Preliminary brief— based on press release only. Full analysis including management tone and Q&A will be added when the transcript is available.

EW · Q4 2025 Earnings

Edwards Lifesciences

Reported February 10, 2026

30-second summary

Edwards closed FY2025 with Q4 revenue of $1.57B (+13.3% YoY reported, +11.6% cc) and non-GAAP EPS of $0.58, landing above the midpoint of the prior $1.51–$1.59B revenue guide and at the low end of the $0.58–$0.64 EPS guide. The forward signal matters more than the print: management opened FY2026 with "increased confidence" in 8–10% constant-currency sales growth, EPS of $2.90–$3.05 (~16% midpoint growth off $2.56), and operating margin guided to the high end of the 28–29% range — implying ~150bps of cc expansion off the FY2025 adjusted base of 27.1%, consistent with Scott's explicit "approximately 150 basis points constant currency operating margin expansion" framing. TMTT guided to $740–780M (+35–45%) anchors the multi-year structural heart thesis.

Headline numbers

EPS

Q4 FY2025

$0.58

Revenue

Q4 FY2025

$1.57B

+13.3% YoY

Gross margin

Q4 FY2025

78.1%

Operating margin

Q4 FY2025

9.6%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$1.57B	+13.3%	$1.55B	+1.1%
EPS	$0.58	—	$0.67	-13.4%
Gross margin	78.1%	—	77.9%	+20bps
Operating margin	9.6%	—	27.5%	-1790bps

Guidance

Edwards Lifesciences raised full-year FY2026 EPS guidance to $2.90–$3.05 with 'increased confidence' in 8–10% constant currency sales growth, driven by continued TMTT momentum (35–45% growth) and operating margin expansion approaching 29%, while Q4 FY2025 results came in-line with prior guidance.

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	Q4 FY2025	$1.51 billion to $1.59 billion	$1.57 billion	in-line	Beat
Adjusted EPS	Q4 FY2025	$0.58 to $0.64	$0.58	in-line (at low end of guide)	Beat
Adjusted EPS	FY2025	$2.56 to $2.62	$2.56	in-line (at low end of range)	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q1 FY2026	$1.55 billion to $1.63 billion	—
Adjusted EPS	Q1 FY2026	$0.70 to $0.76	—
Sales growth rate (constant currency)	FY2026	8% to 10%	—
Adjusted EPS	FY2026	$2.90 to $3.05	—
TMTT revenue	FY2026	$740 million to $780 million	—
Adjusted gross profit margin	FY2026	78% to 79%	—
R&D as percentage of sales	FY2026	approximately 17%	—
Operating profit margin	FY2026	high end of 28% to 29% range	—

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
Transcatheter Aortic Valve Replacement (TAVR)	$1.16B	+12.0%
Transcatheter Mitral and Tricuspid Therapies (TMTT)	$0.156B	+48.3%
Surgical Structural Heart	$0.254B	+3.8%
TAVR Full Year 2025 Sales	$4.49B	—
TMTT Full Year 2025 Sales	$550.6M	—

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
United States	$0.907B	+11.6%
Europe	$0.41B	+19.1%
Japan	$0.088B	+1.9%
Rest of World	$0.166B	+15.5%
TMTT YoY Growth	56.4%	—
Adjusted Gross Margin	78.3%	—
Adjusted Operating Margin	23.7%	—
FY2026 Guidance - Constant Currency Sales Growth	8-10%	—
FY2026 Adjusted EPS Guidance	$2.90-$3.05	—
FY2026 TMTT Growth Guidance	35-45%	—

Management tone

Narrative arc: Q2 "renewed focus on TAVR, balanced portfolio" → Q3 "double-digit halo, raising guidance, this is not the new normal" → Q4 "increased confidence, catalyst-by-catalyst calendar through 2026 with $2B TMTT by 2030."

The most material tone shift is the explicit "increased confidence" framing carried into FY2026 — language Edwards has historically avoided, even at investor days. Last quarter's Q3 narrative spent meaningful airtime cautioning that the sequential TAVR acceleration was transient (TCT data dissemination, absent summer seasonality, physician confidence inflection). This quarter, with Q4 TAVR holding at +10.6% cc, management dropped the hedge and committed to a multi-catalyst 2026 calendar: NCD draft in June, TCT moderate AS data, NextGen Pascal Q4 2026. The Q3 conservatism has been replaced by a declared timeline.

The TAVR thesis has firmed from "evidence-validated" to "paradigm-shifted." Three quarters ago TAVR was framed as a re-engaged franchise riding asymptomatic optionality; this quarter management states "the conversation has completely shifted because the evidence says that...there's no upside to waiting anymore." That is a claim of standard-of-care change, not a claim of incremental volume — the addressable patient pool is being re-anchored higher rather than the share of an existing pool being recaptured.

TMTT positioning has compounded again. Q2 was "growth portfolio of repair and replacement"; Q3 was "compounding effect from optionality"; Q4 is "$2 billion revenue in 2030 and additional growth beyond" with FY2026 guided to $740–780M. The intermediate $740–780M and terminal $2B numbers now bracket a publishable trajectory rather than a vision statement.

Capital allocation framing has also turned more active. Q2 acknowledged JenaValve as the priority deal; Q3 confirmed FTC delay to post-Q1 2026; Q4 explicitly references the Genovalve withdrawal and continued business development activity, with the caveat that targets "tend to be smaller in size because we're focused on structural heart." That is a meaningful posture shift after a failed deal — management is signaling continued M&A intent rather than retrenchment.

