Intuitive Surgical (ISRG)
NASDAQ:ISRG
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Intuitive Surgical
(NASDAQ:ISRG)
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Rating:75Outperform
Price Target:
$566.00
▲(25.60% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by excellent financial strength (strong growth, high margins, robust cash flow, and minimal leverage) and a favorable earnings outlook with continued procedure growth and platform adoption. These positives are moderated by a stretched valuation (high P/E), mixed-to-weak technical momentum versus key moving averages, and near-term margin headwinds highlighted in guidance (tariffs, mix/ASP pressure, and elevated operating expense growth).
Positive Factors
High recurring revenue mix
An 81% recurring revenue mix (consumables, instruments, service) creates durable, high‑visibility cash flows tied to procedure volume. This recurring stream supports margin sustainability, funds R&D and service capabilities, and reduces reliance on lumpy system placements over the medium term.
Negative Factors
Gross margin headwinds
Tariff impacts and a higher mix of newer/lower‑margin systems (and related service costs) have compressed gross margins. Sustained tariff exposure and product mix shifts could limit margin expansion and constrain long‑term free cash flow conversion despite revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring revenue mix
An 81% recurring revenue mix (consumables, instruments, service) creates durable, high‑visibility cash flows tied to procedure volume. This recurring stream supports margin sustainability, funds R&D and service capabilities, and reduces reliance on lumpy system placements over the medium term.
Read all positive factors
Intuitive Surgical (ISRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$160.05B
Dividend YieldN/A
Average Volume (3M)1.62M
Price to Earnings (P/E)70.8
Beta (1Y)1.11
Revenue Growth22.18%
EPS Growth21.37%
CountryUS
Employees15,638
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.53
Shares Outstanding355,169,680
10 Day Avg. Volume1,545,064
30 Day Avg. Volume1,616,151
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 Cap1.00
Enterprise Value/Revenue15.89
Enterprise Value/Gross Profit24.08
Enterprise Value/Ebitda44.15
Forecast
1Y Price Target
$614.00Price Target Upside36.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)9.99
Revenue Forecast (FY)$11.51B
Intuitive Surgical Business Overview & Revenue Model
Company Description
Intuitive 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 ...
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 hospit...
Intuitive Surgical Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyIntuitive Surgical Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call described strong top-line and procedure growth, meaningful increases in cash flow and profitability, rapid adoption of new platforms (da Vinci 5, SP, Ion), and continued product and clinical progress. Offsetting these positives are margin pressures from tariffs and product mix, elevated operating expenses (including a large foundation donation and hiring), competitive pricing/tender dynamics in China, placement softness in Japan, and lower Ion placements in Q4. On balance the company reported multiple high-growth metrics and solid cash generation while outlining manageable but notable near-term headwinds.Positive Updates
Strong Revenue Growth
2025 revenue grew 21% year-over-year to $10.1 billion, driven by broad procedure adoption and higher recurring revenue.
Negative Updates
Margin Pressure from Tariffs and Mix
Q4 pro forma gross margin declined to 67.8% from 69.5% a year ago (down ~170 bps), with an estimated ~95 bps Q4 impact from tariffs; 2026 guidance expects tariffs to impact ~120 bps of revenue.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
2025 revenue grew 21% year-over-year to $10.1 billion, driven by broad procedure adoption and higher recurring revenue.
Read all positive updates
Company Guidance
Intuitive guided 2026 da Vinci procedure growth of 13–15% year‑over‑year, a pro forma gross profit margin of 67–68% of net revenue (including a 1.2% net‑revenue tariff headwind, ±10 bps), pro forma operating expense growth of 11–15%, non‑cash stock‑based compensation of $890–$920 million, other income of $355–$375 million, and a pro forma income tax rate of 22–23%; they noted tariffs (about 120 bps of revenue impact vs. ~65 bps in 2025), expect a higher mix of da Vinci 5 and XiR systems with more trade‑ins and modest incremental depreciation from recent facility expansion affecting margins, and said they will not provide specific capital expenditure guidance as capex returns to normalized levels.Intuitive Surgical Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
85
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.06B | 8.35B | 7.12B | 6.22B | 5.71B |
| Gross Profit | 6.64B | 5.63B | 4.73B | 4.20B | 3.96B |
| EBITDA | 3.62B | 2.81B | 2.17B | 1.94B | 2.13B |
| Net Income | 2.86B | 2.32B | 1.80B | 1.32B | 1.70B |
Balance Sheet | |||||
| Total Assets | 20.63B | 18.84B | 15.44B | 12.97B | 13.55B |
| Cash, Cash Equivalents and Short-Term Investments | 5.93B | 4.01B | 5.22B | 4.12B | 4.23B |
| Total Debt | 302.80M | 146.00M | 0.00 | 0.00 | 87.00M |
| Total Liabilities | 2.69B | 2.31B | 2.04B | 1.86B | 1.60B |
| Stockholders Equity | 17.82B | 16.43B | 13.31B | 11.04B | 11.95B |
Cash Flow | |||||
| Free Cash Flow | 2.49B | 1.30B | 749.60M | 958.40M | 1.74B |
| Operating Cash Flow | 3.03B | 2.42B | 1.81B | 1.49B | 2.09B |
| Investing Cash Flow | 665.80M | -3.27B | -360.10M | 1.37B | -2.46B |
| Financing Cash Flow | -2.36B | 150.90M | -287.60M | -2.57B | 43.00M |
Intuitive Surgical Technical Analysis
Negative
450.62
Price Trends
482.63
Negative
521.18
Negative
504.84
Negative
Market Momentum
-10.29
Positive
35.88
Neutral
29.65
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 450.62 is below the 20-day moving average (MA) of 465.94, below the 50-day MA of 482.63, and below the 200-day MA of 504.84, indicating a bearish trend. The MACD of -10.29 indicates Positive momentum. The RSI at 35.88 is Neutral, neither overbought nor oversold. The STOCH value of 29.65 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 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $33.34B | 22.47 | 24.81% | 0.92% | 9.36% | 29.56% | |
75 Outperform | $160.05B | 70.78 | 16.39% | ― | 22.18% | 21.37% | |
72 Outperform | $18.48B | 40.29 | 16.68% | 0.32% | 4.90% | -0.26% | |
68 Neutral | $43.91B | 28.46 | 6.93% | 2.13% | 8.23% | -2.04% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $8.85B | -10.24 | -13.78% | 2.75% | -21.20% | -325.40% |
* Healthcare Sector Average
ISRG
Intuitive Surgical
450.62
-39.51
-8.06%
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Intuitive Surgical Corporate Events
Business Operations and StrategyM&A Transactions
Intuitive Surgical Expands Direct Robotic Operations in Southern Europe
Positive
Mar 2, 2026
On March 1, 2026, Intuitive completed its acquisition of the da Vinci and Ion distribution business operated by ab medica, Abex, Excelencia Robótica, and their affiliates, as announced on March 2. The deal shifts distribution in Italy, Spain,...
Business Operations and StrategyExecutive/Board Changes
Intuitive Surgical Restructures Digital and AI Leadership Role
Neutral
Dec 18, 2025
Effective January 1, 2026, Intuitive Surgical announced that Brian E. Miller, Ph.D., will move from his current role as Chief Digital Officer to serve as Head of Digital and AI Strategy, shifting his responsibilities within the company’s lea...
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.