Key Highlights

  • Net sales were USD 1,715.5 million against an estimate of USD 1.68 billion and USD 1,553.1 million last year.
  • EPS was USD 0.80 against an estimate of USD 0.74, while GAAP diluted EPS was USD 0.53 against USD 0.50.
  • Transcatheter Mitral and Tricuspid Therapies sales were USD 209.5 million against USD 145.2 million, up 44.3%.
  • The company recorded a USD 220.2 million impairment, mainly of an in-process Research and Development asset.

Edwards Lifesciences (NYSE:EW) reported third quarter net sales of USD 1,715.5 million, against USD 1,553.1 million a year earlier and an estimate of USD 1.68 billion. EPS was USD 0.80 against an estimate of USD 0.74. GAAP Diluted Earnings per Share from continuing operations were USD 0.53, compared with USD 0.50 in the third quarter of 2025.

Revenue by Product and Region

The company stated that net sales increased 10.5%. Transcatheter Aortic Valve Replacement (TAVR) sales were USD 1,241.6 million against USD 1,149.9 million, up 8.0%, which the company linked to higher sales of the SAPIEN platform, mainly the SAPIEN 3 Ultra RESILIA valve in the United States, Europe and Japan. Transcatheter Mitral and Tricuspid Therapies (TMTT) sales were USD 209.5 million against USD 145.2 million, driven by the PASCAL repair system, EVOQUE tricuspid valve replacement system and SAPIEN M3 mitral valve system. Surgical sales were USD 264.4 million against USD 258.0 million.

By region, United States sales were USD 1,007.6 million against USD 907.5 million, Europe was USD 414.6 million against USD 387.9 million, Japan was USD 92.0 million against USD 90.1 million and Rest of World was USD 201.3 million against USD 167.6 million.

Profit and Margins

Gross profit was USD 1,346.3 million against USD 1,207.9 million. Selling, general and administrative expenses were USD 560.9 million against USD 514.6 million.

Two items moved operating income. The company recognized an Impairment of USD 220.2 million, primarily the full impairment of an in-process research and development asset, and a net insurance recovery of USD 12.7 million in litigation, against litigation expenses of USD 90.4 million a year earlier. Operating Income was USD 299.1 million against USD 307.1 million. Net Income attributable to the company was USD 307.5 million against USD 291.1 million, and the effective tax rate was 17.0% against 16.1%.

For the nine months, GAAP diluted EPS was USD 1.61 against USD 1.67. Management attributed the decrease to higher tax expense, including a USD 174.4 million valuation allowance tied to California budget legislation, and certain impairment charges.

Cash, Balance Sheet and Tax Matters

Cash and cash equivalents and short-term investments held in the United States were USD 4.1 billion, with USD 511.0 million held outside the United States. A USD 750.0 million revolving Credit Facility had no amounts outstanding and matures July 15, 2027.

Operating cash flow for the nine months was USD 1,266.0 million. The company repurchased 8.5 million shares for USD 696.6 million in the period, including a USD 500.0 million accelerated share repurchase, and had authority for about USD 1.3 billion more.

The company also described IRS actions for the 2018 through 2020 tax years, including a Revenue Agent Report issued in early October, and said it believes the adjustments overstate its potential tax liability. It was granted an extension until November 20, 2026 to submit its protest.

What Management Pointed To

Net sales of USD 1,715.5 million sit alongside GAAP diluted EPS of USD 0.53, Operating Cash Flow of USD 1,266.0 million for nine months and remaining repurchase authority of about USD 1.3 billion.

Management named the November 20 protest deadline with the IRS and said it intends to pursue available remedies on unagreed issues. It also cited recent regulatory milestones, including the October FDA approval for the PASCAL Precision System for tricuspid repair and the October approval of the AUTUS Size-Adjustable Valve, and the July 2027 Maturity of its credit agreement. For 2026, it described additional Pillar Two tax expense of approximately USD 45.0 million before offsets.