LivaNova PLC reported third‑quarter 2025 results that surpassed consensus expectations, with total net revenue reaching $357.8 million, a 12.5% year‑over‑year increase and 11.0% on a constant‑currency basis. Adjusted diluted earnings per share climbed to $1.11, beating the consensus estimate of $0.91 by $0.20, or 22%—a margin that reflects disciplined cost control and a favorable product mix.
Cardiopulmonary revenue grew 18.0% reported and 15.9% constant‑currency, driven by robust sales of the Essenz Perfusion System and its consumables. Neuromodulation revenue increased 6.9% reported and 6.4% constant‑currency, supported by continued demand for VNS Therapy and the emerging OSA platform. The double‑digit growth in cardiopulmonary, combined with steady neuromodulation gains, underpins the company’s confidence in its dual‑focus strategy.
Operating income on a GAAP basis rose to $54.0 million, while adjusted operating income reached $80.4 million, up from $63.6 million in Q3 2024. Adjusted gross margin expanded to 69%, a lift attributable to higher pricing power in the cardiopulmonary segment and improved operational leverage as revenue scales. The margin expansion demonstrates that cost inflation has been offset by pricing strength and efficient supply‑chain management.
Management raised its full‑year 2025 revenue guidance to 8.5%–9.5% constant‑currency and 9.5%–10.5% organic, an increase from the 8.0%–9.0% constant‑currency guidance issued in Q2. Adjusted diluted EPS guidance was lifted to $3.80–$3.90, up from $3.70–$3.80, and adjusted free cash flow guidance was raised to $160 million–$180 million, reflecting stronger cash generation and a more favorable capital‑allocation outlook. The upward revisions signal management’s confidence in sustained demand and continued margin expansion.
CEO Vladimir Makatsaria highlighted the quarter as a demonstration of “disciplined execution, enhanced productivity, and operational excellence” that are driving margin expansion and cash generation. He emphasized that the company’s focus on core cardiopulmonary and neuromodulation businesses is delivering durable growth and positioning LivaNova for long‑term success.
Investors reacted positively to the earnings release, with analysts noting the significant EPS and revenue beats and the upward revision of full‑year guidance as key drivers of the favorable market response.
The combination of strong revenue growth, margin expansion, and a confident outlook positions LivaNova to capitalize on its product pipeline and market opportunities, reinforcing its standing as a leading player in the medical‑technology sector.
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