Edwards Lifesciences (EW) AI Stock Analysis

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Edwards Lifesciences

(NYSE:EW)

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Outperform 79 (OpenAI - 4o)

Rating:79Outperform

Price Target:

$95.00

▲(15.24% Upside)

Action:ReiteratedDate:11/06/25

Edwards Lifesciences' strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust sales growth and increased guidance highlight its competitive position in the medical devices industry. However, the high P/E ratio and potential leadership changes pose risks that investors should monitor.

Positive Factors

Revenue Growth

The strong sales growth across multiple segments indicates robust demand and effective market penetration, supporting long-term revenue expansion.

Product Innovation

The significant increase in TMTT sales highlights successful product innovation and adoption, strengthening Edwards' competitive position in the market.

Strong Balance Sheet

A strong balance sheet with substantial cash reserves provides financial flexibility for strategic investments and resilience against economic fluctuations.

Negative Factors

Gross Profit Margin Decline

A decline in gross profit margin suggests potential cost pressures or pricing challenges, which could impact profitability if not addressed.

CFO Transition

The upcoming CFO transition may lead to uncertainty in financial strategy and execution, affecting investor confidence and operational stability.

Declining ROE

A declining return on equity indicates potential challenges in maintaining profitability and efficient use of shareholder capital, impacting long-term growth.

Edwards Lifesciences (EW) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$45.83B

Dividend YieldN/A

Average Volume (3M)4.37M

Price to Earnings (P/E)42.6

Beta (1Y)0.65

Revenue Growth0.19%

EPS Growth65.58%

CountryUS

Employees15,800

SectorHealthcare

Sector Strength45

IndustryMedical - Devices

Share Statistics

EPS (TTM)0.58

Shares Outstanding580,300,000

10 Day Avg. Volume5,226,251

30 Day Avg. Volume4,372,149

Financial Highlights & Ratios

PEG Ratio0.05

Price to Book (P/B)4.43

Price to Sales (P/S)8.13

P/FCF Ratio152.63

Enterprise Value/Market Cap1.01

Enterprise Value/Revenue7.88

Enterprise Value/Gross Profit10.08

Enterprise Value/Ebitda26.63

Forecast

1Y Price Target

$97.11

Price Target Upside17.79% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering21

EPS Forecast (FY)2.96

Revenue Forecast (FY)$6.68B

Edwards Lifesciences Business Overview & Revenue Model

Company DescriptionEdwards 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 products for the minimally invasive replacement of heart valves; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases. The company also provides the PASCAL and Cardioband transcatheter valve repair systems for minimally-invasive therapy. In addition, it offers surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; KONECT RESILIA, a pre-assembled aortic tissue valved conduit for patients who require replacement of the valve, root, and ascending aorta; and HARPOON Beating Heart Mitral Valve Repair System for patients with degenerative mitral regurgitation. Further, the company provides critical care solutions, including advanced hemodynamic monitoring systems to measure a patient's heart function and fluid status in surgical and intensive care settings; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.

How the Company Makes MoneyEdwards 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 significant source of income, driven by increasing adoption rates and expanding indications for use in treating aortic stenosis. Additionally, the company earns revenue from hemodynamic monitoring products, which are used in hospitals to assess and manage critically ill patients. Key partnerships with hospitals and healthcare systems, along with ongoing clinical studies that support the efficacy of its products, further enhance its revenue generation. Moreover, the company's commitment to innovation and development of new technologies positions it favorably in the competitive landscape, contributing to sustained growth in its earnings.

Edwards Lifesciences Key Performance Indicators (KPIs)

Any

Revenue by Geography

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.

Chart InsightsEdwards Lifesciences experienced a notable rebound in U.S. and European revenues in 2025, following a dip in 2024. This aligns with their reported 12.6% sales growth, driven by strong performance in TAVR and TMTT segments. Despite a decline in Japanese and Rest of World revenues in 2024, the company’s increased guidance and robust clinical data presentations suggest strategic resilience. However, investors should be mindful of declining gross profit margins and upcoming changes in financial leadership, which could impact future stability.

Data provided by:

The Fly

Edwards 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.

Q4-2025 Updates

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.

