EW

Intuitive Surgical, Inc. ISRG reported third-quarter 2026 adjusted earnings per share (EPS) of $3.00, which beat estimates by 13.6%. The bottom line increased 25% from $2.40 in the year-ago quarter. GAAP EPS declined to $1.49 from $1.95, reflecting a significant litigation charge. Revenues increased 21.7% year over year to $3.05 billion, surpassing expectations by approximately 4.9%. Growth was driven by higher procedure volumes, increased system placements and an expanding installed base. Worldwide da Vinci and Ion procedures collectively grew approximately 15%. Image Source: Zacks Investment Research Instruments and accessories revenues increased 18.3% year over year to $1.80 billion from $1.52 billion. This growth reflected a 14% increase in da Vinci procedures and 31% growth in Ion procedures. U.S. da Vinci procedures increased 10%, while international procedures advanced 20%. Europe grew 20%, Asia increased 19% and Rest of World markets expanded 22%. India recorded 42% procedure growth, while Japan benefited from improving reimbursement conditions. Single-port procedures climbed 55%, supported by expanding adoption in the United States and Korea. Da Vinci instruments and accessories revenue per procedure increased to approximately $1,860 from $1,800, benefiting from favorable product mix and greater adoption of newer instruments. Systems revenues jumped 30.3% year over year to $769.1 million from $590.4 million, reflecting stronger placements and higher operating lease revenues. Intuitive placed 546 da Vinci systems compared with 427 a year earlier. Placements included 315 da Vinci 5 systems, 87 Xi, 65 XiR, 42 SP and 37 X systems. The company also placed 56 Ion systems versus 50 last year. U.S. placements increased 27% to 335 systems, while international placements rose 29% to 211. Europe recorded 115 placements, up from 63 a year ago. The worldwide da Vinci installed base expanded 12% to 12,094 systems, while Ion's installed base increased 21% to 1,152. Service revenues increased 21.8% year over year to $482.2 million from $395.9 million. Growth reflected expansion of the da Vinci and Ion installed bases and a higher proportion of da Vinci 5 systems. Recurring revenues represented approximately 84% of total quarterly revenues, underscoring the contribution of instruments, accessories, leasing and services to Intuitive's business model. Adjusted gross profit increased 25% to $2.13 billion from $1.70 billion. The adjusted gross margin expanded to 69.9% from 68% a year earlier, benefiting from product cost reductions, manufacturing efficiencies and tariff refunds. The quarter included a $28 million pretax tariff refund benefit. Excluding this item, adjusted gross margin was 68.9%, representing a 90-basis-point year-over-year improvement. Adjusted operating income rose 30.1% to $1.27 billion. Adjusted operating expenses increased 18%, reflecting higher compensation, headcount and prototype development spending. Intuitive ended September with $6.80 billion in cash, cash equivalents and investments, down $1.83 billion sequentially. The decline primarily reflected significant shareholder returns and capital investments. The company repurchased 7.8 million shares for $2.94 billion during the quarter. Capital expenditures totaled $113 million. GAAP net income declined to $523 million from $704 million, including a $450 million pretax charge related to an antitrust litigation settlement. Intuitive narrowed its full-year worldwide da Vinci procedure growth forecast to 14-15% from the previous 13.5-15.5% guidance. Management expects growth closer to the midpoint. The company raised its adjusted gross margin outlook to 68.7-69.3% from 68-69%, incorporating an estimated 90-basis-point tariff impact. Adjusted operating expense growth guidance remains at 11-13%. Management also outlined instrument pricing reductions beginning in 2027 and policy-driven reductions in China starting in November 2026. Together, these measures are expected to reduce da Vinci instruments and accessories revenue per procedure by 3-5% on a constant-mix basis, once fully implemented. The pricing initiatives target high-volume benign procedures where affordability limits robotic surgery adoption. Although they could pressure revenue per procedure, management expects lower customer costs, expanded access and continued innovation to support procedure growth over time. Intuitive Surgical, Inc. price-consensus-eps-surprise-chart | Intuitive Surgical, Inc. Quote Intuitive Surgical currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the broader medical space are Glaukos GKOS, Edward Lifesciences EW and Globus Medical GMED, each carrying a Zacks Rank of 2 at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Glaukos reported second-quarter 2026 earnings per share of 14 cents, which beat the Zacks Consensus Estimate by 50.00%. Revenues of $186 million surpassed the Zacks Consensus Estimate by 24.1%. Glaukos has an estimated earnings growth rate of 268.8% for 2027. GKOS' earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 25.87%. Edward Lifesciences reported second-quarter 2026 adjusted EPS of 78 cents, which beat the Zacks Consensus Estimate by 6.85%. Revenues of $1.74 billion surpassed the Zacks Consensus Estimate by 2.45%. Edward Lifesciences has an estimated long-term earnings growth rate of 12.7%. EW's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.49%. Globus Medical reported a second-quarter fiscal 2026 adjusted EPS of $1.34, which beat the Zacks Consensus Estimate by 19.6%. Revenues of $790 million missed the Zacks Consensus Estimate by 0.35%. Globus Medical has an estimated long-term earnings growth rate of 12.4%. GMED's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.88%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report Glaukos Corporation (GKOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Edwards Lifesciences Corporation (EW), headquartered in Irvine, California, is a global medical technology company specializing in structural heart disease treatments, with a market capitalization of approximately $49.1 billion. The company develops innovative products, including heart valves and related technologies, partnering with physicians to improve cardiovascular health, extend patients' lives, and enhance their overall quality of life. EW is set to report