stockrowLatest quarter
Edwards Lifesciences reported third-quarter sales of $1.72 billion, up 11.2% from a year earlier, and adjusted earnings per share of $0.80. The company’s sales came in above its own guidance; adjusted EPS also exceeded its earlier $0.71 to $0.77 range.
The company’s filing attributed growth in transcatheter aortic valve replacement (TAVR) sales to higher SAPIEN platform sales, particularly its SAPIEN 3 Ultra RESILIA valve. Edwards also reported higher sales in its transcatheter mitral and tricuspid therapies (TMTT) and surgical businesses.
Edwards reported diluted EPS of $0.53, compared with $0.50 a year earlier. CFO Doretta Mistras said the quarter’s GAAP EPS was primarily affected by an impairment of a research and development asset.
The company’s gross margin rose to 78.5% from 77.8%, while operating margin fell to 17.4% from 19.8%. Edwards’ filing attributed the gross-margin change primarily to lower manufacturing expenses and favorable currency effects. Free cash flow was $506.7 million, compared with $516.2 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.7 billion | $1.6 billion | 10.5% |
| Diluted EPS | $0.53 | $0.50 | 6.00% |
| Gross margin | 78.5% | 77.8% | 0.7 percentage points |
| Operating margin | 17.4% | 19.8% | −2.3 percentage points |
| Free cash flow | $506.7 million | $516.2 million | −1.84% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.78 | $0.73 | Beat by 6.85% |
| Revenue | $1.7 billion | $1.7 billion | Beat by 2.45% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue | Q3 FY2026 | $1.6 billion–$1.7 billion | $1.7 billion | Above the guide |
What management said on the call
CEO Bernard Zovighian said TAVR procedure growth benefited from increased attention to the therapy and evidence supporting earlier disease management. He said global average selling prices were stable and that Edwards’ competitive position had contributed to its performance. TAVR leader Dan Lippis said recent share gains had stabilized sequentially and that, looking forward, growth would depend more on the underlying market.
When analysts asked about growth in the United States and Europe, Zovighian said the two regions were about the same in the quarter, though he could not provide further detail. Lippis also said summer seasonality was more pronounced than in the prior year, but slightly better than expected.
Zovighian said third-quarter TMTT sales rose to $207 million, up 45.6% year over year, as the U.S. became a more significant growth driver. He pointed to U.S. approvals for PASCAL therapies and said Edwards introduced SAPIEN M3 with RESILIA in Europe during the quarter.
Discussing the PROGRESS trial in moderate aortic stenosis, Zovighian said its results supported earlier treatment. Lippis said identifying at-risk features in those patients was “not easily done in a community setting.” Edwards has described use of SAPIEN 3 TAVR systems for moderate aortic stenosis as investigational.
CFO Doretta Mistras said manufacturing efficiencies and foreign exchange more than offset the expected margin impact of scaling newer therapies. She said adjusted EPS benefited from sales and the planned timing of research, development and selling investments. For the fourth quarter, Mistras projected sales of $1.67 to $1.75 billion and adjusted EPS of 61 to 69 cents. Zovighian said TAVR growth was expected to come mainly from procedure volume rather than share gains.
Guidance
Edwards raised its 2026 total sales-growth guidance to approximately 11.5% from 10% to 11%, and its TAVR growth guidance to 9% to 9.5% from 8% to 9%.
The company raised its TMTT sales outlook to $780 to $790 million from $760 to $780 million. It also raised its adjusted EPS range to $2.97 to $3.05 from $2.95 to $3.05.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Units, Average Diluted Shares | FY2026 | 575,000,000–580,000,000 | — | — |
| Tax rate | FY2026 | 16.0%–19.0% | — | New |
| Operating margin, non-GAAP | Q4 FY2026 | Edwards Lifesciences expects fourth-quarter operating margin in the mid-20% range. | — | — |
| Research and development growth | FY2026 | 16.5% | — | New |
| Revenue | Q4 FY2026 | $1.7 billion–$1.8 billion | Q3 FY2026: $1.6 billion–$1.7 billion; reported $1.7 billion | Raised |
| Revenue, Surgical | FY2026 | Edwards Lifesciences expects mid-single-digit surgical sales growth for the full year. | — | — |
| Revenue, Tmtt | FY2030 | $2.0 billion | $2.0 billion | Held |
| Revenue, Tmtt | FY2026 | $780.0 million–$790.0 million | — | New |
| Revenue, Tavr | Q4 FY2026 | Edwards Lifesciences expects TAVR growth in the fourth quarter to be driven mainly by procedure volume rather than share gains. | — | — |
| EPS, non-GAAP | FY2026 | $2.97–$3.05 | $2.95–$3.05 | Held |
| Revenue growth | FY2026 | 11.5% | — | New |
| Tax rate, non-GAAP | FY2026 | 16.0%–19.0% | — | New |
| Research and development growth, Percentage of Sales | FY2026 | 16.5% | — | New |
| EPS, non-GAAP | Q4 FY2026 | $0.61–$0.69 | Q3 FY2026: $0.71–$0.77 | Cut |
| Revenue, Surgical Growth | FY2026 | Edwards Lifesciences expects FY2026 Surgical sales growth in the mid-single digits. | — | — |
| Revenue growth, Tavr Growth | FY2026 | 9.00%–9.50% | — | New |
| Revenue growth, Growth | FY2026 | 11.5% | — | New |
| Tax rate, Excluding Special Items | FY2026 | 19.0% | — | New |
| Research and development growth, As Percentage of Sales | FY2026 | 17.0% | — | New |
| Revenue, Tavr; current Exchange Rates | FY2026 | $4.8 billion–$5.0 billion | — | New |
| Revenue, Total Company; current Exchange Rates | FY2026 | $6.6 billion–$6.9 billion | — | New |
| Revenue, Tmtt | FY2026 | $760.0 million–$780.0 million | — | New |
| Revenue growth, Whole Company | Long term | 10.0% | — | New |
| Research and development growth, Whole Company | FY2026 | 17.0% | — | New |
| Operating margin, Whole Company | FY2026 | 28.0%–29.0% | — | New |
| EPS, Whole Company | FY2026 | $2.95–$3.05 | — | New |