Total Revenue

Declined 11.6% (from $1,598.2M to $1,412.7M)

Overall revenue fell sharply due to a combination of weaker geographic performance—US down 10.8%, Europe down 7.2%, Japan down 26%, and Rest of World down 16%—despite modest growth in TAVR (+3.9%) and a robust increase in TMTT (+57.9%); declines in the surgical segment (–5.7%) also contributed, highlighting shifting market dynamics and regional challenges compared to the previous period. " " " " "

Transcatheter Aortic Valve Replacement

Increased 3.9% (from $1,007.9M to $1,046.6M)

TAVR performance improved driven by continued momentum in the Edwards SAPIEN platform and incremental product adoption compared to Q1 2024, which helped offset broader revenue declines in other areas. " " "

Transcatheter Mitral and Tricuspid Therapies

Increased 57.9% (from $72.9M to $115.2M)

Dramatic sales growth in TMTT was largely due to accelerated adoption of innovative products like PASCAL and the EVOQUE system in Q1 2025, building on a lower base in Q1 2024 and reflecting expanded market acceptance and execution of product launches. " " "

Surgical Structural Heart

Declined 5.7% (from $266.1M to $250.9M)

Sales in the Surgical Structural Heart segment decreased, potentially due to softer procedural volumes or competitive pressures in surgical markets compared to the prior period, which contrasts with modest gains seen in certain transcatheter areas. " " "

United States Revenue

Declined 10.8% (from $940.7M to $838.9M)

US revenue dropped significantly as compared to Q1 2024, suggesting regional market headwinds such as hospital budget constraints or shifts in procedure mix; this contrasts with the modest gains in TAVR and TMTT, indicating the overall US mix was adversely affected. " " " "

Europe Revenue

Declined 7.2% (from $367.8M to $341.8M)

European revenue fell likely due to softer demand and possible foreign exchange headwinds compared to Q1 2024, despite ongoing product adoption improvements in key segments such as TMTT. " "

Japan Revenue

Declined 26.0% (from $110.8M to $81.8M)

A steep drop in Japan reflects significant challenges including unfavorable foreign currency exchange effects and regional market pressures, which were more pronounced in Q1 2025 than in Q1 2024. " "

Rest of World Revenue

Declined 16.0% (from $178.9M to $150.2M)

Revenue in the Rest of World region decreased markedly, signaling either economic headwinds outside core markets or less effective market penetration compared to the previous period. " "

Gross Profit

Declined 8.3% (from $1,212.6M to $1,111.1M)

Gross profit contracted in line with the overall revenue drop, reflecting pressure on margins from reduced sales volumes and potential cost or currency impacts that eroded the previous period’s higher gross profitability. " "

Operating Income

Increased modestly (from $387.5M to $394.8M)

Operating income slightly improved despite lower revenue, suggesting that better cost management or a favorable product mix helped offset revenue declines in other areas relative to Q1 2024. " "

Net Income

Essentially flat (from $351.0M to $356.4M)

Net income remained near parity with Q1 2024, as the modest improvements in operating efficiency and cost management largely balanced out the revenue downturn and margin pressures. " "

Net Cash Provided by Operating Activities

Recovered dramatically (from –$53.5M to $280.4M)

Operating cash flow rebounded sharply (over 600% improvement) due to lower tax outflows, improved working capital management, and a better operating environment in Q1 2025 relative to the previous period’s heavy tax-related cash drains. " "

Cash & Cash Equivalents

Strong liquidity maintained at $3,140.6M

Robust cash reserves continued in Q1 2025, driven by strong operating cash generation and disciplined balance sheet management, reinforcing financial strength compared to the healthy position at the end of FY 2024. "

Total Assets & Stockholders’ Equity

Assets at $13,022.3M and Equity at $10,191.6M

Stable asset and equity figures underscore a resilient balance sheet, supported by high liquidity and a strong equity base; these figures reflect continuity from FY 2024 into Q1 2025 despite operational challenges during the period. "

Total Company Sales

FY 2025

$5.6 billion to $6.0 billion "

$5.7 billion to $6.1 billion " "

raised

Operating Margin

FY 2025

27% to 28% "

27% to 28% "

no change

Tax Rate (excluding special items)

FY 2025

15% to 18% "

15% to 18% "

no change

Gross Profit Margin

FY 2025

78% to 79% "

78% to 79% "

no change

TMTT Sales

FY 2025

$500 million to $530 million "

$530 million to $550 million " "

raised

Total Company Sales Growth

FY 2025

no prior guidance

8% to 10% "

no prior guidance

Adjusted EPS

FY 2025

no prior guidance

$2.40 to $2.50 " " "

no prior guidance

TAVR Sales Growth

FY 2025

no prior guidance

Full-year sales growth guidance of 5% to 7% "

no prior guidance

Full‐Year Guidance & EPS Outlook

Q3 & Q4 2024: Sales growth guidance of 8–10%, total company sales targets of approximately $5.6–$6.0B, and EPS as well as operating margin projections were set with a steady message of confidence despite factors such as tariff concerns and acquisition impacts. " " "

Q1 2025: Raised total sales guidance (now $5.7–$6.1B) and reaffirmed full‐year EPS guidance of $2.40–$2.50 despite headwinds, demonstrating additional confidence with an improved sales range ( " " " ).

Improved and reinforced guidance: The outlook remains consistently positive with an upward revision in sales targets and maintained EPS guidance.

