Edwards Lifesciences (EW) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $1,715.5M, up 10.5% reported and 11.2% constant currency, led by TAVR and TMTT; nine-month sales reached $5,105.1M, up $607.1M YoY.

• Adjusted diluted EPS was $0.80, up 19% YoY; FY26 sales, TAVR, TMTT and adjusted EPS guidance increased.

• Reported earnings included a $220.2M impairment charge; a $174.4M deferred-tax valuation allowance affected nine-month taxes.

Financial highlights

• Q3 sales were $1,715.5M vs. $1,553.1M YoY; gross profit was $1,346.3M vs. $1,207.9M.

• Adjusted gross margin was 78.7% vs. 77.9%, adjusted operating margin was 30.3% vs. 27.5%, and adjusted diluted EPS was $0.80 vs. $0.67.

• Q3 GAAP net income was $307.5M vs. $291.1M; diluted EPS was $0.53 vs. $0.50. Operating income was $299.1M vs. $307.1M, including the impairment charge.

• SG&A was $560.9M, or 32.7% of sales; R&D was $281.4M, or 16.4%.

• Nine-month operating cash flow was $1,266.0M, up $121.7M YoY, primarily due to lower tax payments, partly offset by higher working-capital needs.

Outlook and guidance

• FY26 sales growth guidance rose to ~11.5% from 10%–11%; adjusted EPS guidance increased to $2.97–$3.05.

• FY26 TAVR growth guidance increased to 9%–9.5%; TMTT sales guidance rose to $780M–$790M.

• Q4 sales guidance is $1.67B–$1.75B and adjusted EPS guidance is $0.61–$0.69; FY26 Surgical growth outlook remains mid-single-digit.

• FY26 adjusted gross margin is expected at the low end of 78%–79% and operating margin at the high end of 28%–29%; constant-currency operating-margin expansion is expected at ~150 bps.

• FY26 R&D expense is expected at ~16.5% of sales; adjusted effective tax rate is expected at the high end of 16%–19%. TMTT targets $2B revenue in 2030.