Start here if you're new
what it is
LivaNova sells heart-surgery equipment and nerve-stimulation therapies for epilepsy, depression, and sleep apnea.
how it gets paid
Last year Livanova made $1.4B in revenue. Cardiopulmonary disposables was the main engine at $0.42B, or 30% of sales.
why it's growing
Revenue grew 10.7% last year. Favorable trends in cardiopulmonary product demand should remain a key growth driver for the company this year.
what just happened
LivaNova posted adjusted EPS of $0.86, beating the $0.81 estimate by 6.17%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
15/100 earnings predictability — expect surprises
16.7x trailing p/e — the market's not buying it — or you found a deal
14.5% return on capital — nothing to write home about
xvary composite: 53/100 — below average
What they do
LivaNova sells heart-surgery equipment and nerve-stimulation therapies for epilepsy, depression, and sleep apnea.
Its gross margin (money left after product costs, before overhead) was 68.2%, so every $1 of sales left about $0.68 to pay for everything else. That usually means you are selling something hospitals and surgeons do not swap out casually. If your operating room already runs on a company's oxygenators, tubing, and support gear, switching vendors becomes a paperwork festival with patient risk attached.
How they make money
$1.4B
annual revenue · their business grew +10.7% last year
Cardiopulmonary disposables
$0.42B
Heart-lung systems
$0.28B
Epilepsy neuromodulation
$0.42B
Depression and sleep apnea therapies
$0.28B
The products that matter
regulated therapeutic devices
Neurology & Cardiopulmonary Devices
$1.4B revenue
It's the entire disclosed business today, generating all $1.4B in revenue and driving the reported ~10.7% full-year growth (do not mix in a different segment's vs. prior year by mistake).
core
pipeline expansion program
Sleep Apnea Program
planned for 2027
management is putting resources behind a planned 2027 sleep-market entry. Right now it's optionality, not revenue.
future bet
Key numbers
23.0%
operating margin
Operating margin means profit after running the business, before interest and taxes, so what: LivaNova keeps $0.23 from each $1 of sales.
$349M
long-term debt
That is just 9% of capital. So the balance sheet is a support beam, not a drama series.
+42%
18-month upside
The $91 target sits $26.80 above the $64.20 stock price. The market is pricing this like a decent business, not a 23.0% margin one.
14.5%
return on capital
Return on capital means profit from the money tied up in the business, so what: every $1 invested produced about $0.15 in operating profit.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $349M (9% of capital)
- net profit margin 15.7% — keeps 16 cents of every dollar in revenue
- return on equity 17% — $0.17 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in LIVN 3 years ago → it's now worth $11,530.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
LivaNova posted adjusted EPS of $0.86, beating the $0.81 estimate by 6.17%.
The beat is on adjusted EPS. GAAP EPS can print hugely negative (~-$5 in the same window) when charges or items run through— always pair GAAP with the filing footnotes. Quarter revenue in the KPI row (~$350M) is the right order of magnitude for one quarter, not ~$1B for a single quarter.
~$350M
quarter revenue
$0.86
adj. EPS
68.2%
gross margin
the number that mattered
The 68.2% gross margin matters most because it shows the underlying business still has pricing power even when reported earnings get messy.
-
livanova was carrying momentum heading into the final stanza of 2025.the london-based medical device company surpassed earnings/revenue expectations in its last three reported quarters, with leadership raising its full-year forecasts on each occasion. much of the upside has come from strength in livanova’s core cardiopulmonary business, which continues to benefit from higher essenz perfusion system sales and strong consumables demand across all major regions.
-
for full-year 2025, the company is targeting adjusted earnings of $3.80-$3.90 a share on revenue growth of 8.5%-9.5%.
-
results are scheduled to be released on february 25th.
-
our model calls for adjusted earnings to reach $4.10 a share in 2026.favorable trends in cardiopulmonary product demand should remain a key growth driver for the company this year. an anticipated acceleration in neuromodulation revenue, bolstered by new product launches and increased medicare reimbursement for its vagus nerve stimulation therapy (effective january 2026), should also be supportive of comparisons in the coming quarters.
-
a foray into the sleep market is on tap for 2027.livanova has been allocating significant resources toward the development of its obstructive sleep apnea (osa) program. the company views osa as a high-growth transformational franchise and is currently gearing up to launch its first commercial product in the u.s. next year. leadership projects the osa business to generate between $200 million$400 million in revenues by 2030, and achieve breakeven by 2029.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top threat is execution on neuromodulation launches and the planned 2027 sleep apnea expansion.
med
growth normalization
35.1% revenue growth is a hard act to follow. If that surge was helped by catch-up demand, easier comparisons, or temporary mix, the stock loses its main argument fast.
At 16.7x earnings, this isn't an expensive stock. It is a stock priced for continued progress. Slower growth would expose that difference.
med
earnings volatility
Earnings predictability is just 15/100, and the latest quarter still showed EPS down 18% from last year despite the beat. That is not a smooth compounding profile.
If the next few quarters keep producing headline beats with messy underlying EPS, investors stop paying up for the turnaround story.
med
regulatory and legal overhead
A complex regulatory filing from june 2024 is a reminder that medtech scale comes with compliance drag. In this business, paperwork is not overhead. It's part of the operating model.
More regulatory friction can slow launches, add cost, and delay the pipeline optionality investors are already baking into the story.
med
long-dated pipeline expectations
The sleep apnea program is framed as a 2027 opportunity. That's useful upside, but it does not pay today's bills. Investors can get impatient with long timelines.
If the core $1.4B device business cools before that program matures, the market will value LIVN as a slower medtech name, not a pipeline story.
If growth slips from 35.1%, the february 25 update fails to support the $3.80–$3.90 2025 EPS guide, or 2026 no longer points toward $4.10, the current "cheap growth" case weakens quickly.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
february 25 report
This is the next proof point. You want management to defend the $3.80–$3.90 2025 adjusted EPS range and keep 2026 pointed at $4.10.
trend
whether 35.1% growth was a spike or a base
Last year's revenue growth is the headline. The next few quarters decide whether it was a breakout or just a very flattering comparison.
risk
sleep apnea timeline discipline
The 2027 sleep-market plan is promising, but long-dated. Watch for timeline slippage, because this stock does not need another story that keeps moving right.
metric
EPS quality, not just EPS beats
A $0.49 quarter that beats estimates is fine. A $0.49 quarter with declining underlying earnings power is less fine. You want both the beat and the direction.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock behaving pretty normally right now.
risk profile
average
stability score 3 — neither a bunker stock nor a chaos machine.
chart momentum
top 20%
technical score 2 — the chart has been stronger than most, which fits a stock trading near the top of its $32–$65 range.
earnings predictability
15 / 100
This is the warning label. Forecasting earnings here has been difficult, so you should expect noise around every print.
source: institutional data
Institutional activity
131 buyers vs. 136 sellers in 3q2025. total institutional holdings: 56.1M shares.
source: institutional data
Price targets
3-5 year target range
$51
$130
$64
current price
$91
target midpoint · +42% from current · 3-5yr high: $100 (+55% · 12% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive