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Intuitive Surgical (ISRG)
NASDAQ:ISRG
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Intuitive Surgical
(NASDAQ:ISRG)
Rating:78Outperform
Price Target:―
Positive Factors
Cardiac Surgery Expansion
The appointment of Darla Hutton as Global Vice President of Cardiac Surgery indicates a serious focus on expanding in the cardiac field.
Leadership and Strategy
Management is confident in the recent CEO transition, with a strategic approach and no significant adjustments expected to ISRG's strategy.
Product Launch
ISRG is targeting a broad DV5 launch, with positive feedback on integration and efficiency, providing opportunities for surgeons to improve their learning curve.
Negative Factors
Budget Uncertainty
Uncertainty around Medicaid and capex budgets may impact procedure volumes and hospital budgets.
Capital Spending Concerns
Potential concerns surrounding WW capital spending may pose some risk to FY25 placements.
Tariff Impact
Tariff headwinds are expected to pose a significant challenge, potentially worsening each quarter they remain in place.
Intuitive Surgical (ISRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$199.67B
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)81.7
Beta (1Y)1.29
Revenue Growth19.08%
EPS Growth23.13%
CountryUS
Employees15,638
SectorHealthcare
Sector Strength42
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.81
Shares Outstanding358,418,240
10 Day Avg. Volume1,175,698
30 Day Avg. Volume1,335,748
Financial Highlights & Ratios
PEG Ratio12.70
Price to Book (P/B)11.54
Price to Sales (P/S)0.00
P/FCF Ratio113.44
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue6.01
Enterprise Value/Gross Profit33.43
Enterprise Value/Ebitda18.34
Forecast
1Y Price Target
$593.00Price Target Upside6.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
Intuitive Surgical Business Overview & Revenue Model
Company DescriptionIntuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System to enable complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. It also provides a suite of stapling, energy, and core instrumentation for its surgical systems; progressive learning pathways to support the use of its technology; a complement of services to its customers, including support, installation, repair, and maintenance; and integrated digital capabilities providing unified and connected offerings, streamlining performance for hospitals with program-enhancing insights. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.
How the Company Makes MoneyIntuitive Surgical generates revenue through the sale and leasing of its da Vinci Surgical Systems, as well as through recurring revenue streams such as instruments and accessories, and service agreements. The sale of the robotic systems represents a significant portion of its revenue, while the recurring revenue from instruments and accessories, which are necessary for each surgical procedure, provides a steady income source. Additionally, service contracts for the maintenance and support of the systems contribute to their revenue. The company's earnings are also supported by its partnerships with hospitals and healthcare providers, which help expand the adoption of robotic-assisted surgical procedures globally.
Intuitive Surgical Key Performance Indicators (KPIs)
Any
Da Vinci Placements
Tracks the number of Da Vinci surgical systems placed, indicating market penetration and adoption of robotic-assisted surgery.
Tracks the number of Da Vinci surgical systems placed, indicating market penetration and adoption of robotic-assisted surgery.
Data provided by:
Main Street Data
Main Street DataIntuitive Surgical Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 16.36%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally strong performance in terms of procedure and revenue growth, with significant achievements in system placements and international expansion. However, concerns were raised about the impact of tariffs and challenges in international markets. Despite these challenges, the company's strategic focus and strong performance metrics lend a positive outlook.Q1-2025 Updates
Positive Updates
Strong Procedure Growth
Da Vinci procedure growth in the quarter was 17%, with notable performance in general surgery in the U.S. and regional performance in India, Korea, and the U.K.
Record System Placements
367 da Vinci systems were placed in Q1 2025, a 17% increase from the previous year, including strong performance in the U.S.
Revenue Increase
First quarter revenue was $2.25 billion, a 19% increase over the previous year.
Ion and SP Segment Growth
Ion procedures grew 58%, while SP procedures grew 94%, showcasing strong adoption in both segments.
Expansion and New Facilities
Opened two new facilities in Sunnyvale, supporting manufacturing and R&D for da Vinci and Ion systems.
