EW

It has been about a month since the last earnings report for IQVIA Holdings (IQV). Shares have added about 5.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is IQVIA due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for IQVIA Holdings Inc. before we dive into how investors and analysts have reacted as of late. IQVIA Holdings Inc. has reported second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%. The quarter benefited from broad-based segment growth and strengthening demand indicators. R&D Solutions generated record net new bookings of $3.15 billion, up 19% year over year, producing a 1.22X book-to-bill ratio. Commercial Solutions revenues were $1.79 billion, increasing 8.6% on a reported basis and 8.4% at constant currency. The business contributed roughly 41% to the total quarterly revenues. Growth reflected double-digit gains in patient solutions and commercial engagement services. Analytics and consulting delivered high-single-digit organic growth, while increased adoption of IQVIA’s artificial intelligence solutions also contributed to the segment’s accelerating organic growth. Research & Development Solutions revenues reached $2.58 billion, up 8.8% as reported and 8.6% at constant currency. Excluding reimbursed expenses, revenues advanced 6.7% on a reported basis. Demand indicators strengthened considerably. Trailing-12-month net new bookings rose 13% to $11.3 billion, while contracted backlog stood at $34.2 billion. IQVIA expects $9.2 billion of that backlog to convert into revenues over the next 12 months, representing 7.5% year-over-year growth. The strong bookings performance provides improved visibility into future clinical research revenues. It also supports management’s expectation for sustained business momentum through the remainder of 2026 and into 2027. Adjusted EBITDA increased 9.2% year over year to $994 million. The adjusted EBITDA margin was 22.8%, modestly above the prior-year level, as profit growth slightly outpaced revenue growth. Adjusted net income increased to $527 million from $486 million. The improvement reflected stronger operating performance despite higher stock-based compensation, restructuring-related expenses and acquisition-related costs included in the company’s reconciliation. GAAP net income attributable to IQVIA was $256 million, down from $266 million a year earlier. GAAP diluted earnings were $1.53 per share compared with $1.54 in the prior-year quarter. Cost of revenues increased to $2.93 billion from $2.69 billion in the year-ago quarter. Selling, general and administrative expenses rose to $574 million from $509 million, while depreciation and amortization increased to $292 million. Restructuring costs nearly doubled to $63 million from $32 million. As a result, GAAP income from operations remained unchanged at $506 million despite the higher revenue base. Interest expenses increased to $197 million from $182 million. These cost pressures explain the contrast between the decline in GAAP net income and stronger growth in adjusted earnings and EBITDA. The second-quarter operating cash flow climbed 26% year over year to $558 million. The free cash flow rose 23.3% to $360 million after $198 million of property, equipment and software spending. For the first half, the operating cash flow totaled $1.18 billion and the free cash flow reached $851 million. IQVIA repurchased $398 million of common stock during the quarter, bringing first-half repurchases to $950 million. IQVIA ended June with $1.91 billion in cash and cash equivalents, and $16 billion in debt. Net debt was $14.09 billion, while the net leverage ratio stood at 3.59X trailing-12-month adjusted EBITDA. The company had $2.82 billion remaining under its share-repurchase authorization. Its current portion of long-term debt was $2.29 billion compared with $1.84 billion at the end of 2025. IQVIA raised its 2026 revenue guidance to $17.28-$17.48 billion from $17.15-$17.35 billion. The updated forecast assumes 200 basis points of contribution from acquisitions, up from 150 basis points previously. It also incorporates a foreign-exchange tailwind of approximately 20 basis points, down from the prior assumption of 100 basis points. Adjusted EBITDA guidance increased to $4-$4.05 billion from $3.98-$4.03 billion. IQVIA also lifted adjusted diluted earnings guidance to $12.80-$13 from $12.65-$12.95, reflecting stronger expected organic revenue growth and revised acquisition and currency impacts. In the past month, investors have witnessed a upward trend in estimates review. At this time, IQVIA has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. IQVIA is part of the Zacks Medical - Instruments industry. Over the past month, Edwards Lifesciences (EW), a stock from the same industry, has gained 5.9%. The company reported its results for the quarter ended June 2026 more than a month ago. Edwards Lifesciences reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $0.78 for the same period compares with $0.67 a year ago. For the current quarter, Edwards Lifesciences is expected to post earnings of $0.73 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. Edwards Lifesciences has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Medtronic plc MDT is slated to report its first-quarter fiscal 2027 results on Sept. 1, before the opening bell. The Zacks Consensus Estimate for the company’s first-quarter earnings per share (EPS) suggests 10.3% year-over-year growth to $1.39. The estimate has remained constant in the past 60 days. The consensus mark for first-quarter revenues currently stands at $9.47 billion, implying a 10.4% increase over the prior-year period. Image Source: Zacks Investment Research Medtronic has a solid earnings surprise history, beating estimates in each of the past four quarters, with an average surprise of 2.3%. Image Source: Zacks Investment Research Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. This is not the case here, as you can see below. Earnings ESP: Medtronic has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here. The segment is likely to have witnessed a solid performance across both U.S. and international markets. Within this, Cardiac Ablation Solutions (“CAS”) is expected to have remained the key growth driver, supported by momentum in the pulsed field ablation portfolio, which grew 145% in the previous quarter. The launch of the Sphere-9 catheter in Japan may have also strengthened Medtronic’s position in the region. The company has also begun the global rollout of Prism-2, its next-generation mapping software, which offers improved navigation through hybrid impedance and magnetic mapping. In June 2026, Medtronic announced strategic investments in two privately held companies focused on the development of intracardiac echocardiography (ICE) catheter technologies, which may have provided an additional boost to revenues. Cardiac Rhythm Management may also have contributed, driven by Micra leadless pacemakers, Aurora implantable cardioverter defibrillator (EV-ICD) system and the SelectSecure 3830 lead. In Structural Heart, revenues are expected to have benefited from continued international strength as well as stabilizing U.S. procedure volumes. Growth in the Symplicity Spyral renal denervation system, guide catheters and balloons, as well as Endovenous growth in Peripheral Vascular Health, may have boosted Coronary & Peripheral Vascular sales. The Zacks Consensus Estimate implies Cardiovascular revenues will increase 15.2% year over year. Medtronic continues to invest across its Neuroscience portfolio to advance pipeline innovation and support long-term growth. Within this, Cranial and Spinal Technologies results in the fiscal first quarter may