Edwards Lifesciences (EW) investor relations material

Executive summary

• Q2 sales increased 13.6% year-over-year to $1.74 billion; constant currency sales up 12.5%, reflecting robust performance across all product groups and regions.

• Growth driven by strong adoption across TAVR, TMTT, and Surgical segments globally.

• Strategic focus on innovation in structural heart therapies and global expansion is driving durable, multi-year growth opportunities.

• Increased full-year 2026 sales growth guidance for TAVR, TMTT, and total company, reaffirming earnings guidance.

• Clinical data reinforced SAPIEN platform durability and expanded evidence for PASCAL, EVOQUE, and SAPIEN M3.

Financial highlights

• Q2 total sales reached $1.74 billion, up 13.6% year-over-year; adjusted EPS was $0.78, GAAP EPS was $0.42, impacted by California R&D tax credit changes.

• Adjusted gross profit margin was 77.6%, flat year-over-year, with foreign exchange reducing margin by 70 basis points.

• Adjusted operating profit margin was 30% for Q2; full-year operating margin expected at high end of 28%-29% guidance.

• R&D expense was $279 million (16% of sales), reflecting strategic investment in portfolio expansion.

• Cash and cash equivalents totaled $2.9 billion; total debt was $600 million.

Outlook and guidance

• Raised 2026 sales growth guidance to 10%-11% for the company, 8%-9% for TAVR, and $760M-$780M for TMTT.

• Full-year adjusted EPS guidance maintained at $2.95-$3.05, despite higher expected tax rate (16%-19%).

• Q3 sales projected at $1.63B-$1.71B; adjusted EPS expected at $0.71-$0.77.

• Full-year sales expected between $6.6–$6.9 billion; TAVR sales $4.75–$5.0 billion.

• Long-term guidance targets 10% average sales growth and 50-100 basis points of annual operating margin expansion.