Edwards Lifesciences (EW)
NYSE:EW
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Edwards Lifesciences
(NYSE:EW)
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Rating:75Outperform
Price Target:
$94.00
▲(15.78% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by strong financial quality (high margins and an exceptionally low-debt balance sheet) and a constructive earnings outlook with confident 2026 guidance and continued structural-heart momentum. These strengths are tempered by an expensive valuation (high P/E, no dividend support) and mixed near-term technical momentum (negative MACD despite trading above key moving averages).
Positive Factors
Conservative balance sheet
Extremely low debt and a conservative capital structure provide durable financial flexibility. This supports continued R&D and commercial investment, sizeable share buybacks, and resilience against reimbursement or procedure-volume shocks, preserving strategic optionality over multiple years.
Negative Factors
Uneven revenue trend
Revenue growth has been lumpy, reducing visibility for multi-quarter forecasting. Dependence on procedure adoption cycles, regional reimbursement, and discrete product launches means top-line can swing by year, complicating planning for investment pacing and margin improvement capture.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low debt and a conservative capital structure provide durable financial flexibility. This supports continued R&D and commercial investment, sizeable share buybacks, and resilience against reimbursement or procedure-volume shocks, preserving strategic optionality over multiple years.
Read all positive factors
Edwards Lifesciences (EW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.16B
Dividend YieldN/A
Average Volume (3M)4.69M
Price to Earnings (P/E)46.4
Beta (1Y)0.67
Revenue Growth0.19%
EPS Growth65.58%
CountryUS
Employees15,800
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.58
Shares Outstanding580,800,000
10 Day Avg. Volume4,541,581
30 Day Avg. Volume4,688,388
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 Cap0.95
Enterprise Value/Revenue7.37
Enterprise Value/Gross Profit9.44
Enterprise Value/Ebitda32.14
Forecast
1Y Price Target
$96.56Price Target Upside18.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)2.97
Revenue Forecast (FY)$6.68B
Edwards Lifesciences Business Overview & Revenue Model
Company Description
Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement p...
How the Company Makes Money
Edwards Lifesciences generates revenue primarily through the sale of its medical devices, which are categorized into various segments including heart valve therapies and critical care technologies. The heart valve segment, particularly TAVR, is a ...
Edwards Lifesciences Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Edwards Lifesciences is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Edwards Lifesciences is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyEdwards Lifesciences Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveys a broadly positive outlook: the company delivered strong top‑line growth (Q4 +11.6%, FY +10.7%), robust TAVR and TMTT momentum, and reiterated confident 2026 guidance (8%–10% sales growth; EPS $2.90–$3.05). Key positives include compelling long‑term clinical evidence, successful product launches (SAPIEN M3, NextGen PASCAL), margin discipline and a healthy balance sheet. Near‑term headwinds are primarily deliberate investments in patient access and field resources (driving higher SG&A), one‑time GAAP charges (GennaValve/litigation), an elevated tax rate in the quarter, and distributor inventory adjustments that modestly impacted surgical sales. Management frames the incremental spending as strategic and expects margin expansion over time. Overall, the positive operational and strategic catalysts outweigh the one‑time and timing‑related negatives.Positive Updates
Strong Q4 and Full-Year Sales Growth
Total sales of $1.57 billion in Q4, up 11.6% year‑over‑year; full‑year 2025 sales growth of 10.7% — demonstrating broad-based demand and momentum entering 2026.
Negative Updates
Adjusted EPS Below Expectations and One‑Time GAAP Impact
Q4 adjusted EPS was $0.58, below expectations due to higher spending on patient access initiatives and an above‑expected tax rate. GAAP EPS was $0.11 and included one‑time charges related to the GennaValve acquisition that did not close and litigation expenses.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 and Full-Year Sales Growth
Total sales of $1.57 billion in Q4, up 11.6% year‑over‑year; full‑year 2025 sales growth of 10.7% — demonstrating broad-based demand and momentum entering 2026.