its Q3 2026 earnings after the market closes on Wednesday, November 4, 2026. Ahead of the release, analysts expect diluted EPS of 73 cents, up 9% from 67 cents in the year-ago quarter. Likewise, EW has exceeded Wall Street's EPS estimates in three of the past four quarters. - 'When You Say I Should Pay $100 Billion, Then I'm Starting To Do A Little Math': Bill Gates Said He'd Happily Pay 'Over $10 Billion In Taxes' But Some Are Asking Too Much - How to Play Rivian Stock as RIVN Keeps Falling Despite Record Deliveries - Dan Ives Calls SpaceX's $40B Nvidia Chip Debt Plan a 'Smart Move' - Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2026, analysts expect EW to report EPS of $3, up 17.2% from $2.56 in fiscal 2025. Moreover, EW's EPS is projected to grow another 13% year over year to $3.39 in fiscal 2027. EW stock has gained 13.3% over the past 52 weeks, slightly underperforming the S&P 500 Index ($SPX), which advanced 16%, and the State Street Health Care Select Sector SPDR ETF (XLV), which rose 18.5% over the same period. Edwards Lifesciences has lagged the broader market over the past year, mainly because of valuation concerns, intensifying competition in its structural heart business, and pressure on profit margins. In its Q2 2026 earnings release, published July 23, Edwards reported 13.6% revenue growth and raised its full-year sales growth guidance to 10% to 11%. However, foreign exchange headwinds weighed on gross margin expectations, while California tax law changes were expected to push its effective tax rate toward the upper end of its guidance range. Following the results, EW shares fell 1.4% in the next trading session. Nevertheless, the company reaffirmed its adjusted EPS guidance of $2.95 to $3.05, while strong sales growth and continued expansion in structural heart therapies support a constructive longer-term outlook. Analysts remain bullish on EW, with the stock carrying a consensus "Strong Buy" rating. Of the 30 analysts covering the stock, 21 recommend a "Strong Buy," two recommend a "Moderate Buy," and seven recommend a "Hold." Meanwhile, the average price target of $101.59 implies potential upside of 19.2% from the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

A month has gone by since the last earnings report for Pacific Biosciences of California (PACB). Shares have added about 11.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Pacific Biosciences due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Pacific Biosciences of California, Inc. before we dive into how investors and analysts have reacted as of late. PacBio reported an adjusted loss per share of 14 cents for the second quarter of 2026, wider than the year-ago adjusted loss of 13 cents per share. The figure came in line with the Zacks Consensus Estimate. The company’s GAAP loss per share was 14 cents in the quarter, flat year over year. PacBio registered total revenues of $39 million, down 2% year over year. The figure missed the Zacks Consensus Estimate by 4.2%. Consumables growth and higher Revio placements were offset by weaker instrument sales and a sharp revenue decline in Asia Pacific. Americas revenues were $17.6 million, down 0.6% year over year. Continued uncertainty surrounding NIH, academic and government funding weighed on capital purchasing, though clinical and commercial customer activity remained resilient. Asia-Pacific revenues totaled $7 million, down 45% year over year. The decrease reflected the completion of a significant population-sequencing program, weaker academic and government demand and lower consumables purchases as customers prepared for the SPRQ-Nx transition. EMEA revenues increased 52% year over year to $14.4 million. Growth was driven by clinical customers moving from pilot programs into routine production, stronger Vega demand and a strategic multi-system Revio placement supporting a national genomics initiative. In the quarter under review, total Product revenues amounted to $32.9 million, down 0.4% from the year-ago quarter. Within the Product segment, Instrument revenues were $12.8 million, down 9.9% year over year. The decline reflected a lower average selling price, including strategic Revio placements at key accounts, and fewer Vega shipments amid academic and government funding constraints. Instrument revenues in the quarter included 20 Revio sequencing systems and 26 Vega sequencing systems. PACB ended the quarter with 366 cumulative Revio system shipments and 200 cumulative Vega system shipments. Consumables revenues for the quarter were $20.1 million, up 6.3% from the prior-year quarter, supported by installed-base expansion and continued Revio utilization. Shipments to clinical customers increased 67% and represented a mid-teens percentage of total consumables shipments. Annualized Revio pull-through per system was approximately $202,000 in the quarter. Growth was partly tempered by customers using existing inventory and validating workflows ahead of broader SPRQ-Nx adoption. Service and other revenues totaled $6.1 million, down 9.4% year over year. In the quarter under review, PacBio’s adjusted gross profit decreased 8.3% year over year to $13.9 million. The adjusted gross margin contracted 200 basis points to 36%. Sales, general and administrative expenses declined 7.7% year over year to $33.4 million. Research and development expenses increased 2.2% year over year to $23 million. Adjusted total operating expenses of $56.1 million decreased 3.4% year over year. Total operating loss was $44.6 million in the reported quarter compared with the prior-year quarter’s $44.9 million. PacBio exited the second quarter of 2026 with cash and investments of $236.9 million compared with $275.9 million at the end of the first quarter of 2026. PacBio reduced its 2026 revenue guidance to $155-$165 million from the prior range of $165-$175 million. The Zacks Consensus Estimate is pegged at $165.8 million. The company now expects an adjusted gross margin of 35%-37%. Adjusted operating expenses are projected at $215-$220 million, down $5 million from the previous guidance range. