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SUNNYVALE, Calif., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Intuitive (the “Company”) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended September 30, 2026.

Q3 Highlights

Worldwide procedures (da Vinci and Ion combined) grew approximately 15% compared with the third quarter of 2025. Da Vinci procedures grew approximately 14%, and Ion procedures grew approximately 31%.The Company placed 546 da Vinci surgical systems, compared with 427 in the third quarter of 2025. The third quarter 2026 da Vinci surgical system placements included 315 da Vinci 5 systems, compared with 240 in the third quarter of 2025. The Company placed 56 Ion endoluminal systems, compared with 50 in the third quarter of 2025.The Company grew its da Vinci surgical system installed base to 12,094 systems as of September 30, 2026, an increase of 12% compared with 10,763 as of September 30, 2025. The Company grew its Ion endoluminal system installed base to 1,152 systems as of September 30, 2026, an increase of 21% compared with 954 as of September 30, 2025.Third quarter 2026 revenue of $3.05 billion increased 22%, compared with $2.51 billion in the third quarter of 2025.Third quarter 2026 GAAP net income attributable to Intuitive Surgical, Inc. was $523 million, or $1.49 per diluted share, compared with $704 million, or $1.95 per diluted share, in the third quarter of 2025.Third quarter 2026 GAAP net income attributable to Intuitive Surgical, Inc. included a pre-tax charge of $450 million in connection with the settlement of previously disclosed antitrust class action litigation. The third quarter 2026 expense was $347 million, net of tax, or $0.99 per diluted share.Third quarter 2026 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $1.05 billion, or $3.00 per diluted share, compared with $867 million, or $2.40 per diluted share, in the third quarter of 2025.Third quarter 2026 GAAP and non-GAAP* net income attributable to Intuitive Surgical, Inc. included a benefit of $22 million, net of tax, or $0.06 per diluted share, related to refunds for tariffs paid in prior periods under the International Emergency Economic Powers Act (“IEEPA”).The Company repurchased 7.8 million shares of its common stock for $2.94 billion in the third quarter of 2026. Q3 Financial Summary

Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

Third quarter 2026 revenue was $3.05 billion, an increase of 22% compared with $2.51 billion in the third quarter of 2025. The higher third quarter revenue was driven by growth in procedure volume, higher operating lease revenue, and an increase in the installed base of systems.

Third quarter 2026 instruments and accessories revenue increased by 18% to $1.80 billion, compared with $1.52 billion in the third quarter of 2025. The increase in instruments and accessories revenue was primarily driven by approximately 14% growth in da Vinci procedure volume and approximately 31% growth in Ion procedure volume.

Third quarter 2026 systems revenue was $769 million, compared with $590 million in the third quarter of 2025. The higher systems revenue reflected increased da Vinci system placements and a higher lease installed base compared with the third quarter of 2025. The Company placed 546 da Vinci surgical systems, of which 315 were da Vinci 5 systems, in the third quarter of 2026, compared with 427 systems, of which 240 were da Vinci 5 systems, in the third quarter of 2025. The third quarter 2026 da Vinci surgical system placements included 291 systems placed under operating lease arrangements, of which 160 systems were placed under usage-based operating lease arrangements, compared with 231 systems placed under operating lease arrangements, of which 115 systems were placed under usage-based operating lease arrangements in the third quarter of 2025.

Third quarter 2026 GAAP income from operations decreased to $593 million, compared with $760 million in the third quarter of 2025. Third quarter 2026 GAAP income from operations included share-based compensation expense of $216 million, compared with $206 million in the third quarter of 2025. Third quarter 2026 non-GAAP* income from operations increased to $1.27 billion, compared with $976 million in the third quarter of 2025.

In October 2026, following a mediation in the “In re: da Vinci Surgical Robot Antitrust Litigation” class action, the Company reached written agreement, without any admission of liability or wrongdoing, to settle the previously disclosed antitrust litigation for a one-time payment of $450 million and mutually agreed injunctive relief. The Company recorded a $450 million charge to selling, general, and administrative expenses in the third quarter of 2026. The settlement remains subject to preliminary and final Court approval, and there can be no assurance the Court will approve it or that individual class members will not object. The third quarter 2026 expense was $347 million, net of tax, or $0.99 per diluted share.

Third quarter 2026 GAAP net income attributable to Intuitive Surgical, Inc. was $523 million, or $1.49 per diluted share, compared with $704 million, or $1.95 per diluted share, in the third quarter of 2025. Third quarter 2026 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $13 million, or $0.04 per diluted share, compared with $24 million, or $0.07 per diluted share, in the third quarter of 2025. Additionally, third quarter 2026 GAAP net income included a benefit of $22 million, net of tax, or $0.06 per diluted share, related to refunds for tariffs paid in prior periods under IEEPA.

Third quarter 2026 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $1.05 billion, or $3.00 per diluted share, compared with $867 million, or $2.40 per diluted share, in the third quarter of 2025. Third quarter 2026 non-GAAP* net income included a benefit of $22 million, net of tax, or $0.06 per diluted share, related to refunds for tariffs paid in prior periods under IEEPA.

The Company ended the third quarter of 2026 with $6.80 billion in cash, cash equivalents, and investments, a decrease of $1.83 billion during the quarter, primarily driven by cash used for repurchases of common stock and purchases of property, plant, and equipment, partially offset by cash generated from operations.

“Our strong performance this quarter was marked by broad-based adoption across our multi-port, single-port, and Ion platforms, with customers using our systems to perform, on average, over 10,000 procedures per day throughout the period,” said Dave Rosa, Intuitive CEO. “Looking ahead, we will remain focused on serving customers across geographies and sites of care, enabling them to deliver better patient care, outcomes, and experiences, reduce the total cost of care, and expand access to minimally invasive care.”

2026 Financial Outlook

The Company expects the following results for the full year of 2026:

Worldwide da Vinci procedure growth of approximately 14% to 15% in 2026. The Company expects to be closer to the midpoint of this range.Non-GAAP* gross profit margin to be within a range of 68.7% to 69.3% of revenue in 2026. This range includes an estimated impact from tariffs of 0.9% of revenue (excluding recognized tariff refunds).Non-GAAP* operating expense growth of 11% to 13% in 2026. The range for expected non-GAAP* gross profit margin reflects the Company’s estimates of the adverse impact from tariffs that are currently in effect as of the time of this press release and assumes such tariffs remain in place through the end of the year. Should additional tariffs beyond our expectations be implemented, the additional impact on the Company’s financial results in 2026, including the change in expected non-GAAP* gross profit margin, could be material. The ultimate effect of tariffs will depend on various factors, including the proportion of components procured and finished goods manufactured outside of the United States and the amount, scope, nature, and timing of the tariffs.

The 2026 financial outlook provided above includes forward-looking, non-GAAP financial measures, which management uses in measuring performance. We do not provide a reconciliation of non-GAAP outlook measures to corresponding GAAP measures on a forward-looking basis, because we are unable to predict with reasonable certainty the exact timing and ultimate outcome of certain items, including but not limited to legal proceedings, without unreasonable efforts. These items are uncertain, depend on various factors, and could be material to the Company’s results computed in accordance with GAAP. For additional information regarding the nature of these items, refer to the reconciliations of historical GAAP to non-GAAP measures included elsewhere in this release.

Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/.

Webcast and Conference Call Information

Intuitive will hold a teleconference at 1:30 p.m. PDT today to discuss the third quarter 2026 financial results. The call will be webcast live and can be accessed on Intuitive’s website at www.intuitive.com. For those individuals planning to participate on the call, registration can be completed online at https://edge.media-server.com/mmc/p/6sniqxsm to receive dial-in details and an individual pin. The webcast replay of the call will be made available on our website at www.intuitive.com within 24 hours after the end of the live teleconference and will be accessible for at least 30 days.

About Intuitive

Intuitive (Nasdaq: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic-assisted surgery. Our technologies include the da Vinci surgical systems and the Ion endoluminal system. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most.

Product and brand names/logos are trademarks or registered trademarks of Intuitive or their respective owner. See www.intuitive.com/trademarks.

For more information, please visit the Company’s website at www.intuitive.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements relate to expectations concerning matters that are not historical facts. Statements using words such as “estimates,” “projects,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “may,” “will,” “could,” “should,” “commit,” “would,” “seek,” “potential,” “targeted,” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are necessarily estimates reflecting the judgment of the Company’s management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements include, but are not limited to, the following: statements related to future results of operations, including expected worldwide da Vinci procedure growth in 2026 and where within the expected range such growth will fall, expected non-GAAP gross profit margins in 2026, including the estimated impact from tariffs on such margins, and expected non-GAAP operating expense growth in 2026; future financial position; the Company's focus on serving customers across geographies and sites of care and the goals the Company shares with its customers, including improving patient care, outcomes, and experiences, reducing the total cost of care, and expanding access to minimally invasive care; the estimated impact from tariffs, including the assumption that tariffs currently in effect remain in place through the end of the year and the potential for material adverse impact on the Company’s financial results if additional tariffs beyond the Company’s current expectations are implemented; the proposed settlement of the antitrust class action litigation, including the receipt of preliminary and final court approval, and the extent of any objections to the settlement; expectations regarding the continuation of share-based compensation expense as a significant recurring expense; the Company’s strategic vision for the future of minimally invasive care; and the Company’s inability to predict with reasonable certainty the exact timing and ultimate outcome of certain items, including legal proceedings. These forward-looking statements should be considered in light of various important factors, including, but not limited to, the following: the overall macroeconomic environment, which may impact customer spending and the Company’s costs, including tariffs, the levels of inflation, and interest rates; the conflict in Ukraine; conflicts in the Middle East, including Israel and Iran; disruption to the Company’s supply chain, including increased difficulties in obtaining a sufficient supply of materials; curtailed or delayed capital spending by hospitals; the impact of global and regional economic and credit market conditions on healthcare spending; delays in obtaining new product approvals, clearances, or certifications from the United States (“U.S.”) Food and Drug Administration (“FDA”), comparable regulatory authorities, or notified bodies; the risk of the Company’s inability to comply with complex FDA and other regulations, which may result in significant enforcement actions; regulatory approvals, clearances, certifications, and restrictions or any dispute that may occur with any regulatory body; healthcare reform legislation in the U.S. and its impact on hospital spending, reimbursement, and fees levied on certain medical device revenues; changes in hospital admissions and actions by payers to limit or manage surgical procedures; the timing and success of product development and customer acceptance of developed products; the results of any collaborations, in-licensing arrangements, joint ventures, strategic alliances, or partnerships, including the joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd.; the Company’s completion of and ability to successfully integrate acquisitions, including the recently completed acquisition of the da Vinci and Ion distribution businesses in Italy, Spain, and Portugal and the transition from a distributor to a direct sales model in those markets; intellectual property positions and litigation; competition from companies offering alternative surgical approaches or robotic-assisted surgical systems, including domestic competitors in certain geographic markets such as China; risks associated with the Company’s operations and any expansion outside of the U.S.; unanticipated manufacturing disruptions or the inability to meet demand for products; the Company’s reliance on sole- and single-sourced suppliers; the results of legal proceedings to which the Company is or may become a party; the risk that the proposed settlement of the antitrust class action litigation does not receive preliminary or final court approval on the agreed terms or at all, including as a result of objections by class members, or that any approval is appealed; adverse publicity regarding the Company and the safety of the Company’s products and adequacy of training; the impact of changes to tax legislation, guidance, and interpretations; changes in tariffs, trade barriers, and regulatory requirements (including changes to tariffs imposed by the U.S. on imports from various countries, including Mexico, where the Company currently manufactures a significant majority of its instruments and accessories, Germany, where the Company currently manufactures a majority of its endoscopes, and China, where the Company currently imports certain materials); hospital staffing constraints and labor availability; cybersecurity risks, including risks to the Company’s supply chain; and other risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and which are based on current expectations and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those risk factors identified under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company’s other filings with the Securities and Exchange Commission (“SEC”). The Company’s actual results may differ materially and adversely from those expressed in any forward-looking statement, and the Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law.

