Edwards Lifesciences Corporation stock research
FY2025 Q3
Edwards Lifesciences (EW) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but was lower than the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but was lower than the same quarter last year.
- The gross margin improvement from the prior quarter was driven by revenue growing faster than cost of revenue. The decline from the same quarter last year reflects a larger increase in cost of revenue relative to revenue growth.
- Compared to the prior quarter, gross margin was slightly higher as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin was lower, with cost of revenue increasing more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.8%
Gross profit
$1.2B
Revenue
$1.6B
Cost of revenue
$345.2M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-2.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $1.4B | $1.1B | $262.9M | 80.6% |
| Mar 31, 2025 | $1.4B | $1.1B | $301.6M | 78.7% |
| Jun 30, 2025 | $1.5B | $1.2B | $344.4M | 77.5% |
| Sep 30, 2025 | $1.6B | $1.2B | $345.2M | 77.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.3 pts
Year-over-year change
Sep 30, 2024
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by revenue growing faster than cost of revenue. The decline from the same quarter last year reflects a larger increase in cost of revenue relative to revenue growth.
Compared to the prior quarter, gross margin was slightly higher as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin was lower, with cost of revenue increasing more than revenue.
Monitor the trend in cost of revenue relative to revenue, as its faster growth compared to last year has pressured gross margin.