Edwards' Q2 Earnings & Revenues Top Estimates, Stock Rises

Edwards Lifesciences Corporation EW reported second-quarter 2026 adjusted earnings of 78 cents per share, up 16.4% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%.

Revenues rose 13.6% to $1.74 billion and topped the consensus mark by 2.4%. Growth was driven by strong Transcatheter Aortic Valve Replacement (“TAVR”) demand and rapid adoption of the company’s mitral and tricuspid therapies.

Following the announcement yesterday, EW shares jumped nearly 3% in after-hours trading.

EW’s Segment Sales Reflect Broad-Based Growth

TAVR sales totaled $1.26 billion, up 11.3% year over year on a reported basis and 10.5% at constant currency. Growth was similar in the United States and international markets, supported by procedural momentum, clinical evidence favoring proactive treatment of severe aortic stenosis and continued adoption of the SAPIEN 3 Ultra RESILIA platform.

Transcatheter Mitral and Tricuspid Therapies (“TMTT”) sales reached $195.9 million, rising 47.3% year over year and 44.8% at constant currency. Double-digit growth in mitral and tricuspid procedures, increased adoption of PASCAL, the continued scaling of EVOQUE and the measured rollout of SAPIEN M3 drove the segment’s performance.

Edwards Lifesciences Corporation Price, Consensus and EPS Surprise

Edwards Lifesciences Corporation price-consensus-eps-surprise-chart | Edwards Lifesciences Corporation Quote

Surgical sales were $284 million, increasing 6.5% year over year and 5% at constant currency. Growth reflected continued adoption of RESILIA-based therapies, including INSPIRIS, MITRIS and KONECT. Edwards also received U.S. approval for ECLIPTIS and plans a measured rollout later in 2026.

Edwards’ Margins Reflect Earnings Leverage

Adjusted gross margin was 77.6%, unchanged from the year-ago quarter. Foreign exchange created a 70 basis points (bps) headwind, which was offset by lower manufacturing expenses. Selling, general and administrative (SG&A) expenses increased to $561 million from $502 million, while research and development (R&D) expenses rose to $279 million from $276 million.

Adjusted operating income jumped 20.8% year over year to $522.7 million. The adjusted operating margin expanded 180 bps to 30%, supported by strong revenue growth and the planned timing of strategic investments in R&D and SG&A.

Edwards Maintains Financial Flexibility

As of June 30, 2026, the company had approximately $2.90 billion in cash and cash equivalents. Total debt was about $600 million, leaving Edwards with substantial liquidity to support organic investment, manufacturing expansion and external opportunities in structural heart therapies.

The company also had roughly $1.50 billion remaining under its share-repurchase authorization. Management continues to prioritize growth investments before opportunistic capital returns.

EW Raises Sales Outlook and Reaffirms Earnings View

Edwards increased its 2026 constant-currency sales growth guidance to 10-11% from the earlier 9-11%. Breaking it down, TAVR growth guidance was raised to 8-9% from 7-9%, while the TMTT sales outlook increased to $760-$780 million from $740-$780 million. Surgical sales are still expected to grow at a mid-single-digit rate.

Overall, EW now expects total sales of $6.60-$6.90 billion at current exchange rates. The Zacks Consensus Estimate for the same currently stands at $6.74 billion.

The company reaffirmed adjusted earnings guidance of $2.95-$3.05 per share despite expecting its tax rate to be at the high end of the prior 16-19% range. The Zacks Consensus Estimate for the metric is pegged at $3.00 at present.

For the third quarter of 2026, Edwards expects revenues of $1.63-$1.71 billion and adjusted earnings of 71-77 cents per share. The consensus mark for third-quarter revenues and earnings per share (EPS) is projected at $1.69 billion and 74 cents, respectively.

Our Take

Edwards exited the second quarter of 2026 with both earnings and revenues beating estimates. Performance reflected the strength of its comprehensive portfolio and agile execution, with growth supported by therapies across TAVR, mitral, tricuspid and surgical, as well as favorable contributions from each of the regions.

Within TAVR, Edwards’ competitive position in the United States is supported by continued adoption of its SAPIEN 3 Ultra RESILIA platform. TMTT benefited from the ongoing strong uptake of the PASCAL system. The expansion of adjusted operating margin in the quarter is also encouraging.

EW’s Zacks Rank and Key Picks

Edwards currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Danaher DHR and Elevance Health ELV.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.

Danaher, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.94, exceeding the Zacks Consensus Estimate by 5.44%. Revenues of $6.27 billion topped the Zacks Consensus Estimate by 2.88%.

DHR has an earnings yield of 4.7% compared with the industry’s 4.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.65%.

Elevance Health, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $7.45, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $49.8 billion outperformed the consensus mark by 0.8%.

ELV has an earnings yield of 6.9% compared to the industry’s 4.1% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.65%.

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This article originally published on Zacks Investment Research (zacks.com).

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