Edwards Lifesciences (EW) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales increased 8% year-over-year to $1.41 billion, driven by strong TAVR and TMTT growth and a broad portfolio.

• Achieved key milestones: NCD for EVOQUE, CE mark for SAPIEN M3, and strong RESILIA valve data.

• Net income from continuing operations was $363.6 million, up from $324.9 million in Q1 2024; diluted EPS from continuing operations was $0.62.

• Confident in multi-year growth opportunities from EARLY TAVR trial and upcoming PROGRESS trial.

• Discontinued operations reflect the sale of Critical Care and a non-core product group, with a net loss of $7.2 million in Q1 2025.

Financial highlights

• Adjusted EPS was $0.64; GAAP EPS was $0.62 for Q1.

• Adjusted gross margin was 78.7%, up from 78.4% year-over-year; full-year gross margin guidance remains 78%-79%.

• Adjusted operating profit margin reached 29.1% in Q1, aided by favorable mix and delayed expenses.

• TAVR sales were $1.05 billion, up 5.4% year-over-year (6.5% adjusted for billing days).

• TMTT sales grew ~60% to $115 million, led by PASCAL and EVOQUE adoption.

• Surgical sales were $251 million, up 3% year-over-year.

Outlook and guidance

• Full-year sales growth guidance maintained at 8%-10%; total sales expected between $5.7B-$6.1B for 2025.

• TAVR sales growth guidance held at 5%-7% for the year.

• TMTT sales guidance raised to $530-$550 million, reflecting FX and operational momentum.

• Full-year EPS guidance reaffirmed at $2.40-$2.50, with plans to offset tariff and JenaValve acquisition impacts.

• Q2 sales projected at $1.45B-$1.53B; adjusted EPS $0.59-$0.65.