Negative Updates
Tariff Impact
Tariffs expected to impact income statement for 2025 by approximately 1.7% of revenue, with potential increases each quarter.
Challenges in Key International Markets
Mixed performance in capital placements outside the U.S., with stresses in Germany, the U.K., and Japan due to financial pressures.
Potential Impact of U.S.-China Tariffs
Chinese tariffs of 125% on imports could adversely affect ability to win future tenders in China.
Company Guidance
During the call, Intuitive Surgical provided guidance for fiscal year 2025, highlighting several key metrics and expected outcomes. The company raised its full-year procedure growth forecast to a range of 15% to 17%, up from the previous estimate of 13% to 16%, driven by strong performance in da Vinci procedures, which grew 17% year-over-year in Q1. The installed base of da Vinci systems increased by 15%, while average system utilization rose by 2%. For capital placements, Intuitive Surgical installed 367 da Vinci systems in Q1, marking a 17% increase from the previous year. Despite facing potential impacts from tariffs and a dynamic trade environment, Intuitive Surgical expects pro forma gross margins to range between 65% and 66.5% of revenue, reflecting both tariff impacts and increased depreciation from new facilities. Operating expenses are projected to grow between 10% and 14% as the company invests in growth and innovation initiatives.Intuitive Surgical Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| 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 | ||||
| 4.01B | 4.01B | 5.22B | 6.74B | 8.62B | 6.87B | Total Assets |
| 18.74B | 18.74B | 15.44B | 12.97B | 13.55B | 11.17B | Total Debt |
| 0.00 | 0.00 | 89.80M | 93.80M | 87.00M | 79.90M | Net Debt |
| -2.03B | -2.03B | -2.66B | -1.49B | -1.20B | -1.54B | Total Liabilities |
| 2.21B | 2.21B | 2.04B | 1.86B | 1.60B | 1.41B | Stockholders Equity |
| 16.43B | 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
Positive
557.08
Price Trends
521.77
Positive
540.10
Positive
525.90
Positive
Market Momentum
8.20
Positive
60.04
Neutral
81.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISRG, the sentiment is Positive. The current price of 557.08 is above the 20-day moving average (MA) of 554.44, above the 50-day MA of 521.77, and above the 200-day MA of 525.90, indicating a bullish trend. The MACD of 8.20 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 81.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISRG.
Intuitive Surgical Risk Analysis
Intuitive Surgical disclosed 47 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
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $36.98B | 28.32 | 25.81% | 0.84% | 9.54% | 37.23% | |
78 Outperform | $199.67B | 81.71 | 15.94% | ― | 19.08% | 23.13% | |
70 Outperform | $14.34B | 27.16 | 11.77% | ― | 1.66% | 21.95% | |
69 Neutral | $14.43B | 35.08 | 5.15% | ― | 6.88% | 21.11% | |
68 Neutral | $49.71B | 33.10 | 5.97% | 2.29% | 5.84% | 15.12% | |
57 Neutral | $15.53B | 136.07 | -8.96% | 2.64% | -20.17% | -138.32% | |
54 Neutral | $5.31B | 3.28 | -45.10% | 2.80% | 16.76% | 0.02% |
* Healthcare Sector Average
Performance Comparison
ISRG
Intuitive Surgical
557.08
138.70
33.15%
BAX
Baxter International
30.26
-1.88
-5.85%
BDX
Becton Dickinson
173.45
-62.88
-26.61%
COO
Cooper Co
72.33
-22.75
-23.93%
HOLX
Hologic
64.33
-9.64
-13.03%
RMD
Resmed
252.20
42.43
20.23%
Intuitive Surgical Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Intuitive Surgical Strengthens Leadership with Key Promotions
Positive
Jan 6, 2025
Intuitive Surgical, Inc. announced the promotion of Jamie E. Samath to Executive Vice President, Chief Financial Officer and Head of Business Technology, and Henry L. Charlton to Executive Vice President, Chief Commercial and Marketing Officer, effective January 1, 2025. Both executives received significant salary increases and enhanced bonus opportunities, reflecting the company’s strategy to strengthen its leadership team and potentially enhance its market position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.