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Intuitive Surgical
(NASDAQ:ISRG)
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Rating:75Outperform
Price Target:
$471.00
▲(0.38% Upside)
Action:Reiterated
Date:05/29/26
Overall score is driven by very strong financial performance (high margins, strong cash generation, and a conservative balance sheet) and a positive earnings-call setup with raised procedure-growth guidance. These are tempered by weak current technical momentum (below major moving averages with negative MACD) and a high valuation (P/E ~49.8) with no dividend support.
Positive Factors
Recurring revenue / Installed base
A platform-plus-consumables model with 86% recurring revenue creates durable, high-frequency cash flows tied to procedure volume and installed base growth. This structural revenue mix supports predictability, high operating leverage, and long-term margin sustainability as systems proliferate.
Negative Factors
China market headwinds
Structural weakness and policy uncertainty in China can materially limit system placements and recurring revenue growth in a major market. Delayed reimbursement clarity and domestic competitive pricing pressure may cap near‑to‑medium term adoption and slow the installed base expansion essential for recurring revenues.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue / Installed base
A platform-plus-consumables model with 86% recurring revenue creates durable, high-frequency cash flows tied to procedure volume and installed base growth. This structural revenue mix supports predictability, high operating leverage, and long-term margin sustainability as systems proliferate.
Read all positive factors
Intuitive Surgical Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region to show where Intuitive is growing fastest and where it relies most heavily on demand; regional trends highlight opportunities (faster adoption in emerging markets) and risks (exposure to U.S. reimbursement or currency swings).
Breaks down sales by region to show where Intuitive is growing fastest and where it relies most heavily on demand; regional trends highlight opportunities (faster adoption in emerging markets) and risks (exposure to U.S. reimbursement or currency swings).
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The Fly
The FlyIntuitive Surgical (ISRG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$150.88B
Dividend YieldN/A
Average Volume (3M)2.47M
Price to Earnings (P/E)50.9
Beta (1Y)1.05
Revenue Growth21.43%
EPS Growth20.38%
CountryUS
Employees15,638
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)8.37
Shares Outstanding354,162,840
10 Day Avg. Volume2,408,927
30 Day Avg. Volume2,473,055
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 Cap0.93
Enterprise Value/Revenue13.27
Enterprise Value/Gross Profit20.01
Enterprise Value/Ebitda32.50
Forecast
1Y Price Target
$558.56Price Target Upside19.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)10.45
Revenue Forecast (FY)$11.70B
Intuitive Surgical Business Overview & Revenue Model
Company Description
Intuitive Surgical, Inc. is a leading medical technology firm dedicated to advancing patient care by developing, producing, and commercializing sophisticated tools. These innovations empower medical professionals to deliver superior, accessible, a...
How the Company Makes Money
Intuitive Surgical primarily generates revenue from a mix of (1) sales/placements of its robotic surgical systems, (2) recurring revenue from instruments and accessories used in each procedure performed on its installed base, and (3) service and s...
Intuitive Surgical Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call emphasized strong commercial and financial momentum: double-digit revenue and procedure growth, expanding placements and adoption of new platforms (da Vinci 5, SP, Ion), margin expansion and supportive clinical data. Headwinds were noted but largely manageable in the near term — China and Japan remain challenged, bariatric volume was down due to GLP-1 adoption, there are input-cost and tariff risks, and a contained cybersecurity incident occurred. Overall, positives around growth, profitability, product adoption and clinical validation substantially outweighed the challenges.Positive Updates
Strong Top-Line Growth
Total revenue of $2.77B, up 23% year-over-year (22% constant currency). Recurring revenue grew 23% to $2.4B and represented 86% of total revenue.
Negative Updates
China Market Challenges
Procedure growth in China remained below corporate average due to low tender activity, strong domestic competition and policy-driven pricing pressure; clarity on provincial charge codes and reimbursement not expected until 2027.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $2.77B, up 23% year-over-year (22% constant currency). Recurring revenue grew 23% to $2.4B and represented 86% of total revenue.
