Intuitive Surgical (ISRG) has reported first-quarter financial results that beat Wall Street forecasts.
The California-based maker of surgical robots announced earnings per share (EPS) of $1.92, which topped the $1.74 consensus forecast of analysts who track the company’s progress. Revenue of $2.25 billion beat the $2.19 billion that was expected on Wall Street. Sales were up 19% from a year earlier.
Management said sales of the company’s signature da Vinci surgical robotics system grew significantly, with 367 new orders compared to 313 in the first quarter of 2024. The da Vinci system now has an installed base of 10,189 surgical robots worldwide.
The company’s surgical system placements. Source: Main Street Data
Available Cash
Intuitive Surgical said it ended Q1 with $9.10 billion of cash on hand. Despite the strong results and ample cash, ISRG stock is down 7% after the company warned in its earnings release of likely impacts from tariffs.
Management forecast that the company’s gross profit margin will decline to 65%-66.5% from 69.1%, and that there will be a material impact from U.S. import tariffs placed on Chinese goods. The company forecast that its operating expenses this year will grow 10%-14%. ISRG stock is down 8% on the year.
Is ISRG Stock a Buy?
The stock of Intuitive Surgical has a consensus Moderate Buy rating among 22 Wall Street analysts. Those ratings are based on 16 Buy and six Hold recommendations issued in the last three months. The average ISRG price target of $637.78 implies 33.49% upside from current levels. These ratings are likely to change after the company’s latest financial results.
