EW Edwards Lifesciences Corp

Overview and Growth

Edwards Lifesciences Corp generated $6.07B of revenue in fiscal 2025, with net income of $1.07B and an operating cash inflow of $1.60B. At $6.07B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $5.44B in fiscal 2024, revenue recorded a 11.5% year-over-year increase. The company reported diluted EPS of $1.83, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $6.97 in fiscal 2024, the current result was 73.7% lower. Asset turnover was 0.44x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $4.73B as gross profit before recognizing operating expenses and other items. Gross profit represented 78.0% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $1.26B, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 20.8%, showing how efficiently sales converted into operating profit. Net income came to $1.07B, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 17.7% margin after operating costs and the remaining recognized items. Pretax income was $1.27B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 21.0%, relating income before taxes directly to revenue. Income tax expense totaled $216.90M, providing the reported tax component that separates pretax and after-tax earnings. Relative to pretax income, the tax provision measured 17.0%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

Total assets were $13.70B, supported by $3.36B of liabilities and $10.34B of shareholder equity. At period end, current assets of $6.74B compared with current liabilities of $1.81B, defining the company’s short-term resource position. The current ratio was 3.72x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $2.94B in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 162.0% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $598.30M, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 0.06x, showing how much debt the company carried for each unit of book equity. The debt-to-assets relationship was 4.4%, comparing borrowing with the total asset balance. Liabilities represented 24.5% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 21.4% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $13.06B in fiscal 2024, the current asset base moved 4.9% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $1.60B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 1.49x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $260.20M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 16.3% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $1.33B, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 22.0%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 9.7% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.