Intuitive Surgical's Rapid Growth in Robotic Surgery Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 57 minutes ago
0mins
Source: Fool
- Installed Base Growth: Intuitive Surgical's installed base of robots increased by 12% in 2025 to 11,106 systems, further rising to 11,395 in Q1 2026, indicating strong market demand and the company's leadership in the surgical robotics sector.
- Service Revenue Drivers: While da Vinci robot sales account for only 25% of revenue, the sales of services, instruments, and accessories create annuity-like revenue streams that grow with each new installation, enhancing the company's financial stability.
- Stock Price Volatility Opportunity: Despite Intuitive Surgical's stock rising over 400% in the past decade, it is currently down more than 30% from its all-time highs, presenting a potential buying opportunity for aggressive investors, especially after multiple deep drawdowns.
- Strong Cash Flow: The company's current P/E ratio of approximately 49x is cheaper compared to its historical average of 69x over the past five years, making it less appealing to value investors but still attractive for growth-focused investors due to its cash flow potential and market outlook.
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Analyst Views on ISRG
Wall Street analysts forecast ISRG stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 399.690
Low
575.00
Averages
637.32
High
740.00
Current: 399.690
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's Rapid Growth in Robotic Surgery Market
- Installed Base Growth: Intuitive Surgical's installed base of robots increased by 12% in 2025 to 11,106 systems, further rising to 11,395 in Q1 2026, indicating strong market demand and the company's leadership in the surgical robotics sector.
- Service Revenue Drivers: While da Vinci robot sales account for only 25% of revenue, the sales of services, instruments, and accessories create annuity-like revenue streams that grow with each new installation, enhancing the company's financial stability.
- Stock Price Volatility Opportunity: Despite Intuitive Surgical's stock rising over 400% in the past decade, it is currently down more than 30% from its all-time highs, presenting a potential buying opportunity for aggressive investors, especially after multiple deep drawdowns.
- Strong Cash Flow: The company's current P/E ratio of approximately 49x is cheaper compared to its historical average of 69x over the past five years, making it less appealing to value investors but still attractive for growth-focused investors due to its cash flow potential and market outlook.
See More
Analysis of Intuitive Surgical's Stock Volatility
- Stock Performance: Intuitive Surgical's stock has risen over 400% in the past decade but has fallen more than 30% from its all-time high, indicating high volatility typical of growth stocks, which may present a buying opportunity for investors.
- Robot Installation Growth: As of Q1 2026, the number of installed da Vinci surgical robots increased to 11,395, reflecting a 12% growth from 2025, demonstrating the company's ongoing expansion and strong demand in the surgical robotics market.
- Diverse Revenue Streams: While da Vinci robot sales account for only 25% of revenue, the sales of services, instruments, and accessories create a stable annuity-like revenue stream that grows with each new robot installed, enhancing the company's financial stability.
- Investor Sentiment: Despite the current deep drawdown and a historical maximum decline of 82%, the maturity of the company's business and its ongoing cash flow generation may lead aggressive growth investors to view this as a favorable buying opportunity.
See More
Three Healthcare Stocks Positioned to Thrive with AI
- Eli Lilly's AI Innovation: Eli Lilly's partnership with Nvidia to build the industry's most powerful supercomputer is expected to shorten the drug discovery phase by 1-2 years, potentially saving around $2.8 billion in R&D costs, enhancing profit margins, and lowering drug prices for patients.
- Novo Nordisk's AI Application: Novo Nordisk's collaboration with OpenAI aims to improve drug development efficiency, particularly in obesity and diabetes treatments; despite recent sales growth challenges, its robust pipeline and the promising UBT251 drug could facilitate a future recovery.
- Intuitive Surgical's Market Leadership: Intuitive Surgical leads the robotic-assisted surgery market and is leveraging AI to analyze extensive surgical data, enhancing the safety and effectiveness of its da Vinci system; despite increased competition, its data advantages and patent protections are expected to ensure long-term returns.
- AI-Driven Industry Transformation: All three companies are actively exploring AI applications, positioning Eli Lilly, Novo Nordisk, and Intuitive Surgical to capitalize on the rapidly evolving healthcare market, driving future growth and innovation.
See More
Eli Lilly and Novo Nordisk Leverage AI to Revolutionize Drug Discovery
- Drug Discovery Efficiency: Eli Lilly's partnership with Nvidia to build the industry's most powerful supercomputer is expected to shorten the drug discovery phase by 1 to 2 years, potentially saving around $2.8 billion in R&D costs, which will enhance profit margins and allow for increased investment in R&D.
