EDWARDS LIFESCIENCES REPORTS THIRD QUARTER RESULTS
Edwards Lifesciences Corp (EW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Edwards Lifesciences Corporation One Edwards Way · Irvine, CA USA · 92614 Phone: 949.250.2500 · www.edwards.com FOR IMMEDIATE RELEASE Media: Eric Endicott, media@edwards.com Investors: Gerianne Sarte, investor_relations@edwards.com EDWARDS LIFESCIENCES REPORTS THIRD QUARTER RESUL
How this was made
The 30-second read
Why it matters
The company’s raised sales outlook and multiple FDA approvals suggest a strong growth trajectory, likely supporting a price rally.
Market read
First‑report earnings and guidance lift for a major med‑tech firm, with potential spillover to the broader healthcare sector.
What to watch
Potential reimbursement challenges in Japan and Europe could temper growth.
Edwards Lifesciences reports third-quarter sales growth of 10.5% to $1.72 billion and raises 2026 sales, TAVR, TMTT and adjusted EPS guidance.
Third-quarter sales grew 10.5%, TMTT sales grew 44.3% on a GAAP basis, adjusted operating profit margin expanded to 30.3% from 27.5%, and the company raised multiple full-year targets. GAAP operating income declined to $299.1 million, however, reflecting a $220.2 million impairment charge.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $1.72B | – | 10.5% |
| Q3 2026 net sales constant currency growthnon-GAAP | 11.2% | – | 11.2% |
| Q3 2026 cost of salesGAAP | $369.2M | – | – |
| Q3 2026 gross profitGAAP | $1.35B | – | – |
| Q3 2026 gross profit marginGAAP | 78.5% | – | – |
| Q3 2026 adjusted gross profit marginnon-GAAP | 78.7% | – | – |
| Q3 2026 selling, general, and administrative expensesGAAP | $560.9M | – | – |
| Q3 2026 selling, general, and administrative expenses as a percentage of net salesGAAP | 32.7% | – | – |
| Q3 2026 research and development expensesGAAP | $281.4M | – | – |
| Q3 2026 research and development expenses as a percentage of net salesGAAP | 16.4% | – | – |
| Q3 2026 certain litigation (insurance recovery) expenses, netGAAP | −$12.7M | – | – |
| Q3 2026 restructuring charges, separation costs, and otherGAAP | $10.7M | – | – |
| Q3 2026 impairment of intangible and long-lived assetsGAAP | $220.2M | – | – |
| Q3 2026 other operating incomeGAAP | −$13.3M | – | – |
| Q3 2026 operating income, netGAAP | $299.1M | – | – |
| Q3 2026 operating profit marginGAAP | 17.4% | – | – |
| Q3 2026 adjusted operating income, netnon-GAAP | $520.5M | – | – |
| Q3 2026 adjusted operating profit marginnon-GAAP | 30.3% | – | – |
| Q3 2026 interest income, netGAAP | −$36.5M | – | – |
| Q3 2026 other non-operating income, netGAAP | −$27.6M | – | – |
| Q3 2026 income from continuing operations before provision for income taxesGAAP | $363.2M | – | – |
| Q3 2026 provision for income taxesGAAP | $61.8M | – | – |
| Q3 2026 effective tax rateGAAP | 17.0% | – | – |
| Q3 2026 net income from continuing operationsGAAP | $301.4M | – | – |
| Q3 2026 net income attributable to Edwards Lifesciences CorporationGAAP | $307.5M | – | – |
| Q3 2026 diluted earnings per share from continuing operationsGAAP | $0.53 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $0.53 | – | – |
| Q3 2026 adjusted net incomenon-GAAP | $459.4M | – | – |
| Q3 2026 adjusted diluted EPSnon-GAAP | $0.80 | – | 19% |
| Q3 2026 adjusted effective tax ratenon-GAAP | 19.8% | – | – |
| Q3 2026 weighted-average diluted common shares outstandingGAAP | 577.6M | – | – |
| Nine months ended September 30, 2026 net salesGAAP | $5.11B | – | 13.5% |
| Nine months ended September 30, 2026 net sales constant currency growthnon-GAAP | 12.2% | – | 12.2% |
| Nine months ended September 30, 2026 gross profit marginGAAP | 78.0% | – | – |
| Nine months ended September 30, 2026 operating income, netGAAP | $1.29B | – | – |
| Nine months ended September 30, 2026 operating profit marginGAAP | 25.3% | – | – |
| Nine months ended September 30, 2026 net income from continuing operationsGAAP | $923.5M | – | – |
| Nine months ended September 30, 2026 diluted earnings per share from continuing operationsGAAP | $1.61 | – | – |
| Nine months ended September 30, 2026 adjusted operating incomenon-GAAP | $1.56B | – | – |
| Nine months ended September 30, 2026 adjusted operating profit marginnon-GAAP | 30.6% | – | – |
