Edwards finds another growth engine in mitral and tricuspid therapies

Edwards Lifesciences Corporation (NYSE:EW) has raised its full-year 2026 targets after quarterly sales growth exceeded expectations, with its newer mitral and tricuspid therapies expanding at a far faster rate than its established aortic-valve franchise. Sales rose 10.5% to US$1.72 billion in the third quarter, or 11.2% on a constant-currency basis, while adjusted earnings per share increased 19% to US$0.80.

Full-Year Guidance Moves Higher

Edwards now expects total 2026 sales growth of approximately 11.5%, up from its previous 10% to 11% range. TAVR growth guidance has moved to 9% to 9.5% from 8% to 9%, TMTT revenue guidance to US$780 million to US$790 million from US$760 million to US$780 million, and adjusted EPS to US$2.97 to US$3.05 from US$2.95 to US$3.05.

The company’s fourth-quarter projection calls for sales between US$1.67 billion and US$1.75 billion and adjusted EPS of US$0.61 to US$0.69. Edwards said future TAVR expansion is expected to rely more heavily on procedure volumes and less on further market-share gains, an important qualification to the upgraded outlook.

TMTT Becomes the Fastest-Growing Franchise

Transcatheter mitral and tricuspid therapies were the standout performer. TMTT sales increased 44.0% to approximately US$207 million, or 45.6% in constant currency, as the PASCAL, EVOQUE and SAPIEN M3 systems continued to move through their adoption curves. The company said global mitral and tricuspid procedure volumes were growing at double-digit rates.

Recent regulatory progress gives the portfolio more room to expand. US approval for PASCAL Precision in tricuspid regurgitation and PASCAL Ace with Capture Clarity in degenerative mitral procedures broaden the platform’s reach, while EVOQUE approvals for transjugular access address patients with complex femoral access. Those statements describe product and regulatory milestones; the release does not quantify how much future revenue each approval might generate.

TAVR Growth Holds While Surgical Lags

TAVR sales rose 8.0% to US$1.24 billion, with similar growth in the United States and international markets. Edwards cited procedure growth, clinical evidence supporting earlier intervention and adoption of its SAPIEN 3 Ultra RESILIA platform. The updated US national coverage determination for TAVR was described by the company as an important step towards broader access, while new reimbursement for the platform in Japan supported that market’s quarterly performance.

Surgical revenue was more subdued, rising 2.5% to US$264 million. Growth came from the RESILIA tissue portfolio, while the newly approved AUTUS paediatric pulmonary valve and the measured US rollout of ECLIPTIS add potential products to a division the company still expects to grow at a mid-single-digit rate in 2026.

Strong Adjusted Results Mask a Heavy GAAP Charge

The quarter’s US$0.80 adjusted EPS came alongside GAAP diluted EPS of US$0.53. Edwards recorded a US$220.2 million impairment charge tied to an in-process research and development asset and fixed assets acquired in an acquisition. The charge helps explain the wide gap between the two earnings measures and is material even though management excludes it from adjusted performance.

GAAP operating margin was 17.4%, compared with an adjusted 30.3%, while gross margin was 78.5%, or 78.7% adjusted. Cash and equivalents stood at approximately US$3.1 billion at September 30, against US$600 million of debt. The company had repurchased about US$700 million of stock through the first nine months, with roughly US$1.3 billion remaining under its authorisation.