benefit from the continued adoption of the AiBLE ecosystem, with Core Spine and Neurosurgery also likely contributing to growth. The commercial rollout of the Stealth AXiS surgical system may have further advanced. In June, Medtronic received the CE mark for the ear, nose and throat indications, expanding the platform’s reach. Neuromodulation performance is expected to have been led by the Inceptiv closed-loop spinal cord stimulator, the Percept RC neurostimulator with BrainSense technology, and Interventional products. Medtronic completed two acquisitions within this business. The Scientia Vascular acquisition in June adds a portfolio of guidewires and catheters to its existing neurovascular product lineup, while the July acquisition of SPR Therapeutics, Inc. (SPR) expands its ability to serve patients across the pain care continuum. The Zacks Consensus Estimate expects Neuroscience revenues to grow 10.7% year over year. In the fiscal first quarter, MedSurg performance is expected to have been driven by solid growth in Advanced Energy and Wound Management, alongside higher contribution from the Hugo robotic-assisted surgery system. However, similar to recent trends, continued pressure on U.S. bariatric surgery procedure volumes may have partially offset this growth. Endoscopy is likely to have been a growth driver, with sales benefiting from strong adoption of Endoflip in the United States and Western Europe, as well as from U.S. market share gains of the Nexpowder hemostasis system. Acute Care and Monitoring may have gained from strength in Nellcor pulse oximetry, respiratory and airways and in perioperative. The Zacks Consensus Estimate for MedSurg’s revenues suggests a 7.6% year-over-year increase. MiniMed, Medtronic’s diabetes business, completed an initial public offering in March, with approximately 10% of its ownership sold and its shares beginning to trade on the Nasdaq Global Select Market. Medtronic continues to hold approximately 90% ownership in MiniMed. In the first quarter of fiscal 2027, the business is likely to have witnessed robust international contributions from the continued adoption of the MiniMed 780G Automated Insulin Delivery (AID) system, including the Simplera Sync and Guardian 4 continuous glucose monitoring sensors and Extended Infusion Sets. U.S. momentum may also have continued following the late-2025 launches of the Simplera Sync and Abbott’s Instinct sensors. The quarter also saw several key developments. MiniMed announced the commercial availability of MiniMed Flex, its smallest app-controlled insulin pump powered by the advanced SmartGuard algorithm. The system is FDA cleared for people with type 1 diabetes aged 7 years and older, as well as adults aged 18 years and older with insulin-requiring type 2 diabetes and is paired with the Simplera Sync sensor. MiniMed Flex is also now available to Medicare and Medicare Advantage beneficiaries. MiniMed launched the MiniMed 780G system integrated with Abbott’s Instinct sensor and the MiniMed Go system with the Instinct Go sensor in Europe. Together, these developments are expected to have strongly boosted overall revenues in the quarter. The Zacks Consensus Estimate suggests Diabetes revenues will grow 15.1% year over year. Over the past three months, Medtronic shares have outperformed the industry and the broader Medical sector. Image Source: Zacks Investment Research The stock has also fared better than major peers like Boston Scientific BSX, whose shares fell 2%, while Edward Lifesciences EW gained 4.8%. Boston Scientific’s second-quarter 2026 revenues and EPS surpassed the Zacks Consensus Estimate by 1.1% and 3.6%, respectively. However, the company lowered its 2026 sales and earnings outlook after slower WATCHMAN demand, U.S. electrophysiology share losses and limited operating leverage weakened near-term visibility. Meanwhile, Edwards’ second-quarter revenues and EPS topped the consensus mark by 2.4% and 6.8%, respectively. Medtronic trades at a forward five-year Price/Earnings (P/E) of 14.98X, lower than its median of 15.73X and the industry average of 17.74X. Image Source: Zacks Investment Research Medtronic’s upcoming fiscal first-quarter results are expected to reflect ongoing momentum in CAS, as well as strength in businesses such as Cardiac Rhythm Management and Cranial and Spinal Technologies. At the same time, the company is also advancing its M&A and venture initiatives, targeting higher-growth segments to accelerate innovation. While current indicators do not point to a strong earnings beat, the company has a consistent earnings surprise history, which is encouraging. Medtronic’s recent stock performance has been impressive, outpacing the key benchmarks and peers. Existing MDT shareholders should consider holding their positions, supported by the company’s attractive valuation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Edwards Lifesciences stock has delivered a 21.6% gain over the past three years, yet the valuation checks paint a less generous picture. The intrinsic value estimate from a Discounted Cash Flow (DCF) model indicates the shares are roughly fairly valued, while traditional market multiples lean expensive. Over the last three years, Edwards Lifesciences has returned 21.6%, which rewards patient holders but leaves fresh buyers needing to judge how much upside is left at today’s price. Expectations around the company’s ability to keep converting its cardiovascular portfolio into steady cash flows may support the current share price. However, any pressure on pricing, procedure volumes or regulatory outcomes can quickly weigh on what investors are willing to pay. The broader valuation checks suggest Edwards Lifesciences is not a clear bargain right now, with the stock screening as undervalued in 0 of 6 checks and earnings-based multiples pointing to an overvalued read. The issue now is whether Edwards Lifesciences’ recent returns and fair DCF-based intrinsic value leave enough margin of safety at the current market price. Edwards Lifesciences delivered 13.4% returns over the last year. See how this stacks up to the rest of the Medical Equipment industry. The Discounted Cash Flow (DCF) method estimates how much cash Edwards Lifesciences may generate for shareholders and discounts those amounts back to today’s value. For Edwards Lifesciences, the model uses latest twelve month free cash flow of about $1.4b and assumes cash flows continue to grow rather than shrink. On that basis, the model produces an estimated intrinsic value of about $91.77 per share. With the current market price sitting only around 0.6% above that DCF estimate, Edwards Lifesciences does not screen as materially cheap or stretched on cash flows alone. The stock price and the cash flow based valuation are effectively in line, so any potential upside or downside view will likely depend more on how confident you are in the company’s ability to keep generating similar free cash flows than on any clear discount in the current price. Overall, the Discounted Cash Flow view suggests Edwards Lifesciences stock is approximately fairly valued at today’s price. Edwards Lifesciences is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Edwards Lifesciences. P/E is a useful lens for Edwards Lifesciences because earnings are a key focus for many investors in established medical equipment businesses. On this measure, Edwards Lifesciences trades on a P/E of about 54.3x, which is well above the Medical Equipment industry average of about 28.0x and also above the peer average of about 28.1x. A tailored fair P/E ratio for Edwards Lifesciences, which reflects its sector, size and risk profile, is estimated at about 34.7x. The current 54.3x P/E therefore represents a sizeable premium to what this framework suggests investors might usually pay for similar earnings. That leaves the stock pricing in strong expectations, with less room for disappointment if earnings or sentiment soften from here. On the P/E multiple, Edwards Lifesciences stock appears expensive compared with both its fair ratio and the wider medical equipment peer group. