Edwards Lifesciences (EW) Q2 2026 earnings summary

Executive summary

• Q2 sales increased 13.6% year-over-year to $1.74 billion, with constant currency sales up 12.5%, reflecting robust performance across all product groups and regions.

• Net sales for the first six months of 2026 reached $3.4 billion, up $444.7 million year-over-year, driven by strong growth in TAVR and TMTT product lines.

• Strategic focus on innovation in structural heart therapies and global expansion is driving durable, multi-year growth opportunities.

• Major acquisitions included Autus Valve Technologies ($128.9 million) and consolidation of a VIE focused on advanced heart failure therapies.

• Confident in achieving long-term average sales growth of 10% and sustained operating margin expansion.

Financial highlights

• Q2 2026 net sales: $1.74 billion, up 13.6% year-over-year; six-month net sales: $3.39 billion, up 15.1%.

• Adjusted EPS for Q2 was $0.78; GAAP EPS was $0.42, impacted by California R&D tax credit changes.

• Gross profit margin was 77.5% (77.6% adjusted), consistent with prior year; Q2 gross profit: $1.35 billion.

• Operating profit margin reached 29.5% (30.0% adjusted), up from 26.8% last year.

• Cash and cash equivalents at June 30, 2026: $2.91 billion; total assets: $13.87 billion.

Outlook and guidance

• Full-year 2026 sales growth guidance raised to 10%-11% for the company, 8%-9% for TAVR, and $760M-$780M for TMTT.

• Full-year adjusted EPS guidance maintained at $2.95-$3.05, despite higher expected tax rate (16%-19%).

• Q3 2026 sales projected at $1.63B-$1.71B; adjusted EPS expected at $0.71-$0.77.

• Long-term guidance targets 10% average sales growth and 50-100 basis points of annual operating margin expansion.

• Management expects continued growth in TAVR and TMTT segments, supported by recent product approvals and expanded indications.