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -8.33% due to these changes. Currently, Pacific Biosciences has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock has a score of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Pacific Biosciences has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Pacific Biosciences belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Edwards Lifesciences (EW), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Edwards Lifesciences reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $0.78 for the same period compares with $0.67 a year ago. For the current quarter, Edwards Lifesciences is expected to post earnings of $0.73 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Edwards Lifesciences. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pacific Biosciences of California, Inc. (PACB) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for IQVIA Holdings (IQV). Shares have added about 5.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is IQVIA due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for IQVIA Holdings Inc. before we dive into how investors and analysts have reacted as of late. IQVIA Holdings Inc. has reported second-quarter 2026 adjusted earnings of $3.15 per share, rising 12.1% year over year and beating the Zacks Consensus Estimate of $3.02 by 4.3%. Revenues of $4.36 billion increased 8.7% and topped the consensus mark of $4.29 billion by 1.6%. The quarter benefited from broad-based segment growth and strengthening demand indicators. R&D Solutions generated record net new bookings of $3.15 billion, up 19% year over year, producing a 1.22X book-to-bill ratio. Commercial Solutions revenues were $1.79 billion, increasing 8.6% on a reported basis and 8.4% at constant currency. The business contributed roughly 41% to the total quarterly revenues. Growth reflected double-digit gains in patient solutions and commercial engagement services. Analytics and consulting delivered high-single-digit organic growth, while increased adoption of IQVIA’s artificial intelligence solutions also contributed to the segment’s accelerating organic growth. Research & Development Solutions revenues reached $2.58 billion, up 8.8% as reported and 8.6% at constant currency. Excluding reimbursed expenses, revenues advanced 6.7% on a reported basis. Demand indicators strengthened considerably. Trailing-12-month net new bookings rose 13% to $11.3 billion, while contracted backlog stood at $34.2 billion. IQVIA expects $9.2 billion of that backlog to convert into revenues over the next 12 months, representing 7.5% year-over-year growth. The strong bookings performance provides improved visibility into future clinical research revenues. It also supports management’s expectation for sustained business momentum through the remainder of 2026 and into 2027. Adjusted EBITDA increased 9.2% year over year to $994 million. The adjusted EBITDA margin was 22.8%, modestly above the prior-year level, as profit growth slightly outpaced revenue growth. Adjusted net income increased to $527 million from $486 million. The improvement reflected stronger operating performance despite higher stock-based compensation, restructuring-related expenses and acquisition-related costs included in the company’s reconciliation. GAAP net income attributable to IQVIA was $256 million, down from $266 million a year earlier. GAAP diluted earnings were $1.53 per share compared with $1.54 in the prior-year quarter. Cost of revenues increased to $2.93 billion from $2.69 billion in the year-ago quarter. Selling, general and administrative expenses rose to $574 million from $509 million, while depreciation and amortization increased to $292 million. Restructuring costs nearly doubled to $63 million from $32 million. As a result, GAAP income from operations remained unchanged at $506 million despite the higher revenue base. Interest expenses increased to $197 million from $182 million. These cost pressures explain the contrast between the decline in GAAP net income and stronger growth in adjusted earnings and EBITDA. The second-quarter operating cash flow climbed 26% year over year to $558 million. The free cash flow rose 23.3% to $360 million after $198 million of property, equipment and software spending. For the first half, the operating cash flow totaled $1.18 billion and the free cash flow reached $851 million. IQVIA repurchased $398 million of common stock during the quarter, bringing first-half repurchases to $950 million. IQVIA ended June with $1.91 billion in cash and cash equivalents, and $16 billion in debt. Net debt was $14.09 billion, while the net leverage ratio stood at 3.59X trailing-12-month adjusted EBITDA. The company had $2.82 billion remaining under its share-repurchase authorization. Its current portion of long-term debt was $2.29 billion compared with $1.84 billion at the end of 2025. IQVIA raised its 2026 revenue guidance to $17.28-$17.48 billion from $17.15-$17.35 billion. The updated forecast assumes 200 basis points of contribution from acquisitions, up from 150 basis points previously. It also incorporates a foreign-exchange tailwind of approximately 20 basis points, down from the prior assumption of 100 basis points. Adjusted EBITDA guidance increased to $4-$4.05 billion from $3.98-$4.03 billion. IQVIA also lifted adjusted diluted earnings guidance to $12.80-$13 from $12.65-$12.95, reflecting stronger expected organic revenue growth and revised acquisition and currency impacts. In the past month, investors have witnessed a upward trend in estimates review. At this time, IQVIA has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. IQVIA is part of the Zacks Medical - Instruments industry. Over the past month, Edwards Lifesciences (EW), a stock from the same industry, has gained 5.9%. The company reported its results for the quarter ended June 2026 more than a month ago. Edwards Lifesciences reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $0.78 for the same period compares with $0.67 a year ago. For the current quarter, Edwards Lifesciences is expected to post earnings of $0.73 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. Edwards Lifesciences has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Medtronic plc MDT is slated to report its first-quarter fiscal 2027 results on Sept. 1, before the opening bell. The Zacks Consensus Estimate for the company’s first-quarter earnings per share (EPS) suggests 10.3% year-over-year growth to $1.39. The estimate has remained constant in the past 60 days. The consensus mark for first-quarter revenues