AI Takeaway
Edwards Lifesciences (EW) delivered 11.5% revenue growth to $6.07B in FY2025, but net income plunged 74.3% to $1.07B largely due to elevated SG&A costs and the absence of prior-year one-time gains, while operating cash flow surged 194.2% to $1.60B.
Revenue
$6.07B
++11.55% YoY
EPS (Basic)
$1.84
-73.64% YoY
Gross Margin
78.0%
-1.44% YoY
Operating Income
$1.26B
-8.30% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
EW grew total revenue 11.5% year-over-year from $5.44B to $6.07B in FY2025, reflecting continued demand for its structural heart and critical care products. This top-line momentum demonstrates the company's ability to expand its market presence despite a competitive medical device landscape.
Source: Source: 10-K Income Statement
Gross margin declined approximately 1.4 percentage points to 78.0% as cost of revenue rose 19.4% YoY to $1.33B, outpacing revenue growth of 11.5%. This suggests increased manufacturing costs, product mix shifts, or supply chain pressures weighing on profitability.
Source: Source: 10-K Income Statement
SG&A expenses jumped 16.5% YoY to $2.09B, contributing to an 8.3% decline in operating income to $1.26B and an operating margin contraction of approximately 4.5 percentage points to 20.8%. The elevated commercial spending likely reflects investments in sales force expansion and market development initiatives.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockSG&A expenses grew 16.5% YoY to $2.09B, significantly outpacing revenue growth of 11.5%, which compressed operating margins by ~4.5 percentage points. If commercial investments do not translate into proportional revenue gains, profitability could continue to deteriorate. Sustained high operating expenses represent a structural risk to EW's earnings power.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $0.58 versus the $0.64 analyst consensus — a -8.8% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.07B | $5.44B | +11.55% |
Cost of Revenue | $1.33B | $1.12B | +19.39% |
Gross Profit | $4.73B | $4.32B | +9.52% |
Operating Income | $1.26B | $1.38B | -8.30% |
Net Income | $1.07B | $4.17B | -74.28% |
EPS (Basic) | $1.84 | $6.98 | -73.64% |
EPS (Diluted) | $1.83 | $6.97 | -73.74% |
R&D Expense | $1.08B | $1.05B | +2.49% |
SG&A Expense | $2.09B | $1.79B | +16.54% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.7B | $13.06B | +4.92% |
Current Assets | $6.74B | $6.29B | +7.22% |
Total Liabilities | $3.36B | $2.99B | +12.27% |
Current Liabilities | $1.81B | $1.51B | +20.50% |
Stockholders' Equity | $10.34B | $10B | +3.39% |
Cash & Equivalents | $2.94B | $3.05B | -3.52% |
Long-Term Debt | $598.3M | $597.7M | +0.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.6B | $542.3M | +194.15% |
Investing Cash Flow | $-712.9M | $2.31B | -130.82% |
Financing Cash Flow | $-956.8M | $-983M | +2.67% |
Share Buybacks | $893.4M | $1.16B | -22.94% |
D&A | $156.6M | $155.2M | +0.90% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 78.0% | 79.5% | -1.44% |
Operating Margin | 20.8% | 25.3% | -4.51% |
Net Margin | 17.7% | — | — |
ROE | 10.4% | — | — |
ROA | 7.8% | — | — |
Current Ratio | $3.716 | — | — |
Debt to Equity | $0.325 | — | — |
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Edwards Lifesciences grew FY2025 revenue by 11.5% year-over-year to $6.07B, up from $5.44B in the prior year. This growth reflects continued strong demand for the company's structural heart and critical care product lines across global markets.
EW's net income fell 74.3% from $4.17B to $1.07B in FY2025, primarily because the prior year included large non-recurring gains — likely from asset divestitures — as evidenced by FY2024's investing cash inflow of $2.31B versus an outflow of -$712.9M in FY2025. On an operating basis, the decline was more modest, with operating income down 8.3% to $1.26B due to rising SG&A expenses.
The key takeaways from EW's FY2025 10-K are: strong 11.5% revenue growth to $6.07B, a 74.3% drop in net income to $1.07B driven by the absence of prior-year one-time gains, and a 194.2% surge in operating cash flow to $1.60B. Margin pressure from rising SG&A (+16.5%) and cost of revenue (+19.4%) were notable headwinds, while the balance sheet remains very healthy with a current ratio of 3.72x and low leverage.
Based on the financial data in EW's FY2025 10-K, key risks include: rapidly rising SG&A expenses outpacing revenue growth and compressing operating margins, cost of revenue growing faster than revenue and eroding the company's premium gross margin, and increasing current liabilities (+20.5%) growing faster than current assets. Additionally, R&D spending grew only 2.5% despite 11.5% revenue growth, raising questions about pipeline investment sustainability.
EW's financial health remains strong: the company holds $2.94B in cash, maintains a current ratio of 3.72x, carries minimal long-term debt of $598.3M against $10.34B in stockholders' equity (debt-to-equity of 0.32x), and generated $1.60B in operating cash flow. The balance sheet is conservative and well-capitalized, supporting continued investment and shareholder returns including $893.4M in share buybacks during FY2025.