EW · Q2 2026 Earnings

Bullish

Edwards Lifesciences

Reported July 23, 2026

30-second summary

Edwards delivered Q2 revenue of $1.74B (+13.6% YoY reported, +12.5% cc) and non-GAAP EPS of $0.78, beating consensus of $1.70B/$0.74 by 2.4%/5.4% and clearing the high end of the prior $1.66–$1.74B and $0.70–$0.76 guides. Management raised the FY2026 constant-currency sales growth floor 100bps to 10–11% (from 9–11%), lifted TAVR cc growth to 8–9% (from 7–9%), and pushed TMTT dollars to $760–780M (from $740–780M) — while reaffirming adjusted EPS at $2.95–$3.05 despite absorbing a higher effective tax rate. The one soft note: FY gross margin is now guided to the low end of 78–79% on FX hedging headwinds, and Q2 adjusted gross margin already printed 77.6%.

Headline numbers

EPS

Q2 FY2026

$0.78

+5.4% vs est.

Revenue

Q2 FY2026

$1.74B

+13.6% YoY

+2.4% vs est.

Gross margin

Q2 FY2026

77.5%

Operating margin

Q2 FY2026

29.5%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$1.74B	$1.53B	+13.6%	$1.65B	+5.5%
EPS	$0.78	$0.67	+16.4%	$0.78	+0.0%
Gross margin	77.5%	77.5%	+0bps	78.0%	-50bps
Operating margin	29.5%	26.8%	+270bps	29.0%	+50bps

Guidance

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

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$1.66B to $1.74B	$1.741B	+$0.001B above high end of guide	Beat
Adjusted EPS	Q2 FY2026	$0.70 to $0.76	$0.78	+$0.02 above high end of guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q3 FY2026	$1.63B to $1.71B	+5.2% to +10.3% YoY

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$6.5B to $6.9B	$6.6B to $6.9B	Low end raised from $6.5B to $6.6B (+$100M)	Raised
Total company constant currency sales growth	FY2026	9% to 11%	10% to 11%	Low end raised from 9% to 10% (+100 basis points)	Raised
TAVR constant currency sales growth	FY2026	7% to 9%	8% to 9%	Low end raised from 7% to 8% (+100 basis points)	Raised
TAVR sales	FY2026	$4.7B to $5.0B	$4.75B to $5.0B	Low end raised from $4.7B to $4.75B (+$50M)	Raised
TMTT sales	FY2026	$740M to $780M	$760M to $780M	Low end raised from $740M to $760M (+$20M)	Raised
Gross profit margin	FY2026	78% to 79%	Lower end of 78% to 79%	Guided to lower end (78%); FX headwinds now cited	Lowered

Reaffirmed unchanged this quarter: Adjusted EPS ($2.95 to $3.05), Operating profit margin (High end of 28% to 29%)

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Transcatheter Aortic Valve Replacement (TAVR)	$1.258B	$1.131B	+11.3%
Transcatheter Mitral and Tricuspid Therapies (TMTT)	$0.199B	$0.134B	+48.2%
Surgical	$0.284B	—	+6.5%
TAVR Constant Currency Growth	10.5%	—	—
TMTT Constant Currency Growth	44.8%	—	—
Surgical Constant Currency Growth	5.0%	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
United States	$1.004B	$0.89B	+12.8%
Europe	$0.44B	$0.378B	+16.3%
Japan	$0.096B	$0.095B	+1.5%
Rest of World	$0.202B	$0.169B	+19.2%
Total Constant Currency Sales Growth	12.5%	—	—
SG&A as % of Sales	32.2%	—	—
R&D as % of Sales	16.0%	—	—
Adjusted Operating Profit Margin	30.0%	—	—
Cash and Cash Equivalents	$2.9B	—	—

Management tone

The press-release language extends the "increased confidence" posture Edwards adopted for FY2026. Two structural signals stand out. First, the sales-growth guide floor moving to 10% for the first time takes Edwards to the "approximately 10% total company sales growth, on average, over the longer term" long-range target explicitly — meaning FY2026 is being framed as at-or-above the long-range algorithm rather than a build-year toward it. Second, the Q4 2026 catalyst calendar is now enumerated at press-release granularity: PASCAL tricuspid U.S. approval, next-generation PASCAL with Capture Clarity in U.S. and Europe, and PROGRESS + CLASP IITR presentations at TCT. That specificity — three regulatory events and two data readouts committed to a single quarter — is a strong forward posture.

