Timing note: July 23, 2026 is today, not tomorrow. I treat this as a pre-release preview for Edwards’ 2Q26 earnings call scheduled for July 23, 2026.
Edwards enters 2Q with a favorable fundamental setup but a higher execution bar following a strong 1Q. The core issue is whether the company can demonstrate that the acceleration in TAVR is durable—not merely a favorable first-quarter mix of easier comparisons, foreign exchange, and modest competitive benefits—while keeping TMTT on its path toward $2 billion of revenue in 2030.
The near-term debate is less about whether Edwards grows and more about:
Edwards’ own disclosed 2Q26 outlook is the most important reported benchmark:
| Metric | 2Q26 company outlook | Midpoint | 2Q25 actual | Midpoint YoY change |
|---|---|---|---|---|
| Total sales | $1.66B–$1.74B | $1.70B | $1.53B | ~11% |
| Adjusted EPS | $0.70–$0.76 | $0.73 | $0.67 | ~9% |
The setup calls for a second consecutive double-digit sales-growth quarter at the midpoint. Importantly, the EPS guide implies a sequential decline from 1Q’s $0.78, consistent with management’s prior comments that 1Q profitability benefited from the planned timing of investments rather than representing a new quarterly run rate.
Takeaway: A modest sales/EPS beat may not be sufficient by itself. Investors will likely focus more on segment growth, the magnitude of any full-year guidance change, and management’s confidence in 2H execution.
In 1Q26, Edwards reported:
Following that performance, management raised:
The key caveat is that management explicitly highlighted a tougher year-over-year hurdle in the back half of 2026 after strong 2H25 growth. That makes the 2Q print and outlook particularly important: a strong result would support confidence that the TAVR growth rate is holding above the full-year planning range before comparisons become more difficult.
TAVR represents roughly three-quarters of company sales and will remain the principal driver of the stock reaction.
What worked in 1Q - Broad procedural growth tied to a greater clinical focus on earlier and more proactive management of severe aortic stenosis. - Modest competitive benefit, especially in Europe following a competitor exit. - Stable global pricing. - Stronger growth outside the U.S. than within the U.S.
What investors should watch in 2Q - Whether global TAVR growth sustains a high-single-digit or better underlying pace. - The balance between procedure/market growth and share gains. - U.S. versus international growth, particularly whether Europe remains a tailwind and whether Japan continues to contribute. - Commentary on treatment of asymptomatic severe-AS patients and referral activity. - Any update to the CMS reconsideration of the TAVR National Coverage Determination.
Why the bar is meaningful: In 2Q25, TAVR sales were $1.13B and grew 7.8% constant currency. Edwards now needs to show that the 1Q acceleration was not a one-quarter event and that the SAPIEN franchise’s clinical-evidence advantage is translating to sustained procedure growth.
TMTT is Edwards’ most important incremental growth platform. Management still expects $740M–$780M in FY26 sales, or roughly 35%–45% growth, and continues to target $2B in revenue by 2030.
The portfolio is unusually broad:
Key 2Q questions - How quickly is SAPIEN M3 moving beyond early trial and leading centers? - Is EVOQUE adoption broadening at the expected pace, and are new-center openings supporting procedure growth? - Is PASCAL continuing to gain traction in mitral repair? - Is management still comfortable with the $740M–$780M FY26 target after the first-half run rate? - Does the company provide more color on the contribution from repair versus replacement therapies?
TMTT does not need to match 1Q’s 43% constant-currency growth every quarter to support the full-year framework. But a material deceleration without a clear explanation—such as launch timing, center onboarding, or normal quarter-to-quarter variability—would likely raise questions about the slope toward the 2030 goal.
Surgical grew 5.9% constant currency in 1Q, driven by RESILIA tissue technologies, including INSPIRIS, KONECT, and MITRIS. Edwards’ FY26 framework calls for mid-single-digit growth.
The segment is unlikely to determine the quarter, but sustained mid-single-digit growth would reinforce the company’s claim of a balanced structural-heart portfolio. Investors should also listen for updates on:
The likely market focus after the headline numbers will be the degree of guidance confidence.
Edwards reiterates FY26 guidance after a solid 2Q, emphasizing tougher 2H comparisons, continued investment, and uncertainty around the cadence of TAVR and TMTT launches.
A meaningful 2Q beat—particularly in TAVR—with evidence that procedure momentum remains strong could support another increase to sales and/or EPS guidance. A raise would be especially constructive if driven by underlying growth rather than FX.
Results land within the 2Q range, but TAVR slows materially, TMTT misses expectations, or management retains/increases caution about the second half. Because the business has already produced a strong 1Q and raised guidance, “in-line” may not be enough if the quality of the growth deteriorates.
On profitability, Edwards maintained FY26 gross-margin guidance of 78%–79%, expects R&D to be about 17% of sales, and previously indicated full-year operating margin toward the high end of its original 28%–29% range. The most useful read-through will be whether the company still sees approximately 150 bps of constant-currency operating-margin expansion in 2026 despite product-launch and manufacturing investments.
Management has described the CMS TAVR coverage reconsideration as a potentially important long-term access catalyst. The key issue is whether a revised framework can improve timely patient access while maintaining appropriate heart-team oversight. Any update on timing or the substance of the evolving coverage framework could matter more to the long-term thesis than one quarter’s revenue variance.
Edwards expects results from the PROGRESS trial in moderate aortic stenosis to be presented at TCT later in 2026. The company has not previewed results. While it is not a 2Q earnings catalyst, investors will look for confirmation of presentation timing and any indication that the study remains on track.
This will be the first earnings period following the CFO transition announced in May. Theodora (“Doretta”) Mistras succeeded long-serving CFO Scott Ullem at the end of May, after serving as CFO of Viatris and previously working in healthcare investment banking.
The call is worth watching for any evolution in messaging around:
Edwards ended 1Q with approximately $2.4B in cash, about $600M in debt, and roughly $1.5B remaining under its repurchase authorization after completing a $500M accelerated share repurchase.
EW closed at $84.39 on July 22. The shares are down approximately 11.3% from their July 6 closing high of $95.18 and about 1.1% year to date versus the January 2 close of $85.33.
That pullback could reduce some near-term expectations, but it does not eliminate the need for a high-quality print. The stock’s reaction is likely to depend on whether Edwards can validate three messages simultaneously:
The 2Q26 report is primarily a durability test for Edwards’ growth reacceleration. A positive quarter would feature solidly double-digit total-sales growth, TAVR growth that remains at least in the high-single digits on an underlying basis, continued TMTT scale-up, and maintained or improved FY26 guidance. The most constructive outcome would be a guide raise supported by procedure growth and durable commercial execution rather than currency or isolated share effects.
The principal risks are a sharper-than-expected TAVR deceleration, uneven TMTT launch execution, margin pressure from investment phasing, or a cautious outlook that highlights the tougher 2H26 comparison base.
Research basis: Edwards 1Q26 earnings release and call (April 23, 2026); 2Q25 earnings release (July 24, 2025); BofA Healthcare Conference remarks (May 12, 2026); CFO appointment filing (May 4, 2026); and EW historical-price data through July 22, 2026.