Episode
Edwards Lifesciences Stock: Beat & Raised, But Near 52-Week Lows — Why We Say BUY (EW)
- Published
- Jul 25, 2026
- Duration seconds
- 882
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Summary
Edwards Lifesciences Corporation (EW) Q2 2026 — Edwards Lifesciences (EW) reported Q2 2026 with a clean beat-and-raise: sales grew 13.6% to $1.74B (+12.5% constant currency) and adjusted EPS was $0.78, up ~16% YoY and above consensus. (GAAP EPS was $0.42, depressed by a one-time discrete tax hit from Pillar Two global-minimum-tax rules and a California R&D-credit change — the adjusted figure is the real earnings power.) The core TAVR aortic-valve franchise did $1.26B (+11.3%; +10.5% cc), Surgical was $284M (+6.5%), and the standout was TMTT (transcatheter mitral & tricuspid) at $195.9M, up 47.3% as the PASCAL and EVOQUE platforms scale. Gross margin was 77.5% (adj 77.6%) and adjusted operating margin 30.0%. The balance sheet is a fortress: ~$2.9B cash vs ~$0.6B debt (~$2.3B net cash), ~$1.5B buyback authorization, no dividend. Management RAISED full-year guidance: sales growth to 10-11% (from 9-11%), implying ~$6.6-6.9B in sales, TAVR growth to 8-9%, and TMTT to $760-780M, while reaffirming adjusted EPS of $2.95-3.05 (+17% at midpoint); Q3 guide is $1.63-1.71B sales and $0.71-0.77 EPS. Despite all that, the stock sits near 52-week lows around $83 (52-wk range ~$72-96). Our owner-earnings / DCF pegs fair value near $92 — roughly 11% above the price and a touch below the Street's bullish ~$100 average (32 buys / 16 holds). Our call: BUY, 4/5. Edwards Lifesciences is a rare thing — a best-in-class medical-device franchise that just beat earnings, raised full-year guidance the same day, and then watched its stock slip toward 52-week lows. Edwards is the world leader in structural heart: the replacement heart valves and repair clips doctors thread up through an artery instead of opening your chest. Q2 2026 sales grew ~14% to $1.74B, adjusted EPS beat at $0.78 (+16%)…