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Edwards Lifesciences
(NYSE:EW)
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Rating:69Neutral
Price Target:
$92.00
▲(11.34% Upside)
Action:Downgraded
Date:07/24/26
Overall score is driven primarily by strong fundamentals (high margins and a low-leverage balance sheet) and a positive earnings update with raised sales guidance and strong TMTT growth. These strengths are partially offset by weak current technicals (bearish trend and oversold momentum signals) and a relatively expensive valuation (high P/E and no dividend yield provided).
Positive Factors
High Profitability
Edwards' persistently high gross and operating margins reflect durable pricing power in premium structural heart devices and efficient cost structure. High margins provide long-term cash generation capacity, funding R&D, buybacks, and cushioning against cyclical procedure volumes.
Negative Factors
Weaker Cash Conversion
While still generating positive free cash flow, the deterioration versus the prior year signals variability in converting earnings to cash. Persistent weaker cash conversion could constrain discretionary spend, slow deleveraging or limit reinvestment if the trend persists.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Edwards' persistently high gross and operating margins reflect durable pricing power in premium structural heart devices and efficient cost structure. High margins provide long-term cash generation capacity, funding R&D, buybacks, and cushioning against cyclical procedure volumes.
Read all positive factors
Edwards Lifesciences Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how sales are split across regions like the U.S., Europe, and Asia. For Edwards Lifesciences, the geographic mix reveals dependence on mature markets for high-margin procedures, identifies faster-growing markets where procedure volumes and access are expanding, and highlights exposure to local reimbursement rules and currency swings that can materially affect reported results.
Shows how sales are split across regions like the U.S., Europe, and Asia. For Edwards Lifesciences, the geographic mix reveals dependence on mature markets for high-margin procedures, identifies faster-growing markets where procedure volumes and access are expanding, and highlights exposure to local reimbursement rules and currency swings that can materially affect reported results.
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The Fly
The FlyEdwards Lifesciences (EW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.38B
Dividend YieldN/A
Average Volume (3M)4.98M
Price to Earnings (P/E)48.1
Beta (1Y)0.51
Revenue Growth14.55%
EPS Growth15.09%
CountryUS
Employees16,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.89
Shares Outstanding575,800,000
10 Day Avg. Volume5,910,041
30 Day Avg. Volume4,983,242
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)4.82
Price to Sales (P/S)8.22
P/FCF Ratio37.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$102.88Price Target Upside24.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)3
Revenue Forecast (FY)$6.76B
Edwards Lifesciences Business Overview & Revenue Model
Company Description
Edwards Lifesciences Corporation is a global medical technology firm specializing in sophisticated products and technologies for structural heart conditions, alongside critical care and surgical patient monitoring. With operations spanning the Uni...
How the Company Makes Money
Edwards Lifesciences makes money primarily by selling medical devices and related accessories to healthcare providers (mainly hospitals), with revenue recognized from product sales across two main operating segments: (1) Transcatheter Heart Valve ...
Edwards Lifesciences Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call highlighted robust top-line growth led by TMTT (+44.8% YoY) and solid TAVR performance (+10.5% YoY), along with margin expansion and upgraded full-year company and segment guidance. Notable clinical and regulatory milestones (SAPIEN X4S, PROGRESS timeline, PASCAL and M3 approvals/CE Mark, COMMENCE 10-year data) underpin multi-year growth prospects. Offsetting factors include foreign exchange headwinds, higher effective tax rate and GAAP earnings impacts from R&D credit changes, higher SG&A, and tougher second-half comparables creating near-term seasonality and uncertainty. On balance, positive execution, upgraded guidance and strong pipeline/clinical evidence outweigh the near-term financial and macro headwinds.Positive Updates
Strong Total Company Sales and Earnings
Q2 total sales of $1.74 billion, up 12.5% year-over-year; adjusted EPS of $0.78 (GAAP EPS $0.42). Company raised full-year 2026 sales guidance to 10%–11% (from 9%–11%) and reaffirmed full-year adjusted EPS guidance of $2.95–$3.05.
Negative Updates
Foreign Exchange Headwinds
FX reduced Q2 gross profit margin by ~70 basis points and increased reported Q2 sales by ~$15 million (~110 basis points) versus prior year. Company estimates a second-half FX headwind of approximately $35 million if rates hold.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Total Company Sales and Earnings
Q2 total sales of $1.74 billion, up 12.5% year-over-year; adjusted EPS of $0.78 (GAAP EPS $0.42). Company raised full-year 2026 sales guidance to 10%–11% (from 9%–11%) and reaffirmed full-year adjusted EPS guidance of $2.95–$3.05.
