Edwards Lifesciences Earnings Beat, Guidance Narrowed

Edwards Lifesciences (EW) reported stronger-than-expected second-quarter results in a press release on July 23, 2026, and narrowed its full-year sales range after management cited robust demand for transcatheter aortic-valve and mitral and tricuspid therapies.

Quarter Results and Beats

For the quarter ended June 30, 2026, Edwards Lifesciences reported net sales of $1.74 billion, a 13.6% increase year over year and 12.5% on a constant-currency basis. Adjusted earnings per share (EPS) were $0.78, with GAAP EPS at $0.42. Adjusted gross margin was 77.6%, consistent with the prior year, while adjusted operating margin rose to 30%.

The results exceeded analyst forecasts by roughly $40 million in revenue and $0.04 per share in adjusted EPS.

Transcatheter aortic valve replacement (TAVR) sales reached $1.26 billion, up 11.3% year over year and 10.5% on a constant-currency basis. Transcatheter mitral and tricuspid therapies (TMTT) generated $196 million in sales, growing nearly 45% on a constant-currency basis. Surgical structural heart sales totaled about $284 million, increasing 5–6.5% year over year. The company attributed TMTT gains to its portfolio of repair and replacement therapies.

Management described the quarter as reflecting strong execution across product groups and regions. Clinical data presented at the New York Valves meeting reinforced the performance of platforms including SAPIEN, PASCAL, EVOQUE, and SAPIEN M3. Executives reiterated a long-term goal of roughly 10% average annual sales growth and 50–100 basis points of operating-margin expansion per year.

Guidance, Margins, and Capital Strategy

Edwards Lifesciences raised its full-year sales-growth guidance to 10–11% and narrowed total sales guidance to $6.6–$6.9 billion while reaffirming adjusted EPS guidance at $2.95–$3.05. Product-level guidance increased as well: TAVR growth was raised to 8–9%, with sales now expected between $4.75 billion and $5.0 billion. TMTT sales guidance moved to $760–$780 million, raising the midpoint to about $770 million.

The company set full-year adjusted gross-margin guidance at 78–79%, expecting to land near the lower end due to foreign-exchange headwinds and ongoing investments. Adjusted operating-margin guidance remains at 28–29%, with management anticipating results near the high end of that range. For the third quarter, Edwards targets sales of $1.63–$1.71 billion and adjusted EPS of $0.71–$0.77.

Management noted that changes to a California research-and-development tax credit affected GAAP EPS relative to adjusted results. The company expects its 2026 tax rate to be near the high end of a prior 16–19% range.

At quarter-end, Edwards held approximately $2.9 billion in cash and cash equivalents and about $600 million in total debt. Around $1.5 billion remained available under the share-repurchase authorization. Average diluted shares outstanding in the quarter were about 578 million.