Edwards Lifesciences Corp (EW) Q4 2025 Earnings Call Highlights: Strong Sales Growth Amidst …

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Wed, February 11, 2026 at 2:01 PM GMT+9 4 min read

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**Total Sales:** $1.57 billion, grew 11.6% year over year.

**Adjusted EPS:** $0.58, lower due to higher spending and tax rate.

**GAAP EPS:** $0.11, impacted by one-time charges.

**Adjusted Gross Profit Margin:** 78.3% for Q4.

**SG&A Expense:** $603 million, 38% of sales.

**R&D Expense:** $268 million, 17.1% of sales.

**Adjusted Operating Profit Margin:** 23.7% for Q4.

**Tax Rate:** 17.9% excluding special items.

**Cash and Cash Equivalents:** Approximately $3 billion as of December 31.

**TAVR Sales:** $1.16 billion, increased 10.6% over the prior year.

**TMTT Sales:** $156 million, grew over 40%.

**Surgical Sales:** $254 million, increased 2% over the prior year.

**Full-Year 2025 Sales Growth:** 10.7%.

**2026 Sales Growth Guidance:** 8% to 10%.

**2026 EPS Guidance:** $2.90 to $3.05.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Edwards Lifesciences Corp (NYSE:EW) reported strong Q4 2025 results with a sales growth of 11.6% and a full-year growth of 10.7%.

The company has increased confidence in meeting its 2026 sales growth guidance of 8% to 10% and EPS guidance of $2.90 to $3.05.

The TAVR segment showed robust growth, with global sales increasing by 10.6% year-over-year, driven by strong clinical evidence and renewed focus on the SAPIEN platform.

The TMTT segment grew over 40% in Q4, with sales exceeding $0.5 billion for the full year, supported by the adoption of PASCAL and EVOQUE.

Edwards Lifesciences Corp (NYSE:EW) maintains a strong balance sheet with approximately $3 billion in cash and cash equivalents, and $2 billion remaining under its share repurchase authorization.

Negative Points

The company's Q4 adjusted EPS was lower than expected at $0.58, due to higher spending on patient access initiatives and a higher-than-expected tax rate.

The Surgical product group experienced a modest growth of 2% in Q4, impacted by end-of-year distributor inventory adjustments in one country.

The JenaValve acquisition did not close, resulting in one-time charges that affected the GAAP EPS for the quarter.

There is uncertainty regarding the impact of the updated national coverage determination for TAVR, which may not present a significant tailwind until 2027.

The company faces challenges in moderating operating expense growth in 2026 after elevated spending in Q4 2025.

Q & A Highlights

Q: Can you discuss the strength you’re seeing in TAVR, particularly the 10.6% growth, and any regional differences? Also, how do volumes compare to sales? A: Bernard Zovighian, CEO, explained that the growth is due to a compelling strategy and strong evidence from trials like PARTNER III and PARTNER II, which have increased confidence in TAVR and the SAPIEN platform. Daniel Lippis, Corporate VP of TAVR, added that the growth is supported by share gains from Boston Scientific’s exit and strong adoption of the SAPIEN 3 Ultra RESILIA platform, contributing to both share and pricing improvements.

Story Continues  

Q: Can you elaborate on the increased spending on market access and how it affects future SG&A expenses? A: Scott Ullem, CFO, noted that the company increased spending by $112 million year-over-year in Q4 to support patient access initiatives, such as early TAVR education and partnerships like the one with the American Heart Association. This spending was planned and is expected to moderate in 2026, contributing to operating margin guidance of 28% to 29%.

Q: What are the expectations for TAVR and overall company growth throughout the year, and how do January trends support your guidance? A: Scott Ullem, CFO, mentioned a $40 million FX tailwind expected in Q1, with reported sales growth about 300 basis points higher than underlying growth. Daniel Lippis, Corporate VP of TAVR, added that growth rates will be higher in the first half of 2026 due to tougher comps in the second half, but they remain confident in the 6% to 8% guidance for TAVR.

Q: How do you view the potential impact of the TAVR NCD update later this year? A: Daniel Lippis, Corporate VP of TAVR, explained that the NCD update process is ongoing, with a draft expected around June and a final determination potentially in Q4. While the impact on 2026 is expected to be negligible, it could be significant in 2027 and beyond, particularly if it improves access and reduces procedural complexity.

Q: Can you provide insights into the LAA opportunity and how your product differentiates from competitors? A: Bernard Zovighian, CEO, and Daveen Chopra, Corporate VP of Transcatheter Mitral and Tricuspid Therapies, emphasized that the LAA market has unmet patient needs and Edwards’ technology aims to address these. They see it as a complementary solution to existing valvular procedures, with a measured commercial rollout expected to drive future growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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