currently stands at $9.47 billion, implying a 10.4% increase over the prior-year period. Image Source: Zacks Investment Research Medtronic has a solid earnings surprise history, beating estimates in each of the past four quarters, with an average surprise of 2.3%. Image Source: Zacks Investment Research Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. This is not the case here, as you can see below. Earnings ESP: Medtronic has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks Rank #1 stocks here. The segment is likely to have witnessed a solid performance across both U.S. and international markets. Within this, Cardiac Ablation Solutions (“CAS”) is expected to have remained the key growth driver, supported by momentum in the pulsed field ablation portfolio, which grew 145% in the previous quarter. The launch of the Sphere-9 catheter in Japan may have also strengthened Medtronic’s position in the region. The company has also begun the global rollout of Prism-2, its next-generation mapping software, which offers improved navigation through hybrid impedance and magnetic mapping. In June 2026, Medtronic announced strategic investments in two privately held companies focused on the development of intracardiac echocardiography (ICE) catheter technologies, which may have provided an additional boost to revenues. Cardiac Rhythm Management may also have contributed, driven by Micra leadless pacemakers, Aurora implantable cardioverter defibrillator (EV-ICD) system and the SelectSecure 3830 lead. In Structural Heart, revenues are expected to have benefited from continued international strength as well as stabilizing U.S. procedure volumes. Growth in the Symplicity Spyral renal denervation system, guide catheters and balloons, as well as Endovenous growth in Peripheral Vascular Health, may have boosted Coronary & Peripheral Vascular sales. The Zacks Consensus Estimate implies Cardiovascular revenues will increase 15.2% year over year. Medtronic continues to invest across its Neuroscience portfolio to advance pipeline innovation and support long-term growth. Within this, Cranial and Spinal Technologies results in the fiscal first quarter may benefit from the continued adoption of the AiBLE ecosystem, with Core Spine and Neurosurgery also likely contributing to growth. The commercial rollout of the Stealth AXiS surgical system may have further advanced. In June, Medtronic received the CE mark for the ear, nose and throat indications, expanding the platform’s reach. Neuromodulation performance is expected to have been led by the Inceptiv closed-loop spinal cord stimulator, the Percept RC neurostimulator with BrainSense technology, and Interventional products. Medtronic completed two acquisitions within this business. The Scientia Vascular acquisition in June adds a portfolio of guidewires and catheters to its existing neurovascular product lineup, while the July acquisition of SPR Therapeutics, Inc. (SPR) expands its ability to serve patients across the pain care continuum. The Zacks Consensus Estimate expects Neuroscience revenues to grow 10.7% year over year. In the fiscal first quarter, MedSurg performance is expected to have been driven by solid growth in Advanced Energy and Wound Management, alongside higher contribution from the Hugo robotic-assisted surgery system. However, similar to recent trends, continued pressure on U.S. bariatric surgery procedure volumes may have partially offset this growth. Endoscopy is likely to have been a growth driver, with sales benefiting from strong adoption of Endoflip in the United States and Western Europe, as well as from U.S. market share gains of the Nexpowder hemostasis system. Acute Care and Monitoring may have gained from strength in Nellcor pulse oximetry, respiratory and airways and in perioperative. The Zacks Consensus Estimate for MedSurg’s revenues suggests a 7.6% year-over-year increase. MiniMed, Medtronic’s diabetes business, completed an initial public offering in March, with approximately 10% of its ownership sold and its shares beginning to trade on the Nasdaq Global Select Market. Medtronic continues to hold approximately 90% ownership in MiniMed. In the first quarter of fiscal 2027, the business is likely to have witnessed robust international contributions from the continued adoption of the MiniMed 780G Automated Insulin Delivery (AID) system, including the Simplera Sync and Guardian 4 continuous glucose monitoring sensors and Extended Infusion Sets. U.S. momentum may also have continued following the late-2025 launches of the Simplera Sync and Abbott’s Instinct sensors. The quarter also saw several key developments. MiniMed announced the commercial availability of MiniMed Flex, its smallest app-controlled insulin pump powered by the advanced SmartGuard algorithm. The system is FDA cleared for people with type 1 diabetes aged 7 years and older, as well as adults aged 18 years and older with insulin-requiring type 2 diabetes and is paired with the Simplera Sync sensor. MiniMed Flex is also now available to Medicare and Medicare Advantage beneficiaries. MiniMed launched the MiniMed 780G system integrated with Abbott’s Instinct sensor and the MiniMed Go system with the Instinct Go sensor in Europe. Together, these developments are expected to have strongly boosted overall revenues in the quarter. The Zacks Consensus Estimate suggests Diabetes revenues will grow 15.1% year over year. Over the past three months, Medtronic shares have outperformed the industry and the broader Medical sector. Image Source: Zacks Investment Research The stock has also fared better than major peers like Boston Scientific BSX, whose shares fell 2%, while Edward Lifesciences EW gained 4.8%. Boston Scientific’s second-quarter 2026 revenues and EPS surpassed the Zacks Consensus Estimate by 1.1% and 3.6%, respectively. However, the company lowered its 2026 sales and earnings outlook after slower WATCHMAN demand, U.S. electrophysiology share losses and limited operating leverage weakened near-term visibility. Meanwhile, Edwards’ second-quarter revenues and EPS topped the consensus mark by 2.4% and 6.8%, respectively. Medtronic trades at a forward five-year Price/Earnings (P/E) of 14.98X, lower than its median of 15.73X and the industry average of 17.74X. Image Source: Zacks Investment Research Medtronic’s upcoming fiscal first-quarter