EW · Q3 2025 Earnings

Bullish

Edwards Lifesciences

Reported October 30, 2025

30-second summary

Edwards posted Q3 revenue of $1.55B (+12.6% YoY) and non-GAAP EPS of $0.67, beating the high end of its prior $1.46–$1.54B revenue guide and crushing the $0.54–$0.60 EPS guide by $0.07. TAVR re-accelerated to 10.6% reported growth — a step up from Q2's 8.9% — forcing management to raise underlying TAVR FY guide to 7–8% (from 6–7%) and FY non-GAAP EPS to $2.56–$2.62 (from the high end of $2.45–$2.55). TMTT held a 53% growth pace at $145M, clearing the implied 2H run-rate needed to hit the FY $530–$550M target.

Headline numbers

EPS

Q3 FY2025

$0.67

Revenue

Q3 FY2025

$1.55B

+12.6% YoY

Gross margin

Q3 FY2025

77.9%

Operating margin

Q3 FY2025

27.5%

Key financials

Q3 FY2025

Metric	Q3 FY2025	YoY	Q2 FY2025	QoQ
Revenue	$1.55B	+12.6%	$1.53B	+1.4%
EPS	$0.67	—	$0.67	+0.0%
Gross margin	77.9%	—	77.5%	+40bps
Operating margin	27.5%	—	26.8%	+70bps

Guidance

Edwards significantly raised full-year EPS and TAVR growth guidance after Q3 beat on both revenue and EPS, with revenue exceeding range and non-GAAP EPS at $0.67 vs. prior $0.54–$0.60 guide.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q3 FY2025	$1.46B–$1.54B	$1.5531B	+$0.013B above high end of guide	Beat
EPS (non-GAAP)	Q3 FY2025	$0.54–$0.60	$0.67	+$0.07 above high end of guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q4 FY2025	$1.51B–$1.59B	—
EPS (non-GAAP)	Q4 FY2025	$0.58–$0.64	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
EPS (non-GAAP)	FY2025	$2.40–$2.50 (at high end)	$2.56–$2.62	+$0.06–$0.12 at midpoint	Raised
sales growth	FY2025	9%–10%	High end of 9%–10%	Narrowed to high end; effectively +0.5–1.0pp midpoint increase	Raised
TAVR sales growth	FY2025	6%–7%	7%–8%	+1.0pp across range	Raised

Segment KPIs

Q3 FY2025

Segment	Q3 FY2025	YoY
Transcatheter Aortic Valve Replacement (TAVR)	$1.15B	+10.6%
Transcatheter Mitral and Tricuspid Therapies (TMTT)	$0.144B	+53.2%
Surgical Structural Heart	$0.258B	+5.6%
TAVR Sales Growth (Constant Currency)	10.6%	—
TMTT Sales Growth (Adjusted Constant Currency)	53.2%	—
Surgical Structural Heart Sales Growth (Constant Currency)	5.6%	—
TMTT Q3 Sales (Absolute)	$145.2 million	—

Other KPIs

Q3 FY2025

Segment	Q3 FY2025	YoY
United States	$0.906B	+12.6%
Europe	$0.388B	+14.0%
Japan	$0.09B	+6.5%
Rest of World	$0.168B	+12.7%
Adjusted Gross Margin	77.9%	—
Adjusted Operating Margin	27.5%	—
Europe Sales Growth (Constant Currency)	14.0%	—
Outside U.S. Growth (Constant Currency)	12.5%	—

Management tone

Narrative arc: Q2 "renewed focus on TAVR, balanced portfolio" → Q3 "double-digit sales growth, halo effect, raising guidance".

The TAVR posture has firmed from "re-engaged" to "double-digit, halo-driven, evidence-validated." In Q2, management framed TAVR's re-acceleration as the early innings of the asymptomatic/NCD setup; in Q3 they're crediting a "12 months of unprecedented scientific and academic focus" thesis — and notably calling out that asymptomatic adoption is NOT yet a driver because CMS coverage isn't there. That's an important "this is sustainable, and the bigger catalyst is still ahead" signal: management is implicitly saying current 10.6% growth was achieved without the asymptomatic tailwind they've been pointing to as the multi-year story.

The TMTT messaging has shifted from "growth portfolio" framing in Q2 to a more granular "compounding effect" thesis in Q3 — the explicit argument that having both repair (Pascal) and replacement (Evoque, M3) creates patient-by-patient optionality that drives total addressable volume higher than either category alone. Devine Chopra's articulation that TR business is growing >50% year-to-date with 98% TR elimination rates and improved real-world safety data anchors what was a strategic claim a quarter ago to operational evidence now.

