Edwards Lifesciences (EW) Q3 2026 Earnings Report

The call was strongly positive. Edwards reported better-than-expected third-quarter results, raised full-year sales, TAVR, TMTT and EPS guidance, highlighted broad clinical and regulatory progress, and expressed confidence in durable long-term growth. The main challenges were GAAP EPS impairment, foreign-exchange and tax headwinds, expected fourth-quarter margin phasing, moderating TAVR share gains and the gradual timing of new-indication benefits.

Management raised full-year 2026 total sales growth guidance to approximately 11.5% and adjusted EPS guidance to $2.97 to $3.05, growing 18% at the midpoint versus prior year; fourth-quarter sales are projected at $1.67 billion to $1.75 billion with adjusted EPS of $0.61 to $0.69. Full-year TAVR guidance is 9% to 9.5%, with durable mid- to high single-digit growth over the long term; TMTT sales are expected to be between $780 million and $790 million, supporting a path to $2 billion in TMTT revenue in 2030; and Surgical guidance remains mid-single-digit sales growth. Adjusted gross margin is expected at the lower end of the full year 78% to 79% gross margin guidance, operating margin at the high end of the original 28% to 29% guidance with approximately 150 basis points of constant currency operating margin expansion, fourth-quarter operating margin in the mid-20s, R&D expense at approximately 16.5% of sales, effective tax rate at the high end of 16% to 19%, fourth-quarter FX headwind of approximately $15 million, and average diluted shares outstanding between 575 million and 580 million; beyond 2026, Edwards plans for 50 to 100 basis points of underlying operating margin expansion and approximately 10% average annual sales growth alongside leveraged EPS growth.