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Edwards Lifesciences 8-K Report, Financial Results (Jul 23, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 23, 2026
Period End
July 23, 2026
Security
EW
In the record · 2016–202610-K1110-Q328-K88

EW filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 88 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’18Jun ’18
  2. Leadership change8-K · May ’21May ’21
  3. Leadership change8-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 8-K filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.

Edwards Lifesciences (EW) reported second-quarter 2026 results that beat expectations on the top line and raised its sales guidance.

Q2 net sales rose 13.6% to $1.74 billiona (12.5% constant currency), with TAVR up 11.3% to $1.26 billion and TMTT up 47.3% to $195.9 million (about $198.6 million including Implantable Heart Failure Management revenue, per the sales reconciliation table). Surgical grew 6.5% to $284 million. Management attributes TAVR strength to heightened focus on aortic stenosis, the exit of a competitor in Q2 2025, and SAPIEN durability data, and notes stable average selling prices.

EVOQUE and PASCAL are cited as key TMTT growth drivers, with SAPIEN M3 in a measured launch. Profitability was mixed. GAAP diluted EPS fell to $0.42b from $0.57 because of a $188.2 million non-cash valuation allowance on R&D tax credits, triggered by California budget legislation enacted June 29, 2026, and a 53.6% quarterly effective tax rate.

Adjusted EPS was $0.78c versus $0.67 a year earlier, helped by stronger topline and planned phasing of R&D and SG&A investments. Gross margin was 77.5% (77.6% adjusted), and management now expects gross margin at the low end of its 78% to 79% full-year range because of FX hedging costs. The company also guided the 2026 effective tax rate to the high end of its previous 16% to 19% range.

Edwards raised full-year 2026 total company constant currency sales growth guidance to 10% to 11% (from 9% to 11%), TAVR growth to 8% to 9%, and TMTT sales to $760 to $780 milliond. It reaffirmed adjusted EPS guidance of $2.95 to $3.05, and expects Q3 2026 sales of $1.63 to $1.71 billion and adjusted EPS of $0.71 to $0.77. Near-term catalysts include a CMS final decision memo on the TAVR National Coverage Determination expected in September, TCT presentations (PROGRESS and CLASP IITR) and expected Q4 approvals of next-generation PASCAL and the PASCAL tricuspid indication.

02—Key points

Key Highlights

  1. Q2 2026 net sales of $1.74B, up 13.6% reported and 12.5% constant currency; TAVR $1.26B (+11.3%), TMTT $195.9M (+47.3%), Surgical $284M (+6.5%).
  2. Adjusted EPS of $0.78 vs. $0.67 a year ago; GAAP diluted EPS of $0.42 vs. $0.57, reflecting a $188.2M valuation allowance on R&D tax credits tied to California legislation.
  3. Full-year 2026 total sales growth guidance raised to 10% to 11% constant currency; TAVR guidance raised to 8% to 9%; TMTT guidance raised to $760M to $780M.
  4. Adjusted EPS guidance of $2.95 to $3.05 reaffirmed, despite a higher expected tax rate at the high end of the 16% to 19% range.
  5. Gross margin of 77.5% in Q2, but full-year gross margin now expected at the low end of 78% to 79% due to FX hedging impacts.
  6. Q2 operating margin of 29.5% (30.0% adjusted); full-year operating margin expected at the high end of 28% to 29%.
  7. Balance sheet strong with about $2.9B cash and roughly $600M total debt; about $1.5B remains under the share repurchase authorization.

03—Questions

Frequently Asked Questions

  1. Why did GAAP EPS decline so sharply while adjusted EPS grew?

    GAAP diluted EPS fell to $0.42 from $0.57 mainly because of a $188.2 million valuation allowance against deferred tax assets, recorded after California enacted a budget law limiting business tax credits, including R&D carryovers. This pushed the Q2 effective tax rate to 53.6%. Adjusted EPS excludes this charge and rose to $0.78 from $0.67 on stronger sales and investment phasing.

  2. What is driving the strong TMTT growth?

    TMTT sales grew 47.3% (44.8% constant currency) on the PASCAL system and EVOQUE tricuspid replacement platform, with mitral and tricuspid procedure growth in double digits. The company is also beginning a measured U.S. and European launch of SAPIEN M3 for patients unsuited to mitral TEER. Next-generation PASCAL approvals are expected in Q4 2026.

  3. Is the TAVR growth sustainable, and what regulatory events matter?

    Growth benefited from a competitor's exit in Q2 2025, strong SAPIEN durability data, and a heightened focus on treating aortic stenosis earlier. Average selling prices were stable. A CMS final decision memo on the TAVR National Coverage Determination reconsideration is expected in September 2026, which could expand Medicare eligibility. The PROGRESS trial in moderate aortic stenosis will present results at TCT later this year.

  4. Why is the company guiding to the low end of gross margin and a higher tax rate?

    Management expects full-year gross margin at the low end of its 78% to 79% range because of foreign exchange impacts through its hedging program. The 2026 effective tax rate is now expected at the high end of the 16% to 19% range because the Pillar Two side-by-side safe-harbor legislation is not expected to take effect before year-end, and California's R&D credit restrictions also apply.

  5. What is the near-term outlook for the coming quarter?

    For Q3 2026, Edwards projects total sales of $1.63 billion to $1.71 billion and adjusted EPS of $0.71 to $0.77. Full-year guidance calls for total company sales of $6.6 billion to $6.9 billion and TAVR sales of $4.75 billion to $5.0 billion at current exchange rates. Management also reiterated a longer-term target of about 10% average annual total company sales growth.

04—Continue

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