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Edwards Lifesciences
(NYSE:EW)
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Rating:71Outperform
Price Target:
$105.00
▲(29.65% Upside)
Action:Reiterated
Date:05/24/26
The score is driven primarily by strong profitability and an exceptionally low-leverage balance sheet, supporting resilience. Technicals are moderately supportive with the stock above key averages, though near-term momentum looks a bit stretched. The main constraint is valuation, with a ~30.5 P/E and no dividend yield provided to offset the premium; corporate events are modestly positive but include a potential dilution overhang.
Positive Factors
High profitability margins
Very high gross and healthy operating/net margins indicate durable pricing power and cost structure advantages in medical devices. These margins support sustained cash generation to fund R&D, clinical trials and product rollouts, strengthening competitive position and long-term profitability.
Negative Factors
Subdued revenue growth
Top-line growth has been modest and uneven, which constrains long-term earnings leverage. In a mature structural heart market, limited organic growth increases dependence on share gains, new indications, or M&A to materially expand revenue, making sustained EPS growth harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability margins
Very high gross and healthy operating/net margins indicate durable pricing power and cost structure advantages in medical devices. These margins support sustained cash generation to fund R&D, clinical trials and product rollouts, strengthening competitive position and long-term profitability.
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
$53.92B
Dividend YieldN/A
Average Volume (3M)4.97M
Price to Earnings (P/E)48.3
Beta (1Y)0.57
Revenue Growth13.81%
EPS Growth22.90%
CountryUS
Employees15,800
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.89
Shares Outstanding575,800,000
10 Day Avg. Volume4,549,215
30 Day Avg. Volume4,968,010
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 Cap0.89
Enterprise Value/Revenue7.64
Enterprise Value/Gross Profit9.79
Enterprise Value/Ebitda33.90
Forecast
1Y Price Target
$100.20Price Target Upside23.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)3.01
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:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 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
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
80.99
Price Trends
86.15
Positive
83.95
Positive
82.83
Positive
Market Momentum
2.19
Negative
56.07
Neutral
58.28
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 80.99 is below the 20-day moving average (MA) of 89.59, below the 50-day MA of 86.15, and below the 200-day MA of 82.83, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 58.28 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $28.58B | 30.43 | 33.83% | ― | 16.15% | 76.15% | |
71 Outperform | $53.92B | 48.32 | 10.55% | ― | 13.81% | 22.90% | |
68 Neutral | $66.60B | 18.75 | 14.82% | ― | 17.44% | 74.36% | |
67 Neutral | $125.30B | 37.47 | 15.10% | 0.95% | 8.84% | 16.34% | |
62 Neutral | $165.79B | 26.22 | 12.20% | 1.88% | 6.59% | -53.44% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
41 Neutral | $529.94K | -0.09 | -476.74% | ― | -8.54% | 40.91% |
* Healthcare Sector Average
EW
Edwards Lifesciences
91.33
12.53
15.90%
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SSKN
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0.09
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327.11
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-16.30%
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.