*About Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive, and non-GAAP net income per diluted share attributable to Intuitive (“EPS”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding items such as amortization of intangible assets, share-based compensation (“SBC”) and long-term incentive plan (“LTIP”) expenses, acquisition-related items, a facilities asset abandonment charge, litigation charges, gains on the sale of businesses and assets, gains or losses on strategic investments, tax adjustments, and other special items. LTIP expense relates to phantom share awards granted in China by the Company’s Intuitive-Fosun joint venture to its employees that vest over four years and can remain outstanding for seven to ten years. These awards are valued based on certain key performance metrics. Accordingly, they are subject to significant volatility based on the performance of these metrics and are not tied to performance of the Company’s business within the period. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to its historical performance. The Company believes these non-GAAP financial measures are useful to investors, because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the Company’s business.

Non-GAAP gross profit. The Company defines non-GAAP gross profit as gross profit, excluding SBC and LTIP expenses, amortization of intangible assets, and acquisition-related items.

Non-GAAP income from operations. The Company defines non-GAAP income from operations as income from operations, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, acquisition-related items, and gains on the sale of businesses and assets.

Non-GAAP net income attributable to Intuitive and EPS. The Company defines non-GAAP net income as net income attributable to Intuitive, excluding SBC and LTIP expenses, amortization of intangible assets, a facilities asset abandonment charge, litigation charges, acquisition-related items, gains on the sale of businesses and assets, gains or losses on strategic investments, tax adjustments, including the excess tax benefits associated with SBC arrangements and the net tax effects related to intra-entity transfers of non-inventory assets, and adjustments attributable to noncontrolling interest in joint venture, net of the related tax effects. The Company excludes the excess tax benefits associated with SBC arrangements as well as the tax effects associated with non-cash amortization of deferred tax assets related to intra-entity non-inventory transfers, because the Company does not believe these items correlate with the ongoing results of its core operations. The tax effects of the non-GAAP items are determined by applying a calculated non-GAAP effective tax rate, which is commonly referred to as the with-and-without method. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Company’s operating results. The Company’s calculated non-GAAP effective tax rate is generally higher than its GAAP effective tax rate. The Company defines non-GAAP EPS as non-GAAP net income attributable to Intuitive divided by diluted shares outstanding, which are calculated as GAAP weighted-average outstanding shares plus dilutive potential shares outstanding during the period.

There are a number of limitations related to the use of non-GAAP measures versus measures calculated in accordance with GAAP. Non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive, and non-GAAP EPS exclude items such as SBC and LTIP expenses, amortization of intangible assets, excess tax benefits associated with SBC arrangements, and non-cash amortization of deferred tax assets related to intra-entity transfers of non-inventory assets, which are primarily recurring items. SBC expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business. In addition, the components of the costs that the Company excludes in its calculation of non-GAAP net income attributable to Intuitive and non-GAAP EPS may differ from the components that its peer companies exclude when they report their results of operations. Management addresses these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income attributable to Intuitive and non-GAAP EPS and evaluating non-GAAP net income attributable to Intuitive and non-GAAP EPS together with net income attributable to Intuitive and net income per share attributable to Intuitive calculated in accordance with GAAP.

 INTUITIVE SURGICAL, INC.
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN MILLIONS, EXCEPT PER SHARE DATA)
   Three Months Ended September 30,
2026 June 30,
2026 September 30,
2025Revenue:     Instruments and accessories$1,797.4  $1,734.9  $1,518.8 Systems 769.1   685.0   590.4 Services 482.2   472.4   395.9 Total revenue 3,048.7   2,892.3   2,505.1 Cost of revenue:     Product 797.7   777.0   699.4 Service 166.7   154.9   143.3 Total cost of revenue (1) 964.4   931.9   842.7 Gross profit 2,084.3   1,960.4   1,662.4 Operating expenses:     Selling, general, and administrative (2) 1,083.4   617.9   573.3 Research and development 408.3   370.6   329.4 Total operating expenses 1,491.7   988.5   902.7 Income from operations (3) 592.6   971.9   759.7 Interest and other income, net 75.8   82.7   95.5 Income before taxes 668.4   1,054.6   855.2 Income tax expense (benefit) (4) 144.0   231.4   146.0 Net income 524.4   823.2   709.2 Less: net income attributable to noncontrolling interest in joint venture 1.6   5.1   4.8 Net income attributable to Intuitive Surgical, Inc.$522.8  $818.1  $704.4 Net income per share attributable to Intuitive Surgical, Inc.:     Basic$1.50  $2.31  $1.98 Diluted (5)$1.49  $2.29  $1.95 Weighted average shares outstanding:     Basic 349.0   354.1   356.6 Diluted 351.6   357.3   361.8 (1) Cost of revenue includes the following benefits related to refunds recognized for tariffs paid in prior periods under IEEPA:Product$25.7  $27.5  $— Service$2.1  $8.4  $— (2) Selling, general, and administrative includes the effect of the following item:     Litigation charges$454.9  $0.1  $8.1 (3) Income from operations includes the effect of the following items:     Amortization of intangible assets$(9.3) $(24.0) $(3.3)Expensed IP charged to R&D$—  $—  $(0.6)(4) Income tax expense (benefit) includes the effect of the following items:     Excess tax benefits related to share-based compensation arrangements$(12.6) $(17.3) $(24.2)Discrete tax benefit from release of unrecognized tax benefits$—  $—  $(22.5)(5) Diluted net income per share attributable to Intuitive Surgical, Inc. includes the effect of the following items:IEEPA tariff refunds, net of tax$0.06  $0.08  $— Litigation charges, net of tax$(1.00) $—  $(0.02)Amortization of intangible assets, net of tax$(0.03) $(0.05) $(0.01)Excess tax benefits related to share-based compensation arrangements$0.04  $0.05  $0.07 Discrete tax benefit from release of unrecognized tax benefits$—  $—  $0.06               INTUITIVE SURGICAL, INC.
UNAUDITED YEAR-TO-DATE CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN MILLIONS, EXCEPT PER SHARE DATA)
   Nine Months Ended September 30, 2026
 2025
Revenue:   Instruments and accessories$5,218.7  $4,360.6 Systems 2,104.8   1,687.8 Services 1,388.3   1,150.1 Total revenue 8,711.8   7,198.5 Cost of revenue:   Product 2,354.7   2,056.3 Service 481.9   404.2 Total cost of revenue (1) 2,836.6   2,460.5 Gross profit 5,875.2   4,738.0 Operating expenses:   Selling, general, and administrative (2) 2,314.6   1,697.9 Research and development 1,140.8   958.9 Total operating expenses 3,455.4   2,656.8 Income from operations (3) 2,419.8   2,081.2 Interest and other income, net 243.6   274.6 Income before taxes 2,663.4   2,355.8 Income tax expense (4) 489.8   278.7 Net income 2,173.6   2,077.1 Less: net income attributable to noncontrolling interest in joint venture 11.2   15.9 Net income attributable to Intuitive Surgical, Inc.$2,162.4  $2,061.2 Net income per share attributable to Intuitive Surgical, Inc.:   Basic$6.13  $5.77 Diluted (5)$6.07  $5.67 Weighted average shares outstanding:   Basic 352.6   357.5 Diluted 356.2   363.5     (1) Cost of revenue includes the following benefits related to refunds recognized for tariffs paid in prior periods under IEEPA:Product$53.2  $— Service$10.5  $— (2) Selling, general, and administrative includes the effect of the following item:   Litigation charges$461.3  $12.5 (3) Income from operations includes the effect of the following items:   Amortization of intangible assets$(40.4) $(9.9)Expensed IP charged to R&D$—  $(7.3)(4) Income tax expense includes the effect of the following items:   Excess tax benefits related to share-based compensation arrangements$(103.2) $(202.5)Discrete tax benefit from release of unrecognized tax benefits$(1.6) $(23.0)(5) Diluted net income per share attributable to Intuitive Surgical, Inc. includes the effect of the following items:IEEPA tariff refunds, net of tax$0.14  $— Litigation charges, net of tax$(1.00) $(0.03)Amortization of intangible assets, net of tax$(0.09) $(0.02)Expensed IP charged to R&D, net of tax$—  $(0.02)Excess tax benefits related to share-based compensation arrangements$0.29  $0.56 Discrete tax benefit from release of unrecognized tax benefits$—  $0.06           INTUITIVE SURGICAL, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
     September 30,
2026
 December 31,
2025
Cash, cash equivalents, and investments$6,800.4  $9,034.1 Accounts receivable, net 1,721.3   1,527.3 Inventory 2,128.2   1,840.0 Property, plant, and equipment, net 5,676.2   5,342.4 Goodwill 557.8   370.3 Deferred tax assets 719.7   1,018.6 Other assets 1,745.5   1,326.0 Total assets$19,349.1  $20,458.7       Accounts payable and other liabilities$2,561.9  $1,918.9 Deferred revenue 669.4   598.1 Total liabilities 3,231.3   2,517.0 Stockholders’ equity 16,117.8   17,941.7 Total liabilities and stockholders’ equity$19,349.1  $20,458.7           INTUITIVE SURGICAL, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(IN MILLIONS, EXCEPT PER SHARE DATA)       Three Months Ended Nine Months Ended  September 30,
2026 June 30,
2026 September 30,
2025 September 30,
2026 September 30,
2025GAAP gross profit $2,084.3  $1,960.4  $1,662.4  $5,875.2  $4,738.0 GAAP gross profit margin (1)  68.4%  67.8%  66.4%  67.4%  65.8%Share-based compensation expense  36.6   36.2   38.8   108.8   111.6 Long-term incentive plan expense  —   (0.1)  0.2   —   0.6 Amortization of intangible assets  8.7   23.3   2.4   38.6   7.3 Acquisition-related items  —   4.1   —   10.0   — Non-GAAP gross profit $2,129.6  $2,023.9  $1,703.8  $6,032.6  $4,857.5 Non-GAAP gross profit margin (1)  69.9%  70.0%  68.0%  69.2%  67.5%           GAAP income from operations $592.6  $971.9  $759.7  $2,419.8  $2,081.2 Share-based compensation expense  212.6   209.9   203.5   632.0   584.9 Long-term incentive plan expense  0.3   (0.4)  1.3   0.4   2.4 Amortization of intangible assets  9.3   24.0   3.3   40.4   9.9 Facilities asset abandonment charge  —   6.9   —   6.9   — Litigation charges  454.9   —   8.1   461.2   11.6 Gains on sale of businesses and assets  —   —   —   (7.9)  — Acquisition-related items  —   5.7   —   11.7   — Non-GAAP income from operations $1,269.7  $1,218.0  $975.9  $3,564.5  $2,690.0            GAAP net income attributable to Intuitive Surgical, Inc. $522.8  $818.1  $704.4  $2,162.4  $2,061.2 Share-based compensation expense  212.6   209.9   203.5   632.0   584.9 Long-term incentive plan expense  0.3   (0.4)  1.3   0.4   2.4 Amortization of intangible assets  9.3   24.0   3.3   40.4   9.9 Facilities asset abandonment charge  —   6.9   —   6.9   — Litigation charges  454.9   —   8.1   461.2   11.6 Gains on sale of businesses and assets  —   —   —   (7.9)  — (Gains) losses on strategic investments  (0.9)  (0.2)  (3.0)  (1.7)  2.0 Acquisition-related items  —   5.7   —   11.7   — Tax adjustments (2)  (144.4)  (62.1)  (49.9)  (347.6)  (344.3)Adjustments attributable to noncontrolling interest in joint venture  (0.1)  0.2   (0.5)  (0.1)  (1.1)Non-GAAP net income attributable to Intuitive Surgical, Inc. $1,054.5  $1,002.1  $867.2  $2,957.7  $2,326.6            GAAP net income per share attributable to Intuitive Surgical, Inc. - diluted $1.49  $2.29  $1.95  $6.07  $5.67 Share-based compensation expense  0.60   0.59   0.56   1.77   1.61 Long-term incentive plan expense  —   —   0.01   —   0.01 Amortization of intangible assets  0.03   0.07   0.01   0.11   0.03 Facilities asset abandonment charge  —   0.02   —   0.02   — Litigation charges  1.29   —   0.02   1.29   0.03 Gains on sale of businesses and assets  —   —   —   (0.02)  — (Gains) losses on strategic investments  —   —   (0.01)  —   — Acquisition-related items  —   0.01   —   0.03   — Tax adjustments (2)  (0.41)  (0.18)  (0.14)  (0.97)  (0.95)Adjustments attributable to noncontrolling interest in joint venture  —   —   —   —   — Non-GAAP net income per share attributable to Intuitive Surgical, Inc. - diluted $3.00  $2.80  $2.40  $8.30  $6.40            (1) Gross profit margin is calculated by dividing gross profit by revenue.(2) For the three months ended September 30, 2026, tax adjustments included: (a) excess tax benefits associated with share-based compensation arrangements of $(12.6) million, or $(0.04) per diluted share; (b) the tax impact related to intra-entity transfers of non-inventory assets of $10.7 million, or $0.03 per diluted share; and (c) other tax adjustments effects determined by applying a calculated non-GAAP effective tax rate of $(142.5) million, or $(0.40) per diluted share. For the three months ended September 30, 2025, tax adjustments included: (a) excess tax benefits associated with share-based compensation arrangements of $(24.2) million, or $(0.07) per diluted share; (b) the tax impact related to intra-entity transfers of non-inventory assets of $10.6 million, or $0.03 per diluted share; and (c) other tax adjustments effects determined by applying a calculated non-GAAP effective tax rate of $(36.3) million, or $(0.10) per diluted share.For the nine months ended September 30, 2026, tax adjustments included: (a) excess tax benefits associated with share-based compensation arrangements of $(103.2) million, or $(0.29) per diluted share; (b) tax impact related to intra-entity transfers of non-inventory assets of $32.1 million, or $0.09 per diluted share; and (c) other tax adjustments effects determined by applying a calculated non-GAAP effective tax rate of $(276.5) million, or $(0.77) per diluted share. For the nine months ended September 30, 2025, tax adjustments included: (a) excess tax benefits associated with share-based compensation arrangements of $(202.5) million, or $(0.56) per diluted share; (b) tax impact related to intra-entity transfers of non-inventory assets of $32.0 million, or $0.09 per diluted share; and (c) other tax adjustments effects determined by applying a calculated non-GAAP effective tax rate of $(173.8) million, or $(0.48) per diluted share.  Contact: Investor Relations
(408) 523 - 2161

