Intuitive Surgical (ISRG) AI Stock Analysis

• Market Cap: $169.67B
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 66.0
• Beta (1Y): 1.22
• Revenue Growth: 20.77%
• EPS Growth: 23.16%
• Country: US
• Employees: 15,638
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.19
• Shares Outstanding: 358,476,500
• 10 Day Avg. Volume: 1,884,060
• 30 Day Avg. Volume: 2,074,175
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 22.10
• Enterprise Value/Gross Profit: 32.95
• Enterprise Value/Ebitda: 65.27
• 1Y Price Target: $603.00
• Price Target Upside: 27.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 78 Outperform
• Price Target: $601.00 ▲(26.98% 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

Financial Performance

Q2 operating margins of 38.8% were the highest in 15 quarters and beat the street by 400bps, showing improved profitability.

Growth Drivers

Intuitive's growth profile is supported by factors like after-hours procedures, international adoption, new instruments like Force Feedback, and the broadening launch of DV5.

Negative Factors

External Challenges

Macro challenges in OUS markets continued to be a drag on system placements, indicating ongoing external pressures.

Market Competition

Risks include increasing competition, a slightly lower utilization growth rate in the U.S., uncertainty about ACA subsidy cuts, and remanufacturing noise.

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 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 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	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
EBITDA	2.95B	2.81B	2.17B	1.94B	2.13B	1.33B
Net Income	2.48B	2.32B	1.80B	1.32B	1.70B	1.06B
Balance Sheet
Total Assets	19.22B	18.84B	15.44B	12.97B	13.55B	11.17B
Cash, Cash Equivalents and Short-Term Investments	4.51B	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	2.01B	2.31B	2.04B	1.86B	1.60B	1.41B
Stockholders Equity	17.11B	16.43B	13.31B	11.04B	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

• Technical Analysis Sentiment: Negative
• Last Price: 473.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 473.3 is below the 20-day moving average (MA) of 475.60, below the 50-day MA of 499.78, and below the 200-day MA of 528.69, indicating a bearish trend. The MACD of -7.18 indicates Negative momentum. The RSI at 41.55 is Neutral, neither overbought nor oversold. The STOCH value of 45.43 is Neutral, 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
RMD	80 Outperform	$40.19B	28.88	25.86%	0.80%	9.84%	37.48%
ISRG	78 Outperform	$169.67B	66.05	16.02%	―	20.77%	23.16%
BDX	75 Outperform	$55.31B	34.70	6.26%	2.11%	7.86%	14.24%
HOLX	75 Outperform	$14.93B	27.85	11.38%	―	1.28%	-17.73%
COO	65 Neutral	$13.40B	33.18	5.01%	―	6.35%	12.94%
BAX	54 Neutral	$12.68B	136.07	-3.30%	2.75%	-27.41%	67.01%
Sector *	51 Neutral	$7.85B	-0.21	-41.41%	2.22%	22.81%	-2.01%

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.