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Edwards Lifesciences pick up where this valuation puzzle leaves off. They spell out which expectations for Edwards Lifesciences' growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. Each one treats fair value as a thesis about the business that you can revisit over time rather than a one off snapshot. These live on Simply Wall St's Community page. You can add your voice to the Edwards Lifesciences story by sharing a Narrative that sets out your number driven view on where its growth, margins and execution go from here. Put your thesis on record in the Simply Wall St community and see how it stacks up as new results arrive. Do you think there's more to the story for Edwards Lifesciences? Head over to our Community to see what others are saying! For Edwards Lifesciences, the Discounted Cash Flow (DCF) view points to an intrinsic value that is close to the current share price, while earnings based multiples flag the stock as overvalued versus peers and a tailored fair P/E. The broader checks also lean weak, which leaves less of a valuation cushion if sentiment or earnings expectations soften. The real dividing line between the bull and bear cases is whether Edwards Lifesciences can sustain the cash flow and earnings profile that investors are currently willing to pay a premium for. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

On July 23, Edwards Lifesciences Corporation (NYSE:EW) delivered second-quarter 2026 net sales of $1.74 billion, up 13.6% year over year (12.5% on a constant currency basis), surpassing Wall Street expectations of $1.70 billion. Adjusted diluted earnings per share came in at $0.78, ahead of the consensus estimate of $0.74 and up 16.4% from $0.67 a year earlier. The quarter was highlighted by 47.3% year-over-year growth in Transcatheter Mitral and Tricuspid Therapies (TMTT) revenue to $195.9 million, reflecting accelerating adoption of the company's next-generation structural heart devices. Supported by strong demand across its structural heart portfolio, management raised its full-year 2026 sales growth guidance to 10%–11% ($6.6 billion to $6.9 billion) while reaffirming adjusted EPS guidance of $2.95 to $3.05. Can Edwards Lifesciences convert its 47.3% TMTT revenue growth into sustained earnings expansion, or will tax-related headwinds and valuation concerns weigh on returns? The institutional thesis for Edwards Lifesciences Corporation (NYSE:EW) rests on its category-defining dominance in transcatheter therapies and high-margin product mix. Core Transcatheter Aortic Valve Replacement (TAVR) revenue grew 11.3% year-over-year to $1.26 billion in Q2, demonstrating that adoption of the SAPIEN platform remains resilient across global markets with stable average selling prices. Because of this sustained momentum, management raised its full-year TAVR growth outlook to 8%–9%. Simultaneously, the company's high-growth segment, Transcatheter Mitral and Tricuspid Therapies (TMTT), is scaling into a major commercial pillar. TMTT revenue jumped 47.3% year over year to $195.9 million in the second quarter, driven by strong adoption of the PASCAL, EVOQUE, and SAPIEN M3 platforms. Edwards also stands to benefit from a potential expansion of Medicare coverage for TAVR after the Centers for Medicare & Medicaid Services proposed broadening reimbursement to include certain asymptomatic severe aortic stenosis patients while easing several procedural requirements. If finalized, the policy could expand the eligible patient pool and support longer-term procedure volumes. Supported by a 77.5% gross margin and a 30.0% adjusted operating margin, Edwards generated strong cash flow and ended the quarter with $2.9 billion in cash and cash equivalents against approximately $600 million in debt. Bulls believe the company's leadership in structural heart therapies and expanding product portfolio position it well for continued long-term growth. Skeptics highlight the widening gap between top-line organic momentum and GAAP profitability. Despite stellar revenue execution, GAAP diluted EPS fell to $0.42 from $0.57 in Q2 2025. The bottom line was weighed down by a $40 million asset impairment charge and a $188.2 million valuation allowance on tax credits resulting from California tax law changes, which drove the quarter’s effective tax rate up to 53.6%. Furthermore, bears point to structural capacity limits within hospital cath labs and lingering healthcare labor constraints, which restrict the total volume of elective structural heart procedures performed each quarter. With major competitors introducing rival transcatheter valve platforms, pricing power and market share in mature geographies face ongoing pressure. While the company reaffirmed its full-year adjusted EPS guidance range of $2.95 to $3.05, third-quarter EPS guidance of $0.71 to $0.77 reflects moderate near-term margin compression due to persistent foreign exchange friction and elevated tax expenses. Institutional positioning in Edwards Lifesciences Corp. (NYSE:EW) points to cautious selective accumulation by healthcare specialists rather than aggressive momentum buying. According to institutional 13F filings, Krishen Sud’s Sivik Global Healthcare held 20,000 shares of Edwards Lifesciences valued at approximately $1,602, representing 1.22% of its total investment portfolio. Edwards Lifesciences Corp. (NYSE:EW) enters the second half of 2026 with strong commercial tailwinds as its TMTT expansion diversifies revenue beyond core TAVR implants. Raising full-year revenue growth guidance to 10%–11% proves that patient demand for minimally invasive cardiac therapies remains robust. While near-term GAAP earnings headwinds and tax adjustments create noise on the income statement, the company's strong balance sheet, high gross margins, and expanding market footprint position it well for long-term compounding. Investors will be watching whether continued TMTT adoption, improving TAVR procedure volumes, and potential Medicare coverage expansion translate into sustained revenue growth and margin expansion over the coming quarters. While we acknowledge the potential of EW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Edwards Lifesciences stock sits at an interesting spot for valuation focused investors, with the Discounted Cash Flow (DCF) based intrinsic value estimate suggesting the shares are roughly in line with underlying cash flow assumptions, while the broader checks still point to a stock that does not screen as cheap and has delivered a decline over five years. Over the past 5 years, Edwards Lifesciences has delivered a total return that is down 26.4%, which raises the question of whether the current price now fairly reflects more muted expectations or if the market has been too harsh. Recent headlines around strong transcatheter aortic valve replacement demand and expectations for Medicare coverage expansion can support higher revenue assumptions, while the regulatory overhang from the FTC penalty and closer scrutiny of acquisitions may weigh on how confidently investors price in long term growth. With a low overall value score of 2 out of 6, Edwards Lifesciences currently leans expensive on the wider set of valuation checks even though the DCF view points to fair value. The stock's next move may