tapebrief
EW · Q4 2025

EW · Q1 2026 Earnings

Bullish

Edwards Lifesciences

Reported April 23, 2026

30-second summary

Edwards opened FY2026 with Q1 revenue of $1.65B (+16.7% YoY reported, +12.7% cc) and non-GAAP EPS of $0.78, both clearing the high end of the prior $1.55–$1.63B and $0.70–$0.76 guides. Management raised FY2026 constant-currency sales growth to 9–11% (from 8–10%), TAVR product growth to 7–9% (from 6–8%), and adjusted EPS to $2.95–$3.05 (from $2.90–$3.05) — crediting market expansion from EARLY TAVR rather than share gains. TMTT printed +42% YoY adjusted (+51.9% GAAP including IHFM) but the FY $740–780M guide was left untouched, the cleanest signal in the release that management is keeping the bar conservative against tough 2H comps.

Headline numbers

EPS

Q1 FY2026

$0.78

Revenue

Q1 FY2026

$1.65B

+16.7% YoY

Gross margin

Q1 FY2026

78.0%

Operating margin

Q1 FY2026

29.0%

Key financials

Q1 FY2026
MetricQ1 FY2026YoYQ4 FY2025QoQ
Revenue$1.65B+16.7%$1.57B+5.1%
EPS$0.78—$0.58+34.5%
Gross margin78.0%—78.1%-10bps
Operating margin29.0%—9.6%+1940bps

Guidance

Edwards raised FY2026 sales growth to 9–11% and EPS to $2.95–$3.05 on strong Q1 beats and TAVR momentum from EARLY study data, raising TAVR guidance 100 bps while maintaining gross and operating margin targets.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

MetricPeriodPrior guideActualΔResult
RevenueQ1 FY2026$1.55 to $1.63 billion$1.65 billion+$0.02 billion above high end of guideBeat
Adjusted EPSQ1 FY2026$0.70 to $0.76$0.78+$0.02 above high end of guideBeat

New guidance

MetricPeriodGuideYoY
TAVR SalesFY2026$4.7 to $5.0 billion—
RevenueQ2 FY2026$1.66 to $1.74 billion+8.5% to +13.7% YoY
Adjusted EPSQ2 FY2026$0.70 to $0.76—

Changes to prior guidance

MetricPeriodPrior guideNew guideΔResult
Sales Growth (Constant Currency)
FY2026
8% to 10%9% to 11%+100 basis points at midpoint (from 9% to 10%)Raised
Adjusted EPS
FY2026
$2.90 to $3.05$2.95 to $3.05+$0.05 at low end (from $2.90 to $2.95); midpoint raised from $2.975 to $3.00Raised
TAVR Sales Growth
FY2026
6% to 8%7% to 9%+100 basis points at midpoint (from 7% to 8%)Raised

Reaffirmed unchanged this quarter: TMTT Sales ($740 to $780 million), Gross Margin (78% to 79%), Operating Profit Margin (high end of 28% to 29%)

Segment KPIs

Q1 FY2026
SegmentQ1 FY2026YoY
Transcatheter Aortic Valve Replacement (TAVR)$1.2B+14.4%
Transcatheter Mitral and Tricuspid Therapies (TMTT)$0.175B+51.9%
Surgical$0.276B+10.1%
TAVR Constant Currency Growth11.0%—
TMTT Constant Currency Growth42.8%—
Surgical Constant Currency Growth5.9%—

Other KPIs

Q1 FY2026
SegmentQ1 FY2026YoY
United States$0.938B+11.8%
Europe$0.443B+29.5%
Japan$0.091B+10.8%
Rest of World$0.178B+18.4%
Constant Currency Total Sales Growth12.7%—
Adjusted Gross Margin78.2%—
Adjusted Operating Margin31.4%—
SG&A as % of Sales31.7%—
R&D as % of Sales16.0%—

Management tone

Narrative arc: Q2 "renewed focus on TAVR, balanced portfolio" → Q3 "double-digit halo, raising guidance, not the new normal" → Q4 "increased confidence, $2B TMTT by 2030, catalyst calendar" → Q1 "EARLY-driven market expansion, share gains not the story."

The pivotal shift this quarter is in how management explains TAVR strength. Three quarters ago the narrative attributed acceleration to a "halo effect" from TCT durability data; two quarters ago it firmed to "the conversation has completely shifted...there's no upside to waiting anymore"; this quarter management explicitly reframes the driver as market expansion rather than share. In Q&A, Edwards told Wells Fargo that the majority of TAVR performance comes from market growth, with only slight U.S. share benefit and a European share gain tied to a competitor's exit — a deliberate de-emphasis of competitive wins in favor of a category-growth thesis. The signal: management wants investors to underwrite the EARLY-driven volume expansion as durable rather than as a one-time share grab tied to Boston Scientific's exit.

