Edwards Lifesciences Corp.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 30 October 2025: press release. Guidance figures: 3 raised, 2 new. The quarter’s numbers.

Read the filing

Key takeaways

• Sales grew 14.7% to $1.55 billion: Net sales grew 14.7% to $1.55 billion, or 12.6% adjusted, with growth in every product group. Adjusted figures exclude currency effects and newly acquired products. Source
• Full-year sales growth guidance raised: Full-year total company sales growth guidance moved to the high end of 9% to 10%, from 9% to 10% previously. Management tied the raise to better-than-expected performance. Source
• Adjusted EPS guidance raised: Full-year adjusted EPS is now $2.56 to $2.62. The release gives the prior guidance as the high end of $2.45 to $2.55; the prior release gave the high end of $2.40 to $2.50. Source
• TMTT sales up 59.3%: TMTT sales were $145.2 million, up 59.3% reported and 53.2% adjusted, with growth driven by PASCAL and EVOQUE. Source
• Seven-year SAPIEN 3 data presented: Management said SAPIEN 3 performance is now proven at 7 years, following superiority at 1 year for low-risk patients. The 10-year PARTNER 2 results were also cited. Source
• Adjusted gross margin 77.9%: Adjusted gross margin was 77.9%, against 80.7% a year earlier. Management said the year-over-year change was driven primarily by foreign exchange. Source
• Buyback authorization raised to $2.1 billion: The board approved an increase in the share repurchase authorization, which now totals about $2.1 billion. The prior total is not stated in the release. Source

“Based on our better-than-expected performance, reflecting the patient-focused contributions of our talented employees, we are raising our 2025 sales and EPS guidance.”

Bernard Zovighian, CEO

Guidance

What changed from last quarter

• Guidance raised: Total sales growth guidance raised to the high end of 9% to 10%, from 9% to 10%. Source
• Guidance raised: TAVR underlying growth guidance raised to 7% to 8%, from 6% to 7%. Source
• Guidance raised: Adjusted EPS guidance raised to $2.56 to $2.62. Source
• New guidance: A fourth-quarter projection was added; the prior release had given a projection for the third quarter. Source
• Guidance kept: TMTT and Surgical sales guidance left unchanged. Source
• New: Share repurchase authorization increased to about $2.1 billion; the prior total is not stated. Source

Results and growth drivers

• Sales grew 14.7% to $1.55 billion: Net sales grew 14.7% to $1.55 billion, or 12.6% adjusted, with growth in every product group. Adjusted figures exclude currency effects and newly acquired products. Source
• Diluted EPS from continuing operations: Reported diluted EPS from continuing operations was $0.50, against $0.61 a year earlier. Adjusted EPS was $0.67, the same as the prior-year quarter. Source
• Adjusted operating margin above expectations: Adjusted operating margin was 27.5%, which management called higher than expected, helped by better sales and some spending deferred to the fourth quarter. Source

Full-year and fourth-quarter guidance

• Full-year sales growth guidance raised: Full-year total company sales growth guidance moved to the high end of 9% to 10%, from 9% to 10% previously. Management tied the raise to better-than-expected performance. Source
• TAVR underlying growth guidance raised: TAVR underlying growth guidance rose to 7% to 8% from 6% to 7%. Source
• Adjusted EPS guidance raised: Full-year adjusted EPS is now $2.56 to $2.62. The release gives the prior guidance as the high end of $2.45 to $2.55; the prior release gave the high end of $2.40 to $2.50. Source
• Fourth-quarter projection issued: Fourth-quarter total sales are projected at $1.51 to $1.59 billion and adjusted EPS at $0.58 to $0.64. Source
• TMTT and Surgical guidance unchanged: Sales guidance for the TMTT and Surgical product groups was left unchanged in this release. Source

“Edwards remains committed to being the partner of choice for heart teams by providing a complete portfolio of therapies for the many patients in need, built on the foundation of our unique strategy and an unprecedented body of evidence.”