Intuitive Surgical (ISRG +1.23%) has built a leading position in robot-assisted surgery, and three Wall Street analysts see its shares reaching $500. Oppenheimer upgraded the stock to Outperform in August with a $500 price target. Meanwhile, Citigroup and Baird lowered their targets to $500 in July but kept their Buy and Outperform ratings.

As more hospitals adopt its technology, the company is finding new ways to accelerate growth. Here's why the bull case may have more room to run.

Image source: Getty Images.

Robotic surgery gives Intuitive Surgical a powerful growth engine
Intuitive Surgical's bull case is straightforward: it isn't just selling surgical robots; it's building a whole ecosystem that hospitals and surgeons can rely on for years. Its flagship da Vinci surgical system allows surgeons to perform minimally invasive procedures using robotic tools through a console.

But the bigger revenue driver is what happens after a hospital purchases a robot.

Intuitive can generate recurring revenue from instruments, accessories, and servicing as hospitals continue to use its systems. That creates a business model with both a sales component for equipment and an ongoing revenue stream from surgical procedures.

The company's next major opportunity comes from Intuitive's latest platform, da Vinci 5. The system builds on established technology with features such as improved imaging, enhanced computing capabilities, and tools to support surgical workflows. If it succeeds, da Vinci 5 could encourage new purchases, upgrades, and broader adoption across hospitals.

The new rollout is already underway. In the second quarter of 2026, Intuitive placed 246 da Vinci 5 systems, up from 180 in the previous year. That suggests that the new platform is already contributing to more overall sales.

But of course, the bull case doesn't depend entirely on selling new robots. As the installed base expands, Intuitive has more opportunities to generate recurring revenue from the tools and accessories used in procedures.

More procedures mean more recurring revenue
Beyond intelligent surgical robots, Intuitive also benefits when hospitals use its systems more frequently. Each additional procedure can create demand for accessories and related services. And so far, the trend has been encouraging. Compared with the same quarter last year, procedures done by surgeons using da Vinci systems grew 15%, while revenue from instruments and accessories climbed 18% to roughly $1.7 billion. 

These figures demonstrate why Intuitive's business model is so compelling. The company doesn't need every dollar of growth to come from selling another robot. It can also grow by making greater use of the systems already installed in hospitals.

$431.94+$5.24 (+1.23%)

NASDAQ · As of 10:31 AM ET 10/19/26

The opportunity extends beyond the U.S., too. Intuitive reported strong international procedure growth, supported by broader adoption across surgical specialties. Continued expansion into new markets could help the company reach hospitals and surgeons that have yet to adopt robot-assisted surgery.

On top of that, Intuitive's Ion platform adds another opportunity beyond da Vinci and surgical robotics. Ion provides robot-assisted bronchoscopy, which helps physicians perform biopsies on lung nodules that may be difficult to access using traditional techniques. That matters because finding lung cancer earlier can be important for treatment decisions. Ion gives Intuitive exposure to the broader push toward earlier diagnosis rather than focusing only on growth in surgical procedures.

Still, the bull case is not without risks. Some of these risks include slower procedure growth, limited hospital budgets, and stronger competition from other surgical robotics companies. But if the company successfully navigates these risks, the upside could be compelling.

Is Intuitive Surgical stock a buy at today's valuation?
A consensus among 31 Wall Street analysts rates Intuitive Surgical a Strong Buy, with target prices indicating potential upside of between 12% and 60% over the next 12 months. However, the biggest challenge today is valuation. The stock trades at a price-to-earnings ratio (P/E) of about 49, which leaves less room for disappointment if procedure growth slows or new system sales fall short of expectations.

Looking ahead, third-quarter results, expected on or around Oct. 20, will show whether procedure growth and da Vinci 5 placements are holding up. Still, for investors who believe robot-assisted surgery will only become more common, today's stock price might make sense. If Intuitive Surgical accelerates earnings growth and exceeds those high expectations, the stock has a realistic path to $500.

Key Takeaways ISRG, the undisputed leader in surgical robotics, is down 30% from its 2025 highs.
The Zacks Rank #2 (Buy) stock is poised for a technical breakout heading into its Q3 earnings release.
Intuitive's pristine debt-free balance sheet empowers it to adapt and expand.
Intuitive Surgical, Inc. (ISRG - Free Report) , the medical technology giant and the undisputed leader in surgical robotics, has fallen 30% from its early 2025 highs.

The selloff and its strong fundamentals, including a double-digit earnings and revenue growth outlook and impressive free cash flow expansion, make ISRG stock a great buy-and-hold candidate right now, especially as Wall Street keeps selling AI stocks.

ISRG stock surged off its recent lows heading into its Q3 earnings release that’s due out after the closing bell on Tuesday, October 20.

Intuitive Surgical stock earns a Zacks Rank #2 (Buy) and looks poised for a potential technical breakout as it overtakes vital long-term levels.

Image Source: Zacks Investment Research

The firm’s pristine debt-free balance sheet empowers Intuitive Surgical to adapt and expand into any number of growth areas.

All in, investors looking to diversify beyond tumbling AI stocks should consider buying the da Vinci robotic surgery systems maker for ~40% upside if it ever returns to its all-time highs.

Looking for S&P 500 Stocks to Buy On the Dip in Q3 Earnings Season? Buy ISRGIntuitive Surgical helped kick off the Sci-Fi age of healthcare when its da Vinci Surgical System was first cleared by the FDA in 1997 to assist in surgery and to perform actual surgery in 2000. Since then, its da Vinci robotic surgery systems have become integral throughout an array of procedures across urology, general surgery, gynecology, and beyond.

ISRG’s robots give surgeons better control, vision, and precision through small incisions, which can mean less pain, smaller scars, and faster recovery for patients compared with traditional open surgery.

The firm boasts that its technologies have performed 20.4 million+ procedures since it launched (as of Dec. 2025), including 3.2 million+ procedures performed on Intuitive systems in 2025.

Image Source: Zacks Investment Research

The S&P 500 medical technology company is making progress in vital surgical areas such as Thoracic (chest/lung surgery), Cardiac, Head and neck, and more.

