EW's Q4 Earnings Miss Estimates, Revenues Up Y/Y, Stock Climbs

Edwards Lifesciences Corporation EW reported fourth-quarter 2025 adjusted earnings per share (EPS) of 58 cents, which fell short of the Zacks Consensus Estimate by 5.89%. The figure decreased 1.7% on a year-over-year basis. 

One-time adjustments primarily include certain litigation expenses and restructuring expenses. GAAP EPS from continuing operations was 11 cents compared to 58 cents in the year-ago period.  

Full-year adjusted EPS was $2.56, reflecting a 5.3% increase from the 2024 figure. The figure missed the Zacks Consensus Estimate by 1.2%.

Edwards’ Revenues

Sales totaled $1.57 billion, up 13.3% year over year. The metric surpassed the Zacks Consensus Estimate by 1.99%.

Full-year 2025 revenues came to $6.07 billion, up 11.5% year over year and also beat the Zacks Consensus Estimate by 0.7%.

Following the earnings announcement, EW stock rose 1.3% in the aftermarket trading yesterday.

EW’s Q4 Sales by Segments

Transcatheter Aortic Valve Replacement (“TAVR”)

Global sales in the product group amounted to $1.16 billion, up 12% year over year or 10.6% at constant currency (CER). The performance reflected clinicians’ heightened focus on SAPIEN therapy and proactive disease management of patients suffering from severe aortic stenosis.

Edwards Lifesciences Corporation Price, Consensus and EPS Surprise

Edwards Lifesciences Corporation price-consensus-eps-surprise-chart | Edwards Lifesciences Corporation Quote

Transcatheter Mitral and Tricuspid Therapies (“TMTT”)

Sales totaled $155.7 million, up 48.3% from the prior-year figure on a reported basis. This compares with our model’s projection of $134.1 million. The global adoption of PASCAL and EVOQUE contributed to the overall growth.

Surgical Structural Heart

Global Surgical sales from continuing operations came in at $253.6 million, up 3.8% year over year. While growth was impacted by year-end distributor inventory adjustments in one country, the underlying fundamentals continued to remain strong.

Edwards’ Q4 Margin Performance

The gross profit was $1.22 billion, up 12.2% year over year. The gross margin contracted 77 basis points (bps) to 78.2% due to a 17.4% increase in the cost of sales.

SG&A expenses rose 22.6% year over year to $602.9 million. R&D expenditures amounted to $267.7 million, down 1.3% year over year.

The operating income increased 7.7% year over year to $356 million. The operating margin contracted 118 bps to 22.7%.

EW’s Cash Position

The company exited the fourth quarter with cash and cash equivalents of $3.00 billion, consistent with the year-end 2024 levels. Total debt was roughly $600 million, also in line with the 2024 figure.

Edwards’ 2026 Guidance

For 2026, the company has guided sales growth rate between 8% and 10%. The Zacks Consensus Estimate for sales is pegged at $6.61 billion, suggesting a 9.6% increase from the 2025 level.

Adjusted EPS is projected within the $2.90-$3.05 range. The Zacks Consensus Estimate is pegged at $2.88.

For the first quarter of 2026, EW projects total sales in the band of $1.55-$1.63 billion and adjusted EPS in the 70-76 cent range. The Zacks Consensus Estimate for first-quarter sales and EPS is pinned at $1.57 billion and 68 cents, respectively.

Our Take

Edwards Lifesciences closed the fourth quarter of 2025 with an earnings miss, while revenues surpassed estimates. Within TAVR, the company saw intentional and urgent treatment of severe aortic stenosis patients, fueled by a large and growing body of evidence on the SAPIEN platform and the increased adoption of SAPIEN 3 Ultra RESILIA. Surgical performance continues to benefit from the ongoing adoption of RESILIA therapies that offer extended durability of Edwards’ therapies, including INSPIRIS, KONECT and MITRIS. Supported by the strong quarterly performance and multiple catalysts, management expressed increased confidence in its 2026 outlook.

Both gross and operating margins contracted in the quarter, which is discouraging.

EW’s Zacks Rank & Key Picks

Edwards Lifesciences currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Envista NVST and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.

Envista,sporting a Zacks Rank #1 at present, posted a fourth-quarter 2025 adjusted EPS of 38 cents, exceeding the Zacks Consensus Estimate by 18.23%. Revenues of $750.6 million topped the Zacks Consensus Estimate by 411.16%.

NVST has an earnings yield of 4.7% compared with the industry’s 2.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.4%.

Align Technology,carrying a Zacks Rank #2 (Buy) at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

Zacks' Research Chief Picks Stock Most Likely to "At Least Double"

Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research