depend on whether the market keeps treating Edwards Lifesciences as fairly priced on intrinsic value, or starts to demand a larger discount given the mixed signals from the broader valuation checks. Edwards Lifesciences delivered 3.3% returns over the last year. See how this stacks up to the rest of the Medical Equipment industry. The Discounted Cash Flow (DCF) model values Edwards Lifesciences by projecting its future free cash flows and discounting them back to today. On this framework, the company generated last twelve month free cash flow of about $1.1b and the projections assume growing cash flows from this base rather than a sharp step change. Those cash flow assumptions translate into an estimated intrinsic value of around $90 per share, which is about 8.6% above the current share price. Because Edwards Lifesciences lifted its 2026 sales growth outlook after steady recent results, there is a case that the cash flow profile underpinning the DCF remains supported even as the stock has struggled over a five year horizon. Overall, the DCF work suggests Edwards Lifesciences stock currently screens as roughly fairly valued, with only a modest discount to intrinsic value implied. Edwards Lifesciences is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Edwards Lifesciences. The P/E ratio is a useful check for Edwards Lifesciences because earnings remain a key focus for investors in established medical equipment companies. On this measure, Edwards Lifesciences trades on about 48.6x earnings, which is well above the Medical Equipment industry average of roughly 26.7x and the peer group average of about 25.6x. A P/E multiple of around 33.2x, based on the company’s profile and risk factors, sits well below the current level. This implies the stock carries a sizable premium to what this framework suggests. Even with solid TAVR demand in recent quarters and optimism around possible Medicare coverage expansion, the current P/E still prices Edwards Lifesciences above both industry benchmarks and this tailored reference ratio. On balance, Edwards Lifesciences stock appears expensive on its P/E multiple relative to these comparison points. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Edwards Lifesciences valuation puzzle leaves off by spelling out which future paths for growth, margins and earnings would need to play out for the stock to be worth materially more or less than today's price, and they sit on Simply Wall St's Community page. Each one anchors a fair value to a particular scenario for Edwards Lifesciences' catalysts and risks so you can track over time which version of the story appears to be taking shape. Share your own Edwards Lifesciences Narrative in the Simply Wall St community to present a number-driven view on whether strong TAVR sales, the anticipated Medicare coverage decision and the FTC settlement ultimately support today's valuation. Set out the assumptions you think matter most and track how your thesis holds up as new results and regulatory updates are released. Do you think there's more to the story for Edwards Lifesciences? Head over to our Community to see what others are saying! For Edwards Lifesciences, the Discounted Cash Flow (DCF) work points to intrinsic value close to the current share price, while the earnings multiple suggests the stock is overvalued relative to peers and a tailored reference ratio. That gap largely comes down to how much growth and margin strength investors are willing to pay for, given the regulatory backdrop and expectations around TAVR demand and Medicare coverage. The key question from here is whether earnings growth and cash generation are strong enough for the current premium P/E to appear justified, or whether investors eventually insist on a lower multiple even if the intrinsic value estimate remains supportive. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 12.5% sales growth driven by a comprehensive structural heart portfolio, marking a transition from a TAVR-centric model to a multi-platform growth strategy. TAVR performance of 10.5% growth was supported by sustained clinical momentum and the exit of a competitor in the prior year, reinforcing SAPIEN as the benchmark for durability. TMTT growth of 44.8% reflects the successful scaling of PASCAL and EVOQUE, validating years of strategic investment in mitral and tricuspid repair and replacement. Management attributes competitive gains in the U.S. to the continued adoption of SAPIEN 3 Ultra RESILIA, which offers differentiated tissue technology. The company is evolving its profile to include multiple strategic platforms across TAVR, TMTT, and Surgical to support a long-term target of 10% average annual sales growth. Operational execution focused on generating world-class evidence to shift clinical practice toward proactive disease management and earlier patient intervention. Increased full-year 2026 sales guidance to 10% to 11% based on first-half outperformance, while maintaining a cautious outlook for the second half due to difficult year-over-year comparisons. Anticipate the finalization of the U.S. TAVR National Coverage Determination (NCD) in September, which is expected to streamline patient access and cover asymptomatic indications. Expect TMTT to reach $2 billion in revenue by 2030, supported by upcoming launches including PASCAL for tricuspid and next-generation Capture Clarity technology. Guidance assumes 50 to 100 basis points of underlying operating margin expansion annually while continuing to prioritize R&D investment at approximately 17% of sales. The PROGRESS trial results, expected at TCT later this year, represent a multi-year opportunity to expand TAVR into the moderate aortic stenosis population. The effective tax rate is expected at the high end of the 16% to 19% range due to Pillar Two impacts and California legislative changes restricting R&D credits. Foreign exchange is projected to be a $35 million headwind in the second half of 2026 if current rates persist. Management flagged that Q3 underlying growth will appear artificially lower than the first half due to unusually low seasonality impact in the prior year's third quarter. Gross profit margin guidance was narrowed to the lower end of the 78% to 79% range, primarily attributed to foreign exchange hedging impacts. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that growth was similar in the U.S. and OUS, driven by the SAPIEN platform's reputation for long-term durability and performance. Confirmed that competitive positioning increased modestly year-over-year, aided by the exit of a competitor and the adoption of RESILIA tissue technology. Management explained the decision to split the trial presentation to ensure clinicians understand the complex, heterogeneous nature of moderate aortic stenosis patients. Clarified that the moderate AS population is roughly the same size as the severe AS population, representing a significant long-term market expansion opportunity. Emphasized that PROGRESS is not a heart failure trial, but focuses on patients with at-risk features who currently only receive active surveillance. The draft policy is encouraging as it provides a pathway for asymptomatic coverage and modernizes heart team requirements to improve timely access. While the NCD may not significantly increase the number of centers, it is expected to improve program efficiency and patient referral throughput. EVOQUE is seeing rapid acceleration as the company opens new centers and streamlines the patient screening and procedural planning process. PASCAL remains the largest revenue contributor in TMTT, but the portfolio approach allows physicians to tailor treatments to diverse mitral and tricuspid pathologies.