The company also makes a robotic system for lung biopsies (not surgery) called the Ion. It helps doctors reach and sample small, hard-to-reach nodules deep in the lungs to check for cancer or other issues.

Intuitive Surgical’s rise sparked competition from Medtronic, Johnson & Johnson (JNJ - Free Report) , and others. But its growth outlook remains impressive after 25 years of expansion, and its offerings are only gaining in popularity as the healthcare world races to embrace as much cutting-edge technology as possible. 

Buy ISRG Stock for Earnings and Sales GrowthISRG more than doubled its revenue between 2020 and 2025. It grew its sales by 21% in 2025, marking its strongest YoY expansion since 2021. The surgical robotics firm also doubled its GAAP earnings between the pre-Covid period in 2019 and 2025, boosted by 29% average expansion over the past three years.

In the near term, Intuitive Surgical is projected to grow its Q3 revenue by 15% to $2.88 billion. The company is projected to grow its adjusted quarterly earnings by 9% YoY to $2.61 a share.

ISRG beat our Zacks bottom-line estimate by an average of 17% in the past four quarters. Its upbeat EPS revisions for 2027 help it earn a Zacks Rank #2 (Buy) right now.

Image Source: Zacks Investment Research

It is projected to grow its revenue by 17% in 2026 and 13% next year to reach $13.21 billion, doubling 2022’s total in the process.

ISRG is expected to grow its adjusted earnings by over 20% in 2026 and 12% next year. The chart below showcases that its long-term earnings growth outlook over the next several years remains impressive.

Image Source: Zacks Investment Research

Why ISRG is One of the Best Stocks to Buy Now for Big UpsideISRG stock has climbed by a mind-blowing ~20,800% in the past 25 years, including a ~790% charge in the last 15 to crush its industry’s 300%.

Yet it has lagged the S&P 500 over the last five years on the back of its ~30% fall from its early 2025 highs.

This backdrop alone means that Intuitive Surgical offers roughly 43% upside if it ever returns to its all-time highs. The stock already climbed 30% from its July lows after buyers stepped in and held their ground near its previous 2021 highs.

ISRG is on the cusp of overtaking its 200-day. More importantly, Intuitive Surgical stock is back above its critical long-term 200-week moving average.

Image Source: Zacks Investment Research

One thing holding the stock back appears to be its valuation, with it trading at 43.7X forward 12-month earnings. This marks a huge premium compared to its industry’s 27.9X. But it has crushed its peers over the last 10 years, up ~470% vs. 112%. Plus, ISRG is trading at a 53% discount to its highs.

If Wall Street continues to reject its valuation levels as its growth slows, Intuitive Surgical could easily start paying a dividend to reward investors, given its debt-free balance sheet and growing cash position.

Key Takeaways Intuitive Surgical submitted a next-generation flexible robotic endoscope to the FDA for 510(k) clearance.The GI platform draws on da Vinci and Ion expertise, but remains noncommercial and at an early stage.Regulatory progress, clinical evidence and physician adoption will determine the platform's growth potential. Intuitive Surgical (ISRG - Free Report) is exploring a new growth avenue in gastrointestinal (GI) care, extending its robotic-assisted technology beyond core soft-tissue surgery and lung diagnostics. On its second-quarter 2026 earnings call, management disclosed that the company had submitted a next-generation flexible robotic endoscope system to the FDA for 510(k) clearance. Designed for placement in the GI tract, the initiative remains in the early stages of development and is not expected to generate revenues in the near term.

The proposed platform reflects Intuitive Surgical’s strategy of applying its robotics expertise to additional disease areas. CEO David Rosa said the company is combining learnings from its da Vinci surgical systems and Ion lung biopsy platform to inform its GI development efforts.

Ion’s commercialization experience is particularly relevant because it demonstrates Intuitive Surgical’s ability to expand beyond traditional soft-tissue surgery into another clinical application. Management has also engaged with GI physicians and care teams to identify areas where robotics could improve therapeutic outcomes and care-team experiences.

The potential market opportunity could be meaningful if the platform progresses successfully through regulatory review and clinical development. Management emphasized that the initiative remains early, with clinical evidence generation and regulatory review still ahead.

For investors, the GI platform represents long-term growth prospects rather than a near-term earnings catalyst. Successful development could allow Intuitive Surgical to extend its established technology, clinical expertise and commercial infrastructure into a new treatment area. The company continues to invest in robotics, instrumentation, imaging and other technologies to reach more patients across additional disease states.

Ultimately, the GI opportunity will depend on regulatory progress, clinical value and physician adoption. While the financial potential remains unquantified, the initiative illustrates how Intuitive Surgical is seeking to broaden its addressable market beyond its existing surgical and lung-diagnostic platforms.

Peer UpdatesStereotaxis (STXS - Free Report) is expanding its market opportunity through innovations spanning robotic navigation, proprietary catheters and digital operating-room solutions. The U.S. launch of MAGiC, following its FDA approval in January, is strengthening Stereotaxis’ electrophysiology offering. Robotic catheter revenues increased nearly 300% sequentially as early adoption progressed.

FDA-cleared Synchrony introduces workflow enhancements, remote connectivity and AI capabilities, with potential applications in non-robotic operating rooms. Meanwhile, GenesisX aims to reduce installation barriers by supporting compatibility with standard X-ray systems. Over the longer term, innovations targeting interventional cardiology, neurointervention and automated stroke treatment could expand Stereotaxis’ addressable market beyond its existing electrophysiology business.

Globus Medical (GMED - Free Report) is using product innovation to strengthen its competitive position across spine, trauma and enabling technologies. The company launched three products during the second quarter, including RELINE ONE, designed to simplify screw placement, and two trauma solutions addressing fixation and surgical workflow. Its FDA-cleared SCRIPT patient-specific spacers and rods could further differentiate Globus Medical by integrating customized implants with Excelsius navigation and planning technology.

Management also highlighted more than 60 development projects and investments in data analytics and AI to improve patient selection and surgical execution. Combined with an expanded sales force, these innovations could deepen market penetration and create opportunities for Globus Medical across additional unmet clinical needs.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 24.5% so far this year compared with a 5.7% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 36.53, above the industry average. But it is significantly lower than its five-year median of 67.32. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ISRG's SP procedures jumped 61% as its installed base reached 445 systems in the second quarter.ISRG saw U.S. SP utilization rise 25%, while stapler use in eligible cases neared 60% during the quarter.SP placements and expanded indications are supporting broader adoption across the U.S. and global markets. Intuitive Surgical’s (ISRG - Free Report) single-port (SP) platform is increasingly emerging as a meaningful growth franchise, supported by accelerating procedure volumes, a growing installed base and expanding product capabilities. In the second quarter, SP procedures increased 61% year over year, powered by strong momentum in the United States and Korea, while early-stage adoption gained traction in Europe, Japan and Taiwan.

Intuitive Surgical placed 38 SP systems during the quarter, taking its global installed base to 445 systems. Although ISRG does not provide standalone figures for SP systems, rising placements and robust procedure growth should help the platform become the company’s billion-dollar franchise soon, complementing its multi-port platform that generated the majority of its $10 billion revenues in 2025.

The platform is also benefiting from improving utilization and a broader ecosystem. Average system utilization for SP systems in the United States increased 25% year over year in the second quarter. This indicates that growth is increasingly being supported by higher use of systems already deployed, rather than placements alone.

Meanwhile, adoption of the SP stapler is accelerating. The stapler was used in nearly 60% of eligible U.S. cases, up from just under 40% in the previous quarter, with colorectal and thoracic procedures driving adoption. Internationally, the stapler has entered broad launch across Europe and Korea, while the Japan launch likely began in the third quarter.

Expanded indications and product enhancements provide another avenue for franchise expansion. Intuitive Surgical cited extended-range instruments, custom remote-center software and reach-assist software as key factors supporting broader SP adoption. The company is also focused on expanding SP through product innovation, training and geographic expansion.

The international opportunity remains particularly important. SP placements increased to 38 in the second quarter from 23 a year earlier. The growth in placement was primarily driven by demand in the United States and Japan, while procedure momentum is emerging across Europe and Asia. With rapid procedure growth, rising utilization, expanding indications and a broader geographic footprint, SP has the ingredients to become a substantially larger franchise for ISRG.

Peer UpdatesEdwards Lifesciences’ (EW - Free Report) Transcatheter Mitral and Tricuspid Therapies (“TMTT”) product group appears well positioned to become its third billion-dollar business. The company’s Transcatheter Aortic Valve Replacement product group generated 74% of EW’s $6 billion revenues in 2025 while Surgical Structural Heart generated 17%. The potential of TMTT products group is supported by a diversified product portfolio and multiple adoption curves.

TMTT sales reached $373.7 million in the first half of 2026, up 49.6% year over year, with PASCAL, EVOQUE and SAPIEN M3 all exceeding expectations. PASCAL is gaining adoption, EVOQUE is scaling through new centers and higher utilization, while SAPIEN M3 is expanding its addressable population through new indications. The planned U.S. launch of PASCAL for tricuspid patients would add another growth layer. Management explicitly mentioned that these platforms should drive TMTT revenues to reach $2 billion by 2030.

Glaukos (GKOS - Free Report) is building a diversified ophthalmology platform that could eventually support billion-dollar annual revenues. The company raised 2026 sales guidance to $680-$700 million, while iDose TR generated approximately $74 million in the second quarter and Epioxa contributed about $11 million. The company’s sales registered 32% growth rate for full-year 2025, followed by 45.7% in the first half of 2026.

At these growth rates, the company should be able to achieve billion-dollar sales in the next two to three years. Beyond these commercial products, Glaukos has five novel therapeutic platforms and 13 publicly disclosed programs, including iDose TREX, iDose TRIO, iLink, iStent infinite, PRESERFLO MicroShunt, iLution and GLK-401. Management views these programs as potentially transformative therapies. Thus, continued iDose and Epioxa expansion, combined with successful pipeline commercialization, could materially broaden Glaukos’ revenue base.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 28.6% so far this year compared with a 4.9% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 34.63X, above the industry average. But it is significantly lower than its five-year median of 67.47X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Count Intuitive Surgical (ISRG -1.35%) among the biggest healthcare losers of 2026. The medical device stock is down close to 30% year to date. Its performance was even worse. By late July, Intuitive Surgical's share price had plunged more than 40% since the beginning of the year.

Despite this dismal trajectory, Wall Street remains overwhelmingly bullish about Intuitive Surgical. Of the 32 analysts surveyed by S&P Global (SPGI +0.52%) in September, 24 rated the stock as a "buy" or "strong buy." Only one of the other eight analysts recommended selling Intuitive.

But is Wall Street dead wrong about this beaten-down stock?

Image source: Intuitive Surgical.

Several headwinds To be sure, a stock doesn't sink as much as Intuitive Surgical has so far this year without facing some serious headwinds. Intuitive's growth is slowing, which is especially problematic for a stock trading at a forward price-to-earnings multiple over 33.

