Report date: Thursday, July 23, 2026, after market close | Call: 2026Q2 Earnings Call
Edwards shares have had a volatile run into this report. The stock rallied from the high-$70s in April to an all-time-ish high near $95 in early July on the back of a strong Q1 beat-and-raise, before pulling back roughly 11% to the mid-$80s over the past two weeks amid a broader medtech/TAVR-sector wobble (Medtronic's stock fell sharply on "TAVR headwinds" commentary from sell-side) and an FTC antitrust penalty headline on Edwards' 2024 JC Medical deal. Sentiment remains constructive: consensus is a "Moderate Buy" with an average price target around $97-98, well above the current ~$84 level.
Consensus for Q2 2026: - Revenue: ~$1.70–1.75 billion (guidance range $1.66–1.74B) - Adjusted EPS: ~$0.73–0.76 (guidance range $0.70–0.76) - Full-year 2026: Revenue guide of $6.5–6.9B (9–11% growth), adjusted EPS guide of $2.95–3.05
Edwards delivered a decisive beat-and-raise in Q1. Edwards delivered another strong quarter in Q1, achieving 12.7% sales growth, which reflects the impact and durability of its differentiated strategy. Based on first quarter outperformance, the company raised its full year 2026 sales growth guidance to 9% to 11% and adjusted EPS guidance to $2.95 to $3.05, demonstrating solid earnings leverage.
Importantly, management flagged that the comp gets tougher from here: the first quarter of 2025 was a lower growth rate quarter, and 2025 results set a higher bar for 2026, especially in the second half. That dynamic makes Q2/H2 2026 the real test of durability rather than easy comps.
TAVR (~72% of sales): TAVR first quarter global sales of $1.2 billion increased 11% over the prior year, with procedural growth benefiting from a heightened clinical focus on proactive disease management of severe AS, along with long-term evidence demonstrating the proven durability and valve performance of the SAPIEN platform. Management raised full-year TAVR growth guidance to 7-9%. Key debate points for Q2: - Competitive dynamics: A competitor's long-term Evolut durability data surfaced in mid-February and generated significant investor questions; management characterized the impact as difficult to isolate from the broader tailwind of Edwards' own 7-year PARTNER 3 and 10-year PARTNER II data and the "EARLY TAVR" push toward earlier intervention, noting only a modest U.S. share benefit and a larger European share gain tied to a competitor's exit. - CMS National Coverage Determination: CMS released its proposed TAVR NCD in mid-June 2026 — a potentially significant structural tailwind. The proposal would end Coverage with Evidence Development (CED) for symptomatic severe AS (making it ordinary covered care), expand CED to asymptomatic severe AS, and remove the requirement for both an interventional cardiologist and cardiac surgeon to perform the procedure, easing heart-team logistics. Final decision is expected around September 2026 — after this print, but management commentary on the process (and any comment-period developments) will be closely watched. - PROGRESS trial (moderate AS): Baseline data were presented at New York Valves 2026 in late June; full results are expected at TCT later this year — a major longer-term catalyst, not a Q2 event, but likely to be discussed on the call. - SAPIEN X4: Confirmatory clinical work continues through 2026 following a design enhancement decision; no near-term revenue contribution expected.
TMTT (mitral/tricuspid): This is the fastest-growing and most closely watched segment. Mitral and tricuspid therapies drove first quarter sales of $173 million, an increase of approximately 42% year-over-year, with mitral and tricuspid procedural growth globally in the double digits. Company guided to $740 million to $780 million in TMTT sales in 2026, representing 35% to 45% growth, and reiterated a path towards $2 billion of revenue in 2030 and additional growth beyond. Watch for early commercial traction updates on SAPIEN M3 (mitral replacement), continued EVOQUE (tricuspid replacement) scaling, and timing on next-gen PASCAL and the U.S. PASCAL tricuspid launch expected in Q4 2026.
Surgical: Steady mid-single-digit growth story built on the RESILIA tissue platform (INSPIRIS, KONECT, MITRIS), with TRIFORMIS (surgical tricuspid valve) launch still expected in H2 2026 and a surgical left atrial appendage closure program slated for preliminary introduction later this year.
Edwards guided to full-year gross margin of 78-79%, R&D at ~17% of sales, and operating margin at the high end of the original 28-29% range (~150bps of constant-currency margin expansion for 2026). The company completed a $500 million accelerated share repurchase in Q1 and has roughly $1.5 billion left on its buyback authorization, with share count guided to 575-580 million for the year. Watch for commentary on Pillar Two tax implications (16-19% guided tax rate) and FX, which added a modest tailwind in Q1.
This will be the first earnings call for new CFO Theodora "Doretta" Mistras, who joined from Viatris and formally started at the end of May 2026, succeeding long-tenured CFO Scott Ullem (in the role since 2014). Continuity in guidance philosophy ("realistic guidance," conservative first-quarter framing) will be worth monitoring as the new CFO puts her stamp on commentary and capital allocation priorities.
Two overhangs are worth flagging, though neither is expected to be a Q2 P&L driver: 1. JenaValve deal blocked: In January 2026, a federal court granted an FTC injunction blocking Edwards' proposed acquisition of JenaValve Technology (targeting aortic regurgitation). Edwards is now pursuing AR organically via its SOJOURN transcatheter valve and JOURNEY pivotal trial. 2. FTC penalty on JC Medical deal: Edwards agreed to pay a $10 million penalty to settle FTC charges that it failed to comply with Hart-Scott-Rodino antitrust waiting-period requirements in its 2024 acquisition of JC Medical from Genesis MedTech — a modest financial item but a reminder of elevated antitrust scrutiny on Edwards' bolt-on M&A strategy.
Heading into Thursday's print, the setup is: strong fundamental momentum (TAVR reacceleration, TMTT scaling fast, raised FY26 guide already in the market), a valuation that reflects high expectations (~45x P/E, price targets averaging ~$97-98 vs. ~$84 current), and a stock that has already given back a chunk of its 2026 gains on sector-wide TAVR jitters and regulatory headline risk. The key swing factors for the quarter are: (1) whether TAVR growth continues to track toward the 7-9% full-year guide despite tougher year-over-year comps in H2; (2) TMTT's trajectory toward the $740-780M full-year target and early SAPIEN M3 read-through; (3) any incremental color on the CMS NCD process and PROGRESS trial timing; and (4) new CFO Mistras' first public commentary on guidance cadence and capital deployment.