Edwards Lifesciences (Edwards Lifesciences (EW)) shares jumped on Friday after the medical device company delivered second-quarter results that comfortably beat Wall Street's expectations and nudged up its full-year revenue forecast. It's the kind of quarter that makes you wonder why anyone ever doubted the medtech thesis.
The company reported adjusted earnings of $0.78 per share for the quarter, topping the analyst consensus of $0.74. Revenue came in at $1.741 billion, up from $1.53 billion a year ago and ahead of the $1.70 billion estimate. Total sales rose 13.6% year-over-year, or 12.5% on a constant-currency basis. Not bad for a company that's been around for decades.
TAVR and TMTT: The Growth Engines
The star of the show was Edwards' transcatheter heart valve business. Transcatheter Aortic Valve Replacement (TAVR) sales hit $1.3 billion, up 11.3% year-over-year (10.5% in constant currency). The company said procedural growth benefited from sustained clinical momentum and growing evidence supporting earlier treatment of severe aortic stenosis. Growth was similar in the U.S. and international markets, and it also got a tailwind from a competitor's market exit in 2025. When a rival leaves the field, you take the ball and run.
Transcatheter Mitral and Tricuspid Therapies (TMTT) revenue climbed to $195.9 million, supported by continued demand for repair and replacement therapies. Edwards said mitral and tricuspid procedure growth remained in the double digits globally. That's a nice little side business that's becoming a meaningful contributor.
The surgical segment, meanwhile, grew 6.5% to $284 million (5% in constant currency), driven by adoption of the company's RESILIA tissue technologies. It's not as flashy as TAVR, but steady growth is still growth.
Guidance: A Little Higher, Please
Edwards reaffirmed its fiscal 2026 adjusted earnings guidance of $2.95 to $3.05 per share, which brackets the Wall Street consensus of $3.01. The company also raised the low end of its full-year revenue guidance. It now expects revenue of $6.60 billion to $6.90 billion, up from its previous forecast of $6.50 billion to $6.90 billion. The updated range brackets the consensus estimate of $6.745 billion. Edwards also reaffirmed its expectation for 2026 TAVR sales of $4.75 billion to $5.0 billion.
So the message is: we're doing fine, we'll do a little better, and we're not changing our long-term story.
What the Street Thinks
William Blair analyst Brandon Vazquez came out swinging on Friday, reiterating an Outperform rating on the stock. “Overall, the second quarter reaffirmed our bullish thesis on Edwards shares, offering one of the better setups for medtech growth,” Vazquez wrote. He noted that the stock trades at about 26 times projected 2027 earnings, which he sees as reasonable given the growth trajectory and upcoming catalysts in the second half of 2026 and into 2027.
At the time of publication, Edwards shares were up 3.32% at $86.60. The stock has had its ups and downs, but quarters like this remind investors why they got into medtech in the first place.