TAVR Performance and Clinical Momentum

TAVR Q4 global sales of $1.16 billion, up 10.6% year‑over‑year; overall procedural growth in the quarter remained in the high single digits. Strength supported by seven‑year PARTNER 3 and ten‑year PARTNER 2 durability data, Early TAVR evidence (including asymptomatic indication), strong SAPIEN 3 Ultra Resilia adoption, and supportive Europe guideline changes — all cited as durable growth catalysts.

TMTT Segment Surge

TMTT grew over 40% in Q4 to $156 million; full‑year TMTT sales exceeded $500 million. Growth driven by PASCAL and EVOQUE adoption, FDA approval and initial launch of SAPIEN M3, NextGen PASCAL rollout, and expected contribution toward a $2 billion TMTT revenue target by 2030.

Surgical Business Milestones

Surgical Q4 sales of $254 million, up 2% year‑over‑year; full‑year surgical sales grew 4.3% and exceeded $1 billion for the first time. Positive MOMENTYS one‑year data (100% freedom from SVD) and planned initial introduction of surgical LAAC later this year provide new product and clinical catalysts.

Profitability and Margin Discipline

Q4 adjusted gross profit margin of 78.3% (vs. 79% year‑ago) and Q4 adjusted operating profit margin of 23.7%; full‑year 2025 adjusted operating margin of 27%. Company expects full‑year 2026 adjusted gross margin to be ~78%–79% and forecasted ~150 basis points of constant‑currency operating margin expansion in 2026.

Strong Balance Sheet and Capital Return

Approximately $3 billion in cash and cash equivalents as of Dec 31, 2025; repurchased just under $900 million of stock in 2025 (including ~$40 million in Q4) and ~ $2 billion of share repurchase authorization remaining.

Confident 2026 Guidance and Near‑Term Outlook

Management expressed increased confidence in meeting 2026 sales growth guidance of 8%–10% and EPS guidance of $2.90–$3.05. Q1 2026 sales guidance of $1.55 billion–$1.63 billion and Q1 adjusted EPS guidance of $0.70–$0.76; FX expected to provide ~ $40 million upside to full‑year 2026 sales at current rates.

Patient Access & Clinical Engagement Initiatives

Increased investments in patient access initiatives, including partnership with the American Heart Association Heart Valve initiative, European guideline dissemination efforts, and field force reinforcement — aimed at driving earlier, guideline‑based treatment and expanding addressable market.

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.

Step‑Up in SG&A Spending

Selling, general & administrative expense increased to $603 million (38% of sales) in Q4 versus 35% in the prior year — a year‑over‑year step‑up of approximately $112 million largely due to accelerated patient access, education, and field investments.

Tax Rate Headwind

Reported quarterly tax rate was 29% (17.9% excluding special items), above expectations driven by Pillar Two impact and country income mix; company expects 2026 tax rate excluding special items to be 16%–19%.

One‑Time/Deal‑Related Charges and M&A Uncertainty

Charges associated with the GennaValve acquisition that did not close and related litigation were recorded in GAAP results — illustrating setback in a specific M&A effort and introducing one‑time earnings volatility.

Distributor Inventory Adjustment Impacting Surgical Q4

Surgical Q4 growth was impacted by an end‑of‑year distributor inventory adjustment in one country (managed via distributors, cited example: China); surgical growth in Q4 was only 2%.

Seasonality and Tougher Second‑Half Comparisons for 2026

Management noted that 2026 will have stronger first‑half growth and tougher year‑over‑year comps and seasonality in the second half, creating a more challenging cadence to achieve full‑year guidance.

Uncertainty Around Moderate AS Opportunity

While management highlighted the PROGRESS moderate AS study as a potential long‑term opportunity, results are pending (to be presented at TCT) and therefore moderate AS is not included as a near‑term confirmed catalyst.

Relative Contribution from Competitor Exit to Near‑Term Share Gains

Management acknowledged that part of recent share gains was attributable to a competitor exit (Boston Scientific) and while gains appear sticky, some share movement reflects market dynamics rather than pure organic displacement.

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

Edwards Lifesciences demonstrates strong financial health with consistent profitability and a stable balance sheet. The company is effectively managing its cash flows, although there is room for improvement in cash conversion efficiency. Continued focus on revenue growth and maintaining cost efficiencies will be crucial for sustaining its financial performance.