Read all positive updates
Company Guidance
Management reiterated and said it has increased confidence in 2026 guidance: full‑year sales growth of 8–10% and adjusted EPS of $2.90–$3.05, with Q1 sales of $1.55–$1.63 billion and Q1 adjusted EPS of $0.70–$0.76 (mid‑teens growth at the midpoint). They reported Q4 sales of $1.57 billion (+11.6% YoY), Q4 adjusted EPS $0.58 (GAAP EPS $0.11), TAVR Q4 sales $1.16 billion (+10.6%, procedural growth high single‑digit), TMTT Q4 $156 million (>40% growth; FY TMTT >$500M) and Surgical Q4 $254 million (+2%, FY surgical >$1B); Q4 adjusted gross margin 78.3% (vs 79% prior) and adjusted operating margin 23.7% (FY‑2025 adjusted operating margin 27%). For 2026 they expect adjusted gross margin ~78–79%, R&D ≈17% of sales, ~150 bps constant‑currency operating margin expansion in 2026 (and 50–100 bps annually thereafter), a 2026 tax rate ex‑special items of 16–19% (Q4 reported tax 29%, 17.9% ex‑special items), ~ $3.0B cash, ~$2.0B buyback authorization remaining, average diluted shares ~580–585M (582M in Q4), and FX contributed ~170 bps / $20M to Q4 reported sales and is expected to add ~ $40M to full‑year 2026 sales.Edwards Lifesciences Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.07B | 5.44B | 5.01B | 5.38B | 5.23B |
| Gross Profit | 4.74B | 4.32B | 3.97B | 4.22B | 4.01B |
| EBITDA | 1.43B | 1.72B | 1.53B | 1.96B | 1.89B |
| Net Income | 1.07B | 4.17B | 1.40B | 1.52B | 1.50B |
Balance Sheet | |||||
| Total Assets | 13.70B | 13.06B | 9.36B | 8.29B | 8.50B |
| Cash, Cash Equivalents and Short-Term Investments | 4.23B | 3.98B | 1.63B | 1.22B | 1.47B |
| Total Debt | 705.40M | 700.00M | 685.10M | 691.30M | 690.30M |
| Total Liabilities | 3.36B | 2.99B | 2.64B | 2.49B | 2.67B |
| Stockholders Equity | 10.34B | 10.00B | 6.65B | 5.81B | 5.84B |
Cash Flow | |||||
| Free Cash Flow | 1.33B | 289.90M | 629.50M | 953.40M | 1.40B |
| Operating Cash Flow | 1.60B | 542.30M | 895.80M | 1.22B | 1.73B |
| Investing Cash Flow | -712.90M | 2.31B | 173.80M | 252.30M | -1.72B |
| Financing Cash Flow | -956.80M | -983.00M | -711.00M | -1.58B | -356.30M |
Edwards Lifesciences Technical Analysis
Neutral
81.19
Price Trends
81.82
Negative
83.42
Negative
80.67
Positive
Market Momentum
-0.57
Positive
46.75
Neutral
57.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EW, the sentiment is Neutral. The current price of 81.19 is below the 20-day moving average (MA) of 82.39, below the 50-day MA of 81.82, and above the 200-day MA of 80.67, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 57.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $24.33B | 30.97 | 32.44% | ― | 14.21% | 5.66% | |
75 Outperform | $47.16B | 46.44 | 10.39% | ― | 0.19% | 65.58% | |
68 Neutral | $93.02B | 48.91 | 12.53% | ― | 21.62% | 54.80% | |
66 Neutral | $127.17B | 41.38 | 15.04% | 0.95% | 10.95% | -18.32% | |
62 Neutral | $178.17B | 33.55 | 12.89% | 1.88% | 6.37% | 142.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $1.09M | -9.36 | -476.74% | ― | -5.19% | -0.81% |
* Healthcare Sector Average
EW
Edwards Lifesciences
81.19
14.12
21.05%
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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.