results are expected to reflect ongoing momentum in CAS, as well as strength in businesses such as Cardiac Rhythm Management and Cranial and Spinal Technologies. At the same time, the company is also advancing its M&A and venture initiatives, targeting higher-growth segments to accelerate innovation. While current indicators do not point to a strong earnings beat, the company has a consistent earnings surprise history, which is encouraging. Medtronic’s recent stock performance has been impressive, outpacing the key benchmarks and peers. Existing MDT shareholders should consider holding their positions, supported by the company’s attractive valuation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medtronic PLC (MDT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Edwards Lifesciences stock has delivered a 21.6% gain over the past three years, yet the valuation checks paint a less generous picture. The intrinsic value estimate from a Discounted Cash Flow (DCF) model indicates the shares are roughly fairly valued, while traditional market multiples lean expensive. Over the last three years, Edwards Lifesciences has returned 21.6%, which rewards patient holders but leaves fresh buyers needing to judge how much upside is left at today’s price. Expectations around the company’s ability to keep converting its cardiovascular portfolio into steady cash flows may support the current share price. However, any pressure on pricing, procedure volumes or regulatory outcomes can quickly weigh on what investors are willing to pay. The broader valuation checks suggest Edwards Lifesciences is not a clear bargain right now, with the stock screening as undervalued in 0 of 6 checks and earnings-based multiples pointing to an overvalued read. The issue now is whether Edwards Lifesciences’ recent returns and fair DCF-based intrinsic value leave enough margin of safety at the current market price. Edwards Lifesciences delivered 13.4% returns over the last year. See how this stacks up to the rest of the Medical Equipment industry. The Discounted Cash Flow (DCF) method estimates how much cash Edwards Lifesciences may generate for shareholders and discounts those amounts back to today’s value. For Edwards Lifesciences, the model uses latest twelve month free cash flow of about $1.4b and assumes cash flows continue to grow rather than shrink. On that basis, the model produces an estimated intrinsic value of about $91.77 per share. With the current market price sitting only around 0.6% above that DCF estimate, Edwards Lifesciences does not screen as materially cheap or stretched on cash flows alone. The stock price and the cash flow based valuation are effectively in line, so any potential upside or downside view will likely depend more on how confident you are in the company’s ability to keep generating similar free cash flows than on any clear discount in the current price. Overall, the Discounted Cash Flow view suggests Edwards Lifesciences stock is approximately fairly valued at today’s price. Edwards Lifesciences is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Edwards Lifesciences. P/E is a useful lens for Edwards Lifesciences because earnings are a key focus for many investors in established medical equipment businesses. On this measure, Edwards Lifesciences trades on a P/E of about 54.3x, which is well above the Medical Equipment industry average of about 28.0x and also above the peer average of about 28.1x. A tailored fair P/E ratio for Edwards Lifesciences, which reflects its sector, size and risk profile, is estimated at about 34.7x. The current 54.3x P/E therefore represents a sizeable premium to what this framework suggests investors might usually pay for similar earnings. That leaves the stock pricing in strong expectations, with less room for disappointment if earnings or sentiment soften from here. On the P/E multiple, Edwards Lifesciences stock appears expensive compared with both its fair ratio and the wider medical equipment peer group. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Edwards Lifesciences pick up where this valuation puzzle leaves off. They spell out which expectations for Edwards Lifesciences' growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. Each one treats fair value as a thesis about the business that you can revisit over time rather than a one off snapshot. These live on Simply Wall St's Community page. You can add your voice to the Edwards Lifesciences story by sharing a Narrative that sets out your number driven view on where its growth, margins and execution go from here. Put your thesis on record in the Simply Wall St community and see how it stacks up as new results arrive. Do you think there's more to the story for Edwards Lifesciences? Head over to our Community to see what others are saying! For Edwards Lifesciences, the Discounted Cash Flow (DCF) view points to an intrinsic value that is close to the current share price, while earnings based multiples flag the stock as overvalued versus peers and a tailored fair P/E. The broader checks also lean weak, which leaves less of a valuation cushion if sentiment or earnings expectations soften. The real dividing line between the bull and bear cases is whether Edwards Lifesciences can sustain the cash flow and earnings profile that investors are currently willing to pay a premium for. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