- Market Leadership: Eli Lilly holds a leading position in the weight management drug market, and with products like Zepbound and Foundayo, it is poised to significantly benefit from the rapidly growing market demand over the next few years, further enhancing its investment appeal.
- AI Technology Application: Novo Nordisk's collaboration with OpenAI aims to leverage AI to improve drug discovery and development efficiency, particularly in obesity and diabetes treatments; despite facing challenges with slowing sales growth, its robust pipeline still holds strong market potential.
- Robotic Surgery Market Advantage: Intuitive Surgical leads the robotic-assisted surgery market and is utilizing AI to analyze vast amounts of surgical data to enhance the safety and effectiveness of its da Vinci system; despite increasing competition, its market moat and ongoing revenue growth suggest a positive outlook.
See More
Nvidia vs. Intuitive Surgical: AI Competition Insights
- AI Revolution Leader: Nvidia stands at the forefront of the global AI revolution with a current P/E ratio of 31x, which, while lower than Intuitive Surgical's 50x, still reflects strong investor interest in its AI chip market leadership.
- Surgical Robotics Demand: Intuitive Surgical has seen a robust demand for its surgical robots, with a 17% year-over-year increase in surgeries using da Vinci robots in Q1 2026, compared to a mere 12% increase in the number of da Vinci robots globally, indicating strong market demand.
- Diverse Revenue Streams: Only 25% of Intuitive Surgical's revenue comes from robot sales, with the remainder derived from services, instruments, and accessories that support da Vinci robots, creating annuity-like income streams that ensure stable cash flow for the company.
- Growth Opportunities: With the FDA's approval of the da Vinci Single Port surgical system for various procedures, Intuitive Surgical's market applications will expand, and the potential integration of AI technology could position it for long-term growth that may surpass Nvidia's market performance.
See More
Nvidia and Intuitive Surgical Market Competition
- Nvidia's Market Position: Nvidia is at the forefront of the global AI revolution with a current P/E ratio of 31x, attracting investor interest despite fierce competition and demonstrating strong business performance.
- Intuitive Surgical's Growth Potential: The number of surgeries performed with Intuitive Surgical's da Vinci robots rose 17% year-over-year in Q1 2026, indicating robust market demand, even though robot sales account for only 25% of the company's revenue.
- Diverse Revenue Streams: Intuitive Surgical's income is not solely from robot sales; it also includes services and accessories, creating annuity-like revenue streams that ensure long-term financial stability for the company.
- Technological Innovation and Market Opportunities: With the FDA's clearance of the da Vinci Single Port surgical system for various procedures, Intuitive Surgical's market applications will expand, and the potential integration of AI technology offers new growth avenues for the future.
See More
Intuitive Surgical's Rapid Growth in Robotic Surgery Market
- Installed Base Growth: Intuitive Surgical's installed base of robots increased by 12% in 2025 to 11,106 systems, further rising to 11,395 in Q1 2026, indicating strong market demand and the company's leadership in the surgical robotics sector.
- Service Revenue Drivers: While da Vinci robot sales account for only 25% of revenue, the sales of services, instruments, and accessories create annuity-like revenue streams that grow with each new installation, enhancing the company's financial stability.
- Stock Price Volatility Opportunity: Despite Intuitive Surgical's stock rising over 400% in the past decade, it is currently down more than 30% from its all-time highs, presenting a potential buying opportunity for aggressive investors, especially after multiple deep drawdowns.
- Strong Cash Flow: The company's current P/E ratio of approximately 49x is cheaper compared to its historical average of 69x over the past five years, making it less appealing to value investors but still attractive for growth-focused investors due to its cash flow potential and market outlook.
See More
Analysis of Intuitive Surgical's Stock Volatility
- Stock Performance: Intuitive Surgical's stock has risen over 400% in the past decade but has fallen more than 30% from its all-time high, indicating high volatility typical of growth stocks, which may present a buying opportunity for investors.
- Robot Installation Growth: As of Q1 2026, the number of installed da Vinci surgical robots increased to 11,395, reflecting a 12% growth from 2025, demonstrating the company's ongoing expansion and strong demand in the surgical robotics market.
- Diverse Revenue Streams: While da Vinci robot sales account for only 25% of revenue, the sales of services, instruments, and accessories create a stable annuity-like revenue stream that grows with each new robot installed, enhancing the company's financial stability.
