Intuitive Surgical Reports Strong Q4 but Weak Guidance Raises Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy ISRG?
Source: NASDAQ.COM
Intuitive Surgical's stock fell 3.00% as it hit a 20-day low amid broader market declines, with the Nasdaq-100 down 1.83% and the S&P 500 down 1.12%.
Despite reporting a strong revenue of $2.87 billion in Q4 2025, marking a 19% year-over-year increase, investor concerns about weak guidance for 2026 have negatively impacted the stock. The company expects da Vinci procedure volume growth to slow to between 13% and 15%, down from 18% in 2025, which has raised doubts about future revenue growth and led to a decline in stock performance.
While the short-term outlook appears challenging due to the guidance, Intuitive Surgical's leadership in robotic-assisted surgery and the increasing demand for such procedures may provide long-term growth potential, especially as the aging population drives the need for surgical interventions.
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Analyst Views on ISRG
Wall Street analysts forecast ISRG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ISRG is 637.32 USD with a low forecast of 575.00 USD and a high forecast of 740.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 476.320
Low
575.00
Averages
637.32
High
740.00
Current: 476.320
Low
575.00
Averages
637.32
High
740.00
About ISRG
Intuitive Surgical, Inc. develops, manufactures, and markets da Vinci surgical systems and the Ion endoluminal system. The Company specializes in invasive care and robotic-assisted surgery. Its technologies include the da Vinci surgical systems and the Ion endoluminal system. The da Vinci surgical system is designed to enable surgeons to perform a range of surgical procedures within its targeted general surgery, urologic, gynecologic, cardiothoracic, and head and neck specialties and consists of a surgeon's console or consoles, a patient-side cart, and a high-performance vision system. The Ion endoluminal system is a flexible, robotic-assisted, catheter-based platform for which the cleared indication is minimally invasive biopsies in the lung and consists of a system cart, a controller, a catheter, and a vision probe. Its Ion system extends its commercial offering beyond surgery into diagnostic and endoluminal procedures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Intuitive Surgical Continues Steady Growth
- Significant Revenue Growth: Intuitive Surgical's revenue grew by 19% in the most recent quarter, exceeding $2.8 billion, demonstrating strong performance in the robotic surgery market and further solidifying its market leadership.
- Expanded Installed Base: The company increased its installed surgical systems by 12% year-over-year, surpassing 11,000 units, which not only reflects rising market demand but also lays a foundation for future revenue growth.
- Recurring Revenue Source: Each sale or lease of a Da Vinci platform provides the company with ongoing revenue opportunities, with instruments and accessories revenue reaching $1.6 billion in the recent quarter, significantly outpacing the $785 million from robotic systems, indicating robust profit potential.
- Clear Competitive Advantage: Intuitive Surgical has established a strong competitive moat due to the widespread training of surgeons on the Da Vinci system, leading hospitals to continue using this platform after substantial investments, thereby ensuring long-term customer loyalty.
See More
Intuitive Surgical's Da Vinci Robot Shows Strong Growth Potential
- Market Leadership: Intuitive Surgical, as the global leader in robotic surgery, achieved a 12% year-over-year increase in its installed base of Da Vinci systems, surpassing 11,000 units, demonstrating strong demand and market penetration in minimally invasive surgery.
- Significant Revenue Growth: The company's recent earnings report revealed a 19% year-over-year revenue increase, exceeding $2.8 billion, with net income rising 16% to $794 million, indicating the sustainability and profitability of its business model, which further bolsters investor confidence.
- Recurring Revenue Stream: Each sale or lease of a Da Vinci system generates a recurring revenue stream, particularly from instruments and accessories, which totaled $1.6 billion in the recent quarter, significantly outpacing the $785 million from robotic system sales, showcasing robust follow-on revenue potential.
- Clear Competitive Advantage: Most surgeons are trained on the Da Vinci platform, and hospitals, after investing millions, are likely to continue using it, creating strong market barriers that ensure the company's ongoing growth and stability in market share.
See More
Investment Outlook for Intuitive Surgical and Vertex Pharmaceuticals
- Market Challenges for Intuitive Surgical: Despite being a leader in the robotic-assisted surgery market, Intuitive Surgical faces financial impacts from high tariffs and increased competition, with its fiscal 2026 guidance falling short of market expectations; however, its long-term outlook remains optimistic.
- Growth in Installed Base: Intuitive Surgical ended Q4 with an installed base of 11,106 devices, a 12% increase year-over-year, which is expected to drive an increase in procedure volume, serving as a crucial growth driver for the medical device specialist.
