Edwards Lifesciences Raises 2026 Outlook After Strong Q2 Beat
EW sits 24% above its 52-week low of $72.3.
Summary
Edwards Lifesciences reported Q2 sales of $1.74B (12.5% constant currency growth) and adjusted EPS of $0.78, beating expectations. Full-year 2026 guidance was raised across sales and TAVR, with adjusted EPS reaffirmed at $2.95-$3.05.
Key Events · Earnings and Guidance · EW
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Q2 Sales Beat, Guidance Raised
Q2 sales grew 12.5% constant currency to $1.74B, driven by TAVR (+10.5%) and TMTT (+44.8%). Full-year sales growth guidance raised to 10-11% from 9-11%, with TAVR now seen at 8-9% growth.
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Adjusted EPS Tops Expectations
Adjusted EPS of $0.78 exceeded consensus, and full-year adjusted EPS guidance was reaffirmed at $2.95-$3.05 despite a higher expected tax rate. Q3 adjusted EPS is guided to $0.71-$0.77.
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Tax Valuation Allowance Impact
A $188.2M valuation allowance was recorded against deferred tax assets due to new California legislation limiting R&D credit usage, pushing the effective tax rate to 53.6% in Q2 but not affecting adjusted results.
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Upcoming Catalysts
Key events include the CMS NCD final decision in September, TCT presentations (PROGRESS, CLASP IITR), and expected Q4 approvals for PASCAL tricuspid and next-gen PASCAL with Capture Clarity.
Analysis · EW · Industrial Applications And Services
Edwards Lifesciences delivered Q2 sales of $1.74 billion, up 12.5% constant currency, beating expectations and driving a full-year guidance raise. Adjusted EPS of $0.78 also topped forecasts. The company lifted its 2026 sales growth target to 10-11% and TAVR growth to 8-9%, while reaffirming adjusted EPS of $2.95-$3.05 despite a $188 million tax valuation allowance from California legislation. The results underscore broad-based strength across TAVR, mitral/tricuspid, and surgical, and the guidance raise signals confidence in sustained momentum heading into key catalysts like the CMS NCD decision in September and TCT data presentations.
At the time of this filing, EW was trading at $90.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $48.3B. The 52-week trading range was $72.30 to $96.29. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.