Intuitive Surgical: Long-Term Investment Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy ISRG?
Source: Fool
- 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.
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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.
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 Ends 2025 Strong with Robot Sales Growth
- Robot Sales Growth: In Q4 2025, Intuitive Surgical successfully deployed 532 da Vinci surgical robots, an 8% increase from 493 in Q4 2024, indicating strong demand and an expanding market share in surgical robotics.
- Revenue Structure Analysis: While surgical robot sales accounted for about 25% of total revenue in 2025, instruments and accessories made up a substantial 60%, highlighting the company's diversified revenue streams and robust profitability in the medical device sector.
- Recurring Revenue Model: Approximately 75% of revenue is recurring, growing with each new da Vinci system installed, which underscores the company's strong potential in maintenance and parts sales, further solidifying its market position.
- AI Integration Opportunities: The FDA-approved AI tool received in late 2025 will provide real-time visual enhancements for lung biopsy surgeries, representing a small yet significant step that showcases Intuitive Surgical's innovative capabilities and future growth potential in surgical robotics.
See More
Intuitive Surgical's da Vinci Robot Sales Surge
- Significant Sales Growth: In Q4 2025, Intuitive Surgical placed 532 da Vinci surgical robots, a 7.9% increase from 493 in Q4 2024, indicating sustained demand in the surgical robotics market and reinforcing its leadership position.
- Revenue Structure Analysis: While da Vinci robot sales accounted for about 25% of total revenue in 2025, instruments and accessories made up 60%, showcasing the company's diversified revenue streams in the medical device sector, enhancing financial stability.
- Recurring Revenue Model: Approximately 75% of revenue comes from ongoing services and accessory sales, creating an annuity-like income stream that grows with each new da Vinci unit installed, ensuring future revenue sustainability and growth potential.
- AI Integration Prospects: The FDA-approved AI tool received in late 2025 will provide real-time visual enhancements for lung biopsy surgeries, representing a small yet significant step towards greater precision in surgical operations, indicating the vast potential for AI applications in surgery in the future.
See More
Intuitive Surgical Reports Strong Q4 but Weak Guidance Raises Concerns
- Strong Performance: Intuitive Surgical reported a revenue of $2.87 billion in Q4 2025, marking a 19% year-over-year increase, while the volume of procedures using its da Vinci system rose by 17%, indicating robust performance in the medical device sector.
- Earnings Growth: The company achieved earnings per share of $2.21, up 17.6% year-over-year; however, despite these strong results, investor concerns about future guidance may negatively impact stock performance.
- Weak Guidance: Intuitive Surgical expects da Vinci procedure volume growth to be between 13% and 15% in 2026, down from 18% in 2025, which could lead to slower revenue growth, prompting a negative reaction from investors.
- Market Outlook: Despite potential short-term volatility, Intuitive Surgical's leadership in the robotic-assisted surgery market and high switching costs provide long-term growth potential, especially as the aging global population drives demand for various procedures.
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 Ends 2025 Strong with Robot Sales Growth
- Robot Sales Growth: In Q4 2025, Intuitive Surgical successfully deployed 532 da Vinci surgical robots, an 8% increase from 493 in Q4 2024, indicating strong demand and an expanding market share in surgical robotics.
- Revenue Structure Analysis: While surgical robot sales accounted for about 25% of total revenue in 2025, instruments and accessories made up a substantial 60%, highlighting the company's diversified revenue streams and robust profitability in the medical device sector.
- Recurring Revenue Model: Approximately 75% of revenue is recurring, growing with each new da Vinci system installed, which underscores the company's strong potential in maintenance and parts sales, further solidifying its market position.
- AI Integration Opportunities: The FDA-approved AI tool received in late 2025 will provide real-time visual enhancements for lung biopsy surgeries, representing a small yet significant step that showcases Intuitive Surgical's innovative capabilities and future growth potential in surgical robotics.
See More
Intuitive Surgical's da Vinci Robot Sales Surge
- Significant Sales Growth: In Q4 2025, Intuitive Surgical placed 532 da Vinci surgical robots, a 7.9% increase from 493 in Q4 2024, indicating sustained demand in the surgical robotics market and reinforcing its leadership position.
- Revenue Structure Analysis: While da Vinci robot sales accounted for about 25% of total revenue in 2025, instruments and accessories made up 60%, showcasing the company's diversified revenue streams in the medical device sector, enhancing financial stability.
- Recurring Revenue Model: Approximately 75% of revenue comes from ongoing services and accessory sales, creating an annuity-like income stream that grows with each new da Vinci unit installed, ensuring future revenue sustainability and growth potential.
- AI Integration Prospects: The FDA-approved AI tool received in late 2025 will provide real-time visual enhancements for lung biopsy surgeries, representing a small yet significant step towards greater precision in surgical operations, indicating the vast potential for AI applications in surgery in the future.
See More
Intuitive Surgical Reports Strong Q4 but Weak Guidance Raises Concerns
- Strong Performance: Intuitive Surgical reported a revenue of $2.87 billion in Q4 2025, marking a 19% year-over-year increase, while the volume of procedures using its da Vinci system rose by 17%, indicating robust performance in the medical device sector.
- Earnings Growth: The company achieved earnings per share of $2.21, up 17.6% year-over-year; however, despite these strong results, investor concerns about future guidance may negatively impact stock performance.
- Weak Guidance: Intuitive Surgical expects da Vinci procedure volume growth to be between 13% and 15% in 2026, down from 18% in 2025, which could lead to slower revenue growth, prompting a negative reaction from investors.
- Market Outlook: Despite potential short-term volatility, Intuitive Surgical's leadership in the robotic-assisted surgery market and high switching costs provide long-term growth potential, especially as the aging global population drives demand for various procedures.
See More
