Intuitive Surgical (1ISRG) AI Stock Analysis

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Intuitive Surgical

(Milan:1ISRG)

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Positive Factors

Recurring Revenue ModelThe 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 PressureLower 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.

Intuitive Surgical (1ISRG) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 152.49B
Dividend Yield: ―
Average Volume (3M): 46
Price to Earnings (P/E): 52.7
Beta (1Y): 0.46
Revenue Growth: 14.58%
EPS Growth: 3.17%
Country: Italy
Employees: 17,021
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Instruments & Supplies

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, and...

Intuitive Surgical Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:3.12%|Next Earnings Date:Jan 26, 2027

Earnings Call SentimentPositive

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.

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 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.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

1 New Risk

1.Third parties may offer to sell remanufactured instruments and accessories to our customers or provide unauthorized service on our systems, which could adversely impact our financial results, create safety issues, and harm our reputation.Q2, 2026

Intuitive Surgical Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

IT:1ISRG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	81Outperform	$33.55B	21.83	25.14%	1.05%	9.04%	12.22%
WST	78Outperform	$28.76B	45.90	21.08%	0.22%	12.60%	32.05%
BDX	63Neutral	$58.43B	51.85	4.64%	1.84%	-7.40%	-28.89%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	46Neutral	$13.63B	-18.77	-11.62%	0.16%	5.33%	-164.67%

* Healthcare Sector Average

Performance Comparison

IT:1ISRG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1ISRG	Intuitive Surgical	399.40	-82.20	-17.07%
BAX	Baxter International Inc	25.74	7.31	39.63%
BDX	Becton, Dickinson and Co	215.71	67.71	45.75%
RMD	Resmed Inc	238.89	-2.92	-1.21%
WST	West Pharmaceutical Services, Inc.	411.30	150.71	57.83%

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.

Intuitive Surgical AI Stock Analysis