TMTT positioning continued to evolve from "growth portfolio" (Q2) to "compounding effect from optionality" (Q3) to "$2B by 2030" (Q4) to "category creation" (Q1). On the call, Robbie Marcus pressed why the TMTT guide was unchanged despite the strong Q1 growth; management reframed the conversation from share dynamics to Edwards' decade-long investment in a bold mitral/tricuspid portfolio approach with portfolio depth competitors lack. That language anchors the franchise as the architect of the category — not a participant in it — which matters for how the Street values the $2B 2030 target.

The hedge that emerged this quarter is around X4. Asked about pipeline status, management acknowledged that when X4 was introduced in clinics they identified enhancements worth incorporating, which now requires confirmatory trial evidence being collected through 2026, with further details on timelines to follow after trial completion. That is meaningfully softer than the prior posture and the first real timeline equivocation on a next-gen TAVR platform — investors should treat X4's 2027+ contribution as now back-loaded relative to Q4 framing.

Capacity messaging shifted from a watch-item (Q3) to a non-issue (Q1). Management told Bank of America that capacity has not been an acute matter in the last few quarters and that TMTT growth has been accommodated without displacing TAVR. That removes one of the structural ceilings analysts had built into 2026–2027 models.

The conspicuous tell on the print: management refused to quantify U.S. TAVR growth as single-digit vs. double-digit when directly asked, instead pointing to global TAVR +11% and noting OUS grew faster. Reading between the lines, U.S. TAVR is likely high-single-digit and the headline 11% cc is OUS-weighted — meaningful for thinking about NCD upside leverage in the back half.

Q&A highlights

David Roman · Goldman Sachs

Analysis of TAVR market dynamics: Are the competitive long-term durability data showing a class effect on TAVR? Is this questioning device selection for lifetime management? What are the balloon vs. self-expandable valve dynamics, and what operational considerations are reflected in guidance?

Management emphasized that Edwards has produced substantial high-quality positive data (early TAVR for asymptomatic patients, 7-year Partner 3, 10-year Partner 2 data), demonstrating Sapien's distinguished durability. The renewed TAVR focus is driven by the totality of evidence across the past 12 months leading toward earlier treatment in disease pathway. Acknowledged competitor data was partial and released mid-late February, making it difficult to isolate specific contribution. Emphasized broader clinical community adoption of proactive disease management based on long-term durability evidence.

7-year Partner 3 data and 10-year Partner 2 data demonstrate Sapien durabilityEarly TAVR trial results showing shift toward proactive disease managementValve invulnerability timeframe typically 4-6 years, making 7 and 10-year data clinically significantCompetitor data released mid-late February as partial data set

Larry Beagleson · Wells Fargo

Two parts: (1) What assumptions on share gains from low-risk TAVR data are embedded in guidance, and would additional share gains be upside? (2) Update on X4 TAVR pipeline development, particularly confirmatory clinical work status.

Management clarified that majority of TAVR performance comes from market growth, with only slight U.S. share benefit and European share gain from competitor exit. Stated share is a lagging indicator and focus is on bringing data, evidence, and innovation to physicians. All known information is embedded in current guidance. On X4: Confirmed it is a potential game-changer with high bar set by F3UR. Enhancements to X4 product identified when introduced to clinics are being incorporated, requiring confirmatory trial evidence collection through 2026, with further details on timelines to follow after trial completion.

Majority of TAVR growth driven by market expansion, not share gainsSlight U.S. share gain in Q1 2026European share benefit mainly from competitor exitX4 positioned as potential game-changer with personalized valve sizing concept

Travis Seed · Bank of America

Two questions: (1) What is the capacity situation for structural heart procedures given the LAAC procedure shift toward EP labs? Are there benefits from capacity expansion on market numbers? (2) What is the likelihood that all elements of the proposed NCD will pass through, and specifically what are the critical components? Also, clarify whether U.S. TAVR growth is high single-digit or double-digit.

On capacity: Management stated capacity has not been an acute issue in recent quarters; health systems have managed well through process improvements, staffing, and operating room efficiency. TMTT growth has been agile with new lab time created without displacing TAVR, leveraging extra shifts and additional labs. TAVR remains a priority procedure supporting navigation of hospital capacity challenges. On NCD: Difficult to predict final NCD outcome; CMS decision expected mid-June. Position is fact-based and patient-focused on ensuring fast access. Declined to specify U.S. TAVR growth rate (high single-digit vs. double-digit), noting global TAVR grew 11%, U.S. was healthy, and OUS grew faster, allowing investors to do the math.

No acute capacity constraints in recent quartersHealth systems managing capacity through operational agility and efficiency improvementsTMTT procedure growth accommodated without displacing TAVR proceduresCMS NCD draft decision expected by mid-June 2026

Robbie Marcus · JP Morgan

Two questions: (1) Why was guidance raised only modestly (TAVR +1%, TMTT unchanged) given strong Q1 beat on TAVR, TMTT, and margins? What is the guidance philosophy? (2) Does management agree that competitors are losing share to Edwards in mitral/tricuspid, and are they seeing EP interventional cardiologists shift from standalone LAAC to mitral/tricuspid focus?

