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Intuitive Surgical
(NASDAQ:ISRG)
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Rating:79Outperform
Price Target:
$430.00
▲(27.41% Upside)
Action:Reiterated
Date:07/22/26
ISRG scores well primarily due to outstanding financial performance (premium margins, strong cash generation, and a very strong balance sheet) and a constructive earnings update with maintained growth guidance. These positives are tempered by weak technicals (downtrend and bearish momentum) and a high valuation multiple, with additional watch items around China pressure and procedure-mix/extended-use instrument impacts.
Positive Factors
Recurring revenue dominance from installed base
Intuitive’s razor‑and‑blades model yields high recurring revenue (85% of sales), driven by instruments, accessories and service per installed system. This creates predictable, high‑margin cash flow supporting reinvestment, R&D and durable earnings even if system placements fluctuate.
Negative Factors
Visible deceleration in revenue and procedure growth
Growth has moderated versus the high post‑2021 comps, reducing the automatic expansion of instrument/service volumes per installed base. Sustained slower procedure growth would constrain long‑run recurring revenue expansion and limit margin and earnings leverage over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue dominance from installed base
Intuitive’s razor‑and‑blades model yields high recurring revenue (85% of sales), driven by instruments, accessories and service per installed system. This creates predictable, high‑margin cash flow supporting reinvestment, R&D and durable earnings even if system placements fluctuate.
Read all positive factors
Intuitive Surgical Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region to show where Intuitive is growing fastest and where it relies most heavily on demand; regional trends highlight opportunities (faster adoption in emerging markets) and risks (exposure to U.S. reimbursement or currency swings).
Breaks down sales by region to show where Intuitive is growing fastest and where it relies most heavily on demand; regional trends highlight opportunities (faster adoption in emerging markets) and risks (exposure to U.S. reimbursement or currency swings).
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The Fly
The FlyIntuitive Surgical (ISRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$124.82B
Dividend YieldN/A
Average Volume (3M)3.36M
Price to Earnings (P/E)39.9
Beta (1Y)1.12
Revenue Growth20.66%
EPS Growth21.06%
CountryUS
Employees17,021
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)8.85
Shares Outstanding353,278,050
10 Day Avg. Volume5,263,122
30 Day Avg. Volume3,361,781
Financial Highlights & Ratios
PEG Ratio3.17
Price to Book (P/B)11.34
Price to Sales (P/S)20.08
P/FCF Ratio81.16
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$487.55Price Target Upside44.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering23
EPS Forecast (FY)10.8
Revenue Forecast (FY)$11.76B
Intuitive Surgical Business Overview & Revenue Model
Company Description
Intuitive Surgical, Inc. is a leading medical technology firm dedicated to advancing patient care by developing, producing, and commercializing sophisticated tools. These innovations empower medical professionals to deliver superior, accessible, a...
How the Company Makes Money
Intuitive Surgical primarily generates revenue through a recurring “razor-and-blades” model centered on its installed base of da Vinci surgical systems. (1) System revenue: the company sells da Vinci surgical systems to hospitals and other care si...
Intuitive Surgical Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: robust revenue (+19%), strong profitability (42% non-GAAP operating margin), healthy procedure growth (total +16%) and capital placements (468 da Vinci systems), plus strong cash flow. The company also highlighted meaningful product progress (da Vinci 5 updates, SP and XiR momentum, ION adoption) and clinical evidence supporting adoption. Key risks were noted but were mostly market- and policy-driven (U.S. patient coverage dynamics, China tender and pricing pressure), some procedure-mix headwinds (bariatrics) and an unquantified impact from the extended-use instrument program. Overall, the positive metrics and growth drivers materially outweigh the challenges discussed.Positive Updates
Procedure Growth
Total procedures increased 16% year-over-year in Q2 (15% da Vinci, 36% ION), with ION procedures up 36% to ~48k in the quarter and now >400k cumulatively.
Negative Updates
Moderation in U.S. da Vinci Growth and Deferred Procedures
U.S. da Vinci procedure growth moderated to 12% in Q2 (from 14% in Q1). Management cited patient coverage/premium dynamics (expiration of ACA enhanced subsidies) and deferrable benign procedures as contributing factors, with some uncertainty about timing of return-to-care.
Read all updates
Q2-2026 Updates
Positive
Negative
Procedure Growth
Total procedures increased 16% year-over-year in Q2 (15% da Vinci, 36% ION), with ION procedures up 36% to ~48k in the quarter and now >400k cumulatively.
