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Edwards Lifesciences
(NYSE:EW)
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Rating:73Outperform
Price Target:
$100.00
▲(21.02% Upside)
Action:Upgraded
Date:08/05/26
EW’s score is supported primarily by high-quality financials (strong margins and very low leverage) and a favorable earnings update with raised 2026 revenue guidance and strong TMTT momentum. The main offsets are a premium valuation (P/E ~49) and only mixed technical momentum (negative MACD despite trading above major moving averages).
Positive Factors
High Margins & Profitability
Sustained gross margins near the high 70s and a ~21% EBIT margin indicate durable pricing power and strong product mix in implantable devices and consumables. This margin base supports reinvestment in R&D and commercialization while cushioning cyclical procedure volume swings over years.
Negative Factors
Uneven Revenue & Cash Volatility
A history of revenue dips and variable operating/free cash flow signals sensitivity to procedure volumes, hospital purchasing cycles and working-capital timing. That variability complicates long-range planning for capex, buybacks and R&D allocation, raising execution risk through cycles.
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Positive Factors
Negative Factors
High Margins & Profitability
Sustained gross margins near the high 70s and a ~21% EBIT margin indicate durable pricing power and strong product mix in implantable devices and consumables. This margin base supports reinvestment in R&D and commercialization while cushioning cyclical procedure volume swings over years.
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
$51.75B
Dividend YieldN/A
Average Volume (3M)4.98M
Price to Earnings (P/E)51.6
Beta (1Y)0.50
Revenue Growth14.55%
EPS Growth15.09%
CountryUS
Employees16,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.74
Shares Outstanding576,400,000
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 Covering18
EPS Forecast (FY)3
Revenue Forecast (FY)$6.77B
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
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.51B | 6.07B | 5.44B | 5.01B | 5.38B | 5.23B |
| Gross Profit | 5.08B | 4.74B | 4.32B | 3.97B | 4.22B | 4.01B |
| EBITDA | 1.54B | 1.43B | 1.72B | 1.53B | 1.96B | 1.89B |
| Net Income | 1.00B | 1.07B | 4.17B | 1.40B | 1.52B | 1.50B |
Balance Sheet | ||||||
| Total Assets | 13.87B | 13.70B | 13.06B | 9.36B | 8.29B | 8.50B |
| Cash, Cash Equivalents and Short-Term Investments | 4.25B | 4.23B | 3.98B | 1.63B | 1.22B | 1.47B |
| Total Debt | 704.40M | 705.40M | 700.00M | 685.10M | 691.30M | 690.30M |
| Total Liabilities | 3.14B | 3.36B | 2.99B | 2.64B | 2.49B | 2.67B |
| Stockholders Equity | 10.62B | 10.34B | 10.00B | 6.65B | 5.81B | 5.84B |
Cash Flow | ||||||
| Free Cash Flow | 1.43B | 1.33B | 289.90M | 629.50M | 953.40M | 1.40B |
| Operating Cash Flow | 1.72B | 1.60B | 542.30M | 895.80M | 1.22B | 1.73B |
| Investing Cash Flow | -912.10M | -712.90M | 2.31B | 173.80M | 252.30M | -1.72B |
| Financing Cash Flow | -1.20B | -956.80M | -983.00M | -711.00M | -1.58B | -356.30M |
Edwards Lifesciences Technical Analysis
Positive
82.63
Price Trends
88.99
Positive
85.79
Positive
84.65
Positive
Market Momentum
0.88
Positive
50.62
Neutral
37.30
Neutral
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 89.42, below the 50-day MA of 88.99, and below the 200-day MA of 84.65, indicating a bullish trend. The MACD of 0.88 indicates Positive momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 37.30 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
87 Outperform | $34.85B | 35.65 | 36.19% | ― | 15.54% | 77.43% | |
73 Outperform | $51.75B | 51.60 | 9.69% | ― | 14.55% | 15.09% | |
73 Outperform | $201.83B | 37.50 | 10.52% | 2.41% | 8.06% | -61.33% | |
72 Outperform | $126.37B | 33.86 | 16.36% | 1.05% | 8.48% | 27.36% | |
70 Outperform | $73.00B | 20.31 | 14.90% | ― | 13.53% | 46.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $589.00 | ― | -360.33% | ― | -8.54% | 40.91% |
* Healthcare Sector Average
EW
Edwards Lifesciences
89.79
8.93
11.04%
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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...
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.