Intuitive Surgical (ISRG) AI Stock Analysis

• Market Cap: $189.82B
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 76.6
• Beta (1Y): 1.29
• Revenue Growth: 19.08%
• EPS Growth: 23.13%
• Country: US
• Employees: 15,638
• Sector: Healthcare
• Sector Strength: 55
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.81
• Shares Outstanding: 358,418,240
• 10 Day Avg. Volume: 1,801,088
• 30 Day Avg. Volume: 1,474,036
• PEG Ratio: 2.44
• Price to Book (P/B): 8.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.18
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 11.48
• Enterprise Value/Ebitda: 6.30
• 1Y Price Target: $596.35
• Price Target Upside: 16.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 73 Outperform
• Price Target: $572.00 ▲(11.50%Upside)

Intuitive Surgical's strong financial health is a major positive, supported by its debt-free status and robust cash flow. However, bearish technical signals and a high valuation limit the stock's near-term appeal. The positive earnings call and strategic corporate events add to its long-term potential, despite international trade challenges.

Positive Factors

Financial Performance

ISRG reported 1Q25 WW sales of $2.25bn, which was 3% above consensus expectations.

Product Strategy

ISRG is targeting a broad DV5 launch, with positive feedback on integration and efficiency, providing opportunities for surgeons to improve their learning curve.

Strategic Expansion

Intuitive Ventures' investment in Capstan Medical, which focuses on robotic mitral valve replacement, suggests a strategic interest in advancing cardiac surgery technology.

Negative Factors

Market Challenges

Management was cautionary on the capital environment in some markets due to government budget constraints and the re-prioritization of funding.

Regulatory and Legal Concerns

There is a long history of regulatory and legal noise related to remanufactured instruments.

Tariff Impact

Tariff headwinds are expected to pose a significant challenge, potentially worsening each quarter they remain in place.

Intuitive Surgical Business Overview & Revenue Model

Company Description

Intuitive Surgical, Inc. is a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery. The company designs, manufactures, and markets the da Vinci Surgical System and related instruments and accessories, which enable surgeons to perform complex procedures with enhanced precision, dexterity, and control. Intuitive Surgical operates primarily in the healthcare sector, providing innovative solutions to hospitals and surgical centers worldwide.

How the Company Makes Money

Intuitive Surgical generates revenue primarily through the sale of its da Vinci Surgical Systems, as well as through recurring revenue streams from instruments and accessories and service agreements. The company sells its robotic systems to hospitals and surgical centers, which then purchase additional instruments and accessories for each procedure performed. These recurring sales contribute significantly to Intuitive Surgical's revenue. Additionally, the company offers service contracts to maintain and support the installed systems, providing another steady source of income. Key partnerships with healthcare providers and ongoing innovation in surgical technology further bolster Intuitive Surgical's earnings by expanding its market reach and enhancing its product offerings.

Intuitive Surgical Financial Statement Overview

Summary

Intuitive Surgical exhibits strong financial performance with impressive profit margins and a robust balance sheet. The absence of debt and high equity ratio further solidifies its financial stability. Despite slightly moderating growth rates, the company's financial health is highlighted by efficient cost management and substantial cash flow generation.

Income Statement

Intuitive Surgical showcases strong financial performance with a consistent upward trajectory in revenue growth, marked at 4.34% from the previous annual report to TTM. The gross profit margin is robust at 67.09%, while the net profit margin stands at an impressive 28.42%. The company also maintains healthy EBIT and EBITDA margins of 28.20% and 34.42%, respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet is exceptionally strong with a debt-free status enhancing financial stability, evidenced by a zero debt-to-equity ratio. The equity ratio is high at 89.55%, reflecting strong capitalization. Return on Equity is a solid 14.39% in the TTM period, indicating effective utilization of shareholder funds to generate profits.

Cash Flow

Cash flow metrics are robust, with a significant free cash flow growth of 33.84% from the previous year. The operating cash flow to net income ratio is 1.10, and the free cash flow to net income ratio is 0.70, indicating strong cash generation relative to net earnings. These metrics suggest excellent liquidity and cash management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.71B	8.35B	7.12B	6.22B	5.71B	4.36B
	Gross Profit
5.85B	5.63B	4.73B	4.20B	3.96B	2.86B
	EBIT
2.46B	2.35B	1.77B	1.21B	1.82B	773.60M
	EBITDA
2.95B	2.81B	2.17B	1.94B	2.13B	1.33B
	Net Income Common Stockholders
2.48B	2.32B	1.80B	1.32B	1.70B	1.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.51B	4.01B	5.22B	6.74B	8.62B	6.87B
	Total Assets
19.22B	18.74B	15.44B	12.97B	13.55B	11.17B
	Total Debt
0.00	146.00M	89.80M	93.80M	87.00M	79.90M
	Net Debt
-2.57B	-1.88B	-2.66B	-1.49B	-1.20B	-1.54B
	Total Liabilities
2.01B	2.21B	2.04B	1.86B	1.60B	1.41B
	Stockholders Equity
17.11B	16.43B	13.31B	11.11B	11.95B	9.76B
Cash Flow		Free Cash Flow
1.75B	1.30B	749.60M	958.40M	1.74B	1.14B
	Operating Cash Flow
2.73B	2.42B	1.81B	1.49B	2.09B	1.48B
	Investing Cash Flow
-2.93B	-3.27B	-360.10M	1.37B	-2.46B	-940.60M
	Financing Cash Flow
-38.20M	150.90M	-287.60M	-2.57B	43.00M	-85.70M

Intuitive Surgical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 513.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISRG, the sentiment is Negative. The current price of 513 is below the 20-day moving average (MA) of 547.60, below the 50-day MA of 523.77, and below the 200-day MA of 526.62, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 35.12 is Neutral, neither overbought nor oversold. The STOCH value of 35.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISRG.

Intuitive Surgical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	85 Outperform	$37.05B	28.37	25.81%	0.84%	9.54%	37.23%
ISRG	73 Outperform	$189.82B	76.63	15.94%	―	19.08%	23.13%
HOLX	70 Outperform	$14.52B	27.27	11.77%	―	1.66%	21.95%
COO	69 Neutral	$14.50B	34.64	5.15%	―	6.88%	21.11%
BDX	68 Neutral	$49.50B	32.96	5.97%	2.41%	5.84%	15.12%
BAX	60 Neutral	$16.11B	136.07	-8.96%	2.17%	-20.17%	-138.32%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%

Intuitive Surgical Corporate Events

Intuitive Surgical Appoints David Rosa as CEO

On May 14, 2025, Intuitive Surgical‘s Board of Directors appointed David J. Rosa as the new Chief Executive Officer, effective July 1, 2025. Rosa, who has been with the company for 29 years, will replace Gary S. Guthart, who will transition to Executive Chair of the Board. This leadership change is part of the company’s strategic succession planning to drive future growth. The announcement highlights Rosa’s extensive experience and contributions to Intuitive’s strategy and product development, positioning him as the right leader to continue advancing the company’s mission and expanding its global footprint.

The most recent analyst rating on (ISRG) stock is a Buy with a $525.00 price target. To see the full list of analyst forecasts on Intuitive Surgical stock, see the ISRG Stock Forecast page.

Intuitive Surgical Expands Stock Repurchase Program to $4B

On May 1, 2025, Intuitive Surgical‘s stockholders approved several proposals at the annual meeting, including the amendment and restatement of the 2010 Incentive Award Plan, which increases the number of shares reserved for issuance and extends the plan’s term. Additionally, the company announced an increase in its stock repurchase program to $4.0 billion, indicating a strategic move to enhance shareholder value and manage its capital structure.