Edwards Lifesciences 2025 Q2 Earnings Misses Targets as Net Income Falls 9.2%

Edwards Lifesciences reported fiscal 2025 Q2 earnings on Aug 7, 2025. The company missed on earnings with a decline in net income, despite revenue growth. It raised full-year EPS guidance but sees minimal impact on Q3 earnings.

Revenue
Edwards Lifesciences reported total revenue of $1.53 billion in Q2 2025, a 11.9% increase compared to $1.37 billion in the same period last year. Transcatheter Heart Valve Therapy led the revenue stream with $1.27 billion, driven by strong performance in Transcatheter Aortic Valve Replacement, which contributed $1.13 billion. Transcatheter Mitral and Tricuspid Therapies added $134.50 million, while Surgical Structural Heart brought in $266.80 million, rounding out the company’s diversified portfolio.

Earnings/Net Income
Despite the revenue gain, earnings declined. Earnings per share (EPS) dropped 6.6% to $0.57 in Q2 2025, down from $0.61 in Q2 2024. Net income also fell to $331.50 million, a 9.2% decrease from $365 million a year ago, underscoring the pressure on profitability.

Price Action
Following the earnings report, the stock of Edwards Lifesciences declined 1.43% in the latest trading day and 1.74% for the full trading week, though it saw a modest 2.02% gain month-to-date.

Post-Earnings Price Action Review
The post-earnings trading strategy of buying EW when revenue beats and holding for 30 days generated an 8.47% return but significantly underperformed the benchmark's 86.19% return, delivering a -77.72% excess return. While the strategy exhibited some reward for risk with a Sharpe ratio of 0.05, it was marked by high volatility of 31.85% and a modest CAGR of 1.65%. The strategy also avoided major drawdowns with a maximum of 0.00%, yet its high volatility suggests it may not be ideal for investors seeking stability.

CEO Commentary
Edwards Lifesciences’ CEO expressed strong support for the company’s strategic vision, emphasizing a commitment to advancing life-saving treatments for aortic regurgitation (AR). The leadership remains confident that the acquisition of JenaValve will enhance innovation and patient access. Despite the FTC’s decision to block the acquisition, the CEO remains optimistic about regulatory approval by the end of Q1 2026.

Guidance
In response to the FTC action and in line with its performance, Edwards revised its full-year 2025 adjusted EPS guidance upward to a range of $2.45–$2.55, up from $2.40–$2.50. Revenue guidance remains unchanged, and Q3 adjusted EPS is expected to see minimal impact. The adjusted guidance excludes litigation expenses, amortization, impairment losses, and separation costs.

Additional News
On August 7, 2025, Edwards Lifesciences announced that the U.S. Federal Trade Commission (FTC) moved to block its proposed acquisition of JenaValve Technology, a company focused on innovative treatments for aortic regurgitation. Edwards Lifesciences strongly disagrees with the FTC’s decision, believing it will hinder patient access to critical therapies. The company is committed to pursuing regulatory approval and expects a final determination by the end of Q1 2026. In response, Edwards increased its full-year 2025 adjusted EPS guidance to $2.45–$2.55, while revenue guidance remains unchanged. The adjusted EPS guidance excludes non-operational items like litigation expenses and amortization of intangibles.