Read all positive updates
Company Guidance
Intuitive updated its 2026 outlook, raising its da Vinci procedure growth forecast to 13.5%–15.5% (from 13%–15%); it now expects non‑GAAP gross profit margin of 67.5%–68.5% of revenue (reflecting ~100 bps tariff impact and higher input costs such as freight and semiconductor memory), non‑GAAP operating expense growth of 11%–14%, noncash stock‑based compensation of $890M–$920M, other income of $315M–$335M (primarily lower interest income on reduced cash balances), and a non‑GAAP effective tax rate of 22%–23%.Intuitive Surgical Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.58B | 10.06B | 8.35B | 7.12B | 6.22B | 5.71B |
| Gross Profit | 7.02B | 6.64B | 5.63B | 4.73B | 4.20B | 3.96B |
| EBITDA | 4.32B | 3.99B | 3.14B | 2.36B | 1.97B | 2.21B |
| Net Income | 2.98B | 2.86B | 2.32B | 1.80B | 1.32B | 1.70B |
Balance Sheet | ||||||
| Total Assets | 20.11B | 20.63B | 18.84B | 15.44B | 12.97B | 13.55B |
| Cash, Cash Equivalents and Short-Term Investments | 4.55B | 5.93B | 4.01B | 5.22B | 4.12B | 4.23B |
| Total Debt | 0.00 | 302.80M | 146.00M | 0.00 | 0.00 | 87.00M |
| Total Liabilities | 2.51B | 2.69B | 2.31B | 2.04B | 1.86B | 1.60B |
| Stockholders Equity | 17.47B | 17.82B | 16.43B | 13.31B | 11.04B | 11.95B |
Cash Flow | ||||||
| Free Cash Flow | 2.83B | 2.49B | 1.30B | 749.60M | 958.40M | 1.74B |
| Operating Cash Flow | 3.36B | 3.03B | 2.42B | 1.81B | 1.49B | 2.09B |
| Investing Cash Flow | -462.20M | 665.80M | -3.27B | -360.10M | 1.37B | -2.46B |
| Financing Cash Flow | -3.48B | -2.36B | 150.90M | -287.60M | -2.57B | 43.00M |
Intuitive Surgical Technical Analysis
Positive
469.21
Price Trends
428.72
Positive
453.66
Negative
488.46
Negative
Market Momentum
-3.42
Negative
59.71
Neutral
69.69
Neutral
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 469.21 is above the 20-day moving average (MA) of 411.15, above the 50-day MA of 428.72, and below the 200-day MA of 488.46, indicating a neutral trend. The MACD of -3.42 indicates Negative momentum. The RSI at 59.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.69 is Neutral, 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 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $25.84B | 48.64 | 17.87% | 0.32% | 11.24% | 17.11% | |
75 Outperform | $150.88B | 50.90 | 17.01% | ― | 21.43% | 20.38% | |
73 Outperform | $30.41B | 20.20 | 24.41% | 0.92% | 10.28% | 16.40% | |
64 Neutral | $43.56B | 40.02 | 4.54% | 2.13% | 2.39% | -24.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $11.70B | -10.79 | -16.43% | 2.75% | -4.79% | -78.01% |
* Healthcare Sector Average
ISRG
Intuitive Surgical
432.83
-101.88
-19.05%
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22.58
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155.54
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Resmed
218.40
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WST
West Pharmaceutical Services
357.64
136.89
62.01%
Intuitive Surgical Corporate Events
Business Operations and StrategyExecutive/Board Changes
Intuitive Surgical Names New Chief Commercial and Marketing Officer
Positive
May 28, 2026
On May 28, 2026, Intuitive announced that Taylor Patton, currently global senior vice president of its endoluminal business, will become chief commercial and marketing officer effective July 1, joining the executive leadership team and succeeding ...
Business Operations and StrategyStock BuybackShareholder Meetings
Intuitive Surgical Expands Equity Plan and Buyback Authorization
Positive
May 4, 2026
Intuitive Surgical, Inc. reported that shareholders approved amendments to its 2010 Incentive Award Plan at the April 30, 2026 annual meeting, increasing shares reserved for equity awards from 120.35 million to 125.35 million, extending the plan&#...
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,...
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.