The hedge worth flagging: management called out a deliberate Q4 SG&A step-up (+$112M YoY) to fund patient access investments (AHA partnership, field force expansion, asymptomatic amplification), with FY2026 OpEx guided to "more moderated" growth. That mechanical reset, combined with the removal of planned Genovalve spend, is what gets the ~150bps cc operating margin expansion from the FY2025 27.1% base to the guided high end of 28–29%.

Recurring themes management leaned on this quarter:

Long-term durability evidence (Partner 3 7-year, Partner 2 10-year data) driving clinical confidence and treatment urgencyShift from watchful waiting to proactive disease management as new clinical paradigm across regionsLifetime valve management and secondary procedure positioning as differentiation strategyTMTT portfolio expansion (Sapien M3, NextGen Pascal, EVOC scaling) targeting $2B revenue by 2030Regulatory tailwinds (updated NCD, European guideline changes, ESC/EACTS recommendations) creating multi-layered growth catalystsStrategic patient access investments (AHA partnership, field force expansion) to operationalize guideline adoption

Risks management surfaced:

Second-half 2026 growth faces tougher year-over-year comps and normalized seasonality (expected to benefit 2025 in unusual way)Moderate AS trial results remain unknown; no guarantee of positive efficacy or adoption (awaiting TCT presentation)FX headwinds could emerge (currently modeling $40M upside, but subject to currency volatility)Genovalve deal failure consumed resources and delayed strategic focusInternational competitive pressures despite Boston Scientific exit (competitors also gained share)

Answers to last quarter's watch list

Q4 TAVR reported growth holding above 8%. TAVR printed +12.0% reported / +10.6% cc in Q4 on $1.16B, comfortably above the 8% threshold and holding the Q3 cc rate.

Resolved positively

Adjusted operating margin recovery toward 28%. FY2025 adjusted operating margin landed at 27.1%, within the original 27–28% framing; Q4 specifically came in at 23.7% on a deliberate SG&A step-up (+$112M YoY) to fund patient access initiatives. Management guided FY2026 to the high end of 28–29% with moderated OpEx growth and explicit ~150bps cc expansion from the 27.1% base.

Resolved positively

Sapien M3 U.S. approval timing. M3 received FDA approval and the U.S. launch is underway, initially through prior ENCIRCLE pivotal trial sites; management characterized the scaling as "in line with expectations.".

Resolved positively

Q4 TMTT absolute dollar progression. TMTT delivered $156M in Q4 (+48.3% reported / +44.1% cc) on $550.6M for the full year — above the upper end of the $530–550M FY guide and inside the watch-list $148–168M Q4 range. The +56.4% FY reported growth pace remained well above the +35–45% FY2026 guide pace, suggesting a 2026 entry rate of strength.

Resolved positively

JenaValve FTC ruling in Q1 2026. No FTC ruling update was disclosed; Edwards recorded a $99.8M impairment on its JenaValve investment in Q4. The deal remains pending without a disclosed close timeline.

Continue monitoring

CMS asymptomatic NCD process. Management's qualitative commentary cites a June 2026 draft NCD timeline with potential final determination in Q4 2026, framing it as "a potential tailwind later this year" — the first time a quarter-specific window has been put on the catalyst.

Resolved positively

What to watch into next quarter

Q1 FY2026 adjusted operating margin trajectory. FY2026 is guided to the high end of 28–29% off a FY2025 adjusted base of 27.1%, implying ~150bps cc expansion. Q1 must show clear sequential SG&A moderation off the elevated Q4 base to validate the trajectory. Watch for whether the Q4 patient-access step-up shows signs of carrying into Q1 or normalizing as guided.

TAVR cc growth holding ≥10% with the asymptomatic NCD still pending. Current FY2026 sales guide of 8–10% does NOT yet bake in the NCD draft (June) or moderate AS (TCT). A Q1 TAVR cc print at or above 10% would suggest the guide is conservatively set and reinforce the catalyst-driven 2H acceleration narrative — though management has flagged that first-half growth will exceed second-half given tougher comps.

June 2026 draft NCD content. Management has now put a quarter on the calendar. The breadth of the draft — particularly whether asymptomatic AS is explicitly covered — will determine whether the FY guide is the floor or the ceiling.

TCT moderate AS data presentation (PROGRESS trial). Management explicitly deferred commentary on moderate AS pending the PROGRESS readout. A positive efficacy read opens a category larger than asymptomatic; a null result removes a 2027+ leg of the $2B TMTT-by-2030 thesis.

Sapien M3 U.S. site expansion pace. Initial launch is limited to prior ENCIRCLE trial sites. Q1 commentary on the pace of site additions and procedural volume ramp will inform whether the 35–45% TMTT FY2026 guide is M3-balanced or Evoque-weighted.

JenaValve regulatory resolution and any post-Genovalve M&A. With the $99.8M JenaValve impairment booked and a stated preference for smaller structural-heart tuck-ins, watch for an announced transaction before the Q1 print. JenaValve clearance also remains the gating event for the aortic regurgitation revenue line.

Sources

Edwards Lifesciences Q4 FY2025 earnings press release, SEC EDGAR: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000006/ex-991q42025.htm
Prior coverage: Tapebrief EW Q3 FY2025 and Q2 FY2025 briefs for guidance trajectory and watch-list resolution.

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