Edwards LifesciencesEW +3.12%97 Gross Margin % is 78.01% as of Mar. 2026, which is 3% above its 10-year median of 75.75. GuruFocus rates EW with a GF Score™ of 97/100 and a GF Value™ of $93.14 (Fairly Valued). The stock has 5 warning signs investors should review. Among 805 Medical Devices & Instruments companies, Edwards Lifesciences ranks better than 89.57% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Edwards Lifesciences had a gross margin of 78.01% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Edwards Lifesciences Gross Margin % Related Terms
Edwards Lifesciences Gross Margin % Historical Data
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The historical data trend for Edwards Lifesciences's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Devices subindustry, Edwards Lifesciences's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Edwards Lifesciences Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Edwards Lifesciences's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Edwards Lifesciences's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Edwards Lifesciences (EW) has a Gross Margin % of 78.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Edwards Lifesciences and its competitors. This is near median its historical median of 75.75. Over the past decade, Edwards Lifesciences' Gross Margin % has ranged from 73.09 to 83.79. According to the industry distribution chart, Edwards Lifesciences ranks #84 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 10.4%.
Is Edwards Lifesciences' Gross Margin % too high?
Edwards Lifesciences' current Gross Margin % of 78.01% is near median its 10-year median of 75.75. Over the past 10 years, this metric has ranged from a low of 73.09 to a high of 83.79. The Medical Devices & Instruments industry median Gross Margin % is 52.07. Edwards Lifesciences' value of 78.01% is 49.8% above this industry median. Based on the distribution chart, Edwards Lifesciences ranks #84 out of 805 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Edwards Lifesciences has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Edwards Lifesciences' Gross Margin % compare to DXCM and GEHC?
According to the Medical Devices & Instruments industry distribution chart, Edwards Lifesciences ranks #84 out of 805 companies for Gross Margin %. This places Edwards Lifesciences in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 52.07. Edwards Lifesciences' value of 78.01% is 49.8% above this benchmark. Historically, Edwards Lifesciences' own Gross Margin % has ranged from 73.09 to 83.79 over the past decade. While the company's 10-year median is 75.75 vs. the industry median of 52.07, Edwards Lifesciences has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.07, based on 805 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Edwards Lifesciences's current Gross Margin % of 78.01% is 49.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Edwards Lifesciences and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edwards Lifesciences's current Gross Margin % is 78.01%, which is near median its own 10-year median of 75.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edwards Lifesciences stock overvalued right now?
Based on GuruFocus' analysis, Edwards Lifesciences (EW) is currently considered Fairly Valued. The stock's GF Value™ is $93.14, compared to a current price of $89.66 — trading 3.7% below its estimated fair value. The current Gross Margin % is 78.01%, which is near median its 10-year median of 75.75 and 49.8% above the Medical Devices & Instruments industry median of 52.07. Edwards Lifesciences' overall GF Score™ is 97/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Edwards Lifesciences (EW), the current Gross Margin % is 78.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Edwards Lifesciences (EW) Overvalued in 2026?
Based on GuruFocus' analysis, Edwards Lifesciences stock appears to be undervalued.
The current stock price of $89.66 is trading 3.7% below its estimated GF Value™ of $93.14.
GuruFocus considers Edwards Lifesciences to be Fairly Valued.
Key valuation signals for EW:
Gross Margin %: 78.01% (near median its 10-year median of 75.75)
GF Value™: $93.14 vs. price of $89.66 (3.7% below fair value)
Industry Position: 49.8% above the Medical Devices & Instruments median (#84 of 805)
No single metric tells the full story. See the EW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spun off from Baxter International in 2000, Edwards Lifesciences designs, manufactures, and markets a range of medical devices and equipment for advanced stages of structural heart disease. It has established itself as a leader across key products, including surgical tissue heart valves, transcatheter aortic valves, and transcatheter mitral and tricuspid valve technologies. The firm derives about 60% of its total sales from outside the US.
97GF Score
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