Read all positive updates
Company Guidance
Edwards raised 2026 sales guidance to 10%–11% (implying total company sales of $6.6B–$6.9B), increased TAVR guidance to 8%–9% (now $4.75B–$5.0B) and lifted TMTT to $760M–$780M (from $740M–$780M), while reaffirming full‑year adjusted EPS of $2.95–$3.05 and reiterating a long‑term ~10% company growth target with TAVR mid‑ to high‑single‑digit growth. In Q2 Edwards reported sales of $1.74B (+12.5% YoY), adjusted EPS $0.78 (GAAP $0.42), adjusted gross margin 77.6% and adjusted operating margin 30%; SG&A was $561M (32% of sales) and R&D $279M (~16% of sales, ~17% guidance for 2026). Q3 guidance calls for $1.63B–$1.71B of sales and adjusted EPS $0.71–$0.77; full‑year gross margin is expected at the lower end of the 78%–79% range, full‑year operating margin at the high end of 28%–29% (≈150 bps constant‑currency expansion) with 50–100 bps of underlying expansion planned. Other notable metrics: Q2 FX boosted reported sales ≈$15M (~110 bps) but FX is a ~$35M second‑half headwind if rates hold; 2026 effective tax rate now expected at the high end of 16%–19%; cash ≈$2.9B; ~$1.5B remaining on the buyback authorization; average diluted shares 578M (575M–580M expected).Edwards Lifesciences Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.30B | 6.07B | 5.44B | 5.01B | 5.38B | 5.23B |
| Gross Profit | 4.92B | 4.74B | 4.32B | 3.97B | 4.22B | 4.01B |
| EBITDA | 1.42B | 1.43B | 1.72B | 1.53B | 1.96B | 1.89B |
| Net Income | 1.09B | 1.07B | 4.17B | 1.40B | 1.52B | 1.50B |
Balance Sheet | ||||||
| Total Assets | 13.32B | 13.70B | 13.06B | 9.36B | 8.29B | 8.50B |
| Cash, Cash Equivalents and Short-Term Investments | 3.67B | 4.23B | 3.98B | 1.63B | 1.22B | 1.47B |
| Total Debt | 702.90M | 705.40M | 700.00M | 685.10M | 691.30M | 690.30M |
| Total Liabilities | 2.99B | 3.36B | 2.99B | 2.64B | 2.49B | 2.67B |
| Stockholders Equity | 10.33B | 10.34B | 10.00B | 6.65B | 5.81B | 5.84B |
Cash Flow | ||||||
| Free Cash Flow | 1.09B | 1.33B | 289.90M | 629.50M | 953.40M | 1.40B |
| Operating Cash Flow | 1.36B | 1.60B | 542.30M | 895.80M | 1.22B | 1.73B |
| Investing Cash Flow | -891.00M | -712.90M | 2.31B | 173.80M | 252.30M | -1.72B |
| Financing Cash Flow | -1.15B | -956.80M | -983.00M | -711.00M | -1.58B | -356.30M |
Edwards Lifesciences Technical Analysis
Positive
82.63
Price Trends
87.59
Negative
84.56
Positive
83.68
Positive
Market Momentum
-1.18
Positive
32.71
Neutral
7.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EW, the sentiment is Positive. The current price of 82.63 is below the 20-day moving average (MA) of 87.79, below the 50-day MA of 87.59, and below the 200-day MA of 83.68, indicating a neutral trend. The MACD of -1.18 indicates Positive momentum. The RSI at 32.71 is Neutral, neither overbought nor oversold. The STOCH value of 7.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EW.
Edwards Lifesciences Risk Analysis
Edwards Lifesciences disclosed 28 risk factors in its most recent earnings report. Edwards Lifesciences reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Edwards Lifesciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $28.99B | 31.19 | 36.19% | ― | 16.15% | 76.15% | |
75 Outperform | $135.04B | 39.70 | 15.10% | 1.05% | 8.84% | 16.34% | |
72 Outperform | $186.88B | 34.51 | 10.52% | 2.41% | 8.06% | -61.33% | |
69 Neutral | $49.38B | 48.09 | 9.71% | ― | 14.55% | 15.09% | |
66 Neutral | $68.43B | 19.19 | 14.82% | ― | 13.53% | 46.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $32.38K | >-0.01 | -360.33% | ― | -8.54% | 40.91% |
* Healthcare Sector Average
EW
Edwards Lifesciences
86.92
7.59
9.57%
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Edwards Lifesciences Corporate Events
Business Operations and StrategyShareholder Meetings
Edwards Lifesciences Shareholders Approve Expanded Equity Incentive Plan
Positive
May 8, 2026
At its Annual Meeting of Stockholders held on May 7, 2026, Edwards Lifesciences shareholders approved an amendment and restatement of the company’s Long-Term Stock Incentive Compensation Program, increasing the pool of shares available for i...
Business Operations and StrategyExecutive/Board Changes
Edwards Lifesciences Announces New Chief Financial Officer Appointment
Positive
May 4, 2026
Edwards Lifesciences announced on May 4, 2026, that Theodora (“Doretta”) Mistras will become corporate vice president and chief financial officer effective May 29, 2026, succeeding longtime CFO Scott Ullem. Her appointment follows Ulle...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.