- Investor Sentiment: Despite the current deep drawdown and a historical maximum decline of 82%, the maturity of the company's business and its ongoing cash flow generation may lead aggressive growth investors to view this as a favorable buying opportunity.
See More
Three Healthcare Stocks Positioned to Thrive with AI
- Eli Lilly's AI Innovation: Eli Lilly's partnership with Nvidia to build the industry's most powerful supercomputer is expected to shorten the drug discovery phase by 1-2 years, potentially saving around $2.8 billion in R&D costs, enhancing profit margins, and lowering drug prices for patients.
- Novo Nordisk's AI Application: Novo Nordisk's collaboration with OpenAI aims to improve drug development efficiency, particularly in obesity and diabetes treatments; despite recent sales growth challenges, its robust pipeline and the promising UBT251 drug could facilitate a future recovery.
- Intuitive Surgical's Market Leadership: Intuitive Surgical leads the robotic-assisted surgery market and is leveraging AI to analyze extensive surgical data, enhancing the safety and effectiveness of its da Vinci system; despite increased competition, its data advantages and patent protections are expected to ensure long-term returns.
- AI-Driven Industry Transformation: All three companies are actively exploring AI applications, positioning Eli Lilly, Novo Nordisk, and Intuitive Surgical to capitalize on the rapidly evolving healthcare market, driving future growth and innovation.
See More
Eli Lilly and Novo Nordisk Leverage AI to Revolutionize Drug Discovery
- Drug Discovery Efficiency: Eli Lilly's partnership with Nvidia to build the industry's most powerful supercomputer is expected to shorten the drug discovery phase by 1 to 2 years, potentially saving around $2.8 billion in R&D costs, which will enhance profit margins and allow for increased investment in R&D.
- Market Leadership: Eli Lilly holds a leading position in the weight management drug market, and with products like Zepbound and Foundayo, it is poised to significantly benefit from the rapidly growing market demand over the next few years, further enhancing its investment appeal.
- AI Technology Application: Novo Nordisk's collaboration with OpenAI aims to leverage AI to improve drug discovery and development efficiency, particularly in obesity and diabetes treatments; despite facing challenges with slowing sales growth, its robust pipeline still holds strong market potential.
- Robotic Surgery Market Advantage: Intuitive Surgical leads the robotic-assisted surgery market and is utilizing AI to analyze vast amounts of surgical data to enhance the safety and effectiveness of its da Vinci system; despite increasing competition, its market moat and ongoing revenue growth suggest a positive outlook.
See More
Nvidia vs. Intuitive Surgical: AI Competition Insights
- AI Revolution Leader: Nvidia stands at the forefront of the global AI revolution with a current P/E ratio of 31x, which, while lower than Intuitive Surgical's 50x, still reflects strong investor interest in its AI chip market leadership.
- Surgical Robotics Demand: Intuitive Surgical has seen a robust demand for its surgical robots, with a 17% year-over-year increase in surgeries using da Vinci robots in Q1 2026, compared to a mere 12% increase in the number of da Vinci robots globally, indicating strong market demand.
- Diverse Revenue Streams: Only 25% of Intuitive Surgical's revenue comes from robot sales, with the remainder derived from services, instruments, and accessories that support da Vinci robots, creating annuity-like income streams that ensure stable cash flow for the company.
- Growth Opportunities: With the FDA's approval of the da Vinci Single Port surgical system for various procedures, Intuitive Surgical's market applications will expand, and the potential integration of AI technology could position it for long-term growth that may surpass Nvidia's market performance.
See More
Nvidia and Intuitive Surgical Market Competition
- Nvidia's Market Position: Nvidia is at the forefront of the global AI revolution with a current P/E ratio of 31x, attracting investor interest despite fierce competition and demonstrating strong business performance.
- Intuitive Surgical's Growth Potential: The number of surgeries performed with Intuitive Surgical's da Vinci robots rose 17% year-over-year in Q1 2026, indicating robust market demand, even though robot sales account for only 25% of the company's revenue.
- Diverse Revenue Streams: Intuitive Surgical's income is not solely from robot sales; it also includes services and accessories, creating annuity-like revenue streams that ensure long-term financial stability for the company.
- Technological Innovation and Market Opportunities: With the FDA's clearance of the da Vinci Single Port surgical system for various procedures, Intuitive Surgical's market applications will expand, and the potential integration of AI technology offers new growth avenues for the future.
See More
