EW · 8-K · 20261104PR000053

Income Tax Rate Changes

Edwards Lifesciences Corp · 2026-11-04 · Importance 78 · Surprise 100 · In source text

The effective tax rate for the first nine months of 2026 was 31.2%, compared with 16.1% in the same period of 2025. Edwards recorded a $174.4 million valuation allowance against deferred tax assets following California legislation enacted June 29, 2026, limiting use of most business tax credits, including R&D credit carryovers. The company expected its 2026 effective tax rate, excluding special items, at the high end of its prior 16% to 19% range, partly because it did not expect Pillar Two side-by-side safe-harbor legislation to take effect before year-end.

Key facts

• California budget legislation enacted June 29, 2026 imposed a new permanent limitation on most business tax credits, including R&D credit carryovers; Edwards Lifesciences recorded a $174.4 million valuation allowance against certain deferred tax assets in 2026. source
• Edwards Lifesciences expected its 2026 effective tax rate, excluding special items, to be at the high end of its previous 16% to 19% range. source
• Edwards Lifesciences' tax-rate outlook reflected an expectation that side-by-side safe-harbor taxation legislation related to Pillar Two would not take effect before the end of 2026. source
• Edwards Lifesciences' tax rate was also affected by California law changes restricting the use of R&D credits. source

Impact estimates