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1. Company Snapshot

1.a. Company Description

Edwards 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.

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1.b. Last Insights on EW

Edwards Lifesciences' recent performance was positively driven by its Q3 earnings release, which provided insight into the company's business performance. The company's TMTT segment, a market leader in transcatheter heart valve technologies, continues to exhibit strong secular tailwinds and consistent revenue growth. A robust balance sheet and ongoing share buybacks also contributed positively. Despite margin pressures and stagnating EPS, the company's valuation appears supported by its growth prospects. The Q3 2025 earnings call transcript highlighted the company's continued focus on innovation and growth.

1.c. Company Highlights

2. Edwards Lifesciences' Strong Q4 and Full-Year 2025 Performance

The company reported a strong Q4 with total sales of $1.57 billion, growing 11.6% year-over-year, and adjusted earnings per share of $0.58, which was slightly below estimates of $0.619. The revenue growth was driven by a renewed focus on SAPIEN across the healthcare ecosystem, with TAVR sales growing 10.6% year-over-year. The company's TMTT segment also saw significant growth, with sales increasing over 40% to $156 million.

Publication Date: Feb -12

📋 Highlights
  • Strong 2025 Performance:: Edwards Lifesciences grew 11.6% YoY in Q4 and 10.7% annually, driven by structural heart innovations and TAVR leadership.
  • TMTT Segment Surge:: TMTT Q4 sales soared 40% to $156M, with full-year revenue exceeding $500M, targeting $2B by 2030 via SAPIEN M3 and PASCAL launches.
  • TAVR Durability Validation:: Partner 3/2 data (7–10-year results) reinforced SAPIEN’s long-term efficacy, solidifying its market leadership and 10.6% YoY TAVR growth.
  • 2026 Guidance Upgrade:: Raised EPS guidance to $2.90–$3.05 and 8–10% sales growth, supported by $3B cash reserves and strategic R&D investments.
  • Capital Allocation Focus:: $900M in 2025 share repurchases, $2B remaining, alongside expanded production for TAVR/TMTT demand and BD hires to drive growth.

Segment Performance

The TAVR segment's growth was largely due to share gain and pricing, with the Boston Scientific exit contributing significantly to this growth. The TMTT segment's growth was fueled by a comprehensive portfolio of repair and replacement therapies, including the launch of SAPIEN M3 and EVOQUE. The Surgical segment saw sales of $254 million, increasing 2% over the prior year.

Guidance and Outlook

The company has increased confidence in its 2026 earnings per share guidance of $2.90 to $3.05 and expects sales growth of 8% to 10%. The company's guidance is supported by its strong product pipeline, including the launch of next-gen PASCAL in Q4 2025. The expected tax rate for 2026 is between 16% and 19%.

Valuation and Capital Allocation

The company's current valuation metrics, including a P/E Ratio of 43.03 and EV/EBITDA of 35.84, suggest that the market is pricing in significant growth expectations. The company's capital allocation priorities remain unchanged, with a focus on investing in the business to support growth, increasing production capacity, and making external investments. Share repurchase is also a key aspect of the company's capital allocation strategy, with $40 million in repurchases in Q4 2025.

Growth Opportunities

The company is well-positioned to drive growth in the TAVR market, with a strong product pipeline and a growing focus on treating symptomatic aortic stenosis patients urgently. The European guidelines have changed, recommending TAVR for patients with functional mitral regurgitation, which is expected to drive double-digit market growth. Analysts estimate next year's revenue growth at 9.7%, which is slightly higher than the company's guidance.

