01—Abstract
Summary
Summary of the 10-Q filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Edwards Lifesciences Corporation reported a solid third quarter for 2025, with net sales reaching $1.55 billiona, a 14.7% increase year-over-year.
This growth was primarily driven by strong performance in their Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT) product lines, demonstrating continued market leadership and product adoption. While overall sales showed robust growth, net income attributable to Edwards Lifesciences Corporation for the quarter was $291.1 millionb, a decrease compared to the same period last year.
This was influenced by several factors including significant litigation expenses ($90.4 millionc), an intangible asset impairment charge of $40.0 million, and an unfavorable impact from foreign currency fluctuations. Despite these headwinds, the company's core operations in structural heart disease remain strong, with continued investment in research and development to fuel future innovation.
02—Key points
Key Highlights
- Net sales increased by 14.7% to $1.55 billion for the three months ended September 30, 2025, compared to $1.35 billion for the same period in 2024.
- Transcatheter Mitral and Tricuspid Therapies (TMTT) sales showed exceptional growth of 59.3%, driven by the PASCAL system and the EVOQUE valve.
- Transcatheter Aortic Valve Replacement (TAVR) sales grew by 12.4% due to strong performance of the SAPIEN 3 Ultra RESILIA valve.
- The company incurred significant litigation expenses totaling $90.4 million during the quarter.
- An intangible asset impairment charge of $40.0 million was recorded related to developed technology assets.
- Net income attributable to Edwards Lifesciences Corporation decreased to $291.1 million from $3,070.8 million year-over-year, largely due to a significant gain from discontinued operations in the prior year's quarter.
- Cash and cash equivalents stood at $2.69 billion as of September 30, 2025, with ample availability under its revolving credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Edwards Lifesciences kept $0.19.
- Revenue$1.55B100.0%
- Cost of revenue−$345.2M22.2%
- Gross profit$1.21B77.8%
- Operating costs−$900.8M58.0%
- Operating income$307.1M19.8%
- Interest, other & tax−$16.8M1.1%
- Net income$290.3M18.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed November 5, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.55B$1.35B | +14.7% |
| Cost of Revenue | $345.20M$262.90M | +31.3% |
| Gross Profit | $1.21B$1.09B | +10.7% |
| R&D Expenses | $280.70M$253.40M | +10.8% |
| SG&A Expenses | $514.60M$421.40M | +22.1% |
| Operating Income | $307.10M$350.60M | −12.4% |
| Net Income | $290.30M$3.07B | −90.5% |
| EPS (Basic) | $0.50$5.14 | −90.3% |
| EPS (Diluted) | $0.50$5.13 | −90.3% |
| Shares Outstanding (Basic) | 584.70M597.20M | −2.1% |
| Shares Outstanding (Diluted) | 585.70M598.10M | −2.1% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the third quarter of 2025?
Revenue growth was primarily driven by strong sales of Transcatheter Aortic Valve Replacement (TAVR) products, particularly the Edwards SAPIEN 3 Ultra RESILIA valve, and Transcatheter Mitral and Tricuspid Therapies (TMTT) products, including the PASCAL and EVOQUE systems. Net sales increased by 14.7% to $1.55 billion.
What were the significant expenses impacting profitability in the quarter?
Significant expenses impacting profitability included $90.4 million in certain litigation expenses and a $40.0 million intangible asset impairment charge related to developed technology assets. Additionally, gross profit as a percentage of net sales decreased due to foreign currency fluctuations and higher operational expenses.
How is the company managing its liquidity and capital resources?
Edwards Lifesciences maintains a strong liquidity position with $2.69 billion in cash and cash equivalents as of September 30, 2025. The company also has a $750 million revolving credit facility with no amounts outstanding and has continued its share repurchase program, demonstrating confidence in its financial health and commitment to returning capital to shareholders.
What is the status of the company's discontinued operations?
The company has completed the sale of its Critical Care product group in September 2024. Additionally, it has entered into an agreement to sell a non-core product group, expected to close in the fourth quarter of 2025. The financial results of these divested businesses are presented as discontinued operations.
06—Continue