Valued at a market cap of $172.5 billion, Intuitive Surgical, Inc. (ISRG) is a medical technology company that develops and markets robotic-assisted surgical systems, instruments, and related digital solutions used in minimally invasive procedures. The California-based company provides surgical robots, instruments, accessories, and training to hospitals and surgeons worldwide.
This global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery has struggled to keep up with the broader market over the past 52 weeks. Shares of Intuitive Surgical have declined 17.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.8%. Moreover, on a YTD basis, the stock is down 14.2%, compared to SPX’s marginal dip.
Zooming in further, ISRG has trailed the State Street SPDR S&P Health Care Equipment ETF’s (XHE) 8.3% decline over the past 52 weeks and 4.6% downtick on a YTD basis.
On Jan. 22, ISRG shares rose marginally after the company released its fiscal 2025 Q4 earnings. Its revenue increased 19% year over year to $2.87 billion, driven by higher procedure volumes, more da Vinci system placements totaling 532 units, including strong adoption of da Vinci 5, and a larger installed base. Instruments and accessories revenue rose 17% to $1.66 billion on 17% growth in da Vinci procedures and 44% growth in Ion procedures, while systems revenue increased to $786 million due to higher placements and average selling prices.
Profitability improved as non-GAAP operating income rose to $1.07 billion and non-GAAP earnings per share stood at $2.53, supported in part by tax benefits. The company ended the quarter with $9.03 billion in cash, cash equivalents, and investments. For 2026, Intuitive expects worldwide da Vinci procedure growth of 13% to 15%, non-GAAP gross margin of 67% to 68% of revenue, including tariff impact.
For the current fiscal year, ending in December, analysts expect ISRG’s EPS to rise 13.9% year over year to $8.22. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 30 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 18 “Strong Buy,” two “Moderate Buy,” nine “Hold,” and one “Strong Sell” rating.
This configuration is bearish than three months ago, with 19 analysts suggesting a “Strong Buy” rating.
On Jan. 27, TD Cowen initiated coverage on Intuitive Surgical with a “Buy” rating and a $660 price target.
The mean price target of $622.92 represents an 28.2% premium from ISRG’s current price levels, while the Street-high price target of $750 suggests a robust upside potential of 54.4%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