The company isn't gaining as much traction in the Chinese market as it would like. Intuitive Surgical CEO David Rosa admitted in the 2026 second-quarter earnings call that "the environment remains challenging" in China due to increased competition and government pricing policies.

Speaking of increased competition, Intuitive Surgical faces more of it elsewhere, too. After having the robotic surgical systems market to itself for years, Intuitive now must battle healthcare giants Johnson & Johnson (JNJ -1.06%), Medtronic (MDT -0.92%), and Stryker (SYK -0.90%), as well as smaller rivals.

Government actions aren't just a problem for Intuitive in China, either. The expiration of subsidies for Affordable Care Act (ACA) health plans in the U.S. is also impacting procedure growth for the company's da Vinci surgical robots.

Then there's the impact of GLP-1 drugs. Intuitive Surgical CFO Jamie Samath noted in the Q2 call that U.S. da Vinci bariatric procedure volumes fell by high single digits during the quarter due to increasing GLP-1 usage.

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With all of these headwinds, is Wall Street wrong to be bullish about Intuitive Surgical? My honest answer is... not at all.

Yes, the headwinds are real. However, they're not showstoppers. For example, even with Intuitive's challenges in China, the company's revenue in Asia still jumped 20% year over year in Q2. Increased competition doesn't appear to be hurting Intuitive much outside of China.

Samath said that the ACA subsidies are only having a "modest adverse impact." And the effects of GLP-1 drugs on Intuitive's business seem to be primarily limited to bariatric procedures.

Importantly, Intuitive Surgical has tailwinds that are even bigger than its tailwinds over the long run. Aging demographic trends worldwide should drive demand for robotic surgical systems. Technological advances should expand the number of procedures that can be performed with robotic assistance.

I don't always agree with analysts. But I think Wall Street is 100% right to be upbeat about this healthcare stock.

Keith Speights has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Intuitive Surgical, Medtronic, and S&P Global. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.

Key Takeaways Intuitive Surgical placed 27 da Vinci systems at U.S. ASCs in Q2, including 20 refurbished XiR systems.XiR offers ASCs and smaller hospitals a lower-cost entry point into the fourth-generation da Vinci ecosystem.Intuitive Surgical plans extended-use EndoWrist instruments in 2027 to lower costs in benign procedures. Intuitive Surgical (ISRG - Free Report) is focusing on Ambulatory surgery centers (ASCs) as an important channel for its robotic-surgery expansion. The company is targeting the low-cost ASC segment with refurbished XiR platforms priced below its flagship model. This strategy resulted in significant growth in ASC placements during the second quarter.

ISRG placed 27 da Vinci systems at ASCs in the United States, with 20 of those being refurbished XiR platforms. Management also stated that the increase reflected its recent focus on the ASC segment, while describing the placements as part of broader greenfield expansion.

The growing ASC opportunity aligns with the broader shift toward outpatient surgery, where economics and procedure mix can differ substantially from those of traditional hospitals. Intuitive Surgical is addressing this market through a segmented portfolio rather than relying exclusively on its newest and most expensive platforms.

XiR provides a lower-cost entry point while retaining access to the broader fourth-generation da Vinci ecosystem, making robotic surgery more accessible to cost-conscious customers. Management said XiR has been particularly attractive to ASCs and smaller hospitals, while gaining traction internationally.

This strategy could expand Intuitive Surgical’s addressable customer base. Management noted that XiR can introduce robotics to new customers, helping them establish robotic programs and potentially adopt more advanced systems over time. About 130 XiR systems were installed globally over the past year, with approximately 50 in the United States.

Procedure economics could provide another catalyst. Intuitive Surgical plans to introduce extended-use EndoWrist instruments in 2027, targeting lower cost per procedure in high-volume benign procedures. Management specifically linked the initiative to opportunities in benign outpatient procedures and cost-constrained markets.

Thus, ASCs represent more than another sales channel. They provide Intuitive Surgical with an avenue to expand robotic adoption through lower-cost systems, new facilities and potentially broader procedure utilization, while leveraging its established ecosystem.

Peer UpdatesStryker (SYK - Free Report) is positioning its broad orthopedic and MedSurg portfolio to capitalize on the continued migration of procedures toward ASCs. Management said the shift in orthopedic site of care should continue and views ASCs as an opportunity to win across its portfolio, including hips and knees.

The company is also using Mako RPS to address a specific ASC customer segment — surgeons who are not ready to adopt the full Mako platform but want robotic assistance for total-knee procedures. Following a limited second-quarter launch and early conversions, Stryker plans to ramp up Mako RPS commercialization. Its broader ASC strategy also benefits from products across surgical technologies, communications and other portfolio categories.

Zimmer Biomet (ZBH - Free Report) is approaching the ASC market through a combination of technology, surgical products and a broader customer-centric portfolio. Management explicitly identified stronger surgical performance in the second quarter as part of its ASC strategy. Technology remains a major growth driver, supported by a strong robotics pipeline and products spanning large-footprint robotics, handheld technologies, CT and non-CT solutions and mixed reality.

The company is also emphasizing efficiency rather than simply implant pricing in the ASC setting. Management noted that implants account for only about 14-15% of ASC costs, highlighting the importance of reducing surgical time, avoiding inpatient transfers and lowering readmission rates. ZBH is also evaluating adjacent acquisitions in areas where procedures are primarily performed in ASCs.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 30.6% so far this year compared with a 6.9% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 33.81X, above the industry average. But it is significantly lower than its five-year median of 67.76X. ISRG carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ISRG's da Vinci study found significant perioperative gains across 13 benign procedures.ISRG's da Vinci cut conversion to open surgery by 54% and blood transfusion odds by 13% versus laparoscopy.ISRG's da Vinci reduced transfusion odds by 69% and 30-day complications by 46% versus open surgery. Intuitive Surgical (ISRG - Free Report) recently announced the publication of a large systematic review and meta-analysis in the peer-reviewed Annals of Surgery Open, evaluating outcomes from more than 14 million procedures across 13 common benign conditions. The study found that da Vinci robotic-assisted surgery was associated with statistically significant improvements in several perioperative outcomes compared with laparoscopic and open surgery.

The study strengthens Intuitive Surgical's clinical evidence base at a time when the company is focused on expanding da Vinci adoption in high-volume benign procedures globally. The findings also align with management's broader strategy of driving procedure growth through greater clinical validation, cost-focused initiatives such as the upcoming extended-use instrument program and continued investment in the da Vinci ecosystem, which together could support long-term utilization and recurring revenue growth.

Likely Trend of ISRG Stock Following the NewsFollowing the announcement on Sept. 8, shares of ISRG have gained approximately 8% through yesterday’s trading. Year to date, shares of the company have lost 33.3% compared with the industry’s 10.8% decline. However, the S&P 500 has risen 11.4% in the same timeframe.

The newly published large-scale meta-analysis is likely to strengthen Intuitive Surgical's long-term growth prospects by reinforcing the clinical value proposition of its da Vinci platform across high-volume benign procedures, a key area of expansion highlighted by management. Stronger evidence demonstrating improved patient outcomes, shorter hospital stays and faster recovery can support broader surgeon adoption, favorable hospital purchasing decisions and higher procedure volumes.

ISRG currently has a market capitalization of $7.2 million.

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More on the Study FindingsThe study compared ISRG's da Vinci robotic-assisted surgery with both laparoscopic and open surgery across 13 benign procedures spanning gynecology, general surgery, bariatric surgery, urology and hernia repair. Compared with laparoscopic surgery, da Vinci procedures were associated with a 54% lower likelihood of conversion to open surgery and 13% lower odds of requiring a blood transfusion. Patients also experienced shorter hospital stays by roughly four hours, returned to work about two days earlier, reported lower postoperative pain and required less pain medication, although average operative time was approximately 24 minutes longer.

The benefits were even more pronounced when compared with open surgery. The analysis found a 69% reduction in the odds of blood transfusions, a 46% decline in 30-day postoperative complications and a 60% lower risk of surgical site infections. Patients undergoing da Vinci procedures also had hospital stays that were approximately two days shorter, returned to work nearly five days sooner and showed lower rates of intraoperative complications, readmissions, reoperations and 30-day mortality. The findings were based on 13 randomized controlled trials, 21 prospective cohort studies, 101 database studies and 231 retrospective cohort studies, providing broad evidence across diverse clinical settings.

da Vinci 5 Continues to Gain MomentumIntuitive Surgical's second-quarter results highlighted continued strong momentum for the da Vinci 5 platform. The company placed 246 da Vinci 5 systems during the quarter, including 114 dual-console systems, bringing the installed base to more than 1,700 systems used by over 15,000 surgeons since launch. Management also noted that the platform's higher utilization, combined with ongoing customer upgrades, continued to support capital demand, particularly in the United States.

The company is further strengthening the platform through a phased rollout of more than 100 planned software and workflow enhancements, with several innovations already submitted for FDA 510(k) clearance. These upgrades are designed to improve telepresence, simulation-based training, care team efficiency and surgical precision, reinforcing management's strategy of expanding da Vinci 5's clinical capabilities while driving long-term procedure growth and ecosystem adoption. These upgrades along with a strong clinical validation should continue to boost Da Vinci 5 adoption going forward..

Industry Prospects Favoring the MarketPer a report by Grand View Research, the global surgical robots market size is projected to grow from $17.2 billion in 2026 to $45.6 billion by 2033, at a CAGR of 14.9%.

The industry’s growth is driven by the rising adoption of robotic-assisted minimally invasive procedures, the increasing demand for surgical precision and the growing use of advanced robotic instruments and accessories across hospitals and surgical centers.

Other NewsISRG recently announced it will expand its manufacturing presence in Asia Pacific with a new facility in Penang, Malaysia, as the company looks to strengthen its ability to meet the rising demand for robotic-assisted surgery in the region. ISRG has entered into a lease agreement with Penang Development Corporation for a 316,000-square-foot manufacturing facility at Bandar Cassia Technology Park.

ISRG’s Zacks Rank & Key PicksCurrently, ISRG has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and West Pharmaceutical (WST - Free Report) .

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.

VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.

West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.

This AI ETF Is Missing the Biggest AI WinnersIntuitive Surgical NASDAQ: ISRG executives said the company remains focused on global procedure growth, while acknowledging a recent deceleration in U.S. procedures and policy-related uncertainty affecting hospitals.

Speaking at a Wells Fargo conference, Executive Vice President, CFO and Enterprise Technology Leader Jamie Samath said the company evaluates U.S. growth procedure by procedure rather than using a single market-level framework. He described prostate procedures as being in the fourth quartile of adoption, cholecystectomy in the second quartile and appendectomy in the first quartile.

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Why Intuitive Surgical’s Strong Quarter Still Spooked InvestorsSamath said Intuitive sees substantial remaining opportunity in U.S. benign general surgery, as well as earlier-stage opportunities in cardiac surgery and nipple-sparing mastectomy. He also said the company intends to add further procedures to the beginning of its adoption funnel over time.