Bernard Zovighian, CEO

Segments and regions

• TAVR sales up 12.4%: TAVR sales were $1.15 billion, up 12.4% reported and 10.6% constant currency. Constant currency growth was comparable in the US and outside the US. Source
• TMTT sales up 59.3%: TMTT sales were $145.2 million, up 59.3% reported and 53.2% adjusted, with growth driven by PASCAL and EVOQUE. Source
• Surgical sales up 7.5%: Surgical sales were $258 million, up 7.5% reported and 5.6% constant currency. Management cited adoption of RESILIA aortic and mitral therapies. Source
• Europe sales up 21.3%: Europe sales were $387.9 million, up 21.3% reported and 14.0% constant currency. Management linked part of the European gain to a competitor exit. Source
• Japan TAVR growth improving gradually: Japan sales were $90.1 million, up 6.5% in constant currency. Management said TAVR growth there continues to improve as market growth recovers gradually. Source

Demand and competitive position

• Clinicians renewed focus on aortic stenosis: Management said TAVR growth was better than expected, as clinicians renewed their focus on prioritizing treatment for patients with aortic stenosis. Source
• Evidence and indications supported growth: Management said sales growth in several regions was supported by new evidence, guideline updates and expanding indications. Source
• Competitive position and pricing stable: On a global basis, competitive position and pricing were described as largely stable, with constant currency growth comparable in the US and outside the US. Source

Clinical evidence and guidelines

• Seven-year SAPIEN 3 data presented: Management said SAPIEN 3 performance is now proven at 7 years, following superiority at 1 year for low-risk patients. The 10-year PARTNER 2 results were also cited. Source
• Updated ESC/EACTS guidelines simplify care: The updated guidelines set a simplified care pathway for severe aortic stenosis regardless of symptoms, and support intervention for asymptomatic patients regardless of heart function. Source
• Real-world EVOQUE data from 1,000 patients: Real-world data from over 1,000 EVOQUE patients showed continued high levels of tricuspid regurgitation elimination, with safety outcomes described as favorable. Source
• SAPIEN M3 met ENCIRCLE primary endpoint: The one-year ENCIRCLE trial, the first pivotal trial for a transfemoral mitral replacement therapy, reached its primary endpoint for SAPIEN M3. Source

Costs, margins and spending

• Adjusted gross margin 77.9%: Adjusted gross margin was 77.9%, against 80.7% a year earlier. Management said the year-over-year change was driven primarily by foreign exchange. Source
• SG&A rose to 33.1% of sales: SG&A was $515 million, or 33.1% of sales, against $421 million, or 31.1%, a year earlier. Management cited investments to support transcatheter therapies globally. Source
• R&D rose to $281 million: R&D was $281 million, against $253 million a year earlier, or 18.1% of sales compared with 18.7%. Management described the spending as intentional prioritization of structural heart. Source
• Impairment charge on acquired technology: A $40.0 million impairment charge on a developed technology asset acquired in an acquisition was recorded and excluded from adjusted results. Source
• Litigation expenses rose to $90.4 million: Certain litigation expenses were $90.4 million in the quarter, against $10.8 million a year earlier, and were excluded from adjusted EPS. Source

Capital and shareholder returns

• Cash about $3 billion at quarter end: Cash and equivalents were about $3 billion at September 30, 2025, and total debt was about $600 million. Source
• Buyback authorization raised to $2.1 billion: The board approved an increase in the share repurchase authorization, which now totals about $2.1 billion. The prior total is not stated in the release. Source
• Average diluted shares of 586 million: Average diluted shares outstanding were 586 million in the quarter, compared with 598.1 million in the prior-year quarter per the statement of operations. Source

Strategy and portfolio investment

• Partner of choice for heart teams: Management said the company remains committed to being the partner of choice for heart teams, with a complete therapy portfolio. The release also cites extension into heart failure and aortic regurgitation. Source
• Comprehensive portfolio across therapeutic areas: The CEO said results reflect the company's portfolio across aortic, pulmonic, mitral and tricuspid areas and its established presence in countries around the world. Source
• TMTT vision for underserved patients: Management said PASCAL, EVOQUE and the recently CE-marked SAPIEN M3 advance a vision of repair and replacement technologies for underserved mitral and tricuspid patients. Source
• KONECT access expanded across Europe: Following CE Mark approval for KONECT at the end of the second quarter, the company expanded patient access across European countries during the third quarter. Source

Coming up, as management said on 30 October 2025

• Fourth-quarter spending deferral: Management said certain spending was deferred to the fourth quarter, so that spending falls there rather than in the third quarter. Source

Figures management reported

Risks management discussed

• External: Year-over-year gross margin decline was attributed to foreign exchange. Source
• Demand: Japan TAVR growth is improving, but management describes the market recovery there as gradual. Source
• Financial: Certain litigation expenses of $90.4 million in the quarter were excluded from adjusted results. Source

Earlier plans management reported on

• On track: Adjusted gross margin of 77.9% was described as in line with company expectations. Source
• Ahead: Adjusted operating margin of 27.5% was described as higher than expected. Source
• Ahead: TAVR growth was described as better than expected. Source
• Not stated: Management said certain spending was deferred to the fourth quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.