Management has also dialed in a new hedge that wasn't present in Q2: Q3 should not be taken as the new normal. Bernard Zovighian explicitly cautioned that Q3 reflected multiple non-recurring factors (TCT data dissemination, absent summer seasonality, physician confidence inflection) layered on top of underlying demand. That accounts for why the FY TAVR guide was raised only 100bps despite a 280bps sequential jump in reported growth — and why Q4 was guided to $1.51–$1.59B (midpoint flat to Q3). The discipline cuts against the Q2 pattern of management leaning into superlatives.

Sapien M3 timing has held at "early 2026" U.S. approval, matching the Q2 "1H 2026" frame — no slippage signal. The European launch was characterized as "limited control" and training-focused, deliberately contrasted with Evoque's "rapid broad adoption" model. This is a downward-managed expectation for M3 contribution in early 2026 that wasn't as explicitly framed last quarter.

Q&A highlights

Travis Steed · Bank of America

Questioning Q3 TAVR growth drivers (10.6%), contribution from Boston Scientific exit, and whether 7-8% full-year guidance represents sustainable long-term TAVR growth. Also asked about physician reception to 7-year and 10-year data presented at TCT.

Management attributed Q3 strength to: (1) significant new evidence and news on TAVR/Sapien at conferences creating a 'halo effect'; (2) absence of typical summer seasonality in Q3; (3) physician focus on timely intervention. Dan Lippis emphasized that PARTNER III 7-year data and 10-year Sapien durability data addressed the 'last unanswered questions' on TAVR, with physicians responding very positively and showing increased confidence to treat earlier in disease progression. Management cautioned Q3 should not be taken as the new normal and guided for 'good' Q4 but better than originally expected.

Q3 TAVR sales growth 10.6% year-over-yearFull-year TAVR guidance raised to 7-8% from 6-7%PARTNER III 7-year data shows comparable mortality for TAVR vs. surgical control armSapien platform has 10+ years of follow-up data involving 10,000+ patients

David Roman · Goldman Sachs

Asked about Prevalence valve study presented at TCT in context of early TAVR study and opportunity for broader diagnostic rate increases for aortic stenosis that could benefit both TAVR and surgical valve businesses. Also asked about M3 launch timing and how to compare/contrast M3 launch with Evoke launch.

Bernard acknowledged Prevalence study as investigator-initiated but validation of market size assumptions and market incidence/prevalence estimates. Dan Lippis expanded that the study used a novel approach examining prevalence in non-diagnosed/out-of-system populations, suggesting disease may be larger than assumed. Management highlighted that all new evidence (early TAVR, PARTNER III, sub-analyses) will be disseminated through education, democratized in community, driving greater awareness, referral, and adoption. On M3, Devine Chopra confirmed early 2026 U.S. approval and noted European launch is using a 'limited control launch' model focused on high-value, physician training and outcomes. Distinguished M3 from Evoke by noting Evoke saw rapid broad adoption while M3 is taking a more measured, training-focused approach.

U.S. approval for Sapien M3 expected in early 2026Sapien M3 targeted at mitral patients unsuitable for TEAR and surgeryEuropean M3 launch ongoing with limited control/high-training modelPrevalence study validates market size assumptions and incidence/prevalence estimates

Vijay Kumar · Evercore ISI

Questioned why Q3 TAVR strength is not primarily driven by asymptomatic indication approval and why that performance might not sustain. Also requested clarification on litigation charge.

Dan Lippis clarified that while asymptomatic indication is part of the picture, the primary driver is the 'halo effect' from 12 months of unprecedented scientific and academic focus on TAVR with new evidence and sub-analyses. He noted no evidence yet of asymptomatic patients driving treatment—partly due to lack of CMS coverage—but upstream patient population monitoring shows this opportunity remains ahead. Management emphasized that major catalysts (asymptomatic coverage, moderate AS, NCD) are still in front of them, supporting multi-year confidence. Scott explained litigation charge as routine legal reserves taken on exposure.

No significant evidence yet of asymptomatic patient treatment driving Q3 growthCMS coverage for asymptomatic indication not yet availableKey future catalysts include asymptomatic NCD, potential moderate AS indication12 months of unprecedented TAVR evidence dissemination driving Q3 momentum

Matt Taylor · Jefferies

Asked whether tricuspid adoption will accelerate following positive real-world EVOKE data at TCT, and whether similar acceleration can be expected in mitral following M3 approval. Sought clarity on pace of acceleration with full 'toolbox' approach (repair and replacement).

Devine Chopra highlighted that real-world EVOKE data showed improved safety (reduced bleeding, conduction issues) vs. randomized trial and hard endpoint benefits for severe TR patients. Emphasized that having both repair and replacement technologies creates a 'compounding effect'—each patient gets optimal outcome, maximum patient population treated. Noted TR business growing >50% overall year-to-date and expects continued strength. For mitral, suggested similar dynamic will apply once full portfolio (Pascal, EVOKE, M3) is available, creating multiple treatment options and compounding value.

