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Intuitive Surgical (ISRG)
NASDAQ:ISRG

Intuitive Surgical (ISRG) AI Stock Analysis

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Intuitive Surgical

(NASDAQ:ISRG)

Rating:73Outperform
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 (ISRG) vs. SPDR S&P 500 ETF (SPY)

Intuitive Surgical Business Overview & Revenue Model

Company DescriptionIntuitive 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 MoneyIntuitive 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 Key Performance Indicators (KPIs)

Any
Any
Da Vinci Placements
Da Vinci Placements
Tracks the number of Da Vinci surgical systems placed, indicating market penetration and adoption of robotic-assisted surgery.
Chart InsightsDa Vinci placements surged in late 2024, reflecting the successful launch of the Da Vinci 5 system, which enhanced system ASPs due to advanced features. Despite challenges in China, the overall increase in placements aligns with Intuitive Surgical's strong financial performance and robust procedure growth. However, competitive pressures and regulatory challenges could impact future growth. The company's strategic investments in innovation and legal expenses are expected to drive operating expenses higher, potentially affecting margins in 2025.
Data provided by:Main Street Data

Intuitive Surgical Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 7.16%|
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
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
85
Very Positive
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
90
Very Positive
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
88
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.71B8.35B7.12B6.22B5.71B4.36B
Gross Profit
5.85B5.63B4.73B4.20B3.96B2.86B
EBIT
2.46B2.35B1.77B1.21B1.82B773.60M
EBITDA
2.95B2.81B2.17B1.94B2.13B1.33B
Net Income Common Stockholders
2.48B2.32B1.80B1.32B1.70B1.06B
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.51B4.01B5.22B6.74B8.62B6.87B
Total Assets
19.22B18.74B15.44B12.97B13.55B11.17B
Total Debt
0.00146.00M89.80M93.80M87.00M79.90M
Net Debt
-2.57B-1.88B-2.66B-1.49B-1.20B-1.54B
Total Liabilities
2.01B2.21B2.04B1.86B1.60B1.41B
Stockholders Equity
17.11B16.43B13.31B11.11B11.95B9.76B
Cash FlowFree Cash Flow
1.75B1.30B749.60M958.40M1.74B1.14B
Operating Cash Flow
2.73B2.42B1.81B1.49B2.09B1.48B
Investing Cash Flow
-2.93B-3.27B-360.10M1.37B-2.46B-940.60M
Financing Cash Flow
-38.20M150.90M-287.60M-2.57B43.00M-85.70M

Intuitive Surgical Technical Analysis

Technical Analysis Sentiment
Negative
Last Price513.00
Price Trends
50DMA
523.77
Negative
100DMA
538.06
Negative
200DMA
526.62
Negative
Market Momentum
MACD
-1.14
Positive
RSI
35.12
Neutral
STOCH
35.62
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 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
RMRMD
85
Outperform
$37.05B28.3725.81%0.84%9.54%37.23%
73
Outperform
$189.82B76.6315.94%19.08%23.13%
70
Outperform
$14.52B27.2711.77%1.66%21.95%
COCOO
69
Neutral
$14.50B34.645.15%6.88%21.11%
BDBDX
68
Neutral
$49.50B32.965.97%2.41%5.84%15.12%
BABAX
60
Neutral
$16.11B136.07-8.96%2.17%-20.17%-138.32%
54
Neutral
$5.38B3.31-45.11%3.29%16.82%0.04%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ISRG
Intuitive Surgical
513.00
87.22
20.48%
BAX
Baxter International
31.36
-1.65
-5.00%
BDX
Becton Dickinson
174.46
-54.78
-23.90%
COO
Cooper Co
70.88
-22.59
-24.17%
HOLX
Hologic
65.22
-6.57
-9.15%
RMD
Resmed
252.21
42.37
20.19%

Intuitive Surgical Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Intuitive Surgical Appoints David Rosa as CEO
Positive
May 15, 2025

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.

Shareholder MeetingsStock Buyback
Intuitive Surgical Expands Stock Repurchase Program to $4B
Positive
May 5, 2025

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.

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.