Edwards Lifesciences Lifts 2025 Outlook On Strong First Half Performance

Edwards Lifesciences’ (NYSE:EW) stock surged Friday following a strong second-quarter 2025 earnings report that saw the medical device innovator surpass revenue and earnings expectations, driven by significant growth across its heart valve therapies.

The strong performance prompted the company to raise its full-year sales guidance, signaling renewed momentum in its core markets. The heart devices company reported sales of $1.53 billion on Thursday after hours, beating the consensus of $1.49 billion and within the management guidance of $1.45 billion-$1.53 billion.

Sales grew 11.9% or 10.6% adjusted, with strength across all product groups. Edwards Lifesciences reported adjusted earnings of 67 cents, beating the consensus of 62 cents and the management guidance of 59-65 cents per share.

Also Read: Court Nixes Jury Award Over Medtronic’s Heart Valve Infringement Claim

The company reported Transcatheter Aortic Valve Replacement (TAVR) sales of $1.1 billion, marking an increase of 8.9% (or 7.8% on a constant currency basis). The company said that TAVR growth for the quarter surpassed their expectations.

Transcatheter Mitral and Tricuspid Therapies (TMTT) segments achieved second-quarter sales of $134.5 million, demonstrating a year-over-year growth of 61.9%, or more than 57.1% on a constant currency basis.

In the Surgical segment, second-quarter global sales reached $267 million, an increase of 7.7% over the prior year, or 6.8% on a constant currency basis.

Outlook

“We are pleased to report strong second quarter results that delivered double-digit sales growth. Based on our better-than-expected first half performance and the many catalysts across our portfolio, we are confident in our full-year outlook and are raising our sales and EPS guidance,” said Bernard Zovighian, CEO.

Edwards Lifesciences raised its 2025 sales guidance from $5.70 billion-$6.10 billion to $5.90 billion-$6.10 billion compared to the consensus of $5.91 billion.

The company affirms fiscal 2025 adjusted earnings guidance of $2.40-$2.50 per share compared to the consensus of $2.48.

Edwards Lifesciences forecasts third-quarter adjusted earnings of 54-60 cents, compared to the consensus of 60 cents, and sales of $1.46 billion, $1.54 billion versus the consensus of $1.48 billion.

The company is increasing its underlying growth rate guidance for TAVR to 6% to 7%, driven by strong performance, and its sales guidance range for TAVR to $4.3 billion to $4.5 billion. Sales guidance for TMTT and Surgical product groups remains unchanged.

Analyst Insights: Goldman Sachs

Goldman Sachs said Friday that the second quarter of 2025 marked a key turning point for the company and reinforced its belief that Edwards is on track to achieve steady double-digit revenue growth again.

The firm noted that Edwards’ core TAVR business is gaining momentum, even though the quarter only partially reflected the impact of the new asymptomatic indication and included just a small boost from Boston Scientific Corporation’s (NYSE:BSX) planned market exit. This gives Goldman confidence that the business will operate at a stronger baseline.

Analyst David Roman expects Edwards to get back to its previous strong performance over the next few years, with revenue growing over 10% and operating margins above 30%. With this kind of growth, Goldman Sachs believes the stock deserves a higher valuation, more than 30 times its earnings. The analyst maintains the Buy rating, raising the price forecast from $89 to $101.

Other Analysts

Several leading financial analysts re-evaluated their outlook on Edwards Lifesciences, with a general trend toward increased price forecasts.

Baird has maintained a Neutral rating on the company, slightly increasing its price forecast from $78 to $79. Deutsche Bank, on the other hand, reiterates a Buy rating and has significantly raised its price forecast from $85 to $94.

Evercore ISI affirms an In-Line rating, with a modest increase in its price forecast from $77 to $80. Wells Fargo continues to maintain an Overweight rating, raising its price forecast from $80 to $84.

Similarly, RBC Capital maintains an Outperform rating, lifting its price forecast from $85 to $89. Piper Sandler also keeps an Overweight rating, increasing its price target from $83 to $90.

Barclays maintains an Overweight rating and has raised its price forecast from $90 to $95. Finally, a Stifel analyst has reiterated a Buy rating, also increasing the price forecast from $90 to $95.

Price Action: EW stock is trading higher by 4.87% to $79.49 at last check Friday.

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