Financial Analysis

10. BUSINESS COMBINATIONS Innovalve Bio Medical Ltd. On October 1, 2024, the Company acquired all the remaining outstanding shares of Innovalve Bio Medical Ltd. (Innovalve). Innovalve is a developer of a minimally-invasive, catheterization-based procedure, to perform replacement of the mitral valve. The acquisition was completed primarily to expand the Company's transcatheter mitral valve replacement technologies to address large unmet structural heart patient needs and support sustainable long-term growth. Prior to the acquisition date, the Company had previously paid $30.0 million for an option to acquire Innovalve, which was historically recorded in Other Assets using the measurement alternative for fair value, and had an existing preferred stock investment in Innovalve of $3.5 million, which represented an ownership interest in Innovalve of approximately 4% (collectively, the previously held equity interest in Innovalve). In July 2024, the Company exercised its option to acquire the remaining equity interest in Innovalve, which was accounted for as a step acquisition at the time of closing in accordance with authoritative guidance on accounting for business combinations. Accordingly, the Company allocated the purchase price of the acquired company to the net tangible assets and intangible assets acquired based upon their preliminary estimated fair values. The Company remeasured the previously held equity interest in Innovalve to its fair value based upon a valuation of th …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

20. COMMITMENTS AND CONTINGENCIES Legal Proceedings On September 28, 2021, Aortic Innovations LLC, a non-practicing entity (Plaintiff), filed a lawsuit against Edwards Lifesciences Corporation and certain of its subsidiaries (Edwards) in the United States District Court for the District of Delaware alleging that Edwards SAPIEN 3 Ultra product infringes certain of its patents. Edwards obtained a judgment of non-infringement, which Plaintiff appealed, and argument was held before the U.S. Court of Appeals for the Federal Circuit on June 2, 2025. On October 27, 2025, the Federal Circuit affirmed the district courts claim construction in favor of the Company. Plaintiffs remaining claims were reassigned to Judge Noreika (Case No. 23-cv-00158) on June 18, 2025 and are proceeding with a trial scheduled to begin on March 23, 2026. The Company cannot predict the outcome of the litigation or the potential impact on its financial statements. The Company is vigorously defending itself in this litigation. On January 14, 2026, Cardiovalve, Ltd. and MTH IP, L.P. filed a lawsuit against Edwards Lifesciences Corporation and one of its subsidiaries in the United States District Court for the District of Delaware alleging that the Companys PASCAL products infringe their patent. The complaint seeks damages and a permanent injunction. The Company cannot predict the outcome of the litigation or the potential impact on its financial statements. The Company intends to vigorously defend itself in thi …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

12. DEBT AND CREDIT FACILITIES In June 2018, the Company issued $600.0 million of fixed-rate unsecured senior notes (the Notes) due June 15, 2028. Interest is payable semi-annually in arrears, with payments due in June and December of each year. The Company may redeem the Notes, in whole or in part, at any time and from time to time at specified redemption prices. In addition, upon the occurrence of certain change of control triggering events, the Company may be required to repurchase all or a portion of the Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest. The Notes also include covenants that limit the Company's ability to incur secured indebtedness, enter into sale and leaseback transactions, and consolidate, merge, or transfer all or substantially all of its assets. The following is a summary of the Notes as of December 31, 2025 and 2024 (in millions, except for percentages): December 31, 2025 2024 Amount Effective Interest Rate Amount Effective Interest Rate Fixed-rate 4.3% Notes $ 600.0 4.329 % $ 600.0 4.329 % Unamortized discount (0.4) (0.5) Unamortized debt issuance costs (1.3) (1.8) Total carrying amount $ 598.3 $ 597.7 As of December 31, 2025 and 2024, the fair value of the Notes was $604.0 million and $587.5 million, respectively, based on observable market prices in less active markets and categorized as Level 2. For further information, see Note 13. The debt issuance costs, as well as the discount, are being amortized to …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

13. FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company prioritizes the inputs used to determine fair values in one of the following three categories: Level 1Quoted market prices in active markets for identical assets or liabilities. Level 2Inputs, other than quoted prices in active markets, that are observable, either directly or indirectly. Level 3Unobservable inputs that are not corroborated by market data. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The consolidated financial statements include financial instruments for which the fair market value of such instruments may differ from amounts reflected on a historical cost basis. Financial instruments of the Company consist of cash deposits, accounts and other receivables, investments, accounts payable, certain accrued liabilities, and borrowings under a revolving credit agreement. The carrying value of these financial instruments generally approximates fair value due to their short-term nature. Financial instruments also include notes payable. For further information on the fair …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

11. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and in-process research and development assets resulting from business combinations are not subject to amortization. Other acquired intangible assets with finite lives are amortized over their expected useful lives on a straight-line basis, or if reliably determinable, based on the pattern in which the economic benefit of the asset is expected to be used. The Company expenses costs incurred to renew or extend the term of acquired intangible assets. The changes in the carrying amount of goodwill, by segment, during the years ended December 31, 2025 and 2024 were as follows (in millions): United States Europe Rest of World Total Goodwill at December 31, 2023 $ 710.7 $ 58.2 $ 376.2 $ 1,145.1 Goodwill acquired during the year (Note 10) 429.2 205.4 634.6 Currency translation adjustment (3.0) (3.0) Goodwill at December 31, 2024 1,139.9 55.2 581.6 1,776.7 Adjustments to goodwill from acquisition (Note 10) (a) (15.1) (15.1) Currency translation adjustment 7.0 7.0 Goodwill at December 31, 2025 $ 1,124.8 $ 62.2 $ 581.6 $ 1,768.6 ______________________________________ (a) Includes measurement period adjustment related to Endotronix acquisition. For further information, see Note 10. Other intangible assets consist of the following (in millions): December 31, Weighted-Average Useful Life (in years) 2025 2024 Cost Accumulated Amortization Net Carrying Value Cost Accumulated Amortization Net Carrying Value Finite-lived intangible assets Pate …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

19. INCOME TAXES The Company's net income (loss) from continuing operations before provision for income taxes was generated from operations in the United States and outside of the United States as follows (in millions): Years Ended December 31, 2025 2024 2023 United States $ (157.5) $ 265.7 $ 290.1 Outside of the United States, including Puerto Rico 1,430.4 1,282.4 1,082.3 $ 1,272.9 $ 1,548.1 $ 1,372.4 The provision for income taxes consists of the following (in millions): Years Ended December 31, 2025 2024 2023 Current United States: Federal $ 19.3 $ 248.4 $ 291.7 State and local 38.6 40.7 50.1 Outside of the United States, including Puerto Rico 224.8 25.8 53.0 Current income tax expense $ 282.7 $ 314.9 $ 394.8 Deferred United States: Federal $ (16.6) $ (117.8) $ (165.7) State and local (41.5) (31.0) (54.2) Outside of the United States, including Puerto Rico (7.7) (14.0) (22.5) Deferred income tax benefit (65.8) (162.8) (242.4) Total income tax provision $ 216.9 $ 152.1 $ 152.4 The components of deferred tax assets and liabilities are as follows (in millions): December 31, 2025 2024 Deferred tax assets Capitalized research and development expenses $ 604.1 $ 533.8 Compensation and benefits 144.4 123.7 Benefits from uncertain tax positions 162.3 89.6 Net tax credit carryforwards 243.9 289.1 Net operating loss carryforwards 143.5 132.1 Accrued liabilities 181.4 145.2 Inventories 11.1 14.9 Lease liability obligations 4.5 6.5 Other 11.6 7.2 Total deferred tax assets 1,506.8 1,342 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

3. INTELLECTUAL PROPERTY AGREEMENT AND CERTAIN LITIGATION EXPENSES The Company incurred intellectual property litigation expenses, settlements, and external legal costs of $325.4 million, $40.4 million and $203.5 million during 2025, 2024 and 2023, respectively. For further information, see Note 9 and Note 20. On April 12, 2023, Edwards entered into an intellectual property agreement (the Intellectual Property Agreement) with Medtronic, Inc. (Medtronic) pursuant to which the parties agreed to a 15-year global covenant not to sue (CNS) for infringement of certain patents in the structural heart space owned or controlled by each other. In consideration for the global CNS and related mutual access to certain intellectual property rights, Edwards paid to Medtronic a one-time, lump sum payment of $300.0 million and is making annual royalty payments that are tied to net sales of certain Edwards products. Based upon the terms of the Intellectual Property Agreement, the Company identified the relevant elements for accounting purposes and allocated the $300.0 million upfront payment based on their respective fair values. The Company recorded a $37.0 million pre-tax charge in Certain Litigation Expenses in March 2023 primarily related to prior commercial sales incurred through March 31, 2023. The Company recorded a prepaid royalty asset of $124.0 million in April 2023 related to future commercial sales, which is amortized to expense over the term of the Intellectual Property Agreement. …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