Management explained guidance philosophy emphasizes realistic guidance based on known information. Q1 2025 was a lower growth quarter (difficult comp), and 2025 H2 (Q3/Q4) was very strong (high bar for 2026). Guidance increases reflect Q1 beat but account for these comp dynamics. On TMTT competitive position: Reframed discussion from share loss/gain to category creation. Edwards invested 10 years ago in bold portfolio approach to mitral/tricuspid, building comprehensive repair and replacement solutions. Competition now reflects Edwards having portfolio depth that competitors lack. Market still growing in double-digits for mitral/tricuspid procedures; Edwards growing faster than market. Portfolio breadth (Pascal, Evoke, Sapien M3) enables personalized therapy and is driving $2 billion 2030 target.

Q1 2025 was lower growth quarter (difficult comp)2025 Q3/Q4 strong performance sets high bar for 2026TAVR guidance raised 1% to 7-9% rangeTMTT unchanged at $740-780M (35-45% growth) for 2026

Answers to last quarter's watch list

Q1 FY2026 adjusted operating margin trajectory. Q1 adjusted operating margin printed 31.4%, well above the FY high-end-of-28–29% guide. Despite this overshoot, management reaffirmed the FY operating margin language unchanged — implying meaningful back-half OpEx loading or deliberate conservatism. The Q4 patient-access step-up has clearly normalized in Q1.
Resolved positively
TAVR cc growth holding ≥10% with the asymptomatic NCD still pending. TAVR cc growth came in at 11.0% in Q1, above the 10% threshold and sustaining the double-digit pace without the NCD yet active. The FY TAVR underlying guide was raised 100bps to 7–9% and total sales growth to 9–11%, neither of which yet bakes in NCD or moderate AS.
Resolved positively
June 2026 draft NCD content. CMS draft NCD is now confirmed for mid-June 2026 per management's Q&A response. No content preview was provided; the breadth-of-coverage question is still ahead.
Continue monitoring
TCT moderate AS data presentation (PROGRESS trial). PROGRESS trial results are confirmed for presentation at the TCT conference later this year; no readout content was previewed.
Continue monitoring
Sapien M3 U.S. site expansion pace. The company didn't disclose specific site-count progression on this release. TMTT $173M adjusted supports the FY guide trajectory but the M3-vs-Evoque mix wasn't broken out.
Continue monitoring
JenaValve regulatory resolution and any post-Genovalve M&A. No JenaValve regulatory update was disclosed on this print and no new M&A was announced.
Continue monitoring

What to watch into next quarter

June 2026 draft NCD content and whether asymptomatic AS is covered. The single largest catalyst on the 2026 calendar — management has committed to a quarter, now the breadth of coverage will determine whether the raised FY guide is floor or ceiling.

Adjusted operating margin holding above 30% in Q2. Q1's 31.4% is 240bps above the FY guide framework. A Q2 print sustaining above 30% would force a guide raise; a step-down toward 28% would validate that Q1 was timing-driven on OpEx phasing.

U.S. vs. OUS TAVR cc growth split. Management would not characterize U.S. TAVR growth on the call beyond "healthy." Disclosure of U.S.-specific TAVR cc growth in Q2 prepared remarks would clarify whether the +11.0% cc is OUS-led (suggesting NCD upside leverage) or already U.S.-balanced.

X4 confirmatory trial timeline and pipeline disclosure. Management deferred X4 timeline guidance pending trial completion. Any update on trial enrollment progress or estimated readout window in Q2 would clarify whether X4 contributes to 2027 TAVR growth or slips further.

TMTT Q2 absolute dollars relative to the unchanged $740–780M FY guide. Q1's $173M adjusted annualizes to ~$692M; the FY guide requires Q2–Q4 averaging ~$189–202M. A Q2 below $185M would put the guide at risk and reframe the "unchanged guide despite a +42% Q1" as caution rather than conservatism.

JenaValve FTC resolution. The deal has slipped from "Q1 2026" (per Q3 framing) with no update on this print and a Q4 impairment already taken. Resolution either way before the Q2 print would be material — favorable unlocks AR; adverse closes a 2026 growth lever permanently.

Sources

  1. Edwards Lifesciences Q1 FY2026 earnings press release, SEC EDGAR: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000021/ex-991q12026.htm
  2. Edwards Lifesciences Q1 FY2026 earnings call Q&A (analyst exchanges with David Roman, Larry Biegelsen, Travis Steed, Robbie Marcus; management responses on TAVR market dynamics, X4 pipeline, capacity, CMS NCD timing, and guidance philosophy).
  3. Prior coverage: Tapebrief EW Q4 FY2025, Q3 FY2025, and Q2 FY2025 briefs for guidance trajectory and watch-list resolution.

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