Edwards Lifesciences is a cash-rich structural-heart leader with 13.6% Q2 growth and TMTT optionality, but its premium valuation depends on clinical expansion and continued TAVR dominance.
Overview
Edwards Lifesciences is a global structural-heart specialist that completed the $4.2 billion sale of Critical Care to Becton, Dickinson on September 3, 2024, leaving a focused pure-play platform spanning TAVR, TMTT and Surgical Structural Heart. **TAVR remains the earnings base**, with Q2 2026 sales of $1.2583 billion, or 72.3% of continuing revenue, while TMTT provides the growth leg: sales rose 47.3% to $195.9 million. Q2 continuing-operations revenue was $1.741 billion, up 13.6% reported and 12.5% constant currency, beating consensus by $40 million; adjusted diluted EPS of $0.78 beat by $0.04. GAAP gross margin was 77.5% and adjusted operating margin 30.0%. Management raised 2026 constant-currency sales growth guidance to 10%–11%, increased revenue guidance to $6.6–$6.9 billion, and maintained adjusted EPS guidance of $2.95–$3.05. At approximately $89.95, valuation is demanding at 30.0x forward P/E and approximately 7.8x forward EV/Sales versus a 4.0x medical-device P/S average, but is supported by net cash of approximately $2.3 billion, market leadership and upcoming PROGRESS and Medicare catalysts.