Edwards Lifesciences Demonstrates Robust Growth in Q3 2025, Elevates Full-Year Projections

Q3 2025 Financial Performance and Key Metrics

Edwards Lifesciences Corp (EW) reported a robust third quarter for 2025, with net sales reaching $1.55 billion, representing a 12.6% increase compared to the same period last year. This performance led the company to raise its full-year financial outlook.

Adjusted earnings per share (EPS) for the quarter stood at $0.67, surpassing analyst expectations, while GAAP EPS was $0.50. The company's adjusted gross profit margin saw a decrease to 77.9% from 80.7% year-over-year, attributed primarily to foreign exchange fluctuations and increased operational expenses. Selling, general, and administrative expenses rose to $515 million, or 33.1% of sales, up from $421 million in the prior year. The effective tax rate, excluding special items, was 16.9%.

Strategic Product Growth and Market Impact

Growth was particularly strong in key therapeutic areas. Global sales for Transcatheter Aortic Valve Replacement (TAVR) increased by 10.6% over the prior year, reaching $1.15 billion. Based on this performance, Edwards Lifesciences raised its full-year TAVR guidance to a 7% to 8% growth range, up from the previous 6% to 7%.

The Transcatheter Mitral and Tricuspid Therapies (TMTT) product group saw sales jump by 53% year-over-year to $144 million, driven by the continued adoption of PASCAL and EVOQUE technologies. The company also highlighted recent product milestones, including the introduction of SAPIEN M3 in Europe and anticipated U.S. approval by early 2026.

CEO Bernard Zovighian emphasized the long-term clinical data supporting transcatheter therapies, citing 7-year and 10-year results for the SAPIEN platform.

Upgraded Financial Outlook and Investor Confidence

In light of the strong third-quarter results, Edwards Lifesciences raised its full-year 2025 sales growth guidance to the high end of the previous 9% to 10% range. The company also increased its full-year adjusted EPS guidance range to between $2.56 and $2.62, exceeding the analyst consensus of $2.51.

For the fourth quarter, Edwards Lifesciences projects total sales between $1.51 billion and $1.59 billion, with adjusted EPS anticipated to be between $0.58 and $0.64.

Further demonstrating confidence in its valuation and future prospects, the Board of Directors approved an increase in the company's share repurchase authorization, bringing the total to approximately $2.1 billion.

Leadership Transition and Future Considerations

CFO Scott Ullem announced his planned transition out of the CFO role by mid-2026. While strong Q3 results contributed to the adjusted EPS beating expectations, the market often reacts to CFO transitions. A report by Datarails, "CFOs and the C-Suite 2023," indicates that stock prices typically experience an immediate -1% drop the day after a CFO's exit announcement, with an additional -2% decline over the subsequent 30 days. However, the report also notes that prices often recover to previous levels within 180 days. This pattern underscores the importance investors place on leadership stability.

Looking ahead, Edwards Lifesciences aims to maintain its momentum through continued innovation in its transcatheter platforms, particularly with the anticipated U.S. approval of SAPIEN M3. Investors will monitor the operational expenses in Q4, as some spending was delayed from Q3, potentially impacting operating margins.