Edwards Lifesciences (EW) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales increased 11.9% year-over-year to $1.53 billion, with double-digit growth across all product groups, driven by strong TAVR and TMTT sales and innovation.

• Net sales for the first six months of 2025 reached $2.94 billion, up 9.1% year-over-year.

• Raised full-year 2025 sales growth guidance to 9%-10% and adjusted EPS guidance to the high end of $2.40-$2.50.

• The sale of the Critical Care product group was completed in September 2024, with another non-core group sale planned for 2025; both are reflected as discontinued operations.

• Leadership transition in TAVR with Dan Lippis succeeding Larry Wood.

Financial highlights

• Q2 adjusted EPS was $0.67; GAAP EPS was $0.57, reflecting strong operational performance and non-recurring items.

• Gross profit margin was 77.5%, down from 79.9% year-over-year due to higher manufacturing costs and FX.

• SG&A expenses were $502 million (32.8% of sales), up from $448 million last year; R&D expense was $276 million (18% of sales).

• Operating income for Q2 2025 was $411.2 million, up from $366.5 million in Q2 2024.

• Cash and cash equivalents stood at $3 billion as of June 30, 2025; total debt was $600 million.

Outlook and guidance

• Full-year sales growth guidance raised to 9%-10% ($5.9–$6.1 billion); TAVR sales growth guidance increased to 6%-7%.

• Adjusted EPS guidance raised to the high end of $2.40–$2.50.

• Q3 2025 sales projected at $1.46–$1.54 billion and adjusted EPS at $0.54–$0.60.

• Additional tax expense of $50 million expected in 2025 due to global minimum tax (Pillar Two) provisions.

• The FTC moved to block the proposed JenaValve acquisition; a final determination is expected by Q1 2026.