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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ISRG

Intuitive Surgical faced negative drivers, including tariff-driven margin pressure, potentially risking its profitability. The company's gross margins, near 67%, may be impacted. Additionally, insider selling and decreased holdings by institutional investors, such as Connor Clark & Lunn Investment Management Ltd. and GoalVest Advisory LLC, may have contributed to the stock's decline. Furthermore, investors are weighing procedure trends, margins, and outlook, following the company's strong preliminary Q4 revenue growth. Analysts have a "Moderate Buy" rating on the stock.

1.c. Company Highlights

2. Intuitive Surgical's 2025 Earnings: Strong Growth and Expanding Horizons

Intuitive Surgical reported a robust financial performance in 2025, with revenue growing 21% year-over-year to $10.1 billion, driven by an 18% increase in da Vinci procedures. The company's operating margins remained healthy at 37%. In Q4 2025, revenue grew 19% to $2.87 billion, with pro forma earnings per share (EPS) of $2.53, beating analyst estimates of $2.27. The company's cash and investments ended the year at $9 billion, providing a solid foundation for future growth.

Publication Date: Jan -25

📋 Highlights
  • 2025 Revenue Growth:: Revenue surged 21% YoY to $10.1B, with operating margins of 37% and 1,721 da Vinci systems placed, including 870 da Vinci 5 systems.
  • Procedure Expansion:: Da Vinci procedures grew 18% (17% for multiport, 87% for single-port), while Ion procedures spiked 51%, reflecting diverse product adoption.
  • Q4 Financial Highlights:: Q4 revenue hit $2.87B (+19%), driven by 18% procedure growth, with recurring revenue rising 20% to $2.3B and pro forma EPS at $2.53.
  • Stock Repurchases & Guidance:: $2.3B stock buybacks in 2025; 2026 guidance targets 13–15% procedure growth and 67–68% pro forma gross profit margin.
  • Strategic Innovations:: FDA approval for cardiac instruments targets a $160K TAM, while advanced imaging and ASC expansion aim to boost adoption in high-growth procedures.

Procedure Growth and System Adoption

The company's da Vinci procedures grew 18% in 2025, with multiport procedures increasing 17% and single-port procedures surging 87%. Ion procedures also showed significant growth, rising 51%. The company placed 1,721 da Vinci systems in 2025, including 870 da Vinci 5 systems, demonstrating strong demand for its latest technology. Recent clinical studies have reinforced the benefits of robotic-assisted surgery, with one study showing a 50% lower conversion rate to open surgery compared to laparoscopic procedures.

Guidance and Outlook

For 2026, Intuitive Surgical expects da Vinci procedure growth to be between 13% and 15%. The company anticipates its pro forma gross profit margin to be between 67% and 68% of net revenue, with pro forma operating expense growth expected to be between 11% and 15%. The company is investing in advanced imaging features, including fluorescence imaging and hyperspectral imaging, which are expected to improve patient outcomes. With a current P/E Ratio of 65.11 and EV/EBITDA of 50.32, the market appears to be pricing in significant growth expectations.

Competitive Landscape and Innovation

Intuitive Surgical is well-positioned to compete in the robotic-assisted surgery market, with a strong ecosystem and a focus on innovation. The company is expanding its footprint in Ambulatory Surgery Centers (ASCs) and is investing in digital features, including its MIA+ subscription package. The FDA approval for cardiac non-Force Feedback instruments is expected to expand Intuitive Surgical's presence in cardiac surgery, with a total addressable market (TAM) of around 160,000 procedures per year.

Valuation and Risks

Analysts estimate next year's revenue growth at 13.8%, which is slightly below the company's current guidance. With a ROE of 16.72% and ROIC of 14.58%, Intuitive Surgical is generating strong returns on its investments. However, the company faces risks around macro pressures, including hospital purchasing and Medicaid cuts. The guidance reflects some risk around these factors, but the company has not seen a significant impact from these factors in Q4.

3. NewsRoom

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Johnson Investment Counsel Inc. Purchases 2,550 Shares of Intuitive Surgical, Inc. $ISRG

Feb -10

Source: defenseworld.net

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Should You Buy Intuitive Surgical Stock While It's Under $500?

Feb -09

Source: fool.com

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ProShare Advisors LLC Sells 102,046 Shares of Intuitive Surgical, Inc. $ISRG

Feb -09

Source: defenseworld.net

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Intuitive Surgical, Inc. $ISRG Shares Purchased by Oppenheimer Asset Management Inc.

Feb -09

Source: defenseworld.net

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1 Reason I'd Buy Intuitive Surgical Stock and Never Sell

Feb -08

Source: fool.com

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Alphinity Investment Management Pty Ltd Sells 108,992 Shares of Intuitive Surgical, Inc. $ISRG

Feb -08

Source: defenseworld.net

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2 Top Healthcare Stocks to Buy in February

Feb -07

Source: fool.com

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Why This Stock's January Slump Could Be a Gift for Patient Investors

Feb -07

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Surgical & Medical Equipment

Expected Growth: 14.0%

Intuitive Surgical's 14.0% growth in Surgical & Medical Equipment is driven by increasing adoption of robotic-assisted surgeries, expanding applications in minimally invasive procedures, and growing demand for innovative healthcare technologies. The company's market leadership, strong product portfolio, and rising procedural volumes also contribute to its growth momentum.

7. Detailed Products

dVSSM (Digital Video Surgical System)

The da Vinci Surgical System is a robotic surgical system that enables surgeons to perform complex procedures with enhanced precision, flexibility, and control. The system consists of a surgeon console, a patient-side cart with robotic arms, and a high-definition 3D vision system.

Ion Endoluminal System

The Ion Endoluminal System is a robotic-assisted platform for minimally invasive biopsies and interventions within the lungs. The system enables precise navigation and sampling of lung tissue, improving diagnostic accuracy and reducing complications.

Senia Technology

Senia Technology is an advanced imaging and sensing platform that provides high-definition visualization and real-time data analytics. The platform enhances the capabilities of the da Vinci Surgical System, enabling surgeons to perform procedures with greater precision and accuracy.

Intuitive INSIGHT (Intuitive Surgical Insights)

Intuitive INSIGHT is a data analytics and insights platform that provides surgeons and hospitals with real-time data and insights on surgical procedures. The platform enables healthcare professionals to track performance, identify areas for improvement, and optimize patient care.

8. Intuitive Surgical, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Intuitive Surgical, Inc.'s da Vinci Surgical System is a unique and patented product, making it difficult for substitutes to replicate its functionality. The company's strong brand reputation and extensive training programs also create a high barrier for substitutes.

Bargaining Power Of Customers

While customers, primarily hospitals and healthcare systems, have some bargaining power due to the high cost of the da Vinci Surgical System, Intuitive Surgical, Inc.'s strong product offering and customer support limit their negotiating power.

Bargaining Power Of Suppliers

Intuitive Surgical, Inc. has a diverse supplier base and is not heavily reliant on any single supplier. The company also has a strong procurement process in place, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The high barriers to entry in the surgical robotics market, including significant R&D investment, regulatory hurdles, and the need for extensive clinical trials, make it difficult for new entrants to compete with Intuitive Surgical, Inc.

Intensity Of Rivalry

While there are a few competitors in the surgical robotics market, such as Medtronic and Johnson & Johnson, Intuitive Surgical, Inc. has a strong market position and a loyal customer base, which limits the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.00%
Debt Cost 4.28%
Equity Weight 100.00%
Equity Cost 12.36%
WACC 12.36%
Leverage 0.00%

11. Quality Control: Intuitive Surgical, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HCA Healthcare

A-Score: 6.4/10

Value: 6.7

Growth: 7.2

Quality: 5.0

Yield: 2.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
ResMed

A-Score: 5.7/10

Value: 2.1

Growth: 8.1

Quality: 8.7

Yield: 1.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Becton Dickinson

A-Score: 4.6/10

Value: 3.3

Growth: 4.6

Quality: 5.2

Yield: 4.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Intuitive Surgical

A-Score: 4.6/10

Value: 0.0

Growth: 6.7

Quality: 7.4

Yield: 0.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Centene

A-Score: 3.8/10

Value: 9.5

Growth: 5.6

Quality: 3.3

Yield: 0.0

Momentum: 0.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
West Pharma

A-Score: 3.7/10

Value: 1.0

Growth: 6.1

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

495.15$

Current Price

495.15$

Potential

-0.00%

Expected Cash-Flows