3. NewsRoom

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Edwards Lifesciences to Present at the Barclays and Leerink Partners Global Healthcare Conferences

Feb -19

Source: businesswire.com

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Edwards Lifesciences scraps anti-copycat policy, EU drops antitrust investigation

Feb -16

Source: reuters.com

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Edwards Lifesciences to Present at Citi's 2026 Unplugged Medtech and Life Sciences Access Day

Feb -13

Source: businesswire.com

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Edwards Lifesciences Corporation (NYSE:EW) Given Average Rating of “Moderate Buy” by Analysts

Feb -13

Source: defenseworld.net

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A Closer Look at Healthcare Sector Earnings: AZN vs. EW vs. ZBH

Feb -12

Source: marketbeat.com

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Options Corner: Edwards Lifesciences Poor Start To The New Year Offers A Contrarian Opportunity

Feb -11

Source: feeds.benzinga.com

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EW's Q4 Earnings Miss Estimates, Revenues Up Y/Y, Stock Climbs

Feb -11

Source: zacks.com

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Edwards Lifesciences Corp (EW) Q4 2025 Earnings Call Highlights: Strong Sales Growth Amidst Strategic Investments

Feb -11

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.50%)

6. Segments

Medical Products

Expected Growth: 9.5%

The expected growth rate of 9.5% is based on the global revenue growth hypothesis. This growth is driven by increasing demand for medical products, driven by an aging population, and a rising prevalence of cardiovascular diseases. Additionally, advancements in medical technology and the company's continued investment in research and development are expected to drive growth in this segment.

7. Detailed Products

Transcatheter Heart Valves

Edwards Lifesciences offers a range of transcatheter heart valves, including the SAPIEN 3 and SAPIEN 3 Ultra valves, which are designed to treat aortic stenosis and other heart valve diseases.

Surgical Heart Valves

The company's surgical heart valves, such as the PERIMOUNT and INTUITY valves, are designed for open-heart surgery to replace diseased or damaged heart valves.

Critical Care

Edwards Lifesciences' critical care products, including the FloTrac and EV1000 systems, are designed to monitor and manage cardiovascular and hemodynamic parameters in critically ill patients.

Peripheral Vascular

The company's peripheral vascular products, such as the INCRAFT and LIFESTREAM stent grafts, are designed to treat peripheral artery disease and other vascular conditions.

8. Edwards Lifesciences Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Edwards Lifesciences Corporation faces moderate threat from substitutes, as there are limited alternatives to its medical devices and technologies. However, the company's focus on innovation and R&D helps it stay ahead of potential substitutes.

Bargaining Power Of Customers

The bargaining power of customers is low for Edwards Lifesciences Corporation, as the company's products are often critical to patient care and hospitals have limited negotiating power. Additionally, the company's strong relationships with healthcare providers help maintain customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Edwards Lifesciences Corporation, as the company relies on a diverse range of suppliers for raw materials and components. However, the company's scale and global presence help mitigate supplier power.

Threat Of New Entrants

The threat of new entrants is low for Edwards Lifesciences Corporation, as the medical device industry is highly regulated and requires significant investment in R&D and clinical trials. Barriers to entry are high, and the company's established brand and reputation provide a competitive advantage.

Intensity Of Rivalry

The intensity of rivalry is high for Edwards Lifesciences Corporation, as the medical device industry is highly competitive and fragmented. The company faces intense competition from established players and new entrants, and must continually innovate and invest in R&D to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.46%
Debt Cost 4.24%
Equity Weight 90.54%
Equity Cost 9.57%
WACC 9.06%
Leverage 10.45%

11. Quality Control: Edwards Lifesciences Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
J&J

A-Score: 6.9/10

Value: 3.1

Growth: 4.0

Quality: 8.8

Yield: 6.0

Momentum: 9.5

Volatility: 10.0

1-Year Total Return ->

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Abbott

A-Score: 6.3/10

Value: 2.8

Growth: 5.9

Quality: 7.8

Yield: 4.0

Momentum: 7.5

Volatility: 9.7

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Stryker

A-Score: 5.3/10

Value: 1.4

Growth: 6.4

Quality: 6.6

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Boston Scientific

A-Score: 5.2/10

Value: 1.2

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Edwards Lifesciences

A-Score: 5.2/10

Value: 1.2

Growth: 5.2

Quality: 8.4

Yield: 0.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
DexCom

A-Score: 4.3/10

Value: 1.5

Growth: 9.1

Quality: 6.8

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

79.78$

Current Price

79.78$

Potential

-0.00%

Expected Cash-Flows