LivaNova PLC reported fourth‑quarter and full‑year 2025 financial results, with Q4 revenue of $360.9 million, up 12.1% year‑to‑year, and full‑year revenue of $1.388 billion. The 12.1% figure reflects reported growth; constant‑currency growth was 9.5%.
Adjusted diluted earnings per share rose to $0.86 from $0.81, a beat of $0.05–$0.06 over consensus estimates of $0.80–$0.81. The beat was driven by strong demand in both cardiopulmonary and neuromodulation segments, offsetting a one‑time $365.6 million SNIA environmental liability that was excluded from adjusted figures.
Full‑year operating income reached $199.4 million, up 54% from $129.1 million in 2024, while adjusted operating income climbed to $286.1 million, reflecting higher gross margins and efficient cost management. Operating margin expanded to 18% in Q4 2025 from 17% in Q4 2024, driven by a 13.7% revenue increase in the cardiopulmonary segment and an 11.0% rise in neuromodulation.
Management guided for 2026 constant‑currency revenue growth of 6.0%–7.0% and adjusted diluted EPS of $4.15–$4.25, with adjusted free cash flow of $160 million–$180 million. The guidance signals confidence in sustained demand for core products but also reflects planned capital allocation toward the Obstructive Sleep Apnea platform and expansion into China, which are expected to moderate near‑term growth.
The results beat analyst expectations for both revenue and EPS, but the market reacted negatively, with the stock falling in pre‑market trading. Investors focused on the 2026 guidance and the significant investment in the OSA platform, which could pressure earnings in the short term despite the strong Q4 performance.
CEO Vladimir Makatsaria highlighted that “LivaNova delivered double‑digit revenue growth, meaningful operating margin expansion, and robust cash generation, reflecting strong execution in both our Cardiopulmonary and Epilepsy businesses.” He added that the company is “leveraging the strength of the core to enter a high‑growth, high‑margin OSA market to drive sustainable, accelerated top‑line and bottom‑line growth for the enterprise.”
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