Innovative Product Pipeline & Regulatory Milestones

Q3 & Q4 2024: Emphasis on a robust pipeline—highlighting products like PASCAL, EVOQUE, SAPIEN M3 (with European approval anticipated), and approvals such as Alterra—and significant regulatory milestones (e.g., final NCD for EVOQUE, trial progress for CLASP). " " " "

Q1 2025: Continued focus on innovation with additional upcoming catalysts, including anticipated EARLY TAVR indication approval in Q2, further advancements with SAPIEN M3, and new surgical innovations such as the MITRIS launch in China ( " " ).

Consistently robust with new catalysts: The pipeline remains strong and is expanding further with new near-term regulatory milestones, reinforcing an optimistic outlook.

TAVR Growth Prospects & Regulatory Approval Timing

Q3 & Q4 2024: Consistent TAVR growth guidance of 5–7% backed by stable global performance, with detailed discussions of long‐term opportunities and the impact of capacity constraints and regional market differences. " " " "

Q1 2025: Reaffirms the 5–7% growth guidance alongside first‐quarter performance data; introduces the upcoming EARLY TAVR approval expected in Q2, which promises to drive further adoption ( " " ).

Steady with additional near‐term catalysts: The overall growth outlook is consistent, with a new regulatory milestone on the horizon enhancing near-term optimism.

TMTT Segment Expansion & Global Market Penetration

Q3 & Q4 2024: Highlighted strong growth in the TMTT segment driven by PASCAL and EVOQUE, with sales reaching significant levels and market creation ambitions including projections to grow from $300M to $500M (and further long‐term potential). " " "

Q1 2025: Reports robust first‐quarter sales (60% growth) in the TMTT segment and raised the 2025 sales guidance to $530–$550M, reflecting accelerating global adoption and balanced contributions from both mitral and tricuspid solutions ( " " " ).

Accelerating expansion: The segment is growing at an even faster rate with higher guidance, demonstrating bullish sentiment on global penetration.

Regional Market Performance – Japan

Q3 & Q4 2024: Consistently noted slower market growth in Japan and pressures that affected results, though long‐term opportunities were recognized given the large aging population and unmet patient needs. " "

Q1 2025: Japan’s performance was described as “a little bit disappointing” due to weak procedure growth and competitive pressures, yet the long‐term potential remains attractive because of significant unmet needs ( " " ).

Persistent near‐term challenges: Short‐term performance remains weak, but there is ongoing long‑term optimism for market turnaround.

Tariff Headwinds & Acquisition Integration Risks (JenaValve)

Q3 2024: Little to no discussion on tariffs; Q4 2024 considered tariffs immaterial with no explicit mention of integration risks regarding JenaValve ( " " ).

Q1 2025: Tariff headwinds are now explicitly quantified at a $0.05 EPS impact and integration risks from the JenaValve acquisition (estimated dilution of $0.05–$0.10), indicating a more detailed focus on these financial challenges ( " ).

Emerging risk focus: Previously downplayed, these issues are now more clearly articulated as near‑term challenges with measurable financial impacts.

Competitive Pressures in Structural Heart/TAVR Market

Q3 & Q4 2024: Emphasis on a strong competitive position supported by premium product differentiation (e.g., SAPIEN 3 Ultra RESILIA) with manageable capacity constraints and regional pressures, particularly in Japan ( " " ).

Q1 2025: Acknowledges competitive pressures again—especially in Japan—but maintains that the company’s differentiated technology and stable pricing underpin its leadership position ( " " ).

Consistent resilience: The sentiment remains steady; competitive challenges are recognized but are met with confidence in the company’s market leadership and product edge.

Operating Margin & Profitability Concerns

Q3 2024: Operating margins were strong (with Q3 at 31.4% due to timing benefits) and full‑year margins were expected around 27–28%, with emphasis on cost optimization and margin expansion in the future ( " " " ).

Q1 2025: Reports a Q1 operating margin of 29.1%—slightly higher than previous year’s period—with reminders of near‑term pressures from a weakening dollar, tariffs, and acquisition integration risks, while maintaining full‑year guidance of 27–28% ( " ).

Steady with cautious optimism: Margins remain robust and expectations for long‑term improvement persist, despite current headwinds.

Dependency on Midyear Catalysts & Execution Risks

Q4 2024: Highlighted key mid‑year catalysts such as the anticipated asymptomatic TAVR approval, European SAPIEN M3 approval, and final NCD for EVOQUE as essential for future growth, implying reliance on these events for momentum. " " " Q3 2024: No explicit discussion.

Q1 2025: There is no explicit mention of dependency on mid‑year catalysts or execution risks, although the mid‑year JenaValve acquisition is noted, suggesting that such dependencies are still in play but are less discussed in this period.

Reduced explicit emphasis: While earlier calls underlined significant mid‑year milestones, Q1 is more focused on current performance; the dependency remains but is less prominently featured.

Emerging Market Opportunities in China

Q3 2024: Mention was limited to a one‑time adjustment related to a distributor rebate, with no strategic focus on new China opportunities. Q4 2024: No significant commentary on emerging opportunities was provided ( " " ).

Q1 2025: The launch of MITRIS in China was highlighted with positive surgeon feedback, signaling a newfound emphasis on emerging market opportunities in China as a growth driver ( " " ).

Newly emerging emphasis: China has moved from a peripheral mention to a strategic focus, with positive early signals injecting optimism into the market potential.