Intuitive previously cited a modest effect from lower Affordable Care Act subsidies on U.S. procedures. Samath said the company does not provide regional growth guidance, but reiterated global procedure-growth guidance of 13.5% to 15.5%, with growth expected to be toward the midpoint of that range. The outlook incorporates more difficult second-half comparisons and the company’s estimate of Affordable Care Act-related dynamics, he said.

ASC Expansion and Capital Environment Intuitive Surgical's Selloff Sets Up a 30% Rebound OpportunityHead of Investor Relations Dan Connally said ambulatory surgery centers represent a significant long-term opportunity, though growth is not expected to be linear. Intuitive placed 27 systems into ASCs during the second quarter, more than the cumulative number placed over the prior couple of years, according to Connally. Twenty of those placements were reconditioned da Vinci Xi systems.

Connally said U.S. capital demand was stable and relatively strong through the second quarter. The company placed 267 systems in the U.S., up 24% year over year, supported by adoption of da Vinci 5 and system upgrades. Approximately 70% to 75% of U.S. systems are typically deployed through non-purchase arrangements, he added.

Outside the U.S., Intuitive placed 201 systems in the second quarter, up 12% from a year earlier. Connally said Asia placements rose 9%, Europe rose 8% and rest-of-world placements increased 27%.

On possible changes to the 340B program, Samath said it was too early to assess the impact. He noted that reduced funding related to pharmaceutical programs could pressure hospital finances, while potentially higher outpatient surgical reimbursement from CMS could benefit companies operating in surgery.

Competition and International Markets Samath said Intuitive views competition as extending beyond the robotic system itself to include software, artificial intelligence capabilities, product updates and the broader ecosystem. Discussing table-mounted robotic architectures, he said Intuitive believes the deployment and configuration of arms may restrict patient size and the range of procedures compared with the company’s boom-mounted Xi and da Vinci 5 systems.

Regarding international competition, Samath said the company’s X and XiR platforms are suited for more cost-constrained markets, while da Vinci 5 serves premium accounts. He said competition remains intense in China, where local competitors and slower tender activity have weighed on system placements.

China remains a large strategic market, Samath said, but Intuitive has limited visibility on when momentum could improve. He cited roughly 250 systems remaining under the existing quota and said the company expects greater clarity in 2027 around new charge codes and a centralized tender process.

In Japan, Samath said recently expanded reimbursement, including for inguinal hernia procedures, should begin to support adoption. However, he said the impact on the company’s overall business is not expected to become meaningful until 2027, after surgeons are trained and procedure volumes ramp.

Extended-Use Instruments and New Platforms Samath said Intuitive’s planned 2027 Extended Use Instruments program is intended to reduce per-use instrument and accessory costs for customers in cost-sensitive procedures and markets. The company expects the structure of the initiative to be directionally similar to its 2020 program, but Samath emphasized that Intuitive has not yet disclosed the financial magnitude of the program and plans to provide details during its third-quarter earnings call.

The company aims to target areas where lower costs could stimulate procedure volume through greater customer elasticity, Samath said. He added that the program could affect the relative economics of third-party remanufactured instruments, though Intuitive has no plans to introduce its own remanufactured instrument offering.

On Intuitive’s endoluminal gastrointestinal system, Samath said remaining work includes engineering, regulatory planning, clinical evidence development and potentially reimbursement work. He declined to provide a timeline or market-size estimate, saying progress will depend on product-specific requirements.

Samath also said Intuitive is investing in next-generation versions of its existing MultiPort, da Vinci SP and Ion platforms, as well as additional platforms beyond its gastrointestinal system.

AI, Revenue Drivers and Financial Profile Connally said Case Insights, included in the My Intuitive+ offering alongside telepresence and simulation, has received a positive early response. The service is complimentary for the first year with a da Vinci 5 acquisition, and no customers opted out when the first contracts reached their anniversaries in the second quarter, he said. The list price is about $40,000 per system annually.

Intuitive expects broader availability of Force Feedback instrumentation in the second half of 2026. Connally said force data could eventually enhance Case Insights capabilities.

For 2027, Samath identified procedure growth, da Vinci 5 upgrades, adoption of Force Feedback instruments and expansion into new sites of care, indications and countries as potential revenue drivers. He also noted that a greater mix of benign procedures and cost-constrained international markets could gradually reduce instrument and accessory revenue per procedure over time.

Samath said Intuitive reported 21% revenue growth in both the first half and the prior year, compared with a long-term average of roughly 14% to 15%. He said first-half operating margin was 41%, versus a long-term average of approximately 37%, while first-half free-cash-flow margin was 31% compared with a historical average closer to 22%.

About Intuitive Surgical (NASDAQ:ISRG)Intuitive Surgical, Inc is a medical technology company that develops and manufactures robotic-assisted surgical systems and related products. Its technology is designed to support surgeons during minimally invasive procedures by providing enhanced visualization, instrument control and dexterity.

The company's principal product is the da Vinci Surgical System, which is used across a range of specialties, including general surgery, urology, gynecology, cardiothoracic surgery and other procedures.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Largest comparative meta-analysis of its kind found da Vinci robotic-assisted surgery was associated with shorter hospital stays and a faster return to work compared with laparoscopic and open surgery  | Source: Intuitive Surgical, Inc.

SUNNYVALE, Calif., Sept. 08, 2026 (GLOBE NEWSWIRE) -- Intuitive (NASDAQ: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced the publication of a landmark systematic review and meta-analysis in the peer-reviewed Annals of Surgery Open.

The study analyzed data from more than 14 million da Vinci, laparoscopic and open procedures across 13 common benign (non-cancerous) conditions, making it the largest comparative meta-analysis of its kind. The authors found da Vinci surgery was associated with statistically significant improvements in select perioperative outcomes compared with laparoscopic and open surgery.

"Patients want confidence that their surgical approach will support a strong recovery and help them get back to work and to the people and moments that matter most to them. Surgeons and care teams need robust evidence to help guide those decisions," said Jaime Wong, MD, Chief Medical Officer at Intuitive. "Until now, evidence comparing surgical approaches for benign conditions has been spread across hundreds of studies. This analysis provides one of the most comprehensive assessments to date, helping patients and clinicians make more informed decisions."

Key findings
da Vinci surgery vs. laparoscopic surgery:

54% lower odds of conversion to open surgery13% lower odds of requiring a blood transfusionHospital stays approximately 4 hours shorterReturn to work approximately 2 days soonerLower postoperative pain scores and less pain medication useNo statistically significant differences in complications, infections, readmissions, or 30-day mortalityAverage operative time approximately 24 minutes longer da Vinci surgery vs. open surgery:

69% lower odds of requiring a blood transfusion46% lower odds of 30-day postoperative complications60% lower odds of surgical site infectionHospital stays approximately 2 days shorterReturn to work approximately 5 days soonerLower odds of intraoperative complications, readmission, reoperation, and 30-day mortality.37% lower odds of requiring pain medication within 30 daysAverage operative time approximately 46 minutes longer The analysis synthesized 14 years of published evidence spanning 32 countries, drawing from 13 randomized controlled trials, 21 prospective cohort studies, 101 database studies, and 231 retrospective cohort studies.

Led by Thomas H. Shin, MD, PhD, bariatric surgeon at Mass General Brigham, and conducted by researchers from the University of Virginia, Mass General Brigham, and Intuitive, the analysis examined procedures performed for benign conditions across gynecology, general surgery, bariatric surgery, urology, and hernia repair — including hysterectomy, cholecystectomy, and colorectal surgery.

“By bringing together evidence from randomized trials, prospective studies, and large real-world datasets, this analysis provides a broad view of perioperative outcomes across multiple procedures and specialties,” said Dr. Shin. “The findings add to our understanding of how surgical approaches compare while recognizing that the most appropriate approach depends on the procedure, patient, surgeon, and clinical setting.”

This study complements the previously published meta-analysis of 30-day surgical outcomes across seven oncological surgical procedures, led by Rocco Ricciardi, MD, MPH, chief of colon and rectal surgery at Massachusetts General Hospital. Together, the studies expand the comparative evidence available to patients, surgeons, and health systems across a broad range of benign and oncological conditions.

More than 21 million patients worldwide have been operated on by surgeons using the da Vinci system, with more than 3.1 million da Vinci procedures performed in 2025 alone.

About Intuitive
Intuitive (NASDAQ: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic surgery. Our technologies include the da Vinci surgical system and the Ion endoluminal system. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. At Intuitive, we envision a future of care that is less invasive and profoundly better, where disease is identified early and treated quickly, so that patients can get back to what matters most.

This material has been developed with, reviewed and approved by an independent physician/surgeon who is not an Intuitive employee. The physicians did not receive compensation from Intuitive.

About da Vinci Surgical Systems
There are several models of the da Vinci surgical system. The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery and offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. They use specialized instrumentation, including a miniaturized surgical camera and wristed instruments (i.e., scissors, scalpels, and forceps) that are designed to help with precise dissection and reconstruction deep inside the body.

For more information, please visit the company's website at www.intuitive.com.

Important Safety Information
Patient outcomes may depend on a number of factors including, but not limited to, patient characteristics, disease characteristics, and/or physician/surgeon experience. The da Vinci system is a tool used for minimally invasive surgery.

Patients should consult with their doctor to discuss both nonsurgical and surgical treatment options, including the benefits and risks associated with each. They should also ask whether surgery using the da Vinci system is appropriate for their specific situation. As with any surgical procedure, serious complications can occur, including, in rare cases, death. Potential risks include injury to tissues and organs, as well as the possibility of switching to alternative surgical techniques during the operation, which may result in longer operative times and increased risk of complications.

For a summary of the risks associated with surgery, refer to www.intuitive.com/safety.

For risks, contraindications, cautions, and warnings and full prescribing information, refer to the associated da Vinci surgical system user manual(s), or visit https://manuals.intuitivesurgical.com/market.

@2026 Intuitive Surgical Operations, Inc. All rights reserved. Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner.

Contact Information:
[email protected]

HB Wealth Management LLC lowered its position in Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 14.6% in the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 23,518 shares of the medical equipment provider’s stock after selling 4,018 shares during the period. HB Wealth Management LLC’s holdings in Intuitive Surgical were worth $9,353,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Main Street Group LTD bought a new position in Intuitive Surgical in the first quarter worth $30,000. Compass Financial Management LLC bought a new stake in shares of Intuitive Surgical during the 2nd quarter valued at $30,000. Vermillion Wealth Management Inc. boosted its holdings in shares of Intuitive Surgical by 58.1% during the 1st quarter. Vermillion Wealth Management Inc. now owns 68 shares of the medical equipment provider’s stock valued at $31,000 after buying an additional 25 shares in the last quarter. Motiv8 Investments LLC purchased a new stake in shares of Intuitive Surgical in the 4th quarter worth about $34,000. Finally, Evergreen Advisors LLC purchased a new stake in shares of Intuitive Surgical in the 1st quarter worth about $35,000. Hedge funds and other institutional investors own 83.64% of the company’s stock.