EVOKE year-to-date growth >50%Real-world EVOKE data shows improved safety profile vs. randomized trial (lower bleeding, conduction events)TR elimination achieved in 98% of EVOKE patients (30-day data)Major/life-threatening bleeding rate 1.3% in real-world setting

Robbie Marcus · JP Morgan

Asked about efficiency initiatives and AI programs in cath labs, specifically the 'Benchmark' program and how capacity/efficiency gains are driving strong TAVR volumes. Also asked follow-up on R&D spending levels and whether 50-100 bps margin expansion guidance is achievable given high R&D spend ($1.1B).

Dan Lippis detailed multiple programs: Benchmark (in pilot/ramp stages for cath lab efficiency), partnerships with AI/tech companies on echo screening and workflow solutions, direct-to-patient marketing, and partnerships with societies/GCs for evidence dissemination. Described these as ground-level execution with field teams in 'just about every case.' Devine noted TMTT therapies naturally improve efficiencies as new procedures are established. Scott reaffirmed that R&D is investment in top-line growth; committed to top-line growth outpacing R&D spending growth (evidenced by R&D declining from 18.

Answers to last quarter's watch list

TAVR constant-currency growth holding above 7%. TAVR printed 10.6% cc in Q3, a 280bps sequential acceleration. The FY underlying TAVR guide was raised 100bps to 7–8%.

Resolved positively

TMTT quarterly revenue progression toward the $530–$550M FY guide. Q3 TMTT delivered $145.2M (+53.2% cc adjusted), within the $140–150M sequential pace needed to hit the FY target.

Resolved positively

JenaValve close in Q3 and disclosure of dilution/accretion mechanics. Management disclosed FTC ruling expected by Q1 2026; no accretion mechanics provided. Status: Partially resolved — close pushed to post-Q1 2026.

Adjusted operating margin sustaining above 28%. Q3 adjusted operating margin came in at 27.5%, breaking below the 28% threshold set in Q2 (28.2%). Still inside the FY 27–28% target band but the directional read is unfavorable for the +50–100bps 2026 commitment trajectory.

Resolved negatively

Sapien M3 U.S. approval timing. Management reaffirmed "early 2026" U.S. approval timing on the Q3 call, consistent with Q2's "1H 2026" frame. No slippage.

Resolved positively

FX vs. tariff trajectory. Neither the press release nor the prepared remarks materially updated the FX-vs-tariff net. The only related disclosure was a routine litigation charge characterized by CFO Scott Ullem as standard legal reserves.

Continue monitoring

What to watch into next quarter

Q4 TAVR reported growth holding above 8%. Management guided Q4 revenue $1.51–$1.59B (midpoint flat to Q3) and explicitly cautioned Q3 may not be the new normal. A Q4 TAVR cc growth print between 8–10% would validate the higher 7–8% FY underlying guide as sustainable rather than evidence-blip; below 8% would suggest the halo effect was indeed transient.

Adjusted operating margin recovery toward 28%. Q3 stepped down to 27.5% from Q2's 28.2%. A continued slide below 27% in Q4 would call into question the +50–100bps 2026 EBIT expansion commitment; a recovery to 28%+ would reassert the trajectory.

Sapien M3 U.S. approval timing. "Early 2026" reaffirmed this quarter. Any slip to mid-2026 on the Q4 call would be a credibility hit on M3 and put the TMTT 2026 acceleration thesis at risk.

Q4 TMTT absolute dollar progression. FY $530–550M guide implies Q4 of ~$148–$168M depending on YTD math. A print below $145M would suggest deceleration from the >50% growth pace as the year-ago comp toughens.

JenaValve FTC ruling in Q1 2026. Management confirmed the regulatory process continues with a ruling expected by Q1 2026. A favorable outcome unlocks the AR opportunity and accretion modeling; an adverse ruling removes a 2026 growth lever.

CMS asymptomatic NCD process. Management explicitly flagged this as the next major catalyst not yet reflected in growth. Any procedural milestone or comment on timing on the Q4 call would be a leading indicator for 2026 TAVR growth above the current high-single-digit underlying trajectory.

Sources

Edwards Lifesciences Q3 2025 earnings press release, SEC EDGAR: https://www.sec.gov/Archives/edgar/data/1099800/000109980025000059/ex-991q32025.htm
Edwards Lifesciences Q3 2025 earnings call Q&A (analyst exchanges with Travis Steed, Larry Biegelsen, David Roman, Vijay Kumar; management speakers Bernard Zovighian, Scott Ullem, Dan Lippis, Devine Chopra).

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