- Vertex Pharmaceuticals' Drug Development: Vertex plans to submit regulatory applications for its investigational therapy zimislecel for type 1 diabetes this year and will release clinical trial data for therapies targeting APOL-1 mediated kidney disease and IgA nephropathy; if any prove effective, it will significantly expand its product lineup.
- Increased Investment Appeal: Although Intuitive Surgical was not included in The Motley Fool Stock Advisor's top stock picks, its strong competitive advantage in the medical device sector, combined with Vertex Pharmaceuticals' potential new products, makes both companies attractive for investment over the next five years.
See More
Healthcare Sector Rebound Prospects Analyzed
- Intuitive Surgical's Market Challenges: Despite being a leader in the robotic-assisted surgery market, Intuitive Surgical faced high tariffs and increased competition, leading to a disappointing fiscal 2026 guidance and a 13% stock decline over the past year, yet its long-term outlook remains positive.
- Growing Installed Base: The company ended Q4 with an installed base of 11,106 devices, a 12% increase year-over-year, which is expected to drive higher procedure volumes, serving as a crucial growth driver for the medical device specialist and reinforcing its market position.
- Vertex Pharmaceuticals' Expansion Plans: Vertex has been highly successful in treating cystic fibrosis and plans to submit regulatory applications for zimislecel, an investigational therapy for type 1 diabetes, this year, while also preparing for late-stage data readouts for other therapies, which could significantly expand its product lineup.
- New Product Growth Drivers: Vertex's core cystic fibrosis franchise continues to drive strong revenue growth, and the recently approved Journavx for acute pain will also contribute to future performance, making its shares particularly attractive this month.
See More
Intuitive Surgical: Long-Term Investment Opportunity
- High Valuation Status: Intuitive Surgical's P/E ratio stands at 60, significantly above the S&P 500's 28; however, long-term growth investors may see a buying opportunity due to the stock's recent pullback.
- Surge in Robot Demand: By the end of 2025, there were 11,106 da Vinci systems globally, marking a 12% year-over-year increase, with surgeries performed rising by 18%, indicating strong demand from both medical professionals and patients for robotic-assisted surgery.
- Diverse Revenue Streams: While robots account for only 25% of sales, the company's services, instruments, and accessories provide a stable recurring income stream that grows with each new robot sold, enhancing overall financial stability.
- Market Volatility and Timing: Despite Intuitive Surgical's stock being approximately 19% below its 2026 peak, its current P/E ratio is lower than the five-year average of 71, suggesting that long-term investors might consider entering during this dip to capitalize on the long-term growth potential of surgical robotics.
See More
Navigating Values in Investing Decisions
- Importance of Investment Education: Mark successfully sparked his children's interest in stock selection by playing investment games together, with his kids outperforming the market in 2025, demonstrating the significant potential of family education in fostering financial awareness.
- Values and Investment Decisions: An Italian investor explores the duality of Robinhood's tools while contemplating whether to hold its stock, emphasizing the importance of balancing personal values with social impact in investing, reflecting investors' concerns about ethical responsibility.
- Lessons from History: David Gardner reflects on past market fluctuations, highlighting that history is not just nostalgia but a source of confidence for investors, reminding them to maintain patience and optimism in uncertain markets.
- Optimism and Long-Term Investing: Tom shares his journey of wealth accumulation through long-term investing and compounding, emphasizing the key role of patience and a positive mindset in achieving investment success, encouraging more people to believe in their ability to succeed in investing.
See More
Intuitive Surgical Continues Steady Growth
- Significant Revenue Growth: Intuitive Surgical's revenue grew by 19% in the most recent quarter, exceeding $2.8 billion, demonstrating strong performance in the robotic surgery market and further solidifying its market leadership.
- Expanded Installed Base: The company increased its installed surgical systems by 12% year-over-year, surpassing 11,000 units, which not only reflects rising market demand but also lays a foundation for future revenue growth.
- Recurring Revenue Source: Each sale or lease of a Da Vinci platform provides the company with ongoing revenue opportunities, with instruments and accessories revenue reaching $1.6 billion in the recent quarter, significantly outpacing the $785 million from robotic systems, indicating robust profit potential.
- Clear Competitive Advantage: Intuitive Surgical has established a strong competitive moat due to the widespread training of surgeons on the Da Vinci system, leading hospitals to continue using this platform after substantial investments, thereby ensuring long-term customer loyalty.
See More
Intuitive Surgical's Da Vinci Robot Shows Strong Growth Potential
- Market Leadership: Intuitive Surgical, as the global leader in robotic surgery, achieved a 12% year-over-year increase in its installed base of Da Vinci systems, surpassing 11,000 units, demonstrating strong demand and market penetration in minimally invasive surgery.