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. 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-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. 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. 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. 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. 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. 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%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

IRVINE, Calif., July 23, 2026--(BUSINESS WIRE)--Edwards Lifesciences (NYSE: EW) today reported financial results for the quarter ended June 30, 2026. Highlights Q2 sales grew 13.6% to $1.74 billion1, constant currency2 sales grew 12.5% Q2 TAVR sales grew 11.3% to $1.26 billion1; constant currency2 sales grew 10.5% Q2 TMTT sales were $195.9 million1,3, driven by portfolio of repair and replacement therapies Q2 EPS of $0.421; adjusted2 EPS of $0.781 Recent clinical data at New York Valves reinforce best-in-class SAPIEN performance and durability; PASCAL, EVOQUE and SAPIEN M3 differentiated body of clinical evidence continues to expand 2026 Outlook Increasing total company constant currency2 sales growth guidance: 10% to 11% from 9% to 11% Increasing TAVR constant currency2 sales growth guidance: 8% to 9% from 7% to 9% Increasing TMTT sales guidance: $760 to $780 million from $740 to $780 million Reaffirming adjusted EPS guidance of $2.95 to $3.05, growing 17% at midpoint Expected clinical presentations at TCT: PROGRESS and CLASP IITR Expected Q4 approvals of PASCAL tricuspid indication in U.S. and next-generation PASCAL with Capture Clarity in U.S. and Europe "We delivered stronger-than-expected second quarter sales growth of 12.5%. As Edwards continues to invest in new structural heart therapies and expand adoption globally, our results increasingly reflect the strength of our comprehensive portfolio and agile execution, with growth supported by therapies across TAVR, mitral, tricuspid and surgical, as well as meaningful contributions from each of the regions," said Bernard Zovighian, Edwards’ CEO. "Today, our company profile has evolved to include multiple strategic platforms across multiple regions that will support durable growth, which gives us confidence in our target of approximately 10% total company sales growth, on average, over the longer term. Our strategic focus coupled with our commitment to early innovation enables us to deliver meaningful impact for patients worldwide." Transcatheter Aortic Valve Replacement (TAVR) In the second quarter, the company reported TAVR sales of $1.3 billion, which grew 11.3% compared to the prior year, or 10.5% on a constant currency basis. Globally, procedural growth benefited from sustained clinical momentum and the evidence supporting proactive disease management of severe aortic stenosis (AS). At the same time, treatment decisions continued to be shaped by the long-term differentiation of our SAPIEN platform. Edwards’ growth rates were similar in the U.S. and outside of the U.S. Growth benefitted from the exit of a competitor in Q2 2025 and compelling long-term SAPIEN durability data. Average selling prices were stable globally. At the recent New York Valves conference, a new PARTNER 3 trial sub-analysis of the SAPIEN platform at 7 years reinforced the best-in-class valve performance and long-term durability of Edwards TAVR. Further, a 5-year analysis presented from the EARLY TAVR trial adds to the growing evidence supporting a shift toward treating AS earlier in the disease pathway. Also at New York Valves, the PROGRESS trial baseline characteristics presentation provided new insights into the heterogeneous nature of moderate aortic stenosis patients. The clinical community will learn more about the clinical relevance of treating these patients with TAVR when the PROGRESS trial results are presented at TCT later this year. In the U.S., procedure growth continued to benefit from a heightened focus on TAVR therapy as the clinical community continues to incorporate recent evidence supporting proactive disease management. Edwards’ competitive position in the U.S. increased modestly year-over-year, enabled by continued adoption of its SAPIEN 3 Ultra RESILIA platform. The Centers for Medicare & Medicaid Services (CMS) continues to advance the reconsideration of the National Coverage Determination (NCD) for TAVR, with a final decision memo expected in September. This update has the potential to advance TAVR therapy for Medicare beneficiaries with aortic stenosis. Outside of the U.S., the company continues to see strong adoption of the SAPIEN platform. In Europe, updated ESC and EACTS guidelines are helping shape clinical discussions around earlier intervention and proactive disease management, further reinforcing the role of TAVR across a broader patient population. Edwards’ competitive position also increased modestly year-over-year in Europe. In Japan, Edwards was encouraged by the growth and continued adoption of its SAPIEN 3 Ultra RESILIA platform. Transcatheter Mitral and Tricuspid Therapies (TMTT) Second quarter TMTT sales of $195.9 million increased 47.3% compared to the prior year, or 44.8% on a constant currency basis. Results were driven by the company’s differentiated portfolio of repair and replacement therapies to treat mitral and tricuspid diseases. Globally, mitral and tricuspid procedure growth remained in the double digits. Adoption of Edwards’ PASCAL system continues to increase, reflecting strong physician enthusiasm for its differentiated design and clinical outcomes, as well as the significant unmet needs of patients with mitral and tricuspid valve diseases. The company continues to expect that its next-generation PASCAL with Capture Clarity technology for both mitral and tricuspid patients in the U.S. and Europe will be approved in the fourth quarter. Also in the fourth quarter, Edwards continues to expect CLASP IITR trial results to be presented at TCT, and the launch of the PASCAL system in the U.S. for tricuspid patients. The EVOQUE system is a significant growth platform for TMTT and continues to scale in the U.S. and Europe. Edwards is increasing patient access to and driving further adoption of the EVOQUE system by expanding into new centers, deepening utilization in existing centers and streamlining patient screening processes. The company expects the value of its growing body of clinical evidence will further increase with time, as demonstrated by recent reductions in all-cause mortality and heart failure hospitalizations, and will support continued physician adoption and expansion of access for patients with tricuspid regurgitation. The company’s early experience with the SAPIEN M3 system validates the significant need for mitral replacement solutions for patients who are not well-suited for mitral TEER and demonstrates excellent clinical outcomes for patients. Edwards is continuing with a measured launch of the SAPIEN M3 system in the U.S. and Europe, steadily opening new centers and supporting sites as they build procedural experience. Surgical In Surgical, second quarter global sales of $284 million increased 6.5% compared to the prior year, or 5.0% on a constant currency basis, driven by continued adoption of the company’s RESILIA tissue therapies including the INSPIRIS, MITRIS and KONECT devices, which provide extended durability for patients. At the recent AATS conference, 10-year data from the COMMENCE trial, studying the long-term durability of Edwards’ best-in-class RESILIA tissue, were presented. The results showed favorable 10-year freedom from structural valve deterioration, or SVD, and a very low rate of SVD-related