10-Q · August 4, 2026
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…
Earnings analysis · 10-Q
EW earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Edwards delivered strong Q3 growth, with revenue of $1,715.5 million, up 10.5% year over year, led by 44.3% TMTT growth and supported by 8.0% TAVR growth. Operating cash flow reached $1,266.0 million in the first nine…
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Edwards delivered strong Q3 growth, with revenue of $1,715.5 million, up 10.5% year over year, led by 44.3% TMTT growth and supported by 8.0% TAVR growth. Operating cash flow reached $1,266.0 million in the first nine months, and liquidity remained robust with $4.1 billion of cash and cash equivalents plus $511.0 million of short-term investments. The outlook is tempered by a $220.2 million impairment charge, a 31.2% year-to-date effective tax rate, and significant unresolved IRS transfer-pricing exposures, but product approvals and expanded TAVR coverage support a bullish overall assessment.
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.
What stood out
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Revenue increased 10.5% year over year
Q3 2026 net sales were $1,715.5 million, an increase of $162.4 million or 10.5% from $1,553.1 million in Q3 2025. The filing does not disclose quarterly GAAP EPS or operating margin in the extracted MD&A.
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TMTT led broad-based segment growth
TMTT was the fastest-growing product group, with sales of $209.5 million versus $145.2 million a year earlier, a $64.3 million or 44.3% increase. TAVR sales increased 8.0% to $1,241.6 million and Surgical sales increased 2.5% to $264.4 million.
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Strong operating cash generation
Operating cash flow for the first nine months of 2026 was $1,266.0 million, up $121.7 million year over year. Capital expenditures were $195.4 million, implying operating cash flow less capex of approximately $1,070.6 million, although the filing does not label this amount as free cash flow.
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Balance sheet supports investment and buybacks
Liquidity remained substantial at September 30, 2026, with $4.1 billion of cash and cash equivalents and $511.0 million of short-term investments. No amounts were outstanding under the $750.0 million revolving credit facility, while the carrying value of senior notes was $598.8 million.
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Aggressive share repurchases continued
The company repurchased 8.5 million shares for an aggregate cost of $696.6 million during the first nine months of 2026 and retained approximately $1.3 billion of repurchase authorization at September 30, 2026.
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Regulatory catalysts broaden opportunity
Management cited commercial and product catalysts, including expanded September 2026 Medicare TAVR coverage and FDA approvals for EVOQUE trans-jugular access, PASCAL Ace with Capture Clarity, and the PASCAL Precision System.
What to watch
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Material impairment charges
The company recorded $220.2 million of impairment charges in Q3 2026, primarily from the full impairment of an in-process research and development asset. It also recorded a $163.6 million nine-month loss related to VIE option and investment impairments.
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Higher tax burden pressures earnings
The nine-month effective tax rate rose to 31.2% from 16.1% in the prior-year period, primarily because of a $174.4 million valuation allowance related to California tax-credit legislation. Management also expects approximately $45.0 million of additional 2026 Pillar Two tax expense before offsets.
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Unresolved IRS transfer-pricing exposure
Pending IRS transfer-pricing matters remain material: the 2018-2020 Revenue Agent Report proposed tax increases of $167.0 million, $112.5 million, and $144.5 million, respectively, and the company stated that an adverse outcome could materially affect its financial statements.
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Tariff and demand uncertainty
Management stated that tariff impacts remain uncertain and could include significant inflation and adverse effects on customer demand. The company said it cannot predict future tariff rates or whether mitigation efforts will succeed.
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Investment and cost pressures
SG&A increased because of higher headcount-related expenses and commercial activities, while R&D investment increased for aortic transcatheter valve and mechanical circulatory support technologies. Restructuring and acquisition-contract termination charges totaled $8.7 million in the first nine months of 2026.
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No formal risk-factor update
The filing states there were no material changes to the risk factors reported in the December 31, 2025 Form 10-K. Separately, the company disclosed potential future acquisition-related payments of up to $332.5 million.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management expects approximately $45.0 million of additional 2026 tax expense from Pillar Two before offsets under current law.
Earlier filings 4
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…
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.