The one softening is on gross margin. FX hedging is now explicitly cited as pushing FY gross margin to the low end of the 78–79% band, and Q2's 77.6% adjusted print sits below that band. Set against the reaffirmed operating margin guide, it implies operating leverage is being drawn from SG&A/R&D discipline rather than gross-margin expansion — a mix shift worth flagging even as EPS holds.

Answers to last quarter's watch list

CMS NCD for TAVR. Management now flags a final decision memo expected in September, advancing from prior "continues to reconsider" language. The FY sales guide raise to 10–11% cc appears to reflect operational momentum rather than any NCD-driven step-up, meaning the catalyst remains unspent optionality against the raised guide.

Continue monitoring

Adjusted operating margin holding above 30% in Q2. Q2 adjusted operating margin printed 30.0%, running 100bps+ above the FY high-end-of-28–29% guide. Management still did not raise the operating margin guide, extending the pattern from Q1 and reinforcing that back-half OpEx loading is assumed.

Resolved positively

U.S. vs. OUS TAVR cc growth split. Management noted growth rates were "similar in the U.S. and outside of the U.S." but did not disclose the specific U.S. TAVR cc growth number. Status: Partially resolved

Next-generation PASCAL and pipeline disclosure. The Q4 2026 catalyst list includes PASCAL tricuspid U.S. approval and next-generation PASCAL with Capture Clarity in U.S. and Europe.

Resolved positively

TMTT Q2 absolute dollars relative to the unchanged $740–780M FY guide. TMTT delivered $195.9M adjusted in Q2, and management responded by raising the FY guide floor to $760M (from $740M) — the "caution" reading is retired; momentum is now the story.

Resolved positively

What to watch into next quarter

Q3 FY2026 TAVR cc growth holding at or above 9%. The FY 8–9% guide ceiling still trails the Q2 cc print of 10.5%. A Q3 print of 9%+ would set up another guide raise on the Q4 print; a step-down toward 7% would validate the guide as no-longer-conservative.

Q4 2026 catalyst execution: PASCAL tricuspid U.S. approval, next-gen PASCAL launches, PROGRESS and CLASP IITR at TCT. Management has committed five discrete Q4 events at press-release granularity. Any slippage of PASCAL tricuspid U.S. approval into 2027 would be a credibility hit; a positive PROGRESS moderate-AS readout is the largest unspent multi-year catalyst.

Gross margin recovery toward 78%. Q2 adjusted printed 77.6%, below the newly-narrowed low-end-of-78–79% guide, and FX hedging is now cited as a structural headwind. A Q3 print holding below 78% would suggest the low-end guide itself is at risk.

September CMS NCD decision memo. Management put a specific month on the calendar for the final CMS NCD decision memo. The memo's breadth of coverage will determine whether the raised 10–11% cc FY guide is floor or ceiling.

Japan TAVR trajectory. Japan grew +10.1% cc in Q2. A second consecutive double-digit cc print in Q3 would confirm the reported-line weakness is purely FX; a step-down would warrant explicit commentary.

Sources

Edwards Lifesciences Q2 FY2026 earnings press release, SEC EDGAR: https://www.sec.gov/Archives/edgar/data/1099800/000109980026000038/ex-991q22026.htm
Prior coverage: Tapebrief EW Q1 FY2026 brief for guidance trajectory and watch-list resolution.

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