A Closer Look at Healthcare Sector Earnings: AZN vs. EW vs. ZBH

Key Points

• AstraZeneca, Edwards Lifesciences, and Zimmer Biomet all reported earnings on the same day, but with vastly different results.
• Of these, AstraZeneca's impressive oncology medicine sales growth stands out, having driven significant top-line growth.
• Edwards and Zimmer both saw notable successes in the latest quarter, but also face sizable challenges.

More than just a financial check-up, earnings for companies in the healthcare sector offer a key window for investors into a firm's pipeline and development progress. Even well-established, stable firms in the healthcare space can surprise with growth upon the release of a new blockbuster drug or medical device, and earnings periods are an opportunity for management to provide insight and commentary beyond what investors might expect from FDA notices of approvals, for example.

When healthcare companies release earnings reports on the same day, it can make for a busy time for investors keen to sort through the noteworthy news and plan their trades in response. On Feb. 10, 2025, three major names in the sector—AstraZeneca NASDAQ: AZN, Edwards Lifesciences NYSE: EW, and Zimmer Biomet NYSE: ZBH—all reported full-year and Q4 2025 earnings. Below are some of the highlights and takeaways for healthcare investors looking to make an informed plan based on these updates.

AstraZeneca Firms Up Cancer Business in a Strong Overall Quarterly Performance

U.K.-based pharma giant AstraZeneca ended 2025 by cementing its position as a go-to provider of cancer medicines, which accounted for about 44% of all product sales for the final quarter of the year. Sales of popular oncology drugs like Imfinzi and Enhertu grew by as much as 48% year-over-year (YOY), helping to fuel total revenue growth of 8.6% to $58.7 billion for the quarter.

After-tax profits surged alongside this growth in revenue, climbing to $10.2 billion from $7 billion in the prior-year quarter, prompting the company's board to declare a second interim dividend 7 cents higher than last year's.

Investors will also have more to look forward to in the year to come as the company pushes forward on dozens of new drugs in the midst of clinical trials. Management indicated that 20 Phase 3 readouts are on the way in 2026. The firm expects solid increases to both total revenue and core earnings per share (EPS) for full-year 2026.

In the hours following its strong earnings performance, AZN shares climbed by close to 3%. Though 10 out of 11 analysts rate AZN a Buy or equivalent, Wall Street raises questions about the firm's valuation—expecting shares could fall by close to 51% based on a consensus price target of $95.75.

TAVR Momentum Fuels Edwards Sales Growth, Though Investors Should Be Mindful of Earnings and Margin Limitations

Edwards builds replacement heart valves and similar surgical devices, as well as monitoring systems. The firm's Q4 2025 earnings results were largely positive, including 13.3% YOY sales growth driven by strong transcatheter aortic valve replacement (TAVR) momentum and success with the latest iteration of the company's SAPIEN valve.

At the same time, though, adjusted EPS came up short relative to what analysts had predicted, and gross profit margin fell by 0.8% YOY.

Still, despite some mixed results in the last quarter, Edwards remains optimistic that it will meet its prior 2026 outlook, which called for sales growth between 8% and 10% YOY and EPS between $2.90 and $3.05.

EW shares spiked above $80, about 4% higher than they closed, in after-hours trading following the earnings announcement.

About two-thirds of analysts rating EW shares believe they are a Buy, and Wall Street anticipates that the share price could rise by about a quarter to $96.77.

Orthopedic Demand Remains High, But Zimmer Faces Some Headwinds Going Forward

Zimmer Biomet, a maker of replacement systems and implants for joint and bone disorders, saw its share price rise more than 3% hours after announcing EPS of $2.42, 4 cents above consensus estimates, and revenue of $2.2 billion, up almost 11% YOY and also slightly ahead of predictions. Demand for Zimmer's orthopedic products remains high, helping to fuel top- and bottom-line growth.

Zimmer is also in the midst of a transition that will see the company focus more specifically on sales in the United States, where the firm sees close to 60% of its business. As insured patients are continuing to push utilization upward, investors may expect demand for Zimmer's products to remain high for the near term.

Still, Zimmer is likely to continue to be impacted by tariffs, which could cut into overall EPS and revenue performance for 2026, prompting management to issue conservative guidance in the latest earnings report, including adjusted EPS between $8.30 and $8.45 and free cash flow improvement between 8% and 10%.

Prior to the earnings statement, analysts remain divided on Zimmer, with the company earning a Hold rating overall, despite 15% in projected upside potential.