Edwards Lifesciences Q1 Earnings Call Highlights

Key Points

• Edwards reported Q1 sales of $1.65 billion (up 12.7% YoY), beat expectations and raised 2026 revenue growth guidance to 9%–11%, increasing its TAVR sales outlook to 7%–9% with expected TAVR sales of $4.7–$5.0 billion.
• Growth was led by TAVR—global sales of $1.2 billion (+11%) supported by long‑term PARTNER and EARLY TAVR data driving earlier treatment—while transcatheter mitral and tricuspid therapies (TMTT) jumped ~42% to $173 million and remain on track for $740–$780 million in 2026.
• Profitability stayed strong with adjusted EPS of $0.78 and adjusted gross margin around 78%, and management expects operating‑margin expansion in 2026 despite higher SG&A and continued R&D spending (~17% of sales guidance).

Edwards Lifesciences NYSE: EW reported first-quarter 2026 results that management said came in ahead of expectations, driven by broad-based growth across product groups and geographies. The company posted total sales of $1.65 billion, up 12.7% year-over-year, and raised its full-year outlook for both revenue growth and adjusted earnings per share.

Q1 sales growth led by TAVR and fast-growing TMTT

CEO Bernard Zovighian said the quarter reflected “the impact and durability of our differentiated strategy” centered on structural heart disease. Edwards’ largest business, transcatheter aortic valve replacement (TAVR), generated global sales of $1.2 billion, an 11% increase over the prior year. Zovighian attributed growth to “a heightened clinical focus on proactive disease management of severe” aortic stenosis, as well as long-term evidence supporting the durability and performance of the company’s SAPIEN platform.

He cited seven-year PARTNER 3 data and 10-year PARTNER 2 data as reinforcing durability, and said results from the EARLY TAVR trial are “resonating with the clinical community,” supporting a shift away from “watchful waiting” toward earlier evaluation and referral for severe aortic stenosis, including asymptomatic patients.

Edwards’ transcatheter mitral and tricuspid therapies (TMTT) business recorded first-quarter sales of $173 million, up approximately 42% year-over-year. Zovighian said the company believes mitral and tricuspid procedural growth globally was in the double digits. Surgical heart valve therapies produced first-quarter sales of $276 million, a 6% increase, which Zovighian said was driven by continued adoption of RESILIA tissue technologies.

Guidance raised after Q1 outperformance

CFO Scott Ullem said the company raised its full-year 2026 total sales growth guidance to 9%–11% from 8%–10%, and increased its TAVR sales growth outlook to 7%–9% from 6%–8%. At current exchange rates, Edwards now expects total company sales of $6.5 billion to $6.9 billion and TAVR sales of $4.7 billion to $5.0 billion.

Ullem said the first quarter of 2025 represented a lower-growth comparison and noted that results in the back half of 2025 “set a higher bar for 2026, especially in the second half.” Zovighian also pointed to those comparisons when discussing the size of the guidance increase, emphasizing that Edwards aims to provide “very realistic guidance based on what we know” at the time it is issued.

Edwards maintained its 2026 TMTT sales outlook of $740 million to $780 million (35%–45% growth), and reiterated expectations for mid-single-digit surgical growth for the year.

Profitability, spending priorities, and Q2 outlook

Adjusted EPS in the quarter was $0.78, while GAAP EPS was $0.66. Ullem said adjusted EPS benefited from “solid operational performance and planned phasing of strategic investments during the course of this year.”

Adjusted gross margin was 78.2% versus 78.7% a year ago, which Ullem attributed to a weakening dollar and additional manufacturing expenses tied to expansion of new therapies. The company maintained full-year gross margin guidance of 78%–79%.

SG&A expense rose to $522 million (31.7% of sales) from $466 million last year, reflecting “continued funding of resources we provide to support patient care” and foreign exchange translation effects, Ullem said. R&D spending was $263 million (16% of sales), up from $255 million but lower as a percentage of sales due to stronger revenue growth and “strategic prioritization of investments in our expanding structural heart portfolio.” Edwards reiterated expectations for 2026 R&D at approximately 17% of sales.

Adjusted operating margin was 31.4% in Q1. Ullem said the company expects full-year operating margin to come in at the high end of its prior 28%–29% guidance, implying about 150 basis points of constant-currency operating margin expansion for 2026. For the second quarter, Edwards projected sales of $1.66 billion to $1.74 billion and adjusted EPS of $0.70 to $0.76.

Competitive dynamics and clinical evidence in focus

During Q&A, analysts asked about industry attention on longer-term performance data from a competitor’s valve and potential implications for “lifetime management” and device selection. Zovighian emphasized Edwards’ own evidence base, pointing to EARLY TAVR and the long-term PARTNER datasets, saying these results “gave extra confidence” to physicians. TAVR leader Dan Lippis said it was “really difficult to parse out exactly what is contributing to what” given the timing and partial nature of competitive data, but added that the “totality of data” over the last year is contributing to earlier treatment trends.

On regional and share dynamics, Zovighian said Edwards’ global competitive position “increased slightly year-over-year,” primarily due to the exit of a competitor in Europe. He also said the company saw “a slight benefit” in the U.S. from a share standpoint, while stressing that most of the performance was driven by market growth rather than share gains.

Edwards also discussed regulatory developments affecting U.S. access. Zovighian said the company is “pleased” that CMS is reconsidering the national coverage determination (NCD) for TAVR. Management noted the initial 30-day public comment period closed Jan. 14 and said it is looking to the next step, including a drafted decision memo expected by June 15. Zovighian added it is “very tough to predict” the final NCD outcome.

TMTT momentum: EVOQUE, PASCAL, and early M3 rollout

Management highlighted several TMTT drivers. Zovighian referenced two-year TRISCEND II data presented at ACC showing significantly lower all-cause mortality with EVOQUE versus medical treatment “when accounting for patient crossover,” along with sustained tricuspid regurgitation (TR) reduction and improved health status without added device-related risk.

Daveen Chopra, who leads global responsibility for TMTT, said adoption of PASCAL continues to increase due to physician enthusiasm for its design and outcomes. Edwards expects next-generation PASCAL technology in the fourth quarter for both mitral and tricuspid in the U.S. and Europe, and expects a U.S. launch of PASCAL for tricuspid patients in Q4.

Chopra also addressed the early U.S. commercialization of SAPIEN M3, describing physician excitement and positioning it for patients who may have suboptimal outcomes with TEER or surgery. He said the rollout is still early, beginning with centers involved in clinical trials before expanding to additional large mitral centers, noting the launch is “only a quarter into” commercialization and therefore limited to a smaller number of sites so far.

On procedure capacity in hospitals, management said capacity has not been an acute issue in recent quarters. Zovighian said health systems have improved processes and staffing to manage demand, while Chopra and Lippis described centers adding lab time and shifts to accommodate new therapies without displacing TAVR.

Edwards said it will host its annual investor conference on Friday, Dec. 4, at the New York Stock Exchange.

About Edwards Lifesciences NYSE: EW

Edwards Lifesciences is a medical technology company focused on products and therapies for structural heart disease and critical care monitoring. The company designs, develops and manufactures prosthetic heart valves and related delivery systems used in both surgical and minimally invasive (transcatheter) procedures. Its portfolio addresses a range of valvular conditions, with an emphasis on technologies that enable transcatheter aortic valve replacement (TAVR) as an alternative to open-heart surgery.

In addition to transcatheter heart valves—including the widely recognized SAPIEN family—Edwards offers surgical tissue valves and ancillary devices used by cardiac surgeons, interventional cardiologists and hospital teams.

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