Analyst Ratings Changes Several research analysts recently issued reports on the stock. Piper Sandler reiterated an “overweight” rating on shares of Intuitive Surgical in a research note on Friday, August 21st. JPMorgan Chase & Co. dropped their price objective on shares of Intuitive Surgical from $550.00 to $450.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Bank of America cut their price objective on shares of Intuitive Surgical from $520.00 to $515.00 in a report on Friday, June 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Intuitive Surgical in a research note on Friday, August 14th. Finally, KeyCorp reiterated an “overweight” rating on shares of Intuitive Surgical in a report on Wednesday, August 12th. Twenty-two investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $508.68.

Check Out Our Latest Report on ISRG Intuitive Surgical Price Performance Shares of NASDAQ:ISRG opened at $366.70 on Monday. The business has a fifty day moving average price of $381.44 and a 200-day moving average price of $428.20. The company has a market capitalization of $129.55 billion, a PE ratio of 42.00, a PEG ratio of 2.77 and a beta of 1.47. Intuitive Surgical, Inc. has a 1-year low of $328.57 and a 1-year high of $603.88.

Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The medical equipment provider reported $2.80 EPS for the quarter, beating the consensus estimate of $2.48 by $0.32. The company had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.83 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. Intuitive Surgical’s revenue for the quarter was up 18.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.81 EPS. On average, sell-side analysts anticipate that Intuitive Surgical, Inc. will post 8.87 earnings per share for the current fiscal year.

Insider Activity In related news, Director Gary S. Guthart sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $400.00, for a total value of $4,000,000.00. Following the completion of the transaction, the director directly owned 1,245,679 shares in the company, valued at $498,271,600. The trade was a 0.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gary Loeb sold 400 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $379.00, for a total value of $151,600.00. Following the completion of the transaction, the executive vice president directly owned 5,320 shares in the company, valued at $2,016,280. This trade represents a 6.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 11,635 shares of company stock worth $4,640,172. Corporate insiders own 0.60% of the company’s stock.

Intuitive Surgical Profile (Free Report)

Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.

In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.

Recommended Stories Five stocks we like better than Intuitive Surgical AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding ISRG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report).

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Key Takeaways Intuitive Surgical is prioritizing R&D over near-term leverage to support long-term growth.AI/ML, robotics, imaging and software are key areas of its R&D investment strategy.ISRG is expanding into GI, cardiac and lung procedures to broaden its clinical reach. Intuitive Surgical (ISRG - Free Report) is deliberately prioritizing research and development to fuel long-term growth, offsetting near-term challenges from macroeconomic uncertainty, healthcare policy changes and international competitive pressures.

In the second quarter, management said R&D expenses are growing faster than SG&A, a trend expected to continue through the remainder of 2026. The strategy reflects a long-term objective — using innovation to reach more patients, expand into new disease areas and strengthen the company's competitive differentiation rather than focusing on near-term operating leverage.

Artificial intelligence and machine learning are central to this investment strategy. Intuitive Surgical is directing R&D resources across AI/ML, robotics, instrumentation, imaging and advanced materials, while continuing to develop software capabilities around its robotic platforms. Management views these investments as tools to improve reliability, usability, efficiency and throughput, ultimately creating differentiated solutions and reducing the total cost of care.

The company is simultaneously expanding beyond its established procedures. Its next-generation flexible robotic endoscope is being developed for gastrointestinal applications, with a foundational noncommercial system recently submitted for FDA 510(k) clearance. This could provide Intuitive Surgical with a pathway into GI robotics and additional high-volume procedures over time.

Cardiac and lung interventions represent other important areas of R&D optionality. Cardiac procedures accelerated 39% in the second quarter, as Intuitive Surgical continues developing cardiac-specific instruments to support broader adoption. On the lung side, Ion procedures increased 36% to 48,000, with cumulative procedures exceeding 400,000. Development of the ROSE and EBUS programs, alongside expansion into 12 countries outside the United States, could broaden Ion's clinical utility and international opportunity.

The financial rationale is therefore centered on long-term benefits. Intuitive Surgical is effectively sacrificing some near-term expense leverage to build a broader technology and clinical moat. With more procedures, new indications and differentiated capabilities, the company can expand its addressable market while strengthening its ecosystem. Management's willingness to increase R&D spending despite macroeconomic headwinds signals that it views innovation, rather than cost cutting, as the more important driver of durable growth.

Peer UpdatesEdwards Lifesciences (EW - Free Report) is maintaining substantial R&D investment to extend its structural-heart leadership and create multiple future growth platforms. In the second quarter, R&D expense was $279 million, or 16% of sales, up from $276 million a year earlier, with management expecting R&D to account for 17% of 2026 sales.

The spending is focused on expanding the structural-heart portfolio, including next-generation SAPIEN X4S, PASCAL with Capture Clarity, EVOQUE and SAPIEN M3. Edwards is also generating clinical evidence to support new indications, including moderate and asymptomatic aortic stenosis. Management views these investments as multiyear opportunities capable of supporting roughly 10% long-term annual sales growth and strengthening its competitive moat through differentiated technology, evidence and indication expansion.

Glaukos (GKOS - Free Report) is channeling its strong revenue growth into R&D and clinical development to expand its ophthalmology pipeline and reinforce its competitive advantage. CFO Alex Thurman noted that R&D increased $8 million sequentially in the second quarter, with management continuing to prioritize investment in clinical programs even as operating leverage improves.

The pipeline spans five novel therapeutic platforms, 13 publicly disclosed programs and additional undisclosed assets, including Phase IIb/III development of next-generation iDose TREX, Phase IIIb work on iDose TRIO, a corneal-health screening device, customized third-generation iLink therapy and other programs. Management said the objective is to maximize both near- and long-term top-line growth while supporting two transformational commercial drivers, iDose TR and Epioxa. This sustained clinical investment could create successive product cycles, expand treatment categories and reinforce Glaukos' differentiated technology moat.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 34.2% so far this year compared with a 7.3% decline of the industry.

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From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 32.64X, above the industry average. However, it is significantly lower than its five-year median of 68.4X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.

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The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Intuitive Surgical leased a 316,000-square-foot Penang site, with operations expected to start in 2028.The facility will make da Vinci instruments and electromechanical devices and create 1,200 jobs by 2032.ISRG sees Asia Pacific as a major growth market as robotic-assisted surgery adoption rises across the region. Intuitive Surgical (ISRG - Free Report) recently announced it will expand its manufacturing presence in Asia Pacific with a new facility in Penang, Malaysia, as the company looks to strengthen its ability to meet the rising demand for robotic-assisted surgery in the region. ISRG has entered into a lease agreement with Penang Development Corporation for a 316,000-square-foot manufacturing facility at Bandar Cassia Technology Park.

Per management, Asia Pacific represents a significant growth opportunity for Intuitive Surgical, given the rising adoption of robotic-assisted surgery across the region. The investment highlights the company’s long-term commitment to the region and should strengthen its ability to provide customers with innovative, high-quality and reliable products while potentially expanding access to robotic-assisted surgery.

Likely Trend of ISRG Stock Following the NewsFollowing the announcement, shares of ISRG gained 0.2% at yesterday’s close. Year to date, shares of the company have declined 31% compared with the industry’s 8.4% loss. However, the S&P 500 has risen 12% in the same timeframe.

The new Penang facility is a positive development for ISRG as it expands production capacity in a region with substantial long-term potential for robotic-assisted surgery. Increasing local manufacturing capabilities should position the company to better serve healthcare providers, support rising demand for da Vinci systems and instruments and strengthen its competitive position in Asia Pacific.

ISRG currently has a market capitalization of $137.90 billion.

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More on the NewsAsia Pacific remains an important growth market for Intuitive Surgical. Since entering Asia Pacific more than two decades ago, the company’s da Vinci surgical systems have enabled surgeons to treat more than 2.5 million patients across 13 markets.

The facility is expected to begin operations in 2028 and create approximately 1,200 highly skilled jobs by 2032. It will manufacture surgical instruments and electromechanical devices used with the da Vinci surgical system, expanding ISRG’s global manufacturing footprint and supporting the company’s growth across Asia Pacific.

Mark Brosius, executive vice president and chief Manufacturing and Supply Chain officer at ISRG, emphasized that the expansion is part of the company’s long-term strategy to strengthen its global manufacturing network while maintaining operational excellence. He added that the new facility will play an integral role in supporting the consistent delivery of high-quality and innovative products to customers and patients.

Penang chief minister Chow Kon Yeow said Intuitive’s investment underscores the company’s confidence in the region’s established industrial infrastructure, skilled workforce and manufacturing capabilities. The project will further strengthen Penang’s medical technology ecosystem and support its goal of becoming a leading MedTech hub in Southeast Asia.

ISRG has been witnessing continued growth in minimally invasive care globally, with its da Vinci system serving as a key driver. The company’s efforts to develop a broader robotic-assisted surgery ecosystem through technology, clinical education and collaboration with healthcare providers should further support adoption across Asia Pacific.

Industry Prospects Favoring the MarketGoing by the data provided by Precedence Research, the Asia Pacific surgical robots market is predicted to be valued at $1.29 billion in 2026 and is expected to witness a CAGR of 11.6% through 2035.

The growth will be primarily driven by the growing preference for minimally invasive procedures. The rise in the aging population, incidence of chronic diseases and government-backed hospital modernization programs in multiple Asian countries are boosting demand for surgical procedures, thereby driving demand for robot-assisted surgeries.

Other NewsRecently, ISRG ended the second quarter on a strong note, with earnings and revenues beating the Zacks Consensus Estimate. U.S. da Vinci procedure growth slowed to 12% in the second quarter from 14% in the first quarter, amid weaker elective procedures and uncertainty over ACA premium subsidies. Bariatric procedures declined at a high-single-digit rate due to growing GLP-1 adoption.

While Intuitive Surgical maintained its full-year procedure growth outlook, it did not raise guidance, citing tougher second-half comparisons. Concerns over the planned 2027 extension of instrument life could pressure recurring Instruments & Accessories revenues. However, strong da Vinci 5 adoption, rising SP and Ion procedures, broader ASC penetration, software and AI innovations, and international growth opportunities support the company’s long-term outlook.

ISRG’s Zacks Rank & Key PicksIntuitive Surgical currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.

COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.

Key Takeaways Intuitive Surgical rolled out the first phase of more than 100 planned da Vinci 5 software updates.My Intuitive renewals began in Q2, with no customers in the initial cohort opting out.Service revenues rose 21%, while revenue per da Vinci system increased 8%, partly due to da Vinci 5. Intuitive Surgical’s (ISRG - Free Report) software is increasingly becoming a core component of the da Vinci 5 value proposition, potentially extending the platform’s competitive moat beyond hardware. The company rolled out the first phase of more than 100 planned software updates during the second quarter, targeting telepresence, simulation-based training and Care Team workflow. Management also submitted multiple innovations for FDA 510(k) clearance, suggesting that the software roadmap is designed as an ongoing stream of capability enhancements rather than a one-time product launch.