reoperation regardless of age, even in a relatively young cohort. The company also received U.S. approval for ECLIPTIS, its surgical left atrial appendage system, and is planning for a measured rollout later this year, supported by a continued focus on procedural excellence and patient outcomes. Additional Financial Results For the quarter, gross profit margin was 77.5%, or 77.6% adjusted, consistent with the same period last year and driven by foreign exchange headwinds offset by lower manufacturing expenses. The company now expects gross profit margin to be at the lower end of its full-year 78% to 79% gross margin guidance, driven by the impacts of foreign exchange through its hedging program. Selling, general and administrative expenses in the second quarter were $561 million, or 32.2% of sales, compared to 32.8% of sales in the prior year. This was in line with the company’s expectations and reflects continued investment in resources to support patient care as well as a higher translation of the company’s OUS expense base from the weakening dollar. Research and Development (R&D) expenses in the second quarter were $279 million, or 16.0% of sales, compared to 18.0% in the prior year. This decrease in R&D as a percentage of sales and increase in total expense reflects Edwards’ growing revenue and strategic prioritization of investments in its expanding structural heart portfolio. The company continues to expect R&D expense as a percentage of sales to be approximately 17% in 2026. Operating profit margin in the second quarter was 29.5%, or 30.0% adjusted. Adjusted EPS was $0.78 and benefited from better-than-expected topline performance and planned phasing of strategic investments in R&D and SG&A throughout the year. In 2026, Edwards continues to expect full-year operating profit margin to be at the high end of the company’s original 28% to 29% guidance range, resulting in approximately 150 basis points of constant currency operating margin expansion for the full year. Edwards now expects its 2026 effective tax rate, excluding special items, to be at the high end of its previous range of 16% to 19%. This reflects an expectation that side-by-side safe-harbor taxation legislation related to Pillar Two does not come into effect before the end of the year. The company’s tax rate is also impacted by changes to California law restricting the usage of R&D credits. Cash and cash equivalents were approximately $2.9 billion as of June 30, 2026. Total debt was approximately $600 million. Edwards has approximately $1.5 billion remaining under its share repurchase authorization. Outlook Based on the company’s second quarter performance, Edwards is increasing its full-year 2026 sales growth rate guidance to 10% to 11% from 9% to 11%, TAVR product group sales growth guidance to 8% to 9% from 7% to 9%, and TMTT product group sales guidance to $760 to $780 million from $740 to $780 million. Edwards now expects full-year total company sales of $6.6 billion to $6.9 billion and TAVR sales of $4.75 billion to $5.0 billion at current exchange rates. Edwards is also reaffirming adjusted EPS guidance of $2.95 to $3.05, despite now assuming the company’s effective tax rate will be at the high end of the original 16% to 19% range. For the third quarter of 2026, the company projects total sales to be between $1.63 and $1.71 billion and adjusted EPS of $0.71 to $0.77. About Edwards Lifesciences Edwards Lifesciences is the leading global structural heart innovation company, driven by a passion to improve patient lives. Through breakthrough technologies, world-class evidence and partnerships with clinicians and healthcare stakeholders, our employees are inspired by our patient-focused culture to deliver life-changing innovations to those who need them most. Discover more at www.edwards.com and follow us on LinkedIn, Facebook, Instagram and YouTube. Conference Call and Webcast Information The company will be hosting a conference call today at 2:00 p.m. PT to discuss its second quarter results. To participate in the conference call, dial (877) 704-2848 or (201) 389-0893. The call will also be available live and archived on the "Investor Relations" section of the Edwards website at ir.edwards.com or www.edwards.com. This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can sometimes be identified by the use of words such as "may," "will," "should," "anticipate," "believe," "plan," "project," "estimate," "forecast," "potential," "predict," "early clinician feedback," "expect," "intend," "guidance," "outlook," "optimistic," "aspire," "confident" or other forms of these words or similar expressions and include, but are not limited to, statements made by Mr. Zovighian; statements in the 2026 Outlook section; statements in the Additional Financial Results and Outlook sections; statements regarding our target of approximately 10% total company sales growth, on average, over the longer term; the strength of our portfolio and meaningful and balanced contributions from our regions, our clarity, mindset, commitment to innovation and execution driving progress, our financial strength, our expectations regarding growth and impact on patients, our long-term evidence supporting our differentiated SAPIEN platform, our best-in-class valve performance and long-term durability, the potential to advance TAVR therapy through the NCD, the expansion of the population of patients benefiting from our technology, increasing patient access, the growing body of clinical evidence impacts on reductions in all-cause mortality and heart failure hospitalizations, physician adoption, opening of new centers and supporting sites, our results showing favorable 10-year freedom from SVD, the rollout of ECLIPTIS, expectations for the company’s 2026 effective tax rate; and other statements that are not historical facts. No inferences or assumptions should be made from statements of past performance, efforts, or results which may not be indicative of future performance or results. Forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though they are inherently uncertain, difficult to predict, and may be outside of the company’s control. The company's forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement, except as required by law. If the company does update or correct one or more of these statements, investors and others should not conclude that the company will make additional updates or corrections. Forward-looking statements involve risks and uncertainties that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements. Factors that could cause actual results or experience to differ materially from that expressed or implied by the forward-looking statements include: risks related to the failure to successfully innovate and market our products; unsuccessful clinical trials or procedures; manufacturing, logistics or quality issues; competition; dependence on key physicians, research institutions and hospital systems; risks associated with global, economic, political and social conditions; risks related to our international operations; inability to obtain governmental reimbursement or reductions in reimbursement levels; inability to protect our intellectual property; reduced access and demand for our products as a result of, and compliance with, health care legislation and other government regulations; risks related to domestic and foreign income and non-income taxes; use of products in unapproved circumstances and the risk and uncertainties associated with the risks detailed in the company's filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025, and its other filings with the SEC. These filings, along with important safety information about our