Read all positive updates
Company Guidance
Intuitive maintained full‑year 2026 da Vinci procedure growth guidance of 13.5%–15.5% (expecting to be near the midpoint) and updated its non‑GAAP gross profit margin outlook to 68%–69% of revenue; it now expects non‑GAAP operating expense growth of 11%–13%, noncash stock‑based compensation of $880–$900 million, other income of $315–$335 million, and a non‑GAAP effective tax rate of 22%–23% of pretax income. Management reiterated R&D will grow faster than SG&A, noted the Q2 pretax IEPA tariff refund of $36 million (Q2 non‑GAAP gross margin was 70% or 68.7% ex‑refund), and said there will be no Intuitive Foundation contribution in 2026 after a $70 million multiyear contribution in Q4 2025.Intuitive Surgical Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
97
Very Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.03B | 10.06B | 8.35B | 7.12B | 6.22B | 5.71B |
| Gross Profit | 7.36B | 6.64B | 5.63B | 4.73B | 4.20B | 3.96B |
| EBITDA | 4.51B | 3.99B | 3.14B | 2.36B | 1.97B | 2.21B |
| Net Income | 3.14B | 2.86B | 2.32B | 1.80B | 1.32B | 1.70B |
Balance Sheet | ||||||
| Total Assets | 20.88B | 20.63B | 18.84B | 15.44B | 12.97B | 13.55B |
| Cash, Cash Equivalents and Short-Term Investments | 5.22B | 5.93B | 4.01B | 5.22B | 4.12B | 4.23B |
| Total Debt | 0.00 | 302.80M | 146.00M | 0.00 | 0.00 | 87.00M |
| Total Liabilities | 2.58B | 2.69B | 2.31B | 2.04B | 1.86B | 1.60B |
| Stockholders Equity | 18.17B | 17.82B | 16.43B | 13.31B | 11.04B | 11.95B |
Cash Flow | ||||||
| Free Cash Flow | 3.22B | 2.49B | 1.30B | 749.60M | 958.40M | 1.74B |
| Operating Cash Flow | 3.71B | 3.03B | 2.42B | 1.81B | 1.49B | 2.09B |
| Investing Cash Flow | -749.50M | 665.80M | -3.27B | -360.10M | 1.37B | -2.46B |
| Financing Cash Flow | -3.61B | -2.36B | 150.90M | -287.60M | -2.57B | 43.00M |
Intuitive Surgical Technical Analysis
Neutral
337.50
Price Trends
393.18
Negative
424.68
Negative
480.18
Negative
Market Momentum
-7.17
Negative
51.32
Neutral
93.18
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISRG, the sentiment is Neutral. The current price of 337.5 is below the 20-day moving average (MA) of 364.31, below the 50-day MA of 393.18, and below the 200-day MA of 480.18, indicating a neutral trend. The MACD of -7.17 indicates Negative momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 93.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ISRG.
Intuitive Surgical Risk Analysis
Intuitive Surgical disclosed 46 risk factors in its most recent earnings report. Intuitive Surgical reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Intuitive Surgical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $30.60B | 20.33 | 23.88% | 1.23% | 10.28% | 16.40% | |
79 Outperform | $124.82B | 39.92 | 17.83% | ― | 20.66% | 21.06% | |
78 Outperform | $24.00B | 43.32 | 18.51% | 0.27% | 12.42% | 17.07% | |
65 Neutral | $45.64B | 41.93 | 4.54% | 2.39% | 2.39% | -24.85% | |
54 Neutral | $13.52B | -12.83 | -16.60% | 0.89% | 5.36% | -632.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ISRG
Intuitive Surgical
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WST
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Intuitive Surgical Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Intuitive Surgical Tightens Shareholder Governance and Proxy Rules
Neutral
Jul 27, 2026
On July 23, 2026, Intuitive Surgical’s board amended and restated the company’s bylaws to tighten and clarify rules governing shareholder nominations and proposals at shareholder meetings. The revisions respond to universal proxy regul...
Business Operations and StrategyExecutive/Board Changes
Intuitive Surgical Names New Chief Commercial and Marketing Officer
Positive
May 28, 2026
On May 28, 2026, Intuitive announced that Taylor Patton, currently global senior vice president of its endoluminal business, will become chief commercial and marketing officer effective July 1, joining the executive leadership team and succeeding ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.