Edwards Lifesciences Stock Earns Analyst Upgrade As Growth Outlook Brightens

Edwards Lifesciences‘ EW shares are trading higher Thursday after the company reported first-quarter 2025 sales of $1.41 billion.

That’s almost in line with the consensus of $1.40 billion and the management guidance of $1.35 billion—$1.43 billion, up 6.2% year-over-year or 7.9% on an adjusted basis.

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In the first quarter, the company reported:

• An adjusted EPS of 64 cents. It beat the consensus of 60 cents and remained within the management guidance of 58-64 cents.
• Transcatheter Aortic Valve Replacement (TAVR) sales of $1.05 billion. That’s up 3.8% (+5.4% on a constant currency basis, or 6.5% further adjusted).
• Transcatheter Mitral and Tricuspid Therapies (TMTT) first-quarter sales were $115 million, representing growth of 58% year-over-year or more than 60% on a constant currency basis.
• In Surgical, first-quarter global sales of $251 million increased 1% over the prior year, or 3% on a constant currency basis.

Guidance: Edwards Lifesciences expects second quarter 2025 adjusted EPS of 59-65 cents versus the consensus of 62 cents and revenue of $1.45 billion-$1.53 billion compared to the consensus of $1.46 billion.

The company reaffirmed the fiscal year 2025 adjusted EPS guidance of $2.40-$2.50, compared to the consensus of $2.46, and adjusted operating margins of 27%-28%.

Edwards on Thursday raised its 2025 TMTT sales guidance to $530 to $550 million, from $500 million to $530 million, driven by more favorable foreign exchange and continued business momentum.

The company, TAVR, and Surgical sales growth guidance ranges remain unchanged.

However, on Thursday, the company increased its original total company sales dollar guidance range by $100 million to account for the recent movement in FX rates. Edwards now expects total company sales of $5.7 to $6.1 billion, up from prior guidance of $5.60 billion—$6 billion compared to the consensus of $5.81 billion.

Piper Sandler upgraded Edwards Lifesciences stock, citing a better pathway back to double-digit growth in FY2026.

Analyst Adam C. Maeder writes, “While shares have traded reasonably well YTD on a relative basis (-5% vs. -8% for S&P 500), EW remains a highly debated name amongst the investment community. We concede our upgrade call could be a bit on the early side.”

Piper Sandler upgraded the stock from Neutral to Overweight with a price target raise from $73 to $80.

“We also like EW’s positioning in an uncertain macro environment, namely, the company has little elective procedure exposure, no capex revenue, and a manageable anticipated tariff impact,” analyst Maeder adds.

Regarding macro/tariffs, William Blair writes that foreign exchange still hurt sales by 1.5% this quarter, but that was about 2% better than expected. The company now expects FX to have no impact on 2025 sales, changing from a previous forecast of a 2.5% drag.

As for tariffs, even though most U.S. supply comes from the company’s Irvine facility, the 5 cent hit to earnings per share comes from imports out of Singapore, Costa Rica, and, to a lesser extent, Europe.

Baird maintains Edwards Lifesciences with a Neutral, raising the price target from $72 to $75.

Price Action: EW stock is up 6.66% at $75.15 at the last check on Thursday.

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