Edwards Lifesciences Corp (EW)

Price—Loading quote

AI: Overvalued

Price checkEven strong growth leaves the shares expensive on earnings and cash flow.

The latest dated quote I could verify was $89.62 on August 4, about two weeks before the requested date. Using 576.6 million shares, that implies a $51.7 billion market value. The price equals roughly 30 times management’s $3.00 midpoint for 2026 adjusted earnings, which excludes designated unusual items. Trailing free cash flow—cash remaining after operations and capital spending—was about $1.43 billion, giving only a 2.8% cash yield. That valuation requires durable double-digit growth and supports an Overvalued verdict.

Big pictureSales and underlying profit are accelerating, although reported earnings remain unusually noisy.

Revenue rose 11.5% to $6.07 billion in 2025 and another 15.1% in the first half of 2026. Operating income fell 8% during 2025 but rebounded 23% in the latest half, supporting improving underlying earnings. Reported net income is less reliable: 2024 included proceeds-related effects from selling Critical Care, while second-quarter 2026 earnings were reduced by a $188.2 million tax-credit valuation allowance and a $40 million investment impairment. Cash generation has varied quarterly, but trailing free cash flow reached approximately $1.43 billion.

Business strengthHigh margins and abundant cash protect the business, while buybacks have reduced dilution.

Edwards earned a 77.5% second-quarter gross margin and spent $279 million on research, preserving room to fund new valve systems. June cash exceeded debt by $2.31 billion, or about $4 per share. Medically necessary valve procedures reduce economic cyclicality, although hospital capacity and procedure timing can shift quarterly sales. Edwards spent approximately $5.8 billion on buybacks during 2020-2025; shares fell 7% to 580.7 million despite employee stock awards. Another $575 million of first-half 2026 repurchases reduced shares further, but purchasing richly valued stock limits the benefit.

What could change the storyBroader treatment and newer valves could justify the price, but slower adoption would expose it.

The bull case strengthens if aortic-valve sales sustain roughly 9% growth while mitral and tricuspid therapies keep growing above 30%, producing management’s expected 10% to 11% company growth and lasting profit expansion. Earlier treatment of moderate aortic disease could enlarge the patient pool further. The bear case appears if competitor-exit benefits fade, new systems open treatment centers slowly, or hospital procedures soften. At nearly 30 times forecast adjusted earnings, several years of near-10% sales growth and rising margins are already required; sustained growth below roughly 8% would weaken the valuation case.

$89.62 price considered

AI: News

Growth outlook raisedStrong valve sales prompted higher growth forecasts, but the next session’s trading showed investor caution.

On July 23, Edwards reported second-quarter sales of $1.74 billion, up 12.5% without currency movements. Aortic-valve sales grew 10.5% on that basis, while mitral and tricuspid sales rose 44.8%. Management raised 2026 company growth guidance to 10%-11% and maintained adjusted earnings of $2.95-$3.05 per share. The shares opened higher on July 24 but closed 1.4% below the prior close on heavy volume. The timing suggests mixed interpretation, though it does not prove the release caused the decline.

ECLIPTIS clearedUnited States clearance added a new surgical heart product, creating a modest future sales opportunity.

The Food and Drug Administration cleared ECLIPTIS on June 26, 2026 after finding it substantially equivalent to an existing implantable clip. Surgeons can use the device during other cardiac operations to close the heart’s left atrial appendage. Edwards plans a measured rollout later in 2026. Clearance removes a regulatory barrier and broadens the surgical portfolio, but no sales guidance was provided, so its near-term contribution is uncertain and likely smaller than the company’s main catheter-delivered valve businesses.

Valve evidence expandedLonger follow-up supported existing products, while a larger future patient market remains unproven.

At New York Valves on June 26, 2026, Edwards presented seven-year SAPIEN 3 durability findings and registry evidence covering more than 4,500 PASCAL patients. Baseline data from the PROGRESS study showed over 95% of enrolled moderate aortic-stenosis patients had symptoms and over 70% had at least two risk features. These observations may support earlier treatment, expanding the addressable market. However, baseline characteristics do not establish treatment benefit; the decisive PROGRESS outcomes were still scheduled for presentation later in 2026.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$6.07B	$5.44B	$5.01B	$4.46B	$5.23B	$4.39B	$4.35B	$3.72B	$3.44B	$2.96B	$2.49B	$2.32B	$2.05B	$1.90B	$1.68B	$1.45B	$1.32B	$1.24B
Gross profit	$4.73B	$4.32B	$4.03B	$3.74B	$3.98B	$3.31B	$3.23B	$2.78B	$2.56B	$2.17B	$1.88B	$1.70B	$1.53B	$1.41B	$1.19B	$1.04B	$922.3M	$818.1M
Research & development	$1.08B	$1.05B	$962.9M	$843.6M	$903.1M	$760.7M	$752.7M	$622.2M	$552.6M	$442.2M	$382.9M	$346.5M	$323.0M	$291.3M	$246.3M	$204.4M	$175.5M	$139.2M
Operating income	$1.26B	$1.38B	$1.31B	$1.50B	$1.69B	$897.6M	$1.15B	$748.2M	$1.09B	$751.2M	—	—	—	—	—	—	—	—
EBITDAderived	$1.42B	$1.53B	$1.45B	$1.64B	$1.83B	$1.00B	$1.24B	$825.6M	$1.17B	$822.4M	—	—	—	—	—	—	—	—
Net income	$1.07B	$4.17B	$1.40B	$1.52B	$1.50B	—	—	—	—	—	—	—	—	—	—	$218.0M	$229.1M	$128.9M
Basic EPSper diluted share	$1.84	$6.98	$2.31	$2.46	$2.41	$1.32	$1.68	$1.15	$2.77	$2.67	$2.30	$3.81	$1.74	$2.54	$2.07	$1.92	$2.04	$1.15
Diluted EPSper diluted share	$1.83	$6.97	$2.30	$2.44	$2.38	$1.30	$1.64	$1.13	$2.70	$2.61	$2.25	$3.74	$1.71	$2.46	$1.98	$1.83	$1.95	$1.10

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)83$39.13M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 30, 2026Form 4 · 10b5-1	Lippis Daniel J.CVP, TAVR	SellCommon Stock	619	$91.40	$56.6K	40.4K
Jun 17, 2026Form 4 · 10b5-1	Zovighian Bernard JCEO	SellCommon Stock · indirect	523	$87.92	$46.0K	11.5K
May 29, 2026Form 4	Dahl Andrew M.SVP, Corporate Controller	SellCommon Stock	567.53	$86.08	$48.9K	15.3K
May 27, 2026Form 4	BOBO DONALD E JRCVP,Strategy/Corp Development	SellCommon Stock · indirect	23.1K	$86.42	$2.00M	98.6K
May 22, 2026Form 4	Chopra DaveenCVP, TMTT & Surgical	SellCommon Stock	1.5K	$84.60	$126.9K	44.3K

Review ownership filings at SEC.gov ↗

Edwards Lifesciences Corp (EW)

Financial charts

Financial statements

Insider buys & sells