7. LEASES The Company leases certain office space, manufacturing facilities, land, apartments, warehouses, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 21 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended December 31, 2025, 2024, and 2023 were $29.3 million, $28.1 million, and $26.9 million, respectively. Short-term and variable lease costs were not material for the years ended December 31, 2025, 2024, and 2023. Supplemental balance sheet information related to operating leases was as follows (in millions, except lease term and discount rate): As of December 31, 2025 2024 Operating lease right-of-use assets $ 102.7 $ 98.2 Operating lease liabilities, current portion $ 24.5 $ 23.4 Operating lease liabilities, long-term portion 82.6 78.9 Total operating lease liabilities $ 107.1 $ 102.3 Maturities of operating lease liabilities at December 31, 2025 were as follows (in millions): 2026 $ 28.3 2027 23.3 2028 18.2 2029 11.3 2030 8.8 Thereafter 41.0 Total lease payments 130.9 Less: imputed interest (23.8) Total lease liabilities $ 107.1 The following table provides information on the lease terms and discount rates: Years Ended December 31, 2025 2024 Weighted-average remaining lease term (in years) 8.1 5.9 Weighted-average discount rate 4.1 % 3.4 % As of December 31, 2025, the Company had additional operating lease commitments of $3.2 million for office spaces that have not yet comm …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09 on income taxes which requires entities to provide additional information in the rate reconciliation and additional disaggregated disclosures about income taxes paid. This guidance requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance was effective for annual periods beginning after December 15, 2024. The Company adopted this guidance for the year ended December 31, 2025 and applied the guidance prospectively. For further information, see Note 19. New Accounting Standards Not Yet Adopted In September 2025, the FASB issued ASU 2025-07 on derivatives and hedging and revenue from contracts with customers. The amendment provides clarity on application of derivative accounting to certain nonexchange-traded contracts with features based on operations or activities of one of the parties to the contract. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within those periods and can be applied on a prospective or modified retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact the guidance will have on its consolidated financial statements. In Sep …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

15. EMPLOYEE BENEFIT PLANS Defined Benefit Plans The Company maintains defined benefit pension plans in Japan and certain European countries. Years Ended December 31, 2025 2024 (in millions) Change in projected benefit obligation: Beginning of year $ 106.7 $ 111.7 Service cost 5.3 5.0 Interest cost 1.7 1.9 Participant contributions 2.0 2.0 Actuarial loss (5.3) 3.6 Benefits paid (1.3) (1.5) Plan amendment 0.7 (0.5) Divestiture (Note 5) (4.4) Settlements and curtailment gain (Note 5) (10.0) (5.4) Currency exchange rate changes and other 12.0 (5.7) End of year $ 111.8 $ 106.7 Change in fair value of plan assets: Beginning of year $ 74.6 $ 75.5 Actual return on plan assets 5.4 6.3 Employer contributions 4.2 6.4 Participant contributions 2.0 2.0 Divestiture (Note 5) (4.4) Settlements (10.0) (5.9) Benefits paid (1.3) (1.5) Currency exchange rate changes and other 8.0 (3.8) End of year $ 82.9 $ 74.6 Funded Status Projected benefit obligation $ (111.8) $ (106.7) Plan assets at fair value 82.9 74.6 Underfunded status $ (28.9) $ (32.1) Net amounts recognized on the consolidated balance sheet: Other liabilities $ 28.9 $ 32.1 Accumulated other comprehensive loss, net of tax: Net actuarial loss $ (2.0) $ (9.1) Net prior service credit 3.3 4.4 Deferred income tax benefit (0.5) 0.6 Total $ 0.8 $ (4.1) The accumulated benefit obligation for all defined benefit pension plans was $106.5 million and $102.1 million as of December 31, 2025 and 2024, respectively. Pension plans with accumulated be …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

