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Intuitive Surgical
(NASDAQ:ISRG)
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Rating:81Outperform
Price Target:
$513.00
▲(37.96% Upside)
Action:Reiterated
Date:10/23/26
ISRG scores strongly on financial performance, driven by high margins, strong free cash flow generation, and an exceptionally conservative balance sheet with no debt. Technicals are supportive but show signs of being extended (high stochastic and elevated RSI). The main constraint on the score is valuation, with a high P/E and no dividend yield provided. Earnings call commentary reinforces solid growth and guidance, but flags near-term headwinds from pricing actions, China conditions, and higher expense levels.
Positive Factors
Recurring Revenue Model
The large recurring revenue mix links growth to the installed base and procedure utilization rather than only new system sales. Rising instruments, accessories, and service revenue should support visibility, customer retention, and durable cash generation as adoption expands.
Negative Factors
Revenue per Procedure Pressure
Lower revenue per procedure directly challenges the economics of the company’s recurring consumables model, even if procedure volumes continue to grow. The pressure will roll out across countries and may constrain revenue growth and margins until adoption gains or new products offset it.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Model
The large recurring revenue mix links growth to the installed base and procedure utilization rather than only new system sales. Rising instruments, accessories, and service revenue should support visibility, customer retention, and durable cash generation as adoption expands.
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
$154.56B
Dividend YieldN/A
Average Volume (3M)2.33M
Price to Earnings (P/E)53.3
Beta (1Y)1.18
Revenue Growth20.45%
EPS Growth8.75%
CountryUS
Employees17,021
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)8.37
Shares Outstanding346,643,700
10 Day Avg. Volume2,643,133
30 Day Avg. Volume2,328,008
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 Cap0.90
Enterprise Value/Revenue12.01
Enterprise Value/Gross Profit17.87
Enterprise Value/Ebitda33.18
Forecast
1Y Price Target
$498.26Price Target Upside34.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)11.2
Revenue Forecast (FY)$11.90B
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 through a recurring, multi-part model tied to the installed base and utilization of its robotic surgical platforms. First, it sells surgical systems (notably da Vinci) to hospitals and other care prov...
Intuitive Surgical Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 26, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Intuitive reported broad-based procedure, revenue, system placement and installed-base growth, improving non-GAAP profitability, strong adoption of da Vinci 5 and SP, international expansion, favorable clinical evidence and a substantial product and technology pipeline. The main negatives were slower U.S. da Vinci procedure growth, challenging conditions in China, planned 3% to 5% revenue-per-procedure pressure from pricing actions, higher operating expenses and development costs, a $450 million litigation settlement charge and lower GAAP net income.Positive Updates
Strong Overall Procedure Growth
Total procedures increased 15% in Q3, driven by 14% growth in da Vinci procedures and 31% growth in Ion procedures. U.S. da Vinci procedures increased 10%, while procedures outside the U.S. increased 20%.
Negative Updates
Expected Revenue-per-Procedure Pressure from Pricing Actions
The pricing actions, including the China price reduction and extended-use instruments, are expected to reduce da Vinci instrument and accessories revenue per procedure by approximately 3% to 5% on a mix-constant basis once fully implemented. The China reduction takes effect in the fourth quarter, while broader extended-life instrument actions roll out by country beginning in the first half of 2027.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Overall Procedure Growth
Total procedures increased 15% in Q3, driven by 14% growth in da Vinci procedures and 31% growth in Ion procedures. U.S. da Vinci procedures increased 10%, while procedures outside the U.S. increased 20%.
Read all positive updates
Company Guidance
For 2026, Intuitive forecast da Vinci procedure growth to be within a range of 14% to 15% with an expectation to be closer to the midpoint; non-GAAP gross profit margin to be within a range of 68.7% and 69.3% of revenue, including an estimated 90 basis points impact from tariffs as well as related refunds; non-GAAP operating expense growth of 11% to 13%; noncash stock compensation expense between $860 million and $870 million; non-GAAP other income between $300 million and $310 million; and a non-GAAP effective tax rate in Q4 to be 22%, plus or minus 50 basis points. The pricing actions and China price reduction are expected to lower da Vinci I&A revenue per procedure by approximately 3% to 5% on a mix constant basis once fully implemented, with the China reduction taking effect in the fourth quarter and the extended life instruments rolling out by country beginning in the first half of 2027.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 | 11.58B | 10.06B | 8.35B | 7.12B | 6.22B | 5.71B |
| Gross Profit | 7.78B | 6.64B | 5.63B | 4.73B | 4.20B | 3.96B |
| EBITDA | 4.19B | 3.99B | 3.14B | 2.41B | 1.97B | 2.20B |
| Net Income | 2.96B | 2.86B | 2.32B | 1.80B | 1.32B | 1.70B |
Balance Sheet | ||||||
| Total Assets | 19.35B | 20.63B | 18.84B | 15.44B | 12.97B | 13.55B |
| Cash, Cash Equivalents and Short-Term Investments | 4.04B | 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 | 3.23B | 2.69B | 2.31B | 2.04B | 1.86B | 1.60B |
| Stockholders Equity | 15.99B | 17.82B | 16.43B | 13.31B | 11.04B | 11.95B |
Cash Flow | ||||||
| Free Cash Flow | 3.60B | 2.49B | 1.30B | 749.60M | 958.40M | 1.74B |
| Operating Cash Flow | 4.09B | 3.03B | 2.42B | 1.81B | 1.49B | 2.09B |
| Investing Cash Flow | 747.30M | 665.80M | -3.27B | -360.10M | 1.37B | -2.46B |
| Financing Cash Flow | -4.66B | -2.36B | 150.90M | -287.60M | -2.57B | 43.00M |
Intuitive Surgical Technical Analysis
Positive
371.84
Price Trends
397.20
Positive
394.41
Positive
435.54
Positive
Market Momentum
14.08
Negative
70.30
Negative
92.29
Negative
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 371.84 is below the 20-day moving average (MA) of 422.43, below the 50-day MA of 397.20, and below the 200-day MA of 435.54, indicating a bullish trend. The MACD of 14.08 indicates Negative momentum. The RSI at 70.30 is Negative, neither overbought nor oversold. The STOCH value of 92.29 is Negative, 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 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $154.56B | 53.27 | 17.03% | ― | 20.45% | 8.75% | |
79 Outperform | $35.27B | 24.02 | 23.88% | 0.98% | 9.85% | 9.65% | |
77 Outperform | $28.03B | 50.61 | 18.51% | 0.22% | 12.42% | 17.07% | |
65 Neutral | $53.12B | 58.74 | 3.79% | 2.04% | -2.56% | -40.38% | |
57 Neutral | $12.88B | -12.22 | -16.60% | 0.16% | 5.36% | -632.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ISRG
Intuitive Surgical
445.88
-99.51
-18.25%
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WST
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40.93%
Intuitive Surgical Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Intuitive Surgical Tightens Shareholder Governance and Proxy Rules
Neutral
Jul 27, 2026
On July 23, 2026, Intuitive Surgical’s board amended and restated the company’s bylaws to tighten and clarify rules governing shareholder nominations and proposals at shareholder meetings. The revisions respond to universal proxy regul...
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.