| Nine months ended September 30, 2026 adjusted net incomenon-GAAP | $1.36B | – | – |
| Nine months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $2.35 | – | – |
| Nine months ended September 30, 2026 adjusted effective tax ratenon-GAAP | 18.9% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Transcatheter Aortic Valve Replacement (TAVR), Q3 2026Global procedural growth benefited from a heightened focus on TAVR and data supporting proactive disease management of severe aortic stenosis. Average selling prices were stable globally. | $1.24B | – | 8.0% |
| Transcatheter Mitral and Tricuspid Therapies (TMTT), Q3 2026Results were driven by the differentiated portfolio of repair and replacement therapies, while global mitral and tricuspid procedure volumes continued to grow in the double digits. | $209.5M | – | 44.3% |
| Surgical, Q3 2026Growth was driven by continued adoption of the RESILIA tissue portfolio of surgical therapies. | $264.4M | – | 2.5% |
| United States, Q3 2026U.S. TAVR procedure growth continued to benefit from a heightened focus on TAVR therapy and adoption of the SAPIEN 3 Ultra RESILIA platform. | $1.01B | – | 11.0% |
| Europe, Q3 2026Updated ESC and EACTS guidelines are helping shape clinical discussions around earlier intervention and proactive disease management. | $414.6M | – | 6.9% |
| Japan, Q3 2026Growth and continued adoption of the SAPIEN 3 Ultra RESILIA platform were supported by new and dedicated reimbursement. | $92M | – | 2.2% |
| Rest of World, Q3 2026The release reported regional sales growth but did not provide a separate Rest of World operating driver. | $201.3M | – | 20.2% |
FY 2026 and Q4 2026 outlook
- RevenueFY 2026 total company sales growth of approximately 11.5%; Q4 2026 total sales of $1.67 to $1.75 billion
- Gross marginFY 2026 adjusted gross profit margin at the lower end of 78% to 79%
- Operating expensesFY 2026 R&D expense as a percentage of sales of approximately 16.5%
- Tax rateFY 2026 effective tax rate, excluding special items, at the high end of 16% to 19%
- NoteFY 2026 TAVR product group sales growth of 9% to 9.5%
- NoteFY 2026 TMTT product group sales of $780 to $790 million
- NoteFY 2026 mid-single-digit growth in Surgical
- NoteFY 2026 adjusted EPS of $2.97 to $3.05
- NoteFY 2026 operating profit margin at the high end of the original 28% to 29% guidance range
- NoteFY 2026 approximately 150 basis points of constant currency operating margin expansion
- NoteQ4 2026 adjusted EPS of $0.61 to $0.69
Capital returns
- Edwards has performed share repurchases of approximately $700 million through the third quarter.
- Edwards has approximately $1.3 billion remaining under its share repurchase authorization.
What drove it
- Q3 TAVR constant currency sales grew 8.8%, supported by procedure growth, stable global average selling prices and adoption of the SAPIEN platform.
- Q3 TMTT constant currency sales grew 45.9% in the reconciliation table, supported by repair and replacement therapies and double-digit mitral and tricuspid procedure-volume growth.
- Manufacturing efficiencies and foreign exchange more than offset the expected impact from scaling newer therapies on gross profit margin.
- Adjusted EPS benefited from better-than-expected topline performance and planned phasing of strategic investments in R&D and SG&A.
- Q3 U.S. sales grew 11.0%, Europe sales grew 6.9%, Japan sales grew 2.2%, and Rest of World sales grew 20.2%.
Concerns
- GAAP operating income was $299.1 million, compared to $307.1 million in the prior-year quarter, and GAAP operating margin was 17.4%, compared to 19.8%.
- The quarter included a $220.2 million impairment of intangible and long-lived assets.
- The company expects adjusted gross profit margin at the lower end of its 78% to 79% full-year guidance because of currency fluctuations through its hedging program.
- The company stated that fourth-quarter and future TAVR growth is assumed to be driven mainly by procedure-volume increases and less by share gains.
- The company cited expected impacts from California law restricting the usage of R&D credits on its tax rate.
What to watch
- Q4 total sales guidance of $1.67 to $1.75 billion and adjusted EPS guidance of $0.61 to $0.69.