On July 23, Edwards Lifesciences Corporation (NYSE:EW) delivered second-quarter 2026 net sales of $1.74 billion, up 13.6% year over year (12.5% on a constant currency basis), surpassing Wall Street expectations of $1.70 billion. Adjusted diluted earnings per share came in at $0.78, ahead of the consensus estimate of $0.74 and up 16.4% from $0.67 a year earlier. The quarter was highlighted by 47.3% year-over-year growth in Transcatheter Mitral and Tricuspid Therapies (TMTT) revenue to $195.9 million, reflecting accelerating adoption of the company's next-generation structural heart devices. Supported by strong demand across its structural heart portfolio, management raised its full-year 2026 sales growth guidance to 10%–11% ($6.6 billion to $6.9 billion) while reaffirming adjusted EPS guidance of $2.95 to $3.05. Can Edwards Lifesciences convert its 47.3% TMTT revenue growth into sustained earnings expansion, or will tax-related headwinds and valuation concerns weigh on returns? The institutional thesis for Edwards Lifesciences Corporation (NYSE:EW) rests on its category-defining dominance in transcatheter therapies and high-margin product mix. Core Transcatheter Aortic Valve Replacement (TAVR) revenue grew 11.3% year-over-year to $1.26 billion in Q2, demonstrating that adoption of the SAPIEN platform remains resilient across global markets with stable average selling prices. Because of this sustained momentum, management raised its full-year TAVR growth outlook to 8%–9%. Simultaneously, the company's high-growth segment, Transcatheter Mitral and Tricuspid Therapies (TMTT), is scaling into a major commercial pillar. TMTT revenue jumped 47.3% year over year to $195.9 million in the second quarter, driven by strong adoption of the PASCAL, EVOQUE, and SAPIEN M3 platforms. Edwards also stands to benefit from a potential expansion of Medicare coverage for TAVR after the Centers for Medicare & Medicaid Services proposed broadening reimbursement to include certain asymptomatic severe aortic stenosis patients while easing several procedural requirements. If finalized, the policy could expand the eligible patient pool and support longer-term procedure volumes. Supported by a 77.5% gross margin and a 30.0% adjusted operating margin, Edwards generated strong cash flow and ended the quarter with $2.9 billion in cash and cash equivalents against approximately $600 million in debt. Bulls believe the company's leadership in structural heart therapies and expanding product portfolio position it well for continued long-term growth. Skeptics highlight the widening gap between top-line organic momentum and GAAP profitability. Despite stellar revenue execution, GAAP diluted EPS fell to $0.42 from $0.57 in Q2 2025. The bottom line was weighed down by a $40 million asset impairment charge and a $188.2 million valuation allowance on tax credits resulting from California tax law changes, which drove the quarter’s effective tax rate up to 53.6%. Furthermore, bears point to structural capacity limits within hospital cath labs and lingering healthcare labor constraints, which restrict the total volume of elective structural heart procedures performed each quarter. With major competitors introducing rival transcatheter valve platforms, pricing power and market share in mature geographies face ongoing pressure. While the company reaffirmed its full-year adjusted EPS guidance range of $2.95 to $3.05, third-quarter EPS guidance of $0.71 to $0.77 reflects moderate near-term margin compression due to persistent foreign exchange friction and elevated tax expenses. Institutional positioning in Edwards Lifesciences Corp. (NYSE:EW) points to cautious selective accumulation by healthcare specialists rather than aggressive momentum buying. According to institutional 13F filings, Krishen Sud’s Sivik Global Healthcare held 20,000 shares of Edwards Lifesciences valued at approximately $1,602, representing 1.22% of its total investment portfolio. Edwards Lifesciences Corp. (NYSE:EW) enters the second half of 2026 with strong commercial tailwinds as its TMTT expansion diversifies revenue beyond core TAVR implants. Raising full-year revenue growth guidance to 10%–11% proves that patient demand for minimally invasive cardiac therapies remains robust. While near-term GAAP earnings headwinds and tax adjustments create noise on the income statement, the company's strong balance sheet, high gross margins, and expanding market footprint position it well for long-term compounding. Investors will be watching whether continued TMTT adoption, improving TAVR procedure volumes, and potential Medicare coverage expansion translate into sustained revenue growth and margin expansion over the coming quarters. While we acknowledge the potential of EW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Edwards Lifesciences stock sits at an interesting spot for valuation focused investors, with the Discounted Cash Flow (DCF) based intrinsic value estimate suggesting the shares are roughly in line with underlying cash flow assumptions, while the broader checks still point to a stock that does not screen as cheap and has delivered a decline over five years. Over the past 5 years, Edwards Lifesciences has delivered a total return that is down 26.4%, which raises the question of whether the current price now fairly reflects more muted expectations or if the market has been too harsh. Recent headlines around strong transcatheter aortic valve replacement demand and expectations for Medicare coverage expansion can support higher revenue assumptions, while the regulatory overhang from the FTC penalty and closer scrutiny of acquisitions may weigh on how confidently investors price in long term growth. With a low overall value score of 2 out of 6, Edwards Lifesciences currently leans expensive on the wider set of valuation checks even though the DCF view points to fair value. The stock's next move may depend on whether the market keeps treating Edwards Lifesciences as fairly priced on intrinsic value, or starts to demand a larger discount given the mixed signals from the broader valuation checks. Edwards Lifesciences delivered 3.3% returns over the last year. See how this stacks up to the rest of the Medical Equipment industry. The Discounted Cash Flow (DCF) model values Edwards Lifesciences by projecting its future free cash flows and discounting them back to today. On this framework, the company generated last twelve month free cash flow of about $1.1b and the projections assume growing cash flows from this base rather than a sharp step change. Those cash flow assumptions translate into an estimated intrinsic value of around $90 per share, which is about 8.6% above the current share price. Because Edwards Lifesciences lifted its 2026 sales growth outlook after steady recent results, there is a case that the cash flow profile underpinning the DCF remains supported even as the stock has struggled over a five year horizon. Overall, the DCF work suggests Edwards Lifesciences stock currently screens as roughly fairly valued, with only a modest discount to intrinsic value implied. Edwards Lifesciences is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Edwards Lifesciences. The P/E ratio is a useful check for Edwards Lifesciences because earnings remain a key focus for investors in established medical equipment companies. On this measure, Edwards Lifesciences trades on about 48.6x earnings, which is well above the Medical Equipment industry average of roughly 26.7x and the peer group average of about 25.6x. A P/E multiple of around 33.2x, based on the company’s profile and risk factors, sits well below the current level. This implies the stock carries a sizable premium to what this framework suggests. Even with solid TAVR demand in recent quarters and optimism around possible Medicare coverage expansion, the current P/E still prices Edwards Lifesciences above both industry benchmarks and this tailored reference ratio. On balance, Edwards Lifesciences stock appears expensive on its P/E multiple relative to these comparison points. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Edwards Lifesciences valuation puzzle leaves off by spelling out which future paths for growth, margins and earnings would need to play out for the stock to be worth materially more or less than today's price, and they sit on Simply Wall St's Community page. Each one anchors a fair value to a particular scenario for Edwards Lifesciences' catalysts and risks so you can track over time which version of the story appears to be taking shape. Share your own Edwards Lifesciences Narrative in the Simply Wall St community to present a number-driven view on whether strong TAVR sales, the anticipated Medicare coverage decision and the FTC settlement ultimately support today's valuation. Set out the assumptions you think matter most and track how your thesis holds up as new results and regulatory updates are released. Do you think there's more to the story for Edwards Lifesciences? Head over to our Community to see what others are saying! For Edwards Lifesciences, the Discounted Cash Flow (DCF) work points to intrinsic value close to the current share price, while the earnings multiple suggests the stock is overvalued relative to peers and a tailored reference ratio. That gap largely comes down to how much growth and margin strength investors are willing to pay for, given the regulatory backdrop and expectations around TAVR demand and Medicare coverage. The key question from here is whether earnings growth and cash generation are strong enough for the current premium P/E to appear justified, or whether investors eventually insist on a lower multiple even if the intrinsic value estimate remains supportive. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 12.5% sales growth driven by a comprehensive structural heart portfolio, marking a transition from a TAVR-centric model to a multi-platform growth strategy. TAVR performance of 10.5% growth was supported by sustained clinical momentum and the exit of a competitor in the prior year, reinforcing SAPIEN as the benchmark for durability. TMTT growth of 44.8% reflects the successful scaling of PASCAL and EVOQUE, validating years of strategic investment in mitral and tricuspid repair and replacement. Management attributes competitive gains in the U.S. to the continued adoption of SAPIEN 3 Ultra RESILIA, which offers differentiated tissue technology. The company is evolving its profile to include multiple strategic platforms across TAVR, TMTT, and Surgical to support a long-term target of 10% average annual sales growth. Operational execution focused on generating world-class evidence to shift clinical practice toward proactive disease management and earlier patient intervention. Increased full-year 2026 sales guidance to 10% to 11% based on first-half outperformance, while maintaining a cautious outlook for the second half due to difficult year-over-year comparisons. Anticipate the finalization of the U.S. TAVR National Coverage Determination (NCD) in September, which is expected to streamline patient access and cover asymptomatic indications. Expect TMTT to reach $2 billion in revenue by 2030, supported by upcoming launches including PASCAL for tricuspid and next-generation Capture Clarity technology. Guidance assumes 50 to 100 basis points of underlying operating margin expansion annually while continuing to prioritize R&D investment at approximately 17% of sales. The PROGRESS trial results, expected at TCT later this year, represent a multi-year opportunity to expand TAVR into the moderate aortic stenosis population. The effective tax rate is expected at the high end of the 16% to 19% range due to Pillar Two impacts and California legislative changes restricting R&D credits. Foreign exchange is projected to be a $35 million headwind in the second half of 2026 if current rates persist. Management flagged that Q3 underlying growth will appear artificially lower than the first half due to unusually low seasonality impact in the prior year's third quarter. Gross profit margin guidance was narrowed to the lower end of the 78% to 79% range, primarily attributed to foreign exchange hedging impacts. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that growth was similar in the U.S. and OUS, driven by the SAPIEN platform's reputation for long-term durability and performance. Confirmed that competitive positioning increased modestly year-over-year, aided by the exit of a competitor and the adoption of RESILIA tissue technology. Management explained the decision to split the trial presentation to ensure clinicians understand the complex, heterogeneous nature of moderate aortic stenosis patients. Clarified that the moderate AS population is roughly the same size as the severe AS population, representing a significant long-term market expansion opportunity. Emphasized that PROGRESS is not a heart failure trial, but focuses on patients with at-risk features who currently only receive active surveillance. The draft policy is encouraging as it provides a pathway for asymptomatic coverage and modernizes heart team requirements to improve timely access. While the NCD may not significantly increase the number of centers, it is expected to improve program efficiency and patient referral throughput. EVOQUE is seeing rapid acceleration as the company opens new centers and streamlines the patient screening and procedural planning process. PASCAL remains the largest revenue contributor in TMTT, but the portfolio approach allows physicians to tailor treatments to diverse mitral and tricuspid pathologies.

