatheter aortic valve replacement (TAVR) segment generated $1.15 billion in Q3 2025, a 12.4% year‑over‑year increase from $1.014 billion in Q3 2024. Transcatheter mitral and tricuspid therapies (TMTT) delivered $145.2 million, up 59.3% from $91.2 million in Q3 2024, driven by the launch of SAPIEN M3 and EVOQUE. Surgical sales rose 7.5% to $258 million from $240 million in Q3 2024, supported by continued demand for RESILIA‑based products.
Management raised full‑year sales guidance to a 9%–10% growth range and adjusted earnings‑per‑share guidance to $2.56–$2.62, up from the previous $2.40–$2.50 range. For the fourth quarter, the company projects sales of $1.51–$1.59 billion and adjusted EPS of $0.58–$0.64. The guidance lift reflects strong demand in TAVR and TMTT, favorable guideline updates from ESC/EACTS, and new clinical data presented at the Transcatheter Cardiovascular Therapeutics conference.
Management noted that the decline in gross profit margin was largely due to higher raw‑material costs and foreign‑exchange impacts, while the operating margin improvement was driven by better‑than‑expected sales and deferred capital spending to the fourth quarter. The company also highlighted headwinds such as increasing competition in the TAVR market and supply‑chain constraints for certain valve components.
Additional context includes the exit of a competitor from the European market, which has helped Edwards capture additional market share. The company’s portfolio expansion into aortic regurgitation and implantable heart‑failure management is positioned to add new revenue streams. SAPIEN M3 is expected to receive U.S. regulatory approval in early 2026, providing a future growth catalyst. CFO Scott Ullem announced his transition out of the CFO role by mid‑2026, and the company remains focused on sustaining its cash‑generating ability and returning value to shareholders.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.