Key financial results
- Edwards Lifesciences reported third quarter 2026 total sales of $1.72 billion, representing an 11.2% increase year-over-year.
Third quarter sales of $1.72 billion grew 11.2%.
- Adjusted earnings per share for the third quarter were $0.80, while GAAP EPS was $0.53, primarily driven by the impairment of a certain research and development asset.
- Adjusted gross profit margin in the third quarter was 78.7%, compared to 77.9% in the same period last year.
For the third quarter, our adjusted gross profit margin was 78.7% compared to 77.9% in the same period last year.
- SG&A expense in the quarter was $561 million, or 32.7% of sales, while R&D expense was $281 million, or 16.4% of sales.
- Adjusted operating profit margin for the third quarter was 30.3%.
Third quarter adjusted operating profit margin was 30.3%.
- Foreign exchange rate changes decreased reported sales by approximately $10 million, or 70 basis points, in the third quarter compared to the prior year.
Foreign exchange rate changes in the third quarter decreased reported sales by approximately $10 million or 70 basis points versus the prior year
Business segment results
- TAVR: TAVR global sales in the third quarter reached $1.2 billion, increasing 8.8% over the prior year.
TAVR third quarter global sales of $1.2 billion were stronger than expected and increased 8.8% over the prior year.
- TAVR: U.S. TAVR growth and international TAVR growth were similar, and average selling prices remained stable globally.
- TMTT: TMTT global sales in the third quarter were $207 million, an increase of 45.6% year-over-year, driven by double-digit growth in mitral and tricuspid procedure volumes.
Our differentiated portfolio of mitral and tricuspid repair and replacement therapies drove third quarter sales of $207 million, an increase of 45.6% year-over-year.
- Surgical: Surgical global sales in the third quarter were $264 million, increasing 3% over the prior year, driven by the RESILIA portfolio.
In surgical, third quarter global sales of $264 million increased 3% over the prior year, driven by continued adoption of RESILIA portfolio of surgical therapies.
Capital allocation
- The company maintained a strong balance sheet with approximately $3.1 billion in cash and cash equivalents as of September 30, 2026.
We continue to maintain a strong and flexible balance sheet with approximately $3.1 billion in cash and cash equivalents as of September 30, 2026.
- Edwards performed share repurchases of approximately $700 million through the third quarter and had approximately $1.3 billion remaining under its share repurchase authorization.
Edwards has performed share repurchases of approximately $700 million through the third quarter. Additionally, we have approximately $1.3 billion remaining under our share repurchase authorization.
- Average diluted shares outstanding during the quarter were 578 million.
Average diluted shares outstanding during the quarter were $578 million.
Industry trends and dynamics
- The PROGRESS trial results and EARLY TAVR clinical outcomes are changing how the clinical community evaluates aortic stenosis and reinforces proactive disease management.
- The ACTIVATE study demonstrated that moderate AS patients outnumber severe AS patients nearly 2 to 1, with approximately 80% having at least one at-risk feature.
- Mitral and tricuspid procedure volumes globally continued to grow in the double digits.
Globally, mitral and tricuspid procedure volumes continue to grow in the double digits.
Competitive landscape
- Edwards' competitive position in U.S. TAVR was stable sequentially and increased modestly year-over-year.
Edward's competitive position in the U.S. was stable sequentially and increased modestly year-over-year
- In Europe, Edwards' competitive position increased modestly year-over-year.
Edward's competitive position increased modestly year-over-year in Europe.
- Management noted that future TAVR growth is expected to be driven primarily by market procedure volume growth rather than additional share gains as prior-year competitor exits are fully annualized.
In the fourth quarter and going forward, we are assuming that growth will be mainly driven by continued increases in procedure volume and less by share gains.
Macroeconomic environment
- Foreign exchange rates provided a 50 basis point benefit to the third quarter gross profit margin compared to the prior year.
Foreign exchange benefited our third quarter gross profit margin by 50 basis points compared to the prior year.
- Management expects foreign exchange to be a fourth quarter headwind of approximately $15 million compared to the prior year if exchange rates hold at current levels.
If foreign exchange rates hold at current levels, we estimate FX to be a fourth quarter headwind of approximately $15 million compared to the prior year.
Growth opportunities and strategies
- Management highlighted recent regulatory approvals including PASCAL for tricuspid patients, next-generation capture clarity for mitral patients, and the modernization of the TAVR NCD.
With the recent U.S. approval of PASCAL for tricuspid patients and next-generation capture clarity for mitral patients, we are further strengthening the portfolio of treatment options.
- The full portfolio of innovative technologies for mitral and tricuspid repair and replacement is now available in the U.S. to support the goal of reaching $2 billion in TMTT revenue in 2030.
Our full portfolio of innovative technologies is now available to patients across the U.S. and Europe, and we are just beginning to realize the opportunity ahead.
- In Surgical, the company introduced the Artis surgical pulmonary valve for pediatric anatomy and ECLIPTIS for surgical left atrial appendage occlusion.
Financial guidance and outlook
- Full year total sales growth guidance was raised to approximately 11.5%.
Based on our strong performance this quarter. We are raising our full year sales growth guidance to approximately 11.5%
- Full year TAVR sales growth guidance was raised to 9% to 9.5%.
Given our better-than-expected third quarter performance, we are raising our full year TAVR guidance to 9% to 9.5%.
- Full year TMTT sales guidance was updated to be between $780 million and $790 million.
We now expect full year TMTT sales to be between $780 million and $790 million.
- Full year surgical sales growth guidance was reiterated at mid-single digits.
Our expectation of full year mid-single-digit growth for Surgical remains unchanged.
- Full year adjusted EPS guidance was raised to a range of $2.97 to $3.05, representing 18% growth at the midpoint.
our adjusted EPS guidance to $2.97 to $3.05, growing 18% at the midpoint versus prior year.
- For the fourth quarter, the company projected total sales of $1.67 billion to $1.75 billion and adjusted EPS of $0.61 to $0.69.
For the fourth quarter, we're projecting total company sales of $1.67 billion to $1.75 billion, with adjusted EPS of $0.61 to $0.69.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Total sales | $1.72 billion | 11.2% |
| TAVR global sales | $1.2 billion | 8.8% |
| TMTT global sales | $207 million | 45.6% |
| Surgical global sales | $264 million | 3% |
| Adjusted gross profit margin | 78.7% | Not stated |
| Adjusted operating profit margin | 30.3% | Not stated |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management expressed strong confidence driven by better-than-expected third quarter results, raising full-year sales and EPS guidance, and securing multiple key clinical and regulatory milestones. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Implementation timeline and hospital adoption of the updated TAVR NCD in the U.S.
- Regulatory discussions and timing for moderate AS indications following the PROGRESS trial.
- Adoption curves and rollout execution for newer TMTT therapies including PASCAL Capture Clarity and EVOQUE.
Earlier calls
- Q2 2026 (Jul 23, 2026), tone Balanced: Edwards Lifesciences reported second quarter sales growth of 12.5% and raised its full year guidance.