- TAVR procedure growth trends exiting Q3 and the extent to which growth is driven by procedure volumes rather than share gains.
- Delivery against FY 2026 TMTT sales guidance of $780 to $790 million as PASCAL, EVOQUE and SAPIEN M3 adoption progresses.
- FY 2026 adjusted gross profit margin at the lower end of 78% to 79% and operating profit margin at the high end of 28% to 29%.
- The timing and effect of side-by-side safe-harbor taxation legislation related to Pillar Two and the California R&D-credit limitation.
Balance sheet and cash flow
- Cash and cash equivalents were approximately $3.1 billion as of September 30, 2026.
- Total debt was approximately $600 million.
Analysis
Edwards reported Q3 2026 net sales of $1,715.5 million, up 10.5% from $1,553.1 million. Constant currency sales growth was 11.2%. The performance was broad based across product groups, with TAVR sales of $1,241.6 million growing 8.0%, TMTT sales of $209.5 million growing 44.3%, and Surgical sales of $264.4 million growing 2.5%. U.S. sales grew 11.0%, while Rest of World sales grew 20.2%.
TAVR growth was supported by global procedure growth, a heightened focus on TAVR, evidence supporting proactive management of severe aortic stenosis, and stable average selling prices. Management said its U.S. competitive position was stable sequentially and increased modestly year over year, with strong adoption of SAPIEN 3 Ultra RESILIA. TMTT was the fastest-growing product group, driven by the repair and replacement portfolio, double-digit mitral and tricuspid procedure-volume growth, and ongoing adoption of PASCAL, EVOQUE and SAPIEN M3 therapies.
Underlying profitability strengthened on an adjusted basis. Adjusted gross profit margin was 78.7%, compared with 77.9%, and adjusted operating profit margin was 30.3%, compared with 27.5%. Adjusted diluted EPS was $0.80, compared with $0.67, and the company said better-than-expected topline performance and the planned phasing of R&D and SG&A investments benefited the result. GAAP results were materially affected by a $220.2 million impairment of intangible and long-lived assets, leaving GAAP operating income at $299.1 million versus $307.1 million and GAAP operating margin at 17.4% versus 19.8%.
Edwards raised its FY 2026 sales growth outlook to approximately 11.5%, TAVR growth to 9% to 9.5%, TMTT sales to $780 to $790 million, and adjusted EPS to $2.97 to $3.05. It reaffirmed mid-single-digit Surgical growth and expects adjusted gross margin at the lower end of 78% to 79%, while operating margin is expected at the high end of the original 28% to 29% range. Q4 guidance calls for total sales of $1.67 to $1.75 billion and adjusted EPS of $0.61 to $0.69.
Capital allocation remains active, with approximately $700 million of share repurchases through the third quarter and approximately $1.3 billion remaining under the authorization. Cash and cash equivalents were approximately $3.1 billion and total debt was approximately $600 million as of September 30, 2026. The principal execution items are TAVR procedure-volume momentum, sustained TMTT adoption, currency effects on gross margin, and the stated tax implications of potential Pillar Two safe-harbor legislation and California R&D-credit rules.
Management, verbatim
We delivered strong third-quarter growth of 11.2% which exceeded expectations, with broad-based performance across our businesses and regions, giving us the confidence to raise our full-year outlook.
Bernard Zovighian, CEO of Edwards Lifesciences
Not in the filing
stated, not guessed- Operating cash flow was not reported.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Dividend payments or dividend policy were not reported.
- Prior-quarter figures for the reported financial metrics were not reported.
- A separately provided previous-quarter outlook was not provided, so no comparison against prior guidance is included.
- Debt maturities, interest rates, and detailed debt composition were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Edwards Lifesciences filed a Form 8‑K reporting its third‑quarter results and updated guidance.
Ticker impact
Edwards Lifesciences reported Q3 sales of $1.72 B and raised full‑year sales guidance to ~11.5% growth.
likely upside as the market prices in raised guidance
Investors typically bid the stock higher when a medical‑device leader lifts its sales outlook, especially with double‑digit growth and new product approvals.
Market effects
Boosts outlook for the structural‑heart device sector and may lift peers.
Positive for US healthcare stocks and may influence European med‑tech indices.
Reinforces confidence in global demand for transcatheter therapies.
Counterpoint
If the guidance is overly optimistic, a miss on future quarters could trigger a sell‑off.
Key entities
- companyEdwards Lifesciences Corp
Medical device maker specializing in transcatheter heart therapies.
