Intuitive Surgical Reports Strong Q4 but Weak Guidance Raises Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy ISRG?
Source: NASDAQ.COM
- 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.
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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: 496.730
Low
575.00
Averages
637.32
High
740.00
Current: 496.730
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 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
Intuitive Surgical Faces Growth Slowdown Challenges
- Performance Growth: Intuitive Surgical reported a 19% year-over-year revenue increase in Q4 2025, reaching $2.87 billion, with a 17% rise in procedure volume, indicating resilience in the market, yet investors are disappointed with future guidance.
- Weak Guidance: While procedure volume grew 18% in 2025, the company expects a slowdown to 13%-15% in 2026, which could lead to slower revenue growth and diminish investor confidence in a stock priced for perfection.
- Valuation Analysis: Intuitive Surgical's price-to-earnings ratio stands at 54, significantly above the healthcare industry's average of 18.6, reflecting high market expectations for future performance but also increasing investment risk.
- Optimistic Long-Term Outlook: Despite potential short-term volatility, Intuitive Surgical's leadership in the robotic surgery market and high switching costs provide a competitive edge, making it an attractive long-term investment.
See More
Optimistic Outlook for AI Surgery Market
- Surgical Robot Growth: Intuitive Surgical installed 1,721 da Vinci surgical robots in 2025, marking a nearly 13% increase from 2024, indicating strong demand for surgical robots, with a projected 15% rise in surgeries for 2026, further solidifying its market leadership.
- AI Tool Approval: The FDA's approval of an AI tool to assist surgeons with real-time adjustments during lung surgeries signifies the gradual integration of AI in surgical procedures, potentially driving technological advancements and market share growth for Intuitive Surgical.
- Diversified Investment Option: Medtronic, as one of the world's largest medical device companies, offers a more attractive P/E ratio of 27 compared to Intuitive Surgical's 67, making it suitable for investors seeking diversification despite slower rollout of its surgical robots.
- Dividend Growth Potential: Medtronic boasts a 2.8% dividend yield and has increased its dividend for 48 consecutive years, significantly higher than the S&P 500's 1.1%, making it an ideal choice for income-seeking investors, while the upcoming spin-off of its diabetes division could enhance profitability.
See More
David Gardner Analyzes Risk Rating System
- Risk Rating System Overview: David Gardner introduces his 25-point risk rating system, used for over a decade, aimed at replacing vague risk labels with concrete, quantifiable numbers to help investors better understand investment risks.
- Case Studies: During the discussion of Etsy and Duolingo, analysts scored each company on profitability, cash flow, and brand recognition, noting that Etsy achieved $182 million in net income over the past 12 months, while Duolingo reached approximately $386 million.
- Market Competition Analysis: Etsy faces pressure from competitors like Amazon and Shopify, although it retains some brand influence in the crafts market; Duolingo, on the other hand, leads the language learning market with over 50% brand awareness.
- Future Outlook: Analysts believe that while Etsy's market performance has declined, its investments in AI and other technologies could serve as positive catalysts in the future, whereas Duolingo must be wary of potential threats from AI to its business model.
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
Intuitive Surgical Faces Growth Slowdown Challenges
- Performance Growth: Intuitive Surgical reported a 19% year-over-year revenue increase in Q4 2025, reaching $2.87 billion, with a 17% rise in procedure volume, indicating resilience in the market, yet investors are disappointed with future guidance.
- Weak Guidance: While procedure volume grew 18% in 2025, the company expects a slowdown to 13%-15% in 2026, which could lead to slower revenue growth and diminish investor confidence in a stock priced for perfection.
- Valuation Analysis: Intuitive Surgical's price-to-earnings ratio stands at 54, significantly above the healthcare industry's average of 18.6, reflecting high market expectations for future performance but also increasing investment risk.
- Optimistic Long-Term Outlook: Despite potential short-term volatility, Intuitive Surgical's leadership in the robotic surgery market and high switching costs provide a competitive edge, making it an attractive long-term investment.
See More
Optimistic Outlook for AI Surgery Market
- Surgical Robot Growth: Intuitive Surgical installed 1,721 da Vinci surgical robots in 2025, marking a nearly 13% increase from 2024, indicating strong demand for surgical robots, with a projected 15% rise in surgeries for 2026, further solidifying its market leadership.
- AI Tool Approval: The FDA's approval of an AI tool to assist surgeons with real-time adjustments during lung surgeries signifies the gradual integration of AI in surgical procedures, potentially driving technological advancements and market share growth for Intuitive Surgical.
- Diversified Investment Option: Medtronic, as one of the world's largest medical device companies, offers a more attractive P/E ratio of 27 compared to Intuitive Surgical's 67, making it suitable for investors seeking diversification despite slower rollout of its surgical robots.
- Dividend Growth Potential: Medtronic boasts a 2.8% dividend yield and has increased its dividend for 48 consecutive years, significantly higher than the S&P 500's 1.1%, making it an ideal choice for income-seeking investors, while the upcoming spin-off of its diabetes division could enhance profitability.
See More
David Gardner Analyzes Risk Rating System
- Risk Rating System Overview: David Gardner introduces his 25-point risk rating system, used for over a decade, aimed at replacing vague risk labels with concrete, quantifiable numbers to help investors better understand investment risks.
- Case Studies: During the discussion of Etsy and Duolingo, analysts scored each company on profitability, cash flow, and brand recognition, noting that Etsy achieved $182 million in net income over the past 12 months, while Duolingo reached approximately $386 million.
- Market Competition Analysis: Etsy faces pressure from competitors like Amazon and Shopify, although it retains some brand influence in the crafts market; Duolingo, on the other hand, leads the language learning market with over 50% brand awareness.
- Future Outlook: Analysts believe that while Etsy's market performance has declined, its investments in AI and other technologies could serve as positive catalysts in the future, whereas Duolingo must be wary of potential threats from AI to its business model.
See More