Income Statement

Very Positive

Edwards Lifesciences shows strong profitability with a consistent gross profit margin above 75% and a healthy net profit margin of 23.19% in TTM. Revenue growth is moderate at 3.5% TTM, indicating steady expansion. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the decline in net profit margin from 2024 suggests potential cost pressures or increased competition.

Balance Sheet

Positive

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.069, indicating prudent financial leverage. Return on equity is strong at 13.57% TTM, though it has decreased from previous years, suggesting a need for improved profitability. The equity ratio is healthy, reflecting a stable financial position.

Cash Flow

Positive

Cash flow analysis reveals a significant improvement in free cash flow growth at 32.29% TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is moderate at 0.64, suggesting room for improvement in cash conversion. The free cash flow to net income ratio is strong at 0.79, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.88B	5.44B	5.01B	5.38B	5.23B	4.39B
Gross Profit	4.60B	4.32B	3.97B	4.22B	4.01B	3.29B
EBITDA	1.74B	1.72B	1.53B	1.96B	1.89B	1.07B
Net Income	1.36B	4.17B	1.40B	1.52B	1.50B	823.40M
Balance Sheet
Total Assets	13.27B	13.06B	9.36B	8.29B	8.50B	7.24B
Cash, Cash Equivalents and Short-Term Investments	3.84B	3.98B	1.63B	1.22B	1.47B	1.40B
Total Debt	700.30M	700.00M	685.10M	691.30M	690.30M	694.90M
Total Liabilities	3.07B	2.99B	2.64B	2.49B	2.67B	2.66B
Stockholders Equity	10.21B	10.00B	6.65B	5.81B	5.84B	4.57B
Cash Flow
Free Cash Flow	804.20M	289.90M	629.50M	953.40M	1.40B	647.00M
Operating Cash Flow	1.02B	542.30M	895.80M	1.22B	1.73B	1.05B
Investing Cash Flow	-1.09B	2.31B	173.80M	252.30M	-1.72B	-531.10M
Financing Cash Flow	-916.80M	-983.00M	-711.00M	-1.58B	-356.30M	-486.90M

Edwards Lifesciences Technical Analysis

Technical Analysis Sentiment

Positive

Last Price82.44

Price Trends

50DMA

82.86

Negative

100DMA

81.93

Positive

200DMA

79.69

Positive

Market Momentum

MACD

-1.02

Negative

RSI

55.81

Neutral

STOCH

86.26

Negative

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 82.44 is above the 20-day moving average (MA) of 79.90, below the 50-day MA of 82.86, and above the 200-day MA of 79.69, indicating a neutral trend. The MACD of -1.02 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 86.26 is Negative, 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 23 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

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EW	79 Outperform	$45.83B	42.60	―	―	0.19%	65.58%
SYK	72 Outperform	$144.40B	44.93	15.08%	0.95%	10.95%	-18.32%
BSX	71 Outperform	$113.19B	39.05	12.60%	―	21.62%	54.80%
DXCM	71 Outperform	$28.02B	34.53	34.50%	―	14.21%	5.66%
ABT	65 Neutral	$197.00B	30.37	13.03%	1.88%	6.37%	142.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SSKN	46 Neutral	$1.12M	-0.07	-207.19%	―	-5.19%	-0.81%

* Healthcare Sector Average

Performance Comparison

Edwards Lifesciences

82.44

10.99

15.38%

ABT

Abbott Laboratories

115.29

-18.03

-13.52%

BSX

Boston Scientific

74.37

-26.35

-26.16%

DXCM

Dexcom

73.26

-15.06

-17.05%

SSKN

Strata Skin Sciences

0.25

-2.51

-90.98%

SYK

Stryker

384.73

-2.96

-0.76%

Edwards Lifesciences Corporate Events

Executive/Board Changes

Edwards Lifesciences Announces CFO Transition Plan

Neutral

Oct 30, 2025

On October 30, 2025, Edwards Lifesciences announced that its Chief Financial Officer, Scott Ullem, will transition from his role by mid-year 2026. The company has started a selection process for a new CFO, ensuring continuity and a smooth transfer of responsibilities, with Ullem continuing in an advisory role post-transition.

The most recent analyst rating on (EW) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Edwards Lifesciences stock, see the EW Stock Forecast page.

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.Date of analysis: Nov 06, 2025