Edwards Lifesciences is the leading global structural heart company, and the Q2 2026 print is the cleanest read yet on whether the company can sustain high-teens growth as it diversifies beyond the aortic valve. The company raised its full-year constant currency sales guidance by one point, to a 10 percent to 11 percent range. Adjusted EPS guidance was reaffirmed at 17 percent growth at the midpoint. That is a rare pairing in medtech, a higher growth bar alongside a held EPS line. It comes from a company running a 30 percent adjusted operating margin. The pairing is the story, because it says the growth and the EPS line are both intact at once.
The growth is no longer a single-valve story. TAVR grew 11.3 percent to $1.26 billion. The faster-moving line is TMTT, the mitral and tricuspid portfolio, which jumped 47.3 percent to $195.9 million. PASCAL, EVOQUE, and SAPIEN M3 are each scaling, and the next-generation PASCAL with Capture Clarity is expected to clear the U.S. and Europe in the fourth quarter. CEO Bernard Zovighian framed the shift around a company profile that now spans multiple strategic platforms and multiple regions. The evidence for the thesis sits in the second quarter.
The forward question is whether the tax drag and the open IRS disputes cap the EPS story even as the top line keeps compounding. A California R&D credit write-off pushed the Q2 effective rate to 53.6 percent, and two IRS Notices of Proposed Adjustment for over $1.4 billion in additional U.S. taxable income sit unresolved. The next twelve months resolve on the September CMS NCD decision, the fourth quarter PASCAL approvals, and whether the tax overhang stays non-cash.