EW — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop · AI-drafted from the SEC filing
Edwards grew Q2 2026 sales 13.6% to $1.74B (12.5% in constant currency) on TAVR and a 48% jump in mitral/tricuspid therapies, but GAAP EPS fell to $0.42 on a $188M California tax charge; adjusted EPS rose to $0.78 and sales guidance was raised.
- Revenue
- $1.7B
- +13.6% YoY
- Net income
- $241M
- -28.1% YoY
- Diluted EPS
- $0.42
- -26.3% YoY
- Operating margin
- 29.5%
What happened
Edwards Lifesciences, which makes replacement heart valves delivered by catheter and by open-heart surgery, grew second-quarter 2026 sales 13.6% to $1,741.0 million from $1,532.2 million. Every product group and every region grew. Operating income (profit from running the business, before interest, investment items and tax) rose 24.8% to $513.2 million.
GAAP earnings per share, the official accounting figure, still fell to $0.42 from $0.57. That drop comes from a tax charge, not from the business. On June 29, 2026 California passed a budget law that permanently limits how much companies can use business tax credits, including research-and-development credits they have saved up from earlier years. Edwards concluded it can no longer expect to use its California R&D credit carryforward, so it wrote down $188.2 million of deferred tax assets (tax savings it had booked for future years) in the quarter. That lifted the effective tax rate to 53.6% from 16.1%. The company's earnings release (Exhibit 99.1 to its July 23 8-K) puts the charge at $0.33 per share. Adjusted EPS, which excludes that charge and other items listed below, rose 16.4% to $0.78 from $0.67.
All figures below are for continuing operations. Critical Care, sold to Becton, Dickinson in September 2024, and a smaller non-core product group sold in December 2025 are reported as discontinued operations. They cost $4.4 million after tax in Q2 2025 and nothing in Q2 2026. Edwards still earns fees for helping BD during the handover: $11.5 million of transition-services income in the quarter, booked in other operating income.
Key figures
| Metric | Q2 2026 | Q2 2025 | YoY Change |
|---|---|---|---|
| Net sales | $1,741.0M | $1,532.2M | +13.6% |
| Constant-currency sales growth* |
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