10-Q · May 6, 2026
Edwards Lifesciences reported Q1 2026 revenue of $1.65B, exceeding estimates by 3.4%, alongside a diluted EPS of $0.78, surpassing expectations of $0.73. The positive results were driven primarily by strong sales in the…
Earnings analysis · 10-Q
EW earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Edwards delivered strong Q2 top-line performance, with $1.7410 billion of sales, up 13.6% year over year, led by 47.7% TMTT growth and 11.3% TAVR growth. Reported EPS was $0.78, above the $0.56 reported in 2025 Q2 and…
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Edwards delivered strong Q2 top-line performance, with $1.7410 billion of sales, up 13.6% year over year, led by 47.7% TMTT growth and 11.3% TAVR growth. Reported EPS was $0.78, above the $0.56 reported in 2025 Q2 and the $0.66 reported in 2026 Q1, but the filing indicates gross-margin pressure from foreign exchange and a sharply higher 53.6% Q2 tax rate. Cash generation and liquidity are solid, although the $188.2 million tax valuation allowance, $40.0 million quarterly impairment, and sizeable IRS tax disputes temper the otherwise favorable operating trajectory.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.78
What stood out
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Revenue growth remained double digit
Q2 net sales were $1.7410 billion, up $208.8 million, or 13.6%, from $1.5322 billion a year earlier. First-half sales rose 15.1% to $3.3896 billion.
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All product groups grew, led by TMTT
TMTT was the principal growth engine: sales increased 47.7% to $198.6 million, while TAVR increased 11.3% to $1.2583 billion and Surgical increased 6.5% to $284.1 million.
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International markets outpaced U.S.
Geographic growth was broad, led by Rest of World at 19.3% and Europe at 16.2%; U.S. sales rose 12.8% to $1.0035 billion. Japan grew 1.1% to $96.4 million.
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Cash generation improved despite investment
Six-month operating cash flow increased $125.1 million year over year to $695.7 million. Less $131.8 million of capex, this implies approximately $563.9 million of first-half free cash flow, with capex equal to about 3.9% of $3.3896 billion sales.
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Strong liquidity and undrawn revolver
Liquidity remains substantial: U.S.-held cash, cash equivalents and short-term investments were $3.7 billion and non-U.S.-held balances were $540.5 million at June 30, 2026. The $750.0 million revolver had no amounts outstanding.
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Material share repurchase activity
The company repurchased 6.9 million shares for $558.7 million in the first half and retained approximately $1.5 billion of authorization at June 30, 2026.
What to watch
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Tax rate and tax-expense volatility
The Q2 effective tax rate rose to 53.6% from 16.1% a year earlier, driven in part by a $188.2 million California deferred-tax-asset valuation allowance. Management also expects approximately $50.0 million of incremental 2026 Pillar Two tax expense before offsets.
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Material unresolved IRS transfer-pricing exposure
IRS Final NOPAs propose U.S. taxable-income increases of $233.5 million for 2018 and $625.3 million, $530.7 million, and $683.6 million for 2018, 2019, and 2020 transfer-pricing matters. If unresolved, management expects a further NOPA in Q3 2026 seeking 40% transfer-pricing penalties.
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Margin, litigation and working-capital pressure
Management said gross-profit percentage declined, including a 0.7 percentage-point negative Q2 impact from foreign-currency movements. Litigation expense was $43.4 million in the first half, up from $26.4 million a year earlier, while management also cites higher working-capital needs.
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No material risk-factor updates disclosed
Item 1A states there were no material changes to risk factors previously reported in the 2025 Form 10-K; this filing position is stated as of June 30, 2026.
Management's outlook
The 10-Q does not provide explicit quantitative revenue or EPS guidance. Management states it expects approximately $50.0 million of additional 2026 Pillar Two tax expense before offsets under current law.
Earlier filings 4
10-K · February 25, 2026
Edwards Lifesciences positions itself as the global leader in structural heart therapies driven by transformative product innovation, world-class evidence and clinical support; TAVR remains the core business. Net sales…
10-Q · November 5, 2025
Edwards Lifesciences reported Q3 net sales of $1,553.1M, up $198.7M (+14.7%) versus Q3 2024 and up $23.1M (+1.5%) versus the prior quarter. Gross margin was 77.8% (down from 80.6% YoY) while operating income of $307.1M…
10-Q · May 6, 2025
Edwards Lifesciences reported Q1 net sales of $1,412.7 million, up $82.8 million (+6.2% YoY) versus $1,329.9 million in Q1 2024, with diluted EPS of $0.61 (vs. $0.58). Gross margin held near-cycle levels at 78.7% and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.