Edwards Lifesciences Corporation EW reported second-quarter 2026 adjusted earnings of 78 cents per share, up 16.4% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%. Revenues rose 13.6% to $1.74 billion and topped the consensus mark by 2.4%. Growth was driven by strong Transcatheter Aortic Valve Replacement (“TAVR”) demand and rapid adoption of the company’s mitral and tricuspid therapies. Following the announcement yesterday, EW shares jumped nearly 3% in after-hours trading. TAVR sales totaled $1.26 billion, up 11.3% year over year on a reported basis and 10.5% at constant currency. Growth was similar in the United States and international markets, supported by procedural momentum, clinical evidence favoring proactive treatment of severe aortic stenosis and continued adoption of the SAPIEN 3 Ultra RESILIA platform. Transcatheter Mitral and Tricuspid Therapies (“TMTT”) sales reached $195.9 million, rising 47.3% year over year and 44.8% at constant currency. Double-digit growth in mitral and tricuspid procedures, increased adoption of PASCAL, the continued scaling of EVOQUE and the measured rollout of SAPIEN M3 drove the segment’s performance. Edwards Lifesciences Corporation price-consensus-eps-surprise-chart | Edwards Lifesciences Corporation Quote Surgical sales were $284 million, increasing 6.5% year over year and 5% at constant currency. Growth reflected continued adoption of RESILIA-based therapies, including INSPIRIS, MITRIS and KONECT. Edwards also received U.S. approval for ECLIPTIS and plans a measured rollout later in 2026. Adjusted gross margin was 77.6%, unchanged from the year-ago quarter. Foreign exchange created a 70 basis points (bps) headwind, which was offset by lower manufacturing expenses. Selling, general and administrative (SG&A) expenses increased to $561 million from $502 million, while research and development (R&D) expenses rose to $279 million from $276 million. Adjusted operating income jumped 20.8% year over year to $522.7 million. The adjusted operating margin expanded 180 bps to 30%, supported by strong revenue growth and the planned timing of strategic investments in R&D and SG&A. As of June 30, 2026, the company had approximately $2.90 billion in cash and cash equivalents. Total debt was about $600 million, leaving Edwards with substantial liquidity to support organic investment, manufacturing expansion and external opportunities in structural heart therapies. The company also had roughly $1.50 billion remaining under its share-repurchase authorization. Management continues to prioritize growth investments before opportunistic capital returns. Edwards increased its 2026 constant-currency sales growth guidance to 10-11% from the earlier 9-11%. Breaking it down, TAVR growth guidance was raised to 8-9% from 7-9%, while the TMTT sales outlook increased to $760-$780 million from $740-$780 million. Surgical sales are still expected to grow at a mid-single-digit rate. Overall, EW now expects total sales of $6.60-$6.90 billion at current exchange rates. The Zacks Consensus Estimate for the same currently stands at $6.74 billion. The company reaffirmed adjusted earnings guidance of $2.95-$3.05 per share despite expecting its tax rate to be at the high end of the prior 16-19% range. The Zacks Consensus Estimate for the metric is pegged at $3.00 at present. For the third quarter of 2026, Edwards expects revenues of $1.63-$1.71 billion and adjusted earnings of 71-77 cents per share. The consensus mark for third-quarter revenues and earnings per share (EPS) is projected at $1.69 billion and 74 cents, respectively. Edwards exited the second quarter of 2026 with both earnings and revenues beating estimates. Performance reflected the strength of its comprehensive portfolio and agile execution, with growth supported by therapies across TAVR, mitral, tricuspid and surgical, as well as favorable contributions from each of the regions. Within TAVR, Edwards’ competitive position in the United States is supported by continued adoption of its SAPIEN 3 Ultra RESILIA platform. TMTT benefited from the ongoing strong uptake of the PASCAL system. The expansion of adjusted operating margin in the quarter is also encouraging. Edwards currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Danaher DHR and Elevance Health ELV. Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%. Danaher, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.94, exceeding the Zacks Consensus Estimate by 5.44%. Revenues of $6.27 billion topped the Zacks Consensus Estimate by 2.88%. DHR has an earnings yield of 4.7% compared with the industry’s 4.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.65%. Elevance Health, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $7.45, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $49.8 billion outperformed the consensus mark by 0.8%. ELV has an earnings yield of 6.9% compared to the industry’s 4.1% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.65%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research