products, may be found at edwards.com. Edwards, Edwards Lifesciences, the stylized E logo, Capture Clarity, CLASP, CLASP II, COMMENCE, EARLY TAVR, ECLIPTIS, EVOQUE, INSPIRIS, KONECT, MITRIS, PARTNER, PARTNER 3, PASCAL, PROGRESS, RESILIA, SAPIEN, SAPIEN 3, SAPIEN 3 Ultra, and SAPIEN M3 are trademarks of Edwards Lifesciences Corporation or its affiliates. All other trademarks are the property of their respective owners. EDWARDS LIFESCIENCES CORPORATIONNon-GAAP Financial Information To supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the Company uses non-GAAP historical financial measures. Management makes adjustments to the GAAP measures for items (both charges and gains) that (a) do not reflect the core operational activities of the Company, (b) are commonly adjusted within the Company’s industry to enhance comparability of the Company’s financial results with those of its peer group, or (c) are inconsistent in amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core operations). The Company uses the terms "adjusted" and "constant currency" when referring to non-GAAP sales from continuing operations and sales growth information, respectively, which excludes currency exchange rate fluctuations and newly acquired products. The Company uses the term "adjusted" to also exclude certain litigation expenses, amortization of intangible assets, a gain on remeasurement of previously held interest upon business combinations, loss on impairment, impact of tax law change on R&D credit, and separation costs. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results, and evaluating current performance. These non-GAAP financial measures are used in addition to, and in conjunction with, results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company's operations by investors that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting the Company's business and facilitate comparability to historical periods. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. A reconciliation of non-GAAP historical financial measures to the most comparable GAAP measure is provided in the tables below. Fluctuations in currency exchange rates impact the comparative results and sales growth rates of the Company's underlying business. Management believes that excluding the impact of currency exchange rate fluctuations from its sales growth provides investors a more useful comparison to historical financial results. The impact of the fluctuations has been detailed in the "Reconciliation of Sales by Product Group and Region." Guidance for sales and sales growth rates is provided on a "constant currency basis," and projections for diluted earnings per share, net income and growth, gross profit margin, and taxes are also provided on a non-GAAP basis, as adjusted, for the items identified above due to the inherent difficulty in forecasting such items without unreasonable efforts. The Company is not able to provide a reconciliation of the non-GAAP guidance to comparable GAAP measures due to the unknown effect, timing, and potential significance of special charges or gains, and management's inability to forecast charges associated with future transactions and initiatives. The items described below are adjustments to the GAAP financial results in the reconciliations that follow: Certain Litigation Expenses - The Company incurred certain litigation expenses of $37.1 million and $10.9 million in the first quarter of 2026 and 2025, respectively, and $6.3 million and $15.5 million for the second quarter of 2026 and 2025, respectively. Such expenses relate to intellectual property litigation, settlements, contingencies, and external legal costs. Amortization of Intangible Assets - The Company recorded amortization expense related to developed technology and patents in the amount of $3.3 million and $1.4 million in the first quarter of 2026 and 2025, respectively, and $3.2 million and $1.8 million in the second quarter of 2026 and 2025, respectively, Separation Costs - The Company recorded expenses of $4.2 million in both the first and second quarter of 2025, related to consulting, legal, tax, and other professional advisory services related to the sale of Critical Care. Gain on Remeasurement of Previously Held Interest Upon Business Combinations - The Company recorded a $65.2 million gain in the first quarter of 2026 to remeasure its previously held interest upon acquisition of an investee and a $19.9 million gain in the second quarter of 2026 to remeasure its previously held interest upon consolidation of one of its variable interest entities ("VIE"). Loss on Impairment - The Company recorded loss on impairment of $123.6 million in the first quarter of 2026 due to the carrying amount of one of its VIE investments not being recoverable and $40.0 million in the second quarter of 2026 due to the Company's determination to not exercise an option to acquire one of its VIE. Impact of Tax Law Change on R&D Credit - The Company recorded a $188.2 million valuation allowance against certain deferred tax assets in the second quarter of 2026. The Company established the valuation allowance due to California budget legislation enacted on June 29, 2026 which includes a new permanent limitation that applies to most business tax credits including carryovers of research and development tax credits. Provision for Income Taxes - The income tax impacts of the expenses and gains discussed above are based upon the items' forecasted effect upon the Company's full-year effective tax rate. Adjustments to forecasted items unrelated to the expenses and gains above, as well as impacts related to interim reporting, will have an effect on the income tax impact of these items in subsequent periods. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723783980/en/ Contacts Media: Amy Meshulam, [email protected] Investors: Gerianne Sarte, [email protected]

Interested in Edwards Lifesciences Corporation? Here are five stocks we like better. Edwards Lifesciences beat Q2 expectations with sales of $1.74 billion and adjusted EPS of $0.78, driven by broad strength across TAVR, mitral/tricuspid therapies, and surgical products. The company also raised its full-year 2026 sales growth outlook to 10% to 11% while keeping adjusted EPS guidance unchanged. TAVR was a standout, with quarterly sales of $1.3 billion, up 10.5% year over year, and full-year TAVR growth guidance increased to 8% to 9%. Management cited strong clinical momentum, stable pricing, and continued adoption of the SAPIEN platform as key drivers. TMTT showed rapid growth, with sales up 44.8% to $195.9 million as PASCAL, EVOQUE and SAPIEN M3 all exceeded expectations. Edwards lifted its full-year TMTT sales target and said the portfolio remains central to its long-term goal of reaching $2 billion in TMTT revenue by 2030. A Closer Look at Healthcare Sector Earnings: AZN vs. EW vs. ZBH Edwards Lifesciences (NYSE:EW) reported stronger-than-expected second-quarter 2026 results, with management pointing to broad growth across transcatheter aortic valve replacement, transcatheter mitral and tricuspid therapies, and surgical products. Chief Executive Officer Bernard Zovighian said the company delivered second-quarter sales growth of 12.5%, supported by “multiple therapies across TAVR, mitral, tricuspid, and surgical,” as well as contributions from each region. Total sales were $1.74 billion, and adjusted earnings per share were $0.78, according to Chief Financial Officer Doretta Mistras. