EW · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Edwards Lifesciences Corp · 2026-08-04 · Importance 25 · Surprise 14

Gross profit increased in both the three and six months ended June 30, 2026, primarily because of higher sales. Gross margin declined by 0.7 percentage points in the second quarter and 0.5 percentage points for the first six months. Foreign-currency rate fluctuations, including settlement of foreign-currency hedging contracts, caused the reported margin pressure. Lower manufacturing expenses partially offset the currency-related decline.

Key facts

• Gross profit increased in the three and six months ended June 30, 2026 primarily driven by sales growth, but gross profit as a percentage of sales decreased primarily due to foreign currency rate fluctuations partially offset by lower manufacturing expenses. source
• Change in gross profit as a percentage of net sales for the three and six months ended June 30, 2026 was primarily driven by a 0.7 percentage point and 0.5 percentage point negative impact, respectively, from foreign currency rate fluctuations. source