01—Abstract
Summary
Summary of the 10-K filed February 25, 2026. Cited figures are marked; the original filing is the authoritative source.
Edwards Lifesciences Corporation (EW) demonstrated solid performance in its fiscal year ending December 31, 2025, with total net sales reaching $6.1 billiona, an increase of 11.5% year-over-year, primarily driven by strong sales in Transcatheter Aortic Valve Replacement (TAVR) and significant growth in Transcatheter Mitral and Tricuspid Therapies (TMTT).
Despite revenue growth, net income from continuing operations saw a decrease due to increased operational expenses, personnel costs, one-time charges related to investment impairments, and litigation expenses. The company continues to invest heavily in research and development, allocating 18%b of net sales to innovation, particularly in its structural heart programs.
Key strategic developments include FDA approval for the SAPIEN 3 platform for asymptomatic severe aortic stenosis patients and successful clinical trial results supporting its mitral and tricuspid therapies. These advancements highlight the company's commitment to expanding its portfolio and solidifying its leadership in the structural heart disease market.
02—Key points
Key Highlights
- Net sales increased by 11.5% to $6.1 billion in 2025, driven by strong performance in TAVR and TMTT segments.
- TAVR remains the largest revenue driver, accounting for 74% of net sales in 2025.
- TMTT segment experienced substantial growth at 56.4%, indicating increasing market penetration and adoption of new therapies.
- Research and development expenses increased by 2% to $1.079 billion, representing approximately 18% of net sales, underscoring a commitment to innovation.
- The company received FDA approval for the SAPIEN 3 platform for asymptomatic severe aortic stenosis patients, expanding market access.
- Significant litigation and intellectual property expenses of $325.4 million impacted net income, a key factor for investor consideration.
- Edwards Lifesciences returned approximately $884.7 million to shareholders through share repurchases in 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Edwards Lifesciences kept $0.18.
- Revenue$6.07B100.0%
- Cost of revenue−$1.33B22.0%
- Gross profit$4.73B78.0%
- Operating costs−$3.47B57.2%
- Operating income$1.26B20.8%
- Interest, other & tax−$194.8M3.2%
- Net income$1.07B17.6%
Where FY2025 revenue went
$6.07B- SG&A: $2.09B, 34% of revenue
- Cost of revenue: $1.33B, 22% of revenue
- R&D: $1.08B, 18% of revenue
- Net income: $1.07B, 18% of revenue
- Other operating costs: $304.8M, 5.0% of revenue
- Interest, other & tax: $194.8M, 3.2% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 25, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $6.07B$5.44B | +11.5% |
| Cost of Revenue | $1.33B$1.12B | +19.4% |
| Gross Profit | $4.73B$4.32B | +9.5% |
| R&D Expenses | $1.08B$1.05B | +2.5% |
| SG&A Expenses | $2.09B$1.79B | +16.5% |
| Operating Income | $1.26B$1.38B | −8.3% |
| Net Income | $1.07B$4.17B | −74.4% |
| EPS (Basic) | $1.84$6.98 | −73.6% |
| EPS (Diluted) | $1.83$6.97 | −73.7% |
| Shares Outstanding (Basic) | 584.80M597.70M | −2.2% |
| Shares Outstanding (Diluted) | 585.80M599.30M | −2.3% |
05—Questions
Frequently Asked Questions
What were the key drivers of Edwards Lifesciences' revenue growth in 2025?
Revenue growth in 2025 was primarily driven by higher sales of the Edwards SAPIEN platform, particularly the SAPIEN 3 Ultra RESILIA valve in the United States and Europe, within the Transcatheter Aortic Valve Replacement (TAVR) segment. Additionally, the Transcatheter Mitral and Tricuspid Therapies (TMTT) segment saw significant growth, boosted by increased sales of the PASCAL transcatheter edge-to-edge repair system and the EVOQUE tricuspid valve replacement system.
How did legal and litigation expenses affect the company's financial performance?
Edwards Lifesciences incurred significant expenses related to intellectual property litigation, settlements, and tax litigation, totaling $325.4 million in 2025. These expenses, along with other increased operational costs, contributed to a decrease in net income from continuing operations compared to the prior year, despite the revenue growth.
What is the company's outlook on research and development investments?
The company remains committed to innovation, investing approximately 18% of its net sales in research and development for 2025. This investment is primarily focused on advancing its transcatheter structural heart programs, including therapies for mitral and tricuspid valve diseases, as well as developing solutions for patients with heart failure.
What is the company's strategy regarding share repurchases?
Edwards Lifesciences actively manages its capital structure and returned approximately $884.7 million to shareholders through share repurchases in 2025, funded by cash from operations and its credit facilities. The company had approximately $2.0 billion remaining under its authorized share repurchase program as of December 31, 2025, indicating a continued focus on returning value to shareholders.
06—Continue