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Beyond Biotech—3 Healthcare Stocks for Growth-Minded Investors Based on the quarter’s performance, Edwards raised its full-year 2026 sales growth outlook for the total company, TAVR and TMTT while reaffirming its adjusted EPS guidance. The company now expects total company sales growth of 10% to 11%, up from 9% to 11%. It expects total company sales of $6.6 billion to $6.9 billion at current exchange rates. Adjusted EPS guidance remains $2.95 to $3.05. Edwards reported global TAVR sales of $1.3 billion in the second quarter, up 10.5% from the prior year. Zovighian said the performance was stronger than expected and benefited from sustained clinical momentum, data supporting more proactive management of severe aortic stenosis, and continued adoption of the company’s SAPIEN platform. → 3 Photonics Companies Making Quantum Tech Possible 3 Healthcare Pathbreakers With Long-Term Tailwinds He said TAVR growth rates were similar in the U.S. and outside the U.S. Average selling prices were stable globally. Growth also benefited from the exit of a competitor in the second quarter of 2025 and long-term durability data for SAPIEN, according to management. Edwards raised its full-year TAVR sales growth guidance to 8% to 9%, from 7% to 9%. The company now expects TAVR sales of $4.75 billion to $5 billion at current exchange rates. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Zovighian said recent clinical presentations at the New York Valves Conference included a seven-year subanalysis supporting SAPIEN valve performance and durability, as well as a five-year analysis from the EARLY TAVR trial that added to evidence for treating aortic stenosis earlier in the disease pathway. He also said the first patients have been treated with the updated SAPIEN X4-S platform. Edwards’ transcatheter mitral and tricuspid therapies generated second-quarter sales of $195.9 million, up 44.8% year over year. Zovighian said PASCAL, EVOQUE and SAPIEN M3 all exceeded expectations in the quarter. The company raised its full-year TMTT sales guidance to $760 million to $780 million, from $740 million to $780 million. Zovighian said the portfolio supports Edwards’ target of reaching $2 billion in TMTT revenue in 2030. Management said PASCAL adoption continues to increase, citing physician interest in its design and clinical outcomes. Edwards expects next-generation PASCAL technology with Capture Clarity for mitral and tricuspid patients in the U.S. and Europe to be approved in the fourth quarter. The company also expects results from the Class II TR trial to be presented at TCT and plans a U.S. launch of PASCAL for tricuspid patients in the fourth quarter. EVOQUE continues to scale in the U.S. and Europe, with Edwards expanding into new centers, increasing utilization at existing centers and working to streamline patient screening. Daveen Chopra, corporate vice president with responsibility for TMTT, surgical and IHFM, said EVOQUE is the second-largest TMTT platform by revenue after PASCAL and is “growing very quickly.” For SAPIEN M3, Zovighian said early experience has validated the need for mitral replacement options for patients not well suited for mitral repair or surgery. Edwards received CE Mark for SAPIEN M3 RESILIA and broadened its indication for SAPIEN M3 and SAPIEN M3 RESILIA to include patients with mitral annular calcification. In surgical products, second-quarter global sales were $284 million, up 5% from the prior year. Zovighian said growth was driven by continued adoption of RESILIA-based therapies, including INSPIRIS, MITRIS and KONECT. He also highlighted 10-year data from the COMMENCE trial presented at the AATS conference, saying the results showed favorable freedom from structural valve deterioration and a low rate of reoperation related to structural valve deterioration. Edwards also received U.S. approval for ECLIPTIS, its surgical left atrial appendage technology, and plans a measured rollout later this year. The company continues to expect mid-single-digit sales growth in surgical in 2026. Mistras said adjusted gross profit margin was 77.6% in the second quarter, flat from a year earlier, as foreign exchange headwinds were offset by lower manufacturing expenses. Foreign exchange reduced gross margin by 70 basis points compared with the prior year. The company now expects gross margin to be at the lower end of its full-year 78% to 79% guidance. Second-quarter SG&A expense was $561 million, or 32% of sales, compared with $502 million a year earlier. R&D expense was $279 million, or 16% of sales, compared with $276 million, or 18% of sales, in the prior-year period. Edwards continues to expect R&D to be approximately 17% of sales in 2026. Adjusted operating margin was 30% in the second quarter. Mistras said Edwards continues to expect full-year operating margin at the high end of its original 28% to 29% guidance, representing approximately 150 basis points of constant-currency operating margin expansion. The company now expects its 2026 effective tax rate, excluding special items, to be at the high end of its prior 16% to 19% range, due to Pillar Two tax impacts and changes to California law limiting the use of R&D credits. GAAP EPS for the quarter was $0.42, primarily affected by the California R&D tax credit impact. For the third quarter, Edwards projected sales of $1.63 billion to $1.71 billion and adjusted EPS of $0.71 to $0.77. Mistras said underlying growth in the third quarter will be “artificially lower” than first-half performance because the company faces a higher comparison from 2025, when seasonality had an unusually low impact. During the question-and-answer session, analysts asked about TAVR growth drivers, the pending U.S. national coverage determination for TAVR, and the PROGRESS trial in moderate aortic stenosis. Dan Lippis, Edwards’ global leader of TAVR, said the company is encouraged by the draft CMS policy and expects a final policy memo in September. He said potential benefits include a pathway for coverage of asymptomatic indications, recognition of symptomatic severe aortic stenosis as reasonable and necessary for Medicare beneficiaries without coverage with evidence development, and modernization of the policy to support heart teams in providing timely access to care. On PROGRESS, Zovighian said Edwards separated the baseline characteristics presentation from the full results presentation to give physicians more time to understand the patient population. Lippis said the trial studies moderate aortic stenosis patients with at least one at-risk feature and emphasized that it is “not a heart failure trial.” Results are expected to be presented at TCT later this year. Zovighian said the company expects minimal impact from PROGRESS in 2026 and reiterated that Edwards’ long-term TAVR outlook remains mid- to high-single-digit growth. He said the company remains confident in its target of approximately 10% average annual total company sales growth over the long term, alongside operating margin expansion. Edwards Lifesciences is a medical technology company focused on products and therapies for structural heart disease and critical care monitoring. The company designs, develops and manufactures prosthetic heart valves and related delivery systems used in both surgical and minimally invasive (transcatheter) procedures. Its portfolio addresses a range of valvular conditions, with an emphasis on technologies that enable transcatheter aortic valve replacement (TAVR) as an alternative to open-heart surgery. In addition to transcatheter heart valves—including the widely recognized SAPIEN family—Edwards offers surgical tissue valves and ancillary devices used by cardiac surgeons, interventional cardiologists and hospital teams. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Edwards Lifesciences Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.