Edwards Lifesciences (EWL) Q2 2026 Earnings Report

The call highlighted robust top-line growth led by TMTT (+44.8% YoY) and solid TAVR performance (+10.5% YoY), along with margin expansion and upgraded full-year company and segment guidance. Notable clinical and regulatory milestones (SAPIEN X4S, PROGRESS timeline, PASCAL and M3 approvals/CE Mark, COMMENCE 10-year data) underpin multi-year growth prospects. Offsetting factors include foreign exchange headwinds, higher effective tax rate and GAAP earnings impacts from R&D credit changes, higher SG&A, and tougher second-half comparables creating near-term seasonality and uncertainty. On balance, positive execution, upgraded guidance and strong pipeline/clinical evidence outweigh the near-term financial and macro headwinds.

Edwards raised 2026 sales guidance to 10%–11% (implying total company sales of $6.6B–$6.9B), increased TAVR guidance to 8%–9% (now $4.75B–$5.0B) and lifted TMTT to $760M–$780M (from $740M–$780M), while reaffirming full‑year adjusted EPS of $2.95–$3.05 and reiterating a long‑term ~10% company growth target with TAVR mid‑ to high‑single‑digit growth. In Q2 Edwards reported sales of $1.74B (+12.5% YoY), adjusted EPS $0.78 (GAAP $0.42), adjusted gross margin 77.6% and adjusted operating margin 30%; SG&A was $561M (32% of sales) and R&D $279M (~16% of sales, ~17% guidance for 2026). Q3 guidance calls for $1.63B–$1.71B of sales and adjusted EPS $0.71–$0.77; full‑year gross margin is expected at the lower end of the 78%–79% range, full‑year operating margin at the high end of 28%–29% (≈150 bps constant‑currency expansion) with 50–100 bps of underlying expansion planned. Other notable metrics: Q2 FX boosted reported sales ≈$15M (~110 bps) but FX is a ~$35M second‑half headwind if rates hold; 2026 effective tax rate now expected at the high end of 16%–19%; cash ≈$2.9B; ~$1.5B remaining on the buyback authorization; average diluted shares 578M (575M–580M expected).