Edwards Lifesciences raises sales outlook after 13.6% Q2 revenue beat

Edwards Lifesciences reported second-quarter revenue of $1.74 billion, up 13.6% from a year earlier and above the $1.70 billion analysts had expected, as its transcatheter mitral and tricuspid therapies business nearly doubled its growth rate from the prior quarter.

"We delivered stronger-than-expected second-quarter sales growth of 12.5%," Chief Executive Officer Bernard Zovighian said. "Our results increasingly reflect the strength of our comprehensive portfolio and agile execution, with growth supported by therapies across TAVR, mitral, tricuspid and surgical."

The TMTT product group generated $195.9 million in sales, a 47% jump from a year earlier, driven by the PASCAL repair system and the EVOQUE replacement platform for tricuspid regurgitation. The company's core transcatheter aortic valve replacement business, or TAVR, grew 11% to $1.26 billion, benefiting from the exit of a competitor in the second quarter of 2025 and long-term durability data from the SAPIEN platform. Surgical sales rose 6.5% to $284 million.

The Irvine, California-based company raised the bottom end of its full-year sales forecast, now expecting $6.6 billion to $6.9 billion, compared with a prior range of $6.5 billion to $6.9 billion. It increased its constant-currency sales growth guidance to 10% to 11% from 9% to 11% and lifted its TAVR growth outlook to 8% to 9%. Adjusted earnings per share came in at $0.78, beating the $0.74 consensus, and the company reaffirmed its full-year adjusted EPS guidance of $2.95 to $3.05.

TAVR Momentum Builds on Clinical Data and Regulatory Tailwinds

Edwards' TAVR business, which accounts for about 72% of total revenue, is benefiting from a convergence of clinical evidence and policy shifts. At the New York Valves conference, a seven-year sub-analysis of the PARTNER 3 trial reinforced the durability of the SAPIEN platform, while five-year data from the EARLY TAVR trial supported earlier intervention in aortic stenosis. The Centers for Medicare and Medicaid Services is expected to issue a final decision on its national coverage determination for TAVR in September, which could expand the addressable patient population for Medicare beneficiaries.

The PROGRESS trial, which examines TAVR in patients with moderate aortic stenosis, is scheduled to present results at the Transcatheter Cardiovascular Therapeutics conference later this year. Positive data could further broaden the therapy's reach beyond the current severe aortic stenosis indication.

TMTT Emerges as a Second Growth Engine

The TMTT segment is scaling rapidly as Edwards commercializes a portfolio of repair and replacement devices for the mitral and tricuspid valves. The PASCAL system, used for transcatheter edge-to-edge repair, continues to gain adoption, and the company expects U.S. approval for a tricuspid indication in the fourth quarter. The next-generation PASCAL with Capture Clarity technology is also on track for U.S. and European approvals in the same period.

The EVOQUE tricuspid replacement system is expanding into new centers, and early experience with the SAPIEN M3 mitral replacement system has validated demand among patients who are not candidates for repair. Edwards now expects full-year TMTT sales of $760 million to $780 million, up from a prior range of $740 million to $780 million.

Investment Implications

Edwards shares have benefited from the company's diversified structural heart portfolio, which reduces reliance on any single product line. The TMTT segment's 47% growth rate, if sustained, could shift the revenue mix meaningfully over the next two to three years, reducing the company's dependence on TAVR. Adjusted operating profit margin is expected to reach the high end of the 28% to 29% guidance range, representing roughly 150 basis points of constant-currency expansion for the full year. The company held $2.9 billion in cash against $600 million in debt, with $1.5 billion remaining under its share repurchase authorization.

This article is for informational purposes only and does not constitute investment advice.