Strong Q4 and Full-Year Sales Growth
Total sales of $1.57 billion in Q4, up 11.6% year‑over‑year; full‑year 2025 sales growth of 10.7% — demonstrating broad-based demand and momentum entering 2026.
Edwards Lifesciences
· EW
February 10th, 2026
Summary
- Earnings Call Date:
- 2026-02-10
- Change Since:
- +16.37%
- Next Earnings Date:
- 2026-07-23
Earnings Call Sentiment
PositiveThe call conveys a broadly positive outlook: the company delivered strong top‑line growth (Q4 +11.6%, FY +10.7%), robust TAVR and TMTT momentum, and reiterated confident 2026 guidance (8%–10% sales growth; EPS $2.90–$3.05). Key positives include compelling long‑term clinical evidence, successful product launches (SAPIEN M3, NextGen PASCAL), margin discipline and a healthy balance sheet. Near‑term headwinds are primarily deliberate investments in patient access and field resources (driving higher SG&A), one‑time GAAP charges (GennaValve/litigation), an elevated tax rate in the quarter, and distributor inventory adjustments that modestly impacted surgical sales. Management frames the incremental spending as strategic and expects margin expansion over time. Overall, the positive operational and strategic catalysts outweigh the one‑time and timing‑related negatives.
Company Guidance
Management reiterated and said it has increased confidence in 2026 guidance: full‑year sales growth of 8–10% and adjusted EPS of $2.90–$3.05, with Q1 sales of $1.55–$1.63 billion and Q1 adjusted EPS of $0.70–$0.76 (mid‑teens growth at the midpoint). They reported Q4 sales of $1.57 billion (+11.6% YoY), Q4 adjusted EPS $0.58 (GAAP EPS $0.11), TAVR Q4 sales $1.16 billion (+10.6%, procedural growth high single‑digit), TMTT Q4 $156 million (>40% growth; FY TMTT >$500M) and Surgical Q4 $254 million (+2%, FY surgical >$1B); Q4 adjusted gross margin 78.3% (vs 79% prior) and adjusted operating margin 23.7% (FY‑2025 adjusted operating margin 27%). For 2026 they expect adjusted gross margin ~78–79%, R&D ≈17% of sales, ~150 bps constant‑currency operating margin expansion in 2026 (and 50–100 bps annually thereafter), a 2026 tax rate ex‑special items of 16–19% (Q4 reported tax 29%, 17.9% ex‑special items), ~ $3.0B cash, ~$2.0B buyback authorization remaining, average diluted shares ~580–585M (582M in Q4), and FX contributed ~170 bps / $20M to Q4 reported sales and is expected to add ~ $40M to full‑year 2026 sales.
TAVR Performance and Clinical Momentum
TAVR Q4 global sales of $1.16 billion, up 10.6% year‑over‑year; overall procedural growth in the quarter remained in the high single digits. Strength supported by seven‑year PARTNER 3 and ten‑year PARTNER 2 durability data, Early TAVR evidence (including asymptomatic indication), strong SAPIEN 3 Ultra Resilia adoption, and supportive Europe guideline changes — all cited as durable growth catalysts.
TMTT Segment Surge
TMTT grew over 40% in Q4 to $156 million; full‑year TMTT sales exceeded $500 million. Growth driven by PASCAL and EVOQUE adoption, FDA approval and initial launch of SAPIEN M3, NextGen PASCAL rollout, and expected contribution toward a $2 billion TMTT revenue target by 2030.
Surgical Business Milestones
Surgical Q4 sales of $254 million, up 2% year‑over‑year; full‑year surgical sales grew 4.3% and exceeded $1 billion for the first time. Positive MOMENTYS one‑year data (100% freedom from SVD) and planned initial introduction of surgical LAAC later this year provide new product and clinical catalysts.
Profitability and Margin Discipline
Q4 adjusted gross profit margin of 78.3% (vs. 79% year‑ago) and Q4 adjusted operating profit margin of 23.7%; full‑year 2025 adjusted operating margin of 27%. Company expects full‑year 2026 adjusted gross margin to be ~78%–79% and forecasted ~150 basis points of constant‑currency operating margin expansion in 2026.
Strong Balance Sheet and Capital Return
Approximately $3 billion in cash and cash equivalents as of Dec 31, 2025; repurchased just under $900 million of stock in 2025 (including ~$40 million in Q4) and ~ $2 billion of share repurchase authorization remaining.
Confident 2026 Guidance and Near‑Term Outlook
Management expressed increased confidence in meeting 2026 sales growth guidance of 8%–10% and EPS guidance of $2.90–$3.05. Q1 2026 sales guidance of $1.55 billion–$1.63 billion and Q1 adjusted EPS guidance of $0.70–$0.76; FX expected to provide ~ $40 million upside to full‑year 2026 sales at current rates.
Patient Access & Clinical Engagement Initiatives
Increased investments in patient access initiatives, including partnership with the American Heart Association Heart Valve initiative, European guideline dissemination efforts, and field force reinforcement — aimed at driving earlier, guideline‑based treatment and expanding addressable market.
Operator
Greetings, and welcome to Edwards Lifesciences Fourth Quarter 2025 Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please note that this conference is being recorded. I will now turn the conference over to your host, Jerrianne Sarte. Thank you. You may begin.
Jerrianne Sarte
Good afternoon, and thank you for joining us. This is Jerrianne Sarte, I am the incoming Senior Vice President of Investor Relations. With me on today's call is our CEO, Bernard Zovighian, and our CFO, Scott Ullem. Also joining us for the Q&A portion of the call will be Daniel Lippis, our global leader of TAVR, and Daveen Chopra, who has global responsibility for TMTT Surgical and IHFM. Just after the close of regular trading, Edwards Lifesciences Corporation released fourth quarter and full year 2025 financial results. During today's call, management will discuss the results included in the press release and accompanying financial schedules, and then use the remaining time for Q&A. Please note that management will be making forward-looking statements that are based on estimates, assumptions, and projections. These statements speak only as of the date on which they are made, and Edwards Lifesciences Corporation does not undertake any obligation to update them after today.
Additionally, the statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Fa...
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