Edwards Lifesciences Corporation
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
Edwards Lifesciences remains a hold as the structural heart growth thesis is intact — revenue growth accelerated to 13.6% in Q2 2026 and 16.7% in Q1 2026, FCF margin recovered to 22% in FY2025 from 5.3% in FY2024, and catalysts like the CMS TAVR national coverage determination and FDA approval of the AUTUS pediatric valve support continued expansion.
However, at 49.0x trailing earnings — roughly in line with peer ISRG at 47.9x — the stock prices in near-flawless execution, while quarterly EPS remains choppy ($0.66 in Q1 2026 dropping to $0.42 in Q2 2026) and technicals are soft with the last close of $85.21 below the 50-day MA of $88.62 and a negative MACD histogram. Persistent insider selling (net disposition of 352K shares over 24 months with zero open-market acquisitions) and third-party DCF estimates well below the current price add caution. The upcoming Q3 2026 earnings on November 4 is the key near-term trigger.
What could go wrong
- Valuation compression. At 49.0x P/E and 29.6x EV/EBITDA, any deceleration in revenue growth or margin pressure could trigger a de-rating; GuruFocus DCF analyses peg intrinsic value at $40–$53 versus the current price of $85.21.
- Quarterly EPS volatility. EPS swung from $0.66 in Q1 2026 to $0.42 in Q2 2026, and FY2025 EPS of $1.83 was down 73.7% from FY2024's $6.97, indicating earnings quality concerns despite revenue growth.
- Insider selling pressure. Over 24 months, insiders net sold 352,231 shares valued at $26.8M with zero open-market acquisitions, signaling limited insider confidence at current levels.
- Technical deterioration. RSI at 43.5, price below the 50-day MA of $88.62, and a negative MACD histogram of -0.11 suggest bearish momentum that could deepen on a disappointing Q3 print.
What would change my mind
Where this comes from: quarterly results · fundamentals · peer comparison · technicals, 9 Oct. Orin's read on EW; not advice.
How has the share price moved?
Up 12.4% over twelve months, from $80.82 on 27 Oct 2025 to $90.82 at the Tue 27 Oct 2026 close. Its highest close in that time was $95.18 on 6 Jul 2026; the last close is 4.6% below it.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 14.4M, on 26 Jun 2026).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
On file
All EW filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $5.3B | 0.1% |
| Vanguard Capital Management | $3.4B | 0.1% |
| Vanguard Portfolio Management | $2.4B | 0.1% |
| State Street | $2.4B | 0.1% |
| JPMorgan Chase | $2.1B | 0.1% |
| Wellington Management Group | $1.5B | 0.3% |
| Geode Capital Management | $1.4B | 0.1% |
| Bank of New York Mellon | $1.3B | 0.2% |
| DZ BANK AG Deutsche Zentral Genossenschafts Bank, Frankfurt am Main | $1.2B | 0.9% |
| FMR | $763.1M | 0.0% |
101 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 229 Form 4 filings; open-market trades net −$26.8M. Of the 50 on hand, 0 were open-market purchases and 18 sales — the rest are grants, option exercises and tax withholding.
Ask Orin about EW
Orin answers questions about EW from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
Priced at 57.0× its last 12 months of profit (Thu 5 Nov close); the typical Healthcare company on the NYSE is at 25.8×.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | 57.0× | — | 25.8× |
| P/S | 8.71×near usual | 8.58× | — |
| EV/EBITDA | 34.7×above usual | 29.8× | — |
| P/B | 5.3×below usual | 7.0× | — |
- P/E: no usual level — it ran from 10.6× to 53.8× over its last 5 fiscal years, so a middle value says little.
- "Its usual" is the middle of its own last 5 fiscal years.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
The analysts' average 12-month price target is $104 (from $95 to $110) — 14% above the Tue 27 Oct close price. That is their published opinion, not Orin's.
$104
$95 – $110 · +14% against the last close
- 15 buy or overweight
- 7 hold
- 0 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
Priced at 57.0× its last 12 months of profit. Only 1 of the 1 companies it is compared to made a profit (ISRG 53.3×), so there is no typical P/E.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| EWEdwards Lifesciences Corporation | $58B | 57.0× | 34.7× | 78.1% | 15.3% | 10% |
| ISRGIntuitive Surgical, Inc. | $158B | 53.3× | 36.9× | 67.2% | 25.5% | 17% |
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
Priced at 57.0× its last 12 months of profit (Thu 5 Nov close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.
- Now57.0×
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Healthcare companies on the NYSE were priced at a typical 25.8× their yearly profit (Tue 27 Oct close).
- Now25.8×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $55 a share — 39% below the $90.68 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Standard | $55 | 39% below $90.68 |
| Levered | $41 | 54% below $90.68 |
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.