Edwards Lifesciences Corporation

What they do

Edwards develops and sells repair and replacement technologies for aortic, mitral, tricuspid and pulmonic heart valves, covering both surgical and catheter-based approaches. Products are grouped into TAVR (the SAPIEN family), TMTT (transcatheter mitral and tricuspid therapies), and Surgical Structural Heart. TAVR valves are delivered while the heart is still beating, typically without general anesthesia, contrasting with open-heart surgery. The company is based in Irvine, California.

Revenue drivers

• TAVR (SAPIEN family) — Q2 2026 TAVR sales were $1.26 billion, up 11.3% reported and 10.5% constant currency, making it by far the largest product group at roughly 72% of the $1.74 billion quarterly total. Growth came from procedural volume, the Q2 2025 exit of a competitor, and long-term SAPIEN durability data, with average selling prices stable globally.
• TMTT (transcatheter mitral and tricuspid) — Q2 2026 TMTT sales were $195.9 million, roughly 11% of quarterly revenue, described as driven by a portfolio of repair and replacement therapies including PASCAL, EVOQUE and SAPIEN M3. Full-year 2026 TMTT guidance was raised to $760-$780 million.
• Surgical Structural Heart — Surgical tissue valves, annuloplasty rings and related products; cited by the CEO as one of the therapies contributing growth in the quarter alongside TAVR, mitral and tricuspid. No separate surgical sales figure was given in the excerpts provided.
• Regional mix — Edwards reported similar TAVR growth rates in the U.S. and outside the U.S. in Q2 2026, with strong SAPIEN adoption in Europe, growth in Japan from SAPIEN 3 Ultra RESILIA, and U.S. competitive position up modestly year-over-year.

Recent performance

Q2 2026 sales were $1.74 billion, up 13.6% reported and 12.5% in constant currency, above what management described as expected. TAVR sales were $1.26 billion and TMTT sales were $195.9 million. Q2 EPS was $0.42 and adjusted EPS was $0.78. Revenue has risen sequentially across the last four quarters from $1.55 billion (Q3 2025) to $1.74 billion (Q2 2026). Full-year 2025 revenue was $6.07 billion with net income of $1.07 billion and diluted EPS of $1.83.

Strategy

Edwards describes itself as investing in new structural heart therapies and expanding global adoption across TAVR, mitral, tricuspid and surgical platforms. Management points to clinical evidence as the adoption lever, citing 7-year PARTNER 3 data and 5-year EARLY TAVR results presented at New York Valves as support for treating aortic stenosis earlier. The CEO stated a target of roughly 10% total company sales growth on average over the longer term, supported by multiple platforms across multiple regions. Near-term catalysts cited include PROGRESS and CLASP IITR clinical presentations at TCT and expected Q4 approvals of a PASCAL tricuspid indication in the U.S. and next-generation PASCAL with Capture Clarity in the U.S. and Europe.

Risks

• TAVR concentration — TAVR was about 72% of Q2 2026 sales, so any slowdown in aortic stenosis procedure growth or SAPIEN share loss would disproportionately affect total company results.
• Clinical trial and approval outcomes — The company's own risk factors cite unsuccessful clinical trials or procedures; PROGRESS results and the expected Q4 PASCAL tricuspid and next-generation PASCAL approvals are pending.
• Reimbursement dependence — Edwards lists inability to obtain governmental reimbursement or reductions in reimbursement levels as a risk, and CMS's reconsideration of the TAVR National Coverage Determination with a September final decision memo is a live example.
• Competition and manufacturing/supply execution — The company cites competition as well as manufacturing, logistics or quality problems among its principal risks, in a market where some recent growth was aided by a competitor's Q2 2025 exit.

Outlook

Management raised 2026 total company constant currency sales growth guidance to 10%-11% from 9%-11% and TAVR constant currency growth guidance to 8%-9% from 7%-9%. TMTT sales guidance was raised to $760-$780 million from $740-$780 million, while adjusted EPS guidance of $2.95-$3.05 was reaffirmed, described as 17% growth at the midpoint. Expected clinical presentations at TCT (PROGRESS and CLASP IITR) and Q4 U.S. approval of a PASCAL tricuspid indication are noted as upcoming events.