Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Edwards Lifesciences delivered strong Q1 FY2026 revenue growth of 16.7% to $1.65B, with operating income surging 21.0%, though operating cash flow dropped sharply by 84.4% to $43.8M amid aggressive share buybacks of $421.8M.
Revenue
$1.65B
+16.70% YoY
EPS (Diluted)
$0.66
+8.20% YoY
Gross Margin
78.0%
-0.6 pts YoY
Operating Income
$477.6M
+20.97% YoY
Source: SEC XBRL
Edwards Lifesciences (EW) reported Q1 FY2026 revenue of $1.65B, up 16.7% year over year. Operating margin was 29.0%, up 1.1 points from 27.9% a year earlier. Operating cash flow was $43.8M, down 84.4% year over year. EW's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.78 | 0.76 | Beat +2.3% |
| Mar 2026This filing | 0.78 | 0.75 | Beat +4.2% |
| Dec 2025 | 0.58 | 0.64 | Miss -8.8% |
| Sep 2025 | 0.67 | 0.61 | Beat +9.6% |
Adjusted (non-GAAP) EPS of $0.78 versus the $0.75 analyst consensus — a +4.2% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.66.
Compiled by AI from this SEC filing
Revenue grew 16.7% year-over-year to $1.65B in Q1 FY2026 from $1.41B in the prior year period, reflecting robust demand across Edwards' product portfolio, particularly in structural heart therapies.
Source: 10-Q Income Statement
Operating income rose 21.0% YoY to $477.6M, outpacing revenue growth, with operating margin expanding approximately 100 basis points to 29.0% from 27.9%, indicating improving operational efficiency despite rising SG&A costs.
Source: 10-Q Income Statement
SG&A expenses increased 12.1% YoY to $522.2M, representing a meaningful cost headwind, though the company managed to expand operating margins by controlling R&D growth to just 3.4% YoY at $263.3M.
Source: 10-Q Income Statement
Edwards repurchased $421.8M in shares during Q1 FY2026, a 63.1% increase over the prior year's $258.6M, reflecting management's confidence in the business and commitment to returning capital to shareholders, though this contributed to a 22.1% decline in cash to $2.45B.
Source: 10-Q Cash Flow Statement
Gross margin edged down approximately 65 basis points to 78.0% from 78.7%, as cost of revenue grew faster (20.2%) than revenue (16.7%), suggesting modest input cost or product mix pressures.
Source: 10-Q Income Statement & Key Ratios
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Operating cash flow fell 84.4% YoY to just $43.8M in Q1 FY2026 from $280.4M, a significant deterioration that may reflect working capital build-up or timing of payments. Sustained weakness in cash generation could limit financial flexibility despite strong reported earnings.
Source: 10-Q Cash Flow Statement
Share buybacks of $421.8M combined with negative investing cash flow of -$92.8M resulted in a $695.1M net cash outflow in Q1 FY2026, reducing cash and equivalents by 22.1% to $2.45B. If operating cash flow does not recover, the company may need to draw on credit facilities or reduce buyback activity.
Source: 10-Q Cash Flow Statement & Balance Sheet
Cost of revenue grew 20.2% YoY, faster than revenue growth of 16.7%, compressing gross margin by ~65 basis points to 78.0%. Continued cost inflation in manufacturing or unfavorable product mix shifts could further pressure margins in future quarters.
Source: 10-Q Income Statement & Key Ratios
Net income grew only 6.3% YoY to $380.7M despite 16.7% revenue growth, suggesting below-the-line items such as taxes, interest, or other charges are dampening profitability. This divergence between operating and net income growth warrants monitoring.
Source: 10-Q Income Statement
SG&A expenses increased 12.1% YoY to $522.2M, representing the largest single operating expense category and growing faster than R&D. Sustained SG&A growth could erode operating margins if revenue growth decelerates.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.65 $B | 1.41 $B | +16.70% |
Cost of Revenue $M | 362.60 $M | 301.60 $M | +20.23% |
Gross Profit $B | 1.29 $B | 1.11 $B | +15.74% |
Operating Income $M | 477.60 $M | 394.80 $M | +20.97% |
Net Income $M | 380.70 $M | 358.00 $M | +6.34% |
EPS (Basic) $ | 0.66 $ | 0.61 $ | +8.20% |
EPS (Diluted) $ | 0.66 $ | 0.61 $ | +8.20% |
R&D Expense $M | 263.30 $M | 254.60 $M | +3.42% |
SG&A Expense $M | 522.20 $M | 465.70 $M | +12.13% |
Answers draw on this SEC filing and the data on this page
Edwards Lifesciences delivered strong revenue growth in Q2 FY2026 driven by TAVR and TMTT, but net income fell 27.4% due to a $188.2 million tax valuation allowance.
Edwards Lifesciences (EW) delivered 11.5% revenue growth to $6.07B in FY2025, but net income plunged 74.3% to $1.07B largely due to elevated SG&A costs and the absence of prior-year one-time gains, while operating cash flow surged 194.2% to $1.60B.
Other companies in Health Care Equipment