01—Abstract
Summary
Summary of the 8-K filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Edwards Lifesciences (NYSE: EW) reported first-quarter 2026 results that beat its internal expectations, with net sales of $1.65 billiona, up 16.7% reported and 12.7% on a constant-currency basis.
TAVR sales of $1.20 billionb grew 11.0% constant currency, driven by SAPIEN growth in the U.S. and faster growth outside the U.S., with stable global average selling prices. TMTT sales were $173 million (adjusted, excluding $2.0 million of heart failure revenue), and Surgical sales were $276 million, up 5.9% constant currency. Management cited the EARLY TAVR data and European guideline updates as drivers of a shift toward earlier intervention in severe aortic stenosis, and noted that CMS is reconsidering the TAVR National Coverage Determination.
GAAP diluted EPS was $0.66c, while adjusted EPS was $0.78. The GAAP figure was pressured by a $123.6 million pre-tax ($99.0 million after-tax) impairment on a VIE investment and $37.1 million of litigation expenses, partly offset by a $65.2 million remeasurement gain. Gross margin was 78.0% GAAP (78.2% adjusted), down from 78.7% due to a weaker dollar and new-therapy manufacturing costs.
SG&A fell to 31.7% of sales and R&D to 16.0%, and GAAP operating margin rose to 29.0% (31.4% adjusted). The company ended the quarter with about $2.4 billiond in cash against roughly $600 million of total debt, and it completed a $500 million accelerated share repurchase with about $1.5 billion remaining under its authorization. Management raised full-year 2026 guidance: constant-currency sales growth to 9%-11% (from 8%-10%), TAVR growth to 7%-9% (from 6%-8%), and adjusted EPS to $2.95-$3.05 (the low end was raised from $2.90 and the midpoint moved to $3.00).
Implied total sales are $6.5-$6.9 billion and TAVR sales $4.7-$5.0 billion, with TMTT guidance held at $740-$780 million and Surgical guidance held at mid-single-digit growth. Q2 2026 guidance calls for sales of $1.66-$1.74 billion and adjusted EPS of $0.70-$0.76.
02—Key points
Key Highlights
- Q1 2026 net sales rose 16.7% year over year to $1.65 billion (12.7% constant currency); TAVR sales grew 14.4% reported and 11.0% constant currency to $1.20 billion.
- TMTT sales reached $173 million, up about 43% constant currency, led by EVOQUE, PASCAL and the newly approved SAPIEN M3; management said Edwards is growing faster than the double-digit growth in mitral and tricuspid procedures globally.
- GAAP EPS of $0.66 versus adjusted EPS of $0.78; the gap reflects a $123.6 million impairment on a VIE investment and $37.1 million in litigation expenses, partly offset by a $65.2 million remeasurement gain.
- Full-year 2026 guidance raised: constant-currency sales growth to 9%-11%, TAVR growth to 7%-9%, and adjusted EPS midpoint to $3.00 (range $2.95-$3.05).
- Operating margin expected at the high end of the original 28%-29% range, implying roughly 150 bps of constant-currency margin expansion for 2026; R&D is guided to about 17% of sales.
- Balance sheet remains strong with about $2.4 billion in cash and roughly $600 million in total debt; a $500 million accelerated share repurchase was completed and about $1.5 billion remains authorized.
- Catalysts ahead include CMS reconsideration of the TAVR NCD, PROGRESS trial data in moderate AS at TCT, COMMENCE 10-year RESILIA data at AATS, and a U.S. PASCAL tricuspid launch and next-generation PASCAL technology expected in Q4 2026.
03—Questions
Frequently Asked Questions
Why did Edwards raise its 2026 guidance, and how much did it move?
Management said first-quarter results were stronger than expected. Constant-currency sales growth guidance moved to 9%-11% from 8%-10%, and TAVR growth moved to 7%-9% from 6%-8%. Adjusted EPS guidance moved to $2.95-$3.05 from $2.90-$3.05, so the low end rose and the midpoint increased to $3.00 from $2.975. TMTT sales guidance of $740-$780 million and mid-single-digit Surgical growth were unchanged.
What explains the gap between GAAP and adjusted EPS in Q1?
GAAP EPS was $0.66 and adjusted EPS was $0.78. The main adjustment was a $123.6 million pre-tax ($99.0 million after-tax) loss on impairment related to a VIE investment whose carrying amount is not recoverable. Other adjustments were $37.1 million of certain litigation expenses and $3.3 million of intangible amortization, partly offset by a $65.2 million gain on remeasurement of a previously held interest from an acquisition.
Is TAVR demand still growing, and what could change the trajectory?
TAVR sales grew 11.0% constant currency in Q1, with stable average selling prices and a slight improvement in global competitive position, mainly due to a competitor exiting Europe. Management pointed to the EARLY TAVR data and European guideline updates as encouraging earlier referral for severe aortic stenosis. The main potential catalyst is CMS's reconsideration of the TAVR National Coverage Determination, which management said could improve timely access. Results from the PROGRESS trial in moderate AS, to be presented at TCT later in 2026, are another potential driver.
How is margin performing, and is it on track?
Q1 gross margin was 78.0% GAAP (78.2% adjusted), down from 78.7%, due to currency effects and new-therapy manufacturing costs. Operating margin was 29.0% GAAP and 31.4% adjusted, in line with management's expectations. Full-year gross margin guidance of 78%-79% was maintained, and full-year operating margin is expected at the high end of the 28%-29% range, supporting about 150 bps of constant-currency expansion.
What are the capital allocation and balance sheet implications?
Edwards ended Q1 with about $2.4 billion in cash and equivalents and roughly $600 million in total debt, leaving it in a net cash position. It completed a $500 million accelerated share repurchase during the quarter and has about $1.5 billion remaining under its authorization, which signals ongoing capital return. Diluted weighted-average shares fell to 580.7 million from 587.8 million a year earlier.
04—Continue