LivaNova 2025 Q3 Earnings Beats Expectations, Raises Guidance

LivaNova (LIVN) reported third-quarter 2025 results that exceeded expectations, with revenue rising 12.5% year-over-year to $357.75 million and non-GAAP EPS of $1.11 surpassing the $0.92 consensus. The company raised full-year 2025 revenue growth guidance to 8.5–9.5% on a constant-currency basis and 9.5–10.5% organically, while increasing adjusted EPS guidance to $3.80–$3.90.

Revenue

LivaNova’s total revenue surged 12.5% to $357.75 million in 2025 Q3, driven by robust performance across segments. Cardiovascular and Cardiopulmonary both contributed $203.22 million, reflecting strong demand for heart-lung machines and consumables. Neuromodulation added $149.53 million, supported by epilepsy therapies, while other revenue accounted for $5.01 million. The company attributed the growth to global adoption of its Essenz Perfusion System and disciplined execution.

Earnings/Net Income

LivaNova’s EPS declined 19.7% to $0.49 in 2025 Q3, down from $0.61 in 2024 Q3, while net income fell 18.7% to $26.78 million. Despite the year-over-year decline, adjusted EPS of $1.11 beat Wall Street’s $0.92 estimate, highlighting improved operational efficiency and margin expansion.

Price Action

The stock price of LivaNova has dropped 3.13% during the latest trading day, 6.10% during the most recent full trading week, and 4.95% month-to-date. The post-earnings decline reflects mixed investor sentiment, balancing strong revenue growth against profitability challenges.

Post-Earnings Price Action Review

Despite outperforming revenue and profit expectations, LivaNova’s stock experienced downward pressure post-earnings. A 3.13% daily drop and 6.10% weekly decline underscore investor caution, particularly regarding the 19.7% EPS decline. Month-to-date losses of 4.95% suggest lingering concerns about profitability and margin sustainability, even as the company raised full-year guidance. Analysts remain split between optimism over cardiopulmonary growth and skepticism about near-term margin pressures.

CEO Commentary

Vladimir Makatsaria, CEO of LivaNova, emphasized the company’s “disciplined execution and enhanced productivity” as key drivers of margin expansion and cash generation. He highlighted the commercial launch of Essenz in China, calling it a “meaningful growth driver for 2026,” and reiterated confidence in leveraging neuromodulation expertise to expand into obstructive sleep apnea and depression markets. The tone was cautiously optimistic, balancing current challenges with long-term strategic opportunities.

Guidance

LivaNova raised full-year 2025 revenue growth guidance to 8.5–9.5% on a constant-currency basis and 9.5–10.5% organically, up from prior ranges. Adjusted diluted EPS is now expected to reach $3.80–$3.90, and adjusted free cash flow is projected at $160–$80 million. These updates reflect confidence in sustaining cardiopulmonary momentum and mitigating near-term headwinds like tariffs and PCB investments.

Additional News

1. Essenz China Launch: The Essenz Perfusion System’s commercial rollout in China began in August 2025, with positive early feedback, positioning it as a key growth catalyst for 2026.

2. CORE-VNS Study: The Neuromodulation segment completed the CORE-VNS clinical trial, validating VNS Therapy for drug-resistant epilepsy, with results expected to bolster market confidence.

3. Investor Day: LivaNova announced an Investor Day on November 12, 2025, to detail strategic priorities for cardiopulmonary and neuromodulation initiatives, signaling a focus on long-term innovation and market expansion.