- Significant Revenue Growth: The company's recent earnings report revealed a 19% year-over-year revenue increase, exceeding $2.8 billion, with net income rising 16% to $794 million, indicating the sustainability and profitability of its business model, which further bolsters investor confidence.
- Recurring Revenue Stream: Each sale or lease of a Da Vinci system generates a recurring revenue stream, particularly from instruments and accessories, which totaled $1.6 billion in the recent quarter, significantly outpacing the $785 million from robotic system sales, showcasing robust follow-on revenue potential.
- Clear Competitive Advantage: Most surgeons are trained on the Da Vinci platform, and hospitals, after investing millions, are likely to continue using it, creating strong market barriers that ensure the company's ongoing growth and stability in market share.
See More
Investment Outlook for Intuitive Surgical and Vertex Pharmaceuticals
- Market Challenges for Intuitive Surgical: Despite being a leader in the robotic-assisted surgery market, Intuitive Surgical faces financial impacts from high tariffs and increased competition, with its fiscal 2026 guidance falling short of market expectations; however, its long-term outlook remains optimistic.
- Growth in Installed Base: Intuitive Surgical ended Q4 with an installed base of 11,106 devices, a 12% increase year-over-year, which is expected to drive an increase in procedure volume, serving as a crucial growth driver for the medical device specialist.
- Vertex Pharmaceuticals' Drug Development: Vertex plans to submit regulatory applications for its investigational therapy zimislecel for type 1 diabetes this year and will release clinical trial data for therapies targeting APOL-1 mediated kidney disease and IgA nephropathy; if any prove effective, it will significantly expand its product lineup.
- Increased Investment Appeal: Although Intuitive Surgical was not included in The Motley Fool Stock Advisor's top stock picks, its strong competitive advantage in the medical device sector, combined with Vertex Pharmaceuticals' potential new products, makes both companies attractive for investment over the next five years.
See More
Healthcare Sector Rebound Prospects Analyzed
- Intuitive Surgical's Market Challenges: Despite being a leader in the robotic-assisted surgery market, Intuitive Surgical faced high tariffs and increased competition, leading to a disappointing fiscal 2026 guidance and a 13% stock decline over the past year, yet its long-term outlook remains positive.
- Growing Installed Base: The company ended Q4 with an installed base of 11,106 devices, a 12% increase year-over-year, which is expected to drive higher procedure volumes, serving as a crucial growth driver for the medical device specialist and reinforcing its market position.
- Vertex Pharmaceuticals' Expansion Plans: Vertex has been highly successful in treating cystic fibrosis and plans to submit regulatory applications for zimislecel, an investigational therapy for type 1 diabetes, this year, while also preparing for late-stage data readouts for other therapies, which could significantly expand its product lineup.
- New Product Growth Drivers: Vertex's core cystic fibrosis franchise continues to drive strong revenue growth, and the recently approved Journavx for acute pain will also contribute to future performance, making its shares particularly attractive this month.
See More
Intuitive Surgical: Long-Term Investment Opportunity
- High Valuation Status: Intuitive Surgical's P/E ratio stands at 60, significantly above the S&P 500's 28; however, long-term growth investors may see a buying opportunity due to the stock's recent pullback.
- Surge in Robot Demand: By the end of 2025, there were 11,106 da Vinci systems globally, marking a 12% year-over-year increase, with surgeries performed rising by 18%, indicating strong demand from both medical professionals and patients for robotic-assisted surgery.
- Diverse Revenue Streams: While robots account for only 25% of sales, the company's services, instruments, and accessories provide a stable recurring income stream that grows with each new robot sold, enhancing overall financial stability.
- Market Volatility and Timing: Despite Intuitive Surgical's stock being approximately 19% below its 2026 peak, its current P/E ratio is lower than the five-year average of 71, suggesting that long-term investors might consider entering during this dip to capitalize on the long-term growth potential of surgical robotics.
See More
Navigating Values in Investing Decisions
- Importance of Investment Education: Mark successfully sparked his children's interest in stock selection by playing investment games together, with his kids outperforming the market in 2025, demonstrating the significant potential of family education in fostering financial awareness.
- Values and Investment Decisions: An Italian investor explores the duality of Robinhood's tools while contemplating whether to hold its stock, emphasizing the importance of balancing personal values with social impact in investing, reflecting investors' concerns about ethical responsibility.
- Lessons from History: David Gardner reflects on past market fluctuations, highlighting that history is not just nostalgia but a source of confidence for investors, reminding them to maintain patience and optimism in uncertain markets.
- Optimism and Long-Term Investing: Tom shares his journey of wealth accumulation through long-term investing and compounding, emphasizing the key role of patience and a positive mindset in achieving investment success, encouraging more people to believe in their ability to succeed in investing.
See More
