Edwards Lifesciences 2025 Q2 Earnings Revenue Grows 11.9% as Net Income Declines 9.2%

Edwards Lifesciences reported mixed results for fiscal 2025 Q2, with revenue growth outpacing earnings performance. The company raised its full-year adjusted EPS guidance in response to strong top-line performance but faced a decline in profitability, highlighting ongoing pressures in its core markets.

Revenue
Edwards Lifesciences reported Q2 revenue of $1.53 billion, an 11.9% increase year-over-year. The Transcatheter Heart Valve Therapy segment led the charge with $1.27 billion in revenue, driven by strong demand for aortic valve solutions. Transcatheter Aortic Valve Replacement followed closely at $1.13 billion, underscoring the continued adoption of minimally invasive procedures. The Transcatheter Mitral and Tricuspid Therapies segment contributed $134.50 million, reflecting early traction in this emerging area. Surgical Structural Heart therapies added $266.80 million to the total, highlighting the company’s diversified product portfolio and ongoing innovation in structural heart treatments.

Earnings/Net Income
Despite the robust revenue performance, Edwards Lifesciences reported a 6.6% decline in earnings per share (EPS) to $0.57 in Q2 2025, compared to $0.61 in the same period last year. The company’s net income also dropped to $331.50 million, a 9.2% decrease from $365 million in 2024 Q2, indicating margin compression amid operational and regulatory headwinds.

Price Action
The stock of Edwards Lifesciences has seen mixed price action in recent periods. On the latest trading day, the stock edged down 0.70%, while it fell 3.14% during the most recent full trading week. Positively, the stock has returned 2.50% month-to-date, indicating some stability in the near term.

Post-Earnings Price Action Review
Following the earnings report, a strategy of buying EW when revenue beats estimates and holding for 30 days yielded a 4.99% return, underperforming the benchmark return of 85.42%. This strategy was marked by a maximum drawdown of 0.00%, a Sharpe ratio of 0.03, and a volatility level of 31.99%. The subpar performance suggests that investors may not have fully factored in the company’s revenue growth into its stock valuation.

CEO Commentary
Edwards Lifesciences’ leadership remains committed to advancing structural heart therapies, particularly in the treatment of aortic regurgitation. CEO and President emphasized that the acquisition of JenaValve would significantly accelerate innovation and improve patient access to life-saving treatments. However, the company has faced a setback as the Federal Trade Commission (FTC) has moved to block the acquisition. Despite this regulatory challenge, management remains optimistic and is continuing to pursue regulatory approval, expecting a final decision by the end of Q1 2026.

Guidance
In light of the FTC's decision and ongoing business performance, Edwards Lifesciences has revised its full-year 2025 adjusted EPS guidance to a range of $2.45–$2.55, an upward adjustment from the previous range of $2.40–$2.50. The company expects minimal impact on Q3 adjusted EPS guidance, maintaining its focus on long-term growth and innovation in structural heart disease treatments.

Additional News
On August 6, 2025, Edwards Lifesciences announced that the U.S. Federal Trade Commission (FTC) had moved to block its proposed acquisition of JenaValve Technology. Edwards strongly disagrees with the FTC’s decision, arguing that the acquisition would expand treatment options for patients with aortic regurgitation, a deadly and progressive condition with limited therapies. The company remains committed to pursuing regulatory approval and anticipates a final determination by the end of Q1 2026. As a result of the FTC’s action, the company raised its full-year adjusted EPS guidance, reflecting confidence in its long-term strategic direction and the value of the JenaValve acquisition. No changes were made to revenue guidance, and Q3 adjusted EPS guidance remains unaffected.