4. RESTRUCTURING CHARGES, SEPARATION COSTS, AND OTHER In December 2025, the Company recorded an expense of $13.1 million related to severance associated with a realignment initiative. In September 2024, the Company recorded restructuring expense of $32.9 million primarily related to severance associated with a global workforce realignment impacting approximately 360 employees. The following table presents details of the restructuring liability, in millions, which is included in Accrued and Other Liabilities : Restructuring Liability Balance at December 31, 2023 $ Restructuring charges 32.9 Payments (12.8) Balance at December 31, 2024 20.1 Restructuring charges 13.1 Payments (19.9) Balance at December 31, 2025 $ 13.3 On June 3, 2024, the Company entered into a definitive agreement to sell Critical Care to Becton, Dickinson and Company (BD) and the sale closed on September 3, 2024. The Company recorded expenses of $8.5 million and $19.0 million during the years ended 2025 and 2024, respectively, primarily related to costs incurred for professional advisory services associated with the sale. For further information, see Note 5. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

21. SEGMENT INFORMATION Edwards Lifesciences conducts operations worldwide and is managed in the following four reportable segments: United States, Europe, Japan, and Rest of World. All regions sell products that are used to treat advanced cardiovascular disease. The Company's operating segments are organized primarily based on economic characteristics as well as other characteristics, including types of customers, nature of the regulatory environment, and product offerings. The Company's geographic segments are reported based on the financial information provided to the Chief Operating Decision Maker (CODM), which is the Company's Chief Executive Officer. The CODM evaluates the performance of the Company's reportable segments based on segment net sales and segment operating income. The CODM considers budget or forecast-to-actual results variances for segment operating income on a periodic basis for evaluating the performance of each segment and making decisions about allocating capital and other resources to each segment. Segment net sales are based on actual foreign exchange rates. Segment expenses and segment operating income are based on internally derived foreign exchange rates and do not include inter-segment profits. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographical distribution that would occur if the segments were not interdependent. Net sales by geographic area are based on the …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of Edwards Lifesciences, its wholly-owned subsidiaries, and variable interest entities (VIEs) for which the Company is the primary beneficiary. For further information, see Note 9. The Company attributes the net income or losses of its consolidated VIEs to controlling and noncontrolling interests using the hypothetical liquidation at book value method. All intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period financial statements to conform to classifications used in the current period. Use of Estimates The consolidated financial statements of Edwards Lifesciences have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) which have been applied consistently in all material respects. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Foreign Currency Translation When the local currency of the Company's foreign entities is the functional currency, all assets and liabilities are translated into United States dollars at the rate of exchange in effect at the balance sheet date. Income and expense items are translated at the …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

16. COMMON STOCK Treasury Stock In August 2024, the Board of Directors approved a stock repurchase program authorizing the Company to purchase up to $1.5 billion of repurchases of the Company's common stock under this program. In September 2025, the Board of Directors approved up to an additional $1.5 billion of repurchases of the Company's common stock under this program. The repurchase program does not have an expiration date. Stock repurchased under the program may be used to offset the impact of the Company's employee stock-based benefit programs and stock-based business acquisitions, and will reduce the total shares outstanding. During 2025, 2024, and 2023, the Company repurchased 11.8 million, 16.8 million, and 11.4 million shares, respectively, at an aggregate cost of $0.9 billion, $1.2 billion, and $0.9 billion, respectively, including shares purchased under a Rule 10b5-1 trading plan, the accelerated share repurchase (ASR) agreements described below, and shares acquired to satisfy tax withholding obligations in connection with the vesting of restricted stock units and exercise of stock options issued to employees. The timing and size of any future stock repurchases are subject to a variety of factors, including expected dilution from stock plans, cash capacity, and the market price of the Company's common stock. Accelerated Share Repurchase During 2025 and 2024, the Company entered into ASR agreements providing for the repurchase of the Company's common stock based o …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

23. SUBSEQUENT EVENT In February 2026, the Company acquired a medical device company for cash purchase price of $38.0 million, subject to customary adjustments, and additional contingent consideration of up to $132.5 million payable upon the achievement of certain milestones.

SubsequentEventsTextBlock