Intuitive Surgical (ISRG) AI Stock Analysis

• Market Cap: $157.27B
• Dividend Yield: N/A
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 61.2
• Beta (1Y): 1.18
• Revenue Growth: 20.77%
• EPS Growth: 23.16%
• Country: US
• Employees: 15,638
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.19
• Shares Outstanding: 358,476,500
• 10 Day Avg. Volume: 2,420,268
• 30 Day Avg. Volume: 2,211,734
• PEG Ratio: 2.88
• Price to Book (P/B): 11.28
• Price to Sales (P/S): 22.20
• P/FCF Ratio: 142.20
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 21.06
• Enterprise Value/Gross Profit: 31.61
• Enterprise Value/Ebitda: 59.10
• 1Y Price Target: $600.94
• Price Target Upside: 36.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 78 Outperform
• Price Target: $601.00 ▲(36.99% Upside)

Intuitive Surgical's robust financial performance and positive earnings call are the primary drivers of its strong score. The company's strategic initiatives and strong operational metrics provide a solid foundation. However, high valuation and mixed technical indicators suggest some caution. Tariff impacts and international challenges also pose risks to future performance.

Positive Factors

Revenue Growth

A 19% revenue increase indicates strong demand for Intuitive Surgical's products and services, reflecting robust market position and growth potential.

Leadership Stability

The appointment of a long-term executive as CEO ensures continuity in strategic direction and leverages his experience for sustained growth.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling further investment in innovation and expansion without relying on external financing.

Negative Factors

Tariff Impact

Tariff impacts could reduce profitability, affecting the company's ability to maintain high margins and potentially limiting international growth.

International Market Challenges

Challenges in key international markets may hinder growth and expansion efforts, impacting long-term revenue diversification.

Simulation Software Revenue Decline

A decline in simulator sales could affect future revenue streams and limit the adoption of new technologies, impacting long-term growth.

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 shows strong financial performance with stable profitability, robust growth, and excellent liquidity. The company effectively manages costs and generates substantial cash flow, with a strong balance sheet free of debt. High margins and efficient asset utilization further bolster its financial health.

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	9.14B	8.35B	7.12B	6.22B	5.71B	4.36B
Gross Profit	6.09B	5.63B	4.73B	4.20B	3.96B	2.86B
EBITDA	3.26B	2.81B	2.17B	1.94B	2.13B	1.33B
Net Income	2.61B	2.32B	1.80B	1.32B	1.70B	1.06B
Balance Sheet
Total Assets	20.16B	18.84B	15.44B	12.97B	13.55B	11.17B
Cash, Cash Equivalents and Short-Term Investments	5.33B	4.01B	5.22B	4.12B	4.23B	5.17B
Total Debt	0.00	146.00M	0.00	0.00	87.00M	0.00
Total Liabilities	2.21B	2.31B	2.04B	1.86B	1.60B	1.41B
Stockholders Equity	17.85B	16.43B	13.31B	11.04B	11.95B	9.76B
Cash Flow
Free Cash Flow	1.99B	1.30B	749.60M	958.40M	1.74B	1.14B
Operating Cash Flow	2.83B	2.42B	1.81B	1.49B	2.09B	1.48B
Investing Cash Flow	-2.20B	-3.27B	-360.10M	1.37B	-2.46B	-940.60M
Financing Cash Flow	-236.00M	150.90M	-287.60M	-2.57B	43.00M	-85.70M

Intuitive Surgical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 438.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 438.72 is below the 20-day moving average (MA) of 456.93, below the 50-day MA of 477.41, and below the 200-day MA of 522.48, indicating a bearish trend. The MACD of -12.27 indicates Positive momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 14.78 is Positive, 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
ISRG	78 Outperform	$157.27B	61.22	16.02%	―	20.77%	23.16%
RMD	77 Outperform	40.00B	28.74	23.47%	0.80%	9.84%	37.48%
BDX	70 Outperform	53.61B	33.63	6.30%	2.22%	7.86%	14.24%
HOLX	69 Neutral	14.75B	27.52	11.50%	―	1.28%	-17.73%
COO	67 Neutral	13.55B	33.56	4.88%	―	6.35%	12.94%
BAX	54 Neutral	11.82B	-86.70	-9.32%	2.95%	-27.41%	67.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.