EW US S&P 500Russell 1000 Earnings call · transcribed from the recording
Edwards Lifesciences (EW) · Q3 2026 results and valuation
Share price: $105.81 · 2026-11-11
Edwards Lifesciences provides surgical and transcatheter therapies for structural heart diseases, including repair and replacement technologies for various heart valves. The company serves patients with cardiovascular conditions through medical technologies used by clinicians and healthcare stakeholders globally. Source: 10-K annual report (2026-02-25)
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 23 Jul 2026
Net income up 27.4% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+27.4%
Net income vs Q2 2026
Guidance raised
Net income 307.5M vs 241.4M
Revenue −1.5%
Against the same quarter last year (Q3 2025) it is +5.6% — part of the move on last quarter is seasonal.
2 · How management spoke
Upbeat
More upbeat than 74% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Key theme
For the third quarter, Edwards Lifesciences' adjusted gross profit margin was 78.7%, compared to 77.9% in the same period last year.
Valuation
Is Edwards Lifesciences undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.8% growth a year (3-year revenue growth), the model's fair value is $64.36 a share — the stock trades 64% above it. Today's price assumes 18.1% growth a year.
Current price
$105.81
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.1% for 10 yrs
Fair value / share
$64.36
Buy below
$48.27
Price vs fair value
Overvalued 64%
Price vs buy-below price
Overvalued 119%
Management expects
Growth +10% · from the Q3 2026 report: “Putting all of this in perspective, these advancements represent meaningful multi-year opportunities that we expect to build over time and which underpin our…”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
-
Guidance ↑
Of its strong third quarter, Edwards Lifesciences is increasing its full-year sales guidance for total company to approximately 11.5%, increasing TAVR to 9% to 9.5%, and increasing TMTT sales...
-
Guidance
Putting all of this in perspective, these advancements represent meaningful multi-year opportunities that Edwards Lifesciences expects to build over time and which underpin its long-term growth target of approximately 10%...
-
Figure
Quarter sales of $1.72 billion grew 11.2%.
-
Last period
From a modeling standpoint, as expected, Q3 underlying sales growth will be artificially lower than Edwards Lifesciences' first half performance.
Source quote
“From a modeling standpoint, as expected, Q3 underlying sales growth will be artificially lower than our first half performance, given the high bar... For the third quarter, we're projecting sales of $1.63 billion to $1.71 billion. On a sequential basis, we expect normalized seasonality in Q3 this year.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Putting all of this in perspective, these advancements represent meaningful multi-year opportunities that we expect to build over time and which underpin our long-term growth target of approximately 10% average...”
“At the same time, we are applying our proven innovation playbook to new areas of significant and man need within structural heart, including structural heart failure and aortic regurgitation, creating...”
“In the fourth quarter and going forward, we are assuming that growth will be mainly driven by continued increases in procedure volume and less by share gains.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.72B | 1.74B | −1.5% | 1.55B | +10.5% |
| Gross profit | 1.35B | 1.35B | −0.2% | 1.21B | +11.5% |
| Operating income | 299.1M | 513.2M | −41.7% | 307.1M | −2.6% |
| Net income | 307.5M | 241.4M | +27.4% | 291.1M | +5.6% |
| EPS | 0.53 | 0.42 | +26.2% | 0.50 | +6.0% |
| P/E today 57.7 | 48.8 | 52.6 | −3.8 | 33.1 | +15.7 |
Topics
Most discussed now
- Based on its strong performance this quarter, Edwards Lifesciences is raising its full year sales growth guidance to approximately 11.5%…
- This performance was driven by Edwards Lifesciences' structural heart portfolio, including continuous strength in TAVR and growing…
- Marked by category-shaping milestones across TAVR, TMTT, and surgical, as well as compelling clinical evidence presented at TCT that will...
- That's truly Edwards Lifesciences' basically its 10 year strategy coming to reality this quarter and this year so this gives it...
Faded since Q2 2026
- Fading As Edwards continues to invest in new structural heart therapies and expand adoption globally, Edwards Lifesciences' results increasingly…
- Fading Edwards Lifesciences looks at TAVR as a very durable growth engine for the company.
- Fading You look at what Edwards Lifesciences did last year, what it is doing this year, the kind of execution it is...
- Fading What Edwards Lifesciences likes with this PASCAL tricuspid upcoming approval in the U.S., this is adding a layer of growth for...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
Donald E. Bobo, Jr., Corporate Vice President of Strategy and Corporate Development, announced his decision to retire from Edwards Lifesciences Corporation by mid-year 2027 and remain as a consultant through the end of 2027.
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
Stockholders approved the Amended and Restated Long-Term Stock Incentive Compensation Program, increasing the total share limit by 7,000,000 shares to a new total of 341,500,000 shares.
- Director or officer change; Regulation FD disclosure · SEC 8-K
Theodora Mistras was appointed as Corporate Vice President and Chief Financial Officer effective May 29, 2026, with a base salary of $925,000 and a sign-on bonus of $2,013,000.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
Edwards Lifesciences Corporation will not acquire JenaValve Technology, Inc. following a court injunction granted on January 9, 2026, blocking the proposed acquisition.