Edwards Lifesciences Corporation

Total sales were $1.74 billion in Q2 2026, up 12.5% year over year. Adjusted EPS was $0.78, and adjusted gross margin was 77.6%, flat year over year; foreign exchange reduced gross margin by 70 basis points. TAVR sales were $1.3 billion, up 10.5%; TMTT sales were $195.9 million, up 44.8%; Surgical sales were $284 million, up 5%. For 2026, management raised total company sales growth guidance to 10% to 11% from 9% to 11%, TAVR growth guidance to 8% to 9% from 7% to 9%, and TMTT guidance to $760 million to $780 million from $740 million to $780 million. Edwards now expects 2026 total company sales of $6.6 billion to $6.9 billion, TAVR sales of $4.75 billion to $5 billion, and adjusted EPS of $2.95 to $3.05. Q3 guidance is sales of $1.63 billion to $1.71 billion and adjusted EPS of $0.71 to $0.77.

Bernard Zovighian framed the quarter as validation of Edwards’ structural heart strategy, saying the company is now showing growth across multiple therapies and regions rather than relying on one driver. He emphasized long-term durability of the portfolio, citing TAVR evidence and expanding adoption in TMTT and Surgical, and said the company’s strategy supports 10% average annual sales growth over the long term. His tone was confident and upbeat, with repeated comments that the team is executing well globally and that the business has multiple multiyear growth opportunities ahead.

Doretta Mistras highlighted strong top-line growth and earnings leverage, with $1.74 billion in sales, 12.5% growth, and adjusted EPS of $0.78. She said adjusted gross margin was 77.6%, flat year over year, but now expects full-year gross margin at the lower end of the 78% to 79% range because of foreign exchange; she also said full-year operating margin is still expected at the high end of the original 28% to 29% guidance, implying about 150 basis points of constant-currency expansion. She noted about $2.9 billion in cash and cash equivalents, approximately $1.5 billion remaining under the share repurchase authorization, and said the company expects 2026 adjusted EPS of $2.95 to $3.05 despite a tax rate now expected at the high end of the 16% to 19% range.

Analysts focused on whether TAVR growth was being driven by market expansion versus competitive share gains, the impact of the upcoming CMS NCD decision, the heterogeneity and potential adoption curve for PROGRESS, and what was driving TMTT strength, especially EVOQUE and PASCAL tricuspid. Management said TAVR growth was similar in the U.S. and outside the U.S., supported by SAPIEN evidence and some competitor exit benefit, while calling the NCD a potential tailwind for 2027 and beyond rather than a major 2026 driver. On PROGRESS, they said the baseline characteristics were highlighted to help investors understand a diverse moderate-AS population, and that any revenue impact would likely be gradual because practice change takes time. For TMTT, management said growth was broad-based across PASCAL, EVOQUE and M3, and that PASCAL tricuspid should add another layer of growth once approved, which they still expect in Q4.