- Company name
- Edwards Lifesciences
- Sector
- Medical devices for structural heart disease
- About
- Edwards Lifesciences makes heart valves and devices that repair or replace heart valves. It reports three product groups. Transcatheter aortic valve replacement (TAVR), with the SAPIEN valves, had sales of $1,240 million in Q3 2026. Transcatheter mitral and tricuspid therapies (TMTT), with the PASCAL repair system and the EVOQUE and SAPIEN M3 replacement valves, had sales of $207 million. Surgical, with valves such as those made of RESILIA tissue, had sales of $264 million. Net sales were $1,715.5 million in Q3 2026 and $6,067.6 million in 2025. Edwards sold its Critical Care product group to BD in September 2024 and a smaller product group in December 2025, so these businesses are discontinued operations. Its shares trade on the New York Stock Exchange. The head office is in Irvine, California. Bernard Zovighian is Chief Executive Officer.
- Thesis
- Edwards trades above its intrinsic value because investors pay for its leading position in TAVR and for the fast growth of its mitral and tricuspid therapies. In Q3 2026, sales rose 10.5% to $1.72 billion, TMTT sales rose 44.0% to $207 million, and adjusted EPS rose 19% to $0.80. Edwards now expects 2026 sales growth of about 11.5% and adjusted EPS of $2.97 to $3.05, and it targets average sales growth of about 10% over the longer term. For the shares to earn this price, three things must be true. TAVR procedures must keep growing as the updated Medicare coverage and data from the EARLY TAVR and PROGRESS trials bring patients to treatment earlier. TMTT must reach its 2026 sales guidance of $780 million to $790 million and keep growing fast. The adjusted operating margin must rise, after Edwards guided to the high end of 28% to 29% for 2026. The Q4 2026 report and the 2027 guidance, expected in early February 2027, are the next test. Slower TAVR growth or stronger competition can make the premium hard to keep.
- Risks
- Large medical device companies compete in TAVR and in mitral and tricuspid therapies. New valves or lower prices from competitors can reduce the share and the growth of Edwards.
Most sales depend on payments from Medicare and other health systems. Lower payments or stricter coverage rules can slow the growth of procedures.
Edwards is often in patent disputes, and it recorded litigation costs in most quarters of 2025 and 2026. The FTC blocked its purchase of JenaValve in January 2026, so future purchases can also meet antitrust limits.
A recall or a safety problem with a valve can reduce sales and damage the trust of heart teams in its products.
Tax changes can raise costs. Edwards expects its 2026 tax rate, without special items, at the high end of 16% to 19%, and a change in California law limits its research tax credits.
- Balance sheet
- Cash: $4.6B
Debt: $600M
Net cash: $4.0B
Undrawn credit line: $750M, to July 2027
Debt due within 12 months: $0.0M
Last debt due: 2028
Edwards has net cash. At September 30, 2026, cash and cash equivalents were $3,110.8 million, short-term investments $1,533.9 million and long-term investments $262.6 million. Long-term debt was $598.8 million: the 4.3% senior notes of $600.0 million due June 15, 2028. Edwards had no borrowings under its $750.0 million revolving credit facility, which matures on July 15, 2027. In the first nine months of 2026, net cash provided by operating activities was $1,266.0 million and capital expenditures $195.4 million. Edwards repurchased about $700 million of shares through Q3 2026, and about $1.3 billion of the repurchase authorization was left. There were 575.0 million shares on October 31, 2026. Edwards pays no dividend.
As of Sep 30, 2026.
- Checkpoints
- Nov 4, 2026: Q3 2026 results and the 2026 outlook. Passed. Watch: Sales growth of 10% or more and a kept or higher EPS outlook pass; a lower outlook fails. Outcome: Sales rose 10.5%, and Edwards raised its 2026 guidance to sales growth of about 11.5% and adjusted EPS of $2.97 to $3.05.
Feb 4, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2027 guidance for sales growth near 10% and higher adjusted EPS passes; guidance for slower growth fails.
- Recent events
- Nov 4, 2026: Edwards reported Q3 2026 results. Sales rose 10.5% to $1.72 billion, TAVR sales rose 8.0% to $1.24 billion, and TMTT sales rose 44.0% to $207 million. Diluted EPS was $0.53, after an impairment of $220.2 million of an acquired research asset, and adjusted EPS rose 19% to $0.80. Edwards raised its 2026 guidance to sales growth of about 11.5% and adjusted EPS of $2.97 to $3.05. During the quarter, Medicare released its final updated coverage decision for TAVR, and the FDA approved the PASCAL Precision system for tricuspid repair in October.
Jul 23, 2026: Edwards reported Q2 2026 results. Sales rose 13.6% to $1,741.0 million, and adjusted EPS was $0.78. Diluted EPS was $0.42, which includes a valuation allowance for California research tax credits after a change in state law on June 29, 2026. Edwards raised its 2026 sales growth guidance to 10% to 11% and targeted average sales growth of about 10% over the longer term.
May 4, 2026: Edwards named Theodora (Doretta) Mistras, the Chief Financial Officer of Viatris, as its Chief Financial Officer from the end of May 2026. She follows Scott Ullem.
Apr 23, 2026: Edwards reported Q1 2026 results. Sales rose 16.7% to $1.65 billion, and adjusted EPS was $0.78. Edwards completed a $500 million accelerated share repurchase and raised its 2026 guidance to sales growth of 9% to 11% and adjusted EPS of $2.95 to $3.05.
Feb 10, 2026: Edwards reported 2025 results. Sales rose 11.5% to $6,067.6 million, and adjusted EPS was $2.56. Diluted EPS from continuing operations was $1.81. Q4 2025 TMTT sales rose more than 40% to $156 million.
Jan 9, 2026: A U.S. District Court granted the request of the Federal Trade Commission to block the purchase of JenaValve Technology, so Edwards will not buy JenaValve. Edwards raised its 2026 adjusted EPS guidance to $2.90 to $3.05 and continues to develop its own SOJOURN valve for aortic regurgitation.