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EW Stock Climbs on Q2 Earnings & Revenue Beat, Margins Down
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Key Takeaways
EW posted Q2 EPS of $0.67 and sales of $1.53B, beating estimates and growing 8.1% and 11.7% YoY, respectively.
EW saw strong growth in TAVR and TMTT, driven by U.S. trial data, device adoption and global market shifts.
Edwards Lifesciences raised 2025 guidance despite margin pressure from higher costs and expenses.
Edwards Lifesciences Corporation (EW - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 67 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The figure increased 8.1% from the year-ago quarter’s level.
One-time adjustments primarily include certain litigation expenses and amortization of intangible assets.
GAAP EPS from continuing operations was 57 cents compared with 61 cents in the second quarter of 2024.
Edwards’ Q2 Sales Details
Sales totaled $1.53 billion, up 11.7% year over year. The metric surpassed the Zacks Consensus Estimate by 2.7%.
Following the earnings announcement, EW stock rose 6.2% in aftermarket trading yesterday.
EW Q2 Sales by Segments
Transcatheter Aortic Valve Replacement (“TAVR”)
Global sales in the product group amounted to $1.10 billion, up 8.9% year over year or 7.8% at constant currency (CER). This compares with our model’s projection of $1.09 billion for the quarter.
In the United States, the clinical conversations around the EARLY TAVR trial data are bringing a renewed focus to streamlining the management of patients with severe aortic stenosis (AS), enabling closer follow-up and more timely treatment of patients with aortic stenosis. In Europe, the exit of a competitor resulted in a rebalancing of market share and a modest contribution to Edwards’ sales. In Japan, TAVR sales grew in the mid-single digits, marking an improvement from the previous quarter’s level.
Transcatheter Mitral and Tricuspid Therapies (“TMTT”)
Sales totaled $134.5 million, up 61.9% from the prior-year figure on a reported basis (up 57.1% at CER). This compares with our model’s projection of $130.4 million.
This performance was driven by increased adoption and balanced contribution from PASCAL and EVOQUE in the United States, Europe and globally.
Surgical Structural Heart
The segment delivered sales of $267 million, up 7.7% from the year-ago level on a reported basis and 6.8% at CER. This compares with our model’s projection of $263.1 million.
This growth was driven by the strong global adoption of Edwards Lifesciences’ premium RESILIA tissue portfolio, specifically the INSPIRIS, MITRIS and KONECT devices.
Edwards’ Q2 Margin Performance
The gross profit was $1.19 billion, up 8.6% year over year. The gross margin contracted 236 basis points (bps) to 77.5% due to a 25% increase in cost of sales.
SG&A expenses rose 12.2% year over year to $502 million. R&D expenditures amounted to $276.2 million, up 1.6% year over year.
The operating income increased 9.3% year over year to $409.6 million. The operating margin contracted 62 bps to 26.7%.
EW’s Cash Position
The company exited the second quarter with cash and cash equivalents of $3.00 billion compared with $3.10 billion at the end of the first quarter of 2025. Total debt remained sequentially consistent at approximately $600 million.
Edwards Lifesciences Corporation Price, Consensus and EPS Surprise
EW raised its 2025 sales growth forecast to 9-10% (earlier 8-10%) with sales guidance of $5.90-$6.10 billion. The projection reflects its current estimates of the impact from tariffs. The Zacks Consensus Estimate for sales is pegged at $5.91 billion.
The company now expects 2025 adjusted EPS to be at the high end of its previously guided range of $2.40-$2.50. The Zacks Consensus Estimate for the same is pegged at $2.46.
For the third quarter of 2025, EW projects total sales to be in the band of $1.46-$1.54 billion and adjusted EPS in the 54-60 cents range. The Zacks Consensus Estimate for third-quarter sales and EPS is pinned at $1.48 billion and 60 cents, respectively.
Our Take
Edwards Lifesciences beat on both earnings and revenues in the second quarter of 2025. TAVR growth was better than the company’s expectations, with clinicians increasingly adopting the SAPIEN technology. Within TMTT, PASCAL’s distinct features are driving distinguished clinical outcomes, along with higher adoption at both new and existing sites around the world.
Additionally, SAPIEN M3 mitral valve replacement system’s CE Mark approval uniquely positions Edwards with a comprehensive TMTT portfolio. In Surgical, Edwards made progress, advancing important innovations globally, such as the KONECT aortic valved conduit that received CE Mark approval in Europe.
On the flip side, contraction of both margins in the quarter is highly discouraging.
The company’s commitment to driving breakthrough innovations in pioneering and leading categories bodes well. Given the strong start to the year, Edwards is confident about its 2025 outlook.
EW’s Zacks Rank and Other Key Picks
Edwards Lifesciences currently carries a Zacks Rank #2 (Buy).
Intuitive Surgical, sporting a Zacks Rank #2 at present, posted second-quarter 2025 adjusted EPS of $2.19, which exceeded the Zacks Consensus Estimate by 14.1%. Revenues of $2.44 billion surpassed the Zacks Consensus Estimate by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an estimated long-term earnings growth rate of 15.1% compared with the industry’s 14.4%.
Veeva Systems, currently carrying a Zacks Rank #2, reported first-quarter fiscal 2026 adjusted EPS of $1.97, which surpassed the Zacks Consensus Estimate by 13.2%. Revenues of $759 million beat the consensus mark by 4.3%.
VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry’s 19.1%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.
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EW Stock Climbs on Q2 Earnings & Revenue Beat, Margins Down
Key Takeaways
Edwards Lifesciences Corporation (EW - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of 67 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The figure increased 8.1% from the year-ago quarter’s level.
One-time adjustments primarily include certain litigation expenses and amortization of intangible assets.
GAAP EPS from continuing operations was 57 cents compared with 61 cents in the second quarter of 2024.
Edwards’ Q2 Sales Details
Sales totaled $1.53 billion, up 11.7% year over year. The metric surpassed the Zacks Consensus Estimate by 2.7%.
Following the earnings announcement, EW stock rose 6.2% in aftermarket trading yesterday.
EW Q2 Sales by Segments
Transcatheter Aortic Valve Replacement (“TAVR”)
Global sales in the product group amounted to $1.10 billion, up 8.9% year over year or 7.8% at constant currency (CER). This compares with our model’s projection of $1.09 billion for the quarter.
In the United States, the clinical conversations around the EARLY TAVR trial data are bringing a renewed focus to streamlining the management of patients with severe aortic stenosis (AS), enabling closer follow-up and more timely treatment of patients with aortic stenosis. In Europe, the exit of a competitor resulted in a rebalancing of market share and a modest contribution to Edwards’ sales. In Japan, TAVR sales grew in the mid-single digits, marking an improvement from the previous quarter’s level.
Transcatheter Mitral and Tricuspid Therapies (“TMTT”)
Sales totaled $134.5 million, up 61.9% from the prior-year figure on a reported basis (up 57.1% at CER). This compares with our model’s projection of $130.4 million.
This performance was driven by increased adoption and balanced contribution from PASCAL and EVOQUE in the United States, Europe and globally.
Surgical Structural Heart
The segment delivered sales of $267 million, up 7.7% from the year-ago level on a reported basis and 6.8% at CER. This compares with our model’s projection of $263.1 million.
This growth was driven by the strong global adoption of Edwards Lifesciences’ premium RESILIA tissue portfolio, specifically the INSPIRIS, MITRIS and KONECT devices.
Edwards’ Q2 Margin Performance
The gross profit was $1.19 billion, up 8.6% year over year. The gross margin contracted 236 basis points (bps) to 77.5% due to a 25% increase in cost of sales.
SG&A expenses rose 12.2% year over year to $502 million. R&D expenditures amounted to $276.2 million, up 1.6% year over year.
The operating income increased 9.3% year over year to $409.6 million. The operating margin contracted 62 bps to 26.7%.
EW’s Cash Position
The company exited the second quarter with cash and cash equivalents of $3.00 billion compared with $3.10 billion at the end of the first quarter of 2025. Total debt remained sequentially consistent at approximately $600 million.
Edwards Lifesciences Corporation Price, Consensus and EPS Surprise
Edwards Lifesciences Corporation price-consensus-eps-surprise-chart | Edwards Lifesciences Corporation Quote
Edwards’ 2025 & Q3 Guidance
EW raised its 2025 sales growth forecast to 9-10% (earlier 8-10%) with sales guidance of $5.90-$6.10 billion. The projection reflects its current estimates of the impact from tariffs. The Zacks Consensus Estimate for sales is pegged at $5.91 billion.
The company now expects 2025 adjusted EPS to be at the high end of its previously guided range of $2.40-$2.50. The Zacks Consensus Estimate for the same is pegged at $2.46.
For the third quarter of 2025, EW projects total sales to be in the band of $1.46-$1.54 billion and adjusted EPS in the 54-60 cents range. The Zacks Consensus Estimate for third-quarter sales and EPS is pinned at $1.48 billion and 60 cents, respectively.
Our Take
Edwards Lifesciences beat on both earnings and revenues in the second quarter of 2025. TAVR growth was better than the company’s expectations, with clinicians increasingly adopting the SAPIEN technology. Within TMTT, PASCAL’s distinct features are driving distinguished clinical outcomes, along with higher adoption at both new and existing sites around the world.
Additionally, SAPIEN M3 mitral valve replacement system’s CE Mark approval uniquely positions Edwards with a comprehensive TMTT portfolio. In Surgical, Edwards made progress, advancing important innovations globally, such as the KONECT aortic valved conduit that received CE Mark approval in Europe.
On the flip side, contraction of both margins in the quarter is highly discouraging.
The company’s commitment to driving breakthrough innovations in pioneering and leading categories bodes well. Given the strong start to the year, Edwards is confident about its 2025 outlook.
EW’s Zacks Rank and Other Key Picks
Edwards Lifesciences currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Veeva Systems (VEEV - Free Report) and Cencora (COR - Free Report) .
Intuitive Surgical, sporting a Zacks Rank #2 at present, posted second-quarter 2025 adjusted EPS of $2.19, which exceeded the Zacks Consensus Estimate by 14.1%. Revenues of $2.44 billion surpassed the Zacks Consensus Estimate by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an estimated long-term earnings growth rate of 15.1% compared with the industry’s 14.4%.
Veeva Systems, currently carrying a Zacks Rank #2, reported first-quarter fiscal 2026 adjusted EPS of $1.97, which surpassed the Zacks Consensus Estimate by 13.2%. Revenues of $759 million beat the consensus mark by 4.3%.
VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry’s 19.1%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.