The commercial significance is already evident in My Intuitive+, Intuitive Surgical’s integrated da Vinci 5 offering that combines telepresence, simulation, and AI-driven case insights. The company executed its first wave of My Intuitive+ renewals during the second quarter. Although the initial renewal cohort was small, no customer opted out, providing an early indication that customers see continuing value in the digital layer surrounding the robotic platform.

The roadmap also extends into practical workflow improvements. Three submitted features include tools designed to reduce communication between surgeons and care teams, improve multi-arm adjustments and introduce a digital ruler that allows surgeons to measure anatomy during procedures. Management said additional updates will focus on improving system efficiency and effectiveness, with further differentiated capabilities expected over the coming years.

This strategy could make da Vinci 5 increasingly difficult to evaluate purely as capital equipment. Continuous software enhancements can improve usability, efficiency and clinical capabilities after installation, encouraging customers to remain within the Intuitive ecosystem and supporting the company's broader recurring-revenue model. The second-quarter service revenues increased 21%, while service revenue per da Vinci system rose 8%, partly reflecting the higher mix of da Vinci 5 systems.

Peer UpdateFor competitors, the implication is significant — matching robotic hardware may not be enough. Intuitive Surgical is building a layered ecosystem spanning robotics, software, AI, training and workflow optimization. ISRG management believes these capabilities, supported by sustained R&D investment, can meaningfully differentiate its solutions and reduce total cost of care.

Stryker (SYK - Free Report) is also embedding digital capabilities into its Mako ecosystem to make robotic surgery more effective while creating a broader technology moat. Mako has evolved into a multispecialty platform spanning hip, knee, spine and shoulder, with more than 2.5 million procedures across 47 countries.

The company’s strategy increasingly links robotics with enabling technologies and procedural workflows, while the full commercial launch of Mako RPS adds a handheld option for surgeons and ASCs. Stryker is using clinical evidence and continuous product innovation to deepen adoption rather than relying solely on hardware placements. With record Mako installations and rising utilization, this integrated approach strengthens surgeon familiarity, builds procedural data advantages, and increases ecosystem stickiness, potentially making Mako harder for competitors to displace.

Zimmer Biomet (ZBH - Free Report) is building its robotic moat by combining ROSA with a broader technology-and-data ecosystem. The company delivered record capital sales in the second quarter, driven by ROSA with OptimiZe, TMINI and the next-generation ROSA Shoulder, while its Technology & Data, Bone Cement and Surgical category grew 21.5%.

Beyond robotics, Zimmer is integrating digital tools such as OrthoGrid, an AI-based navigation solution for direct anterior hip procedures that delivered its strongest quarter and is expected to accelerate. ROSA Shoulder further differentiates the platform through an improved interface and the ability to perform both anatomic and reverse procedures with humeral and glenoid resections. By combining robotics, AI navigation, data and differentiated workflows, Zimmer is building a broader technology ecosystem that can improve surgical precision while increasing customer engagement and competitive defensibility.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 31.1% so far this year compared with an 8.1% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 10.88X, above the industry average. But it is significantly lower than its five-year median of 15.78X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intuitive Surgical (NASDAQ:ISRG | ISRG Price Prediction) trades at $373.71, while the average Wall Street price target sits at $477.25. That leaves the stock roughly 28% below consensus, and Bernstein pegs fair value at $685, implying returns north of 83%.

Intuitive Surgical dominates the robotic-assisted surgery market with its da Vinci surgical system and Ion lung biopsy platform. It has an installed base of 11,710 da Vinci systems worldwide. Wall Street has treated it as a compounder for years, making the current gap between price and target notable.

How A Compounder Lost A Third Of Its Value ISRG is down 34.02% year to date and 21.17% over the past twelve months. The trigger was a slower guide, not a broken business. Full-year 2026 da Vinci procedure growth was set at 13.5% to 15.5%, a clear deceleration from the roughly 18% pace investors expected.

Tariffs compounded the damage. Instruments and accessories are manufactured in Mexico, endoscopes in Germany, and certain materials come from China. Management embedded a 1.0% revenue drag from tariffs into gross margin guidance and warned further escalation could materially hit results. HSBC downgraded the stock from Buy to Hold and cut its target from $604 to $391. A Class II recall of 11,113 da Vinci SP drapes added noise, and moderation in U.S. elective procedures tied to ACA subsidy expiration finished the decline.

Why The Bulls Are Still On Board Analysts remain bullish because the underlying business kept beating expectations through the selloff. Q2 2026 non-GAAP EPS came in at $2.80 versus a $2.50 consensus, revenue of $2.89 billion grew 18.5% year over year, marking the fifth consecutive quarterly beat. Non-GAAP gross margin expanded to 70.0% from 67.9%.

The bull thesis rests on the da Vinci 5 upgrade cycle. Placements hit 246 dV5 systems in Q2, and CFO Jamie Samath compared the trajectory to the Xi cycle, which “took about seven years before we got to the peak trade-in volumes.”. Add a growing recurring instruments base, $8.63 billion in cash, and an extended-use instrument program rolling out in 2027. The rating mix shows 7 analysts rate ISRG Strong Buy, 16 Buy, 9 Hold, and just 1 Sell.

Peers Held Up Better The medtech group softened in 2026, yet ISRG stands alone in drawdown depth. Its two closest scaled robotic peers held up far better, raising whether the market overcorrected on the leader.

Medtronic (NYSE:MDT) trades at $85.92, down just 9.03% YTD. Its Hugo robotic system cleared FDA for general surgery submission, but robotics is a small part of a diversified device portfolio. The Street target of $98.44 implies about 15% upside, with 18 Buys and 12 Holds.

Stryker (NYSE:SYK) sits at $337.43, off only 3.47% YTD after a Q2 beat driven by 9.0% organic growth and Mako robotic orthopedics. Its $381.50 target implies about 13% upside, with 23 Buys against 5 Holds.

The largest analyst-implied upside sits with Intuitive Surgical by a wide margin. Peers offer roughly half the implied return with far smaller drawdowns, suggesting ISRG’s punishment overshot its fundamental deterioration.

What The Tape Says Intuitive Surgical trades at $373.71 against an average analyst target of $477.25, implying roughly 28% upside from 33 covering analysts. The stock is down 34.02% year to date while the S&P 500 is up 12.71%, a spread of nearly 47 points against a former market darling.

Valuation still reflects that pedigree. Trailing P/E is 42 and forward P/E sits at 34, both premium to the broader medical device group. Bernstein’s $685 Street-high target is the outlier pinning the 83% figure in the headline, but consensus already argues the derating went too far.

The Case For And Against The bull case holds if the da Vinci 5 trade-in cycle mirrors the Xi ramp, tariff pressure caps near current guidance, and U.S. elective procedure growth stabilizes as ACA subsidy noise fades. In that scenario, the recurring instruments engine compounds, margins hold near 70%, and the stock reprices toward the Street’s $477.25 average within 12 to 18 months.

The bear case builds if tariffs escalate beyond the current 1.0% drag, Chinese domestic robotic competitors freeze that market, or GLP-1 pressure on bariatric procedures signals broader structural hits to surgical volume. A P/E of 42 leaves no room for error. On balance, the peer comparison makes the drawdown look excessive, but this story needs one more clean quarter before the tape trusts it again.

Contact [email protected] for any questions or corrections.

Key Takeaways ISRG is seeing procedure growth broaden beyond urology, led by U.S. general surgery and emerging specialties.Intuitive Surgical reported strong growth in cardiac, breast and benign procedures despite bariatric weakness.ISRG is investing in new instruments and lower-cost programs to support broader robotic surgery adoption. Intuitive Surgical (ISRG - Free Report) is steadily expanding its robotic-assisted surgery beyond its traditional strength in urology, with general surgery and emerging specialties becoming increasingly important growth drivers. Management reaffirmed that U.S. general surgery remains the primary contributor to procedure growth, supported by a 26% increase in after-hours procedures, highlighting broader hospital utilization and deeper penetration across routine surgical workflows.

The company's long-term growth story is being shaped by newer clinical applications. Cardiac procedures accelerated 39% year over year, while nipple-sparing mastectomy (NSM) procedures increased 43%, reflecting growing surgeon adoption despite both categories remaining in the early stages of commercialization. Intuitive Surgical is reinforcing these opportunities by investing in cardiac-specific instruments and expanding the clinical evidence base supporting NSM, laying the foundation for broader adoption over time.

Not every procedure category is moving in the same direction. Bariatric surgery remains a headwind, with U.S. da Vinci bariatric procedures declining at a high single-digit rate as rising GLP-1 drug adoption continues to reduce surgical demand. However, management emphasized that weakness in bariatrics is being offset by strength across other benign procedures.

Outside the United States, benign procedures now account for just over one-quarter of da Vinci volumes, with growth accelerating 37% during the quarter, underscoring the significant runway for robotic adoption in lower-acuity surgeries. The planned Extended Use Program, which will lower instrument costs for selected benign procedures beginning in 2027, is expected to further support adoption in cost-sensitive settings and geographies.

Intuitive Surgical's clinical momentum is becoming increasingly diversified. Growth across general surgery, cardiac, breast surgery, benign procedures and the expanding SP and Ion platforms demonstrates that the company's future is no longer dependent on urology alone. This broadening clinical footprint strengthens Intuitive Surgical's competitive positioning and provides multiple avenues for sustained procedure growth over the long term.

Peer UpdatesStryker (SYK - Free Report) is broadening the clinical reach of its Mako ecosystem by extending robotics across multiple orthopedic indications rather than relying solely on knee and hip arthroplasty. The company highlighted record first-quarter Mako installations and rising utilization globally, reflecting robust hospital demand. Mako Shoulder is scheduled for a full launch on the Mako 4 platform in mid-2026, opening a new upper-extremity indication. Stryker is also introducing the handheld Mako RPS system, targeting surgeons and ambulatory surgery centers seeking a lower-barrier entry into robotic surgery. Management believes these additions complement the core Mako franchise, expanding the addressable surgeon base and strengthening its orthopedic robotics leadership.

Zimmer Biomet (ZBH - Free Report) is expanding the clinical scope of its robotic portfolio through a broader technology ecosystem spanning knees, hips, shoulders and future autonomous robotics. Strong ROSA and TMINI sales, coupled with nearly 12% growth in its technology and data business, underscore rising adoption across orthopedic procedures.

The company is scaling ROSA Shoulder following positive surgeon feedback, with the platform supporting both anatomic and reverse shoulder arthroplasty while integrating seamlessly into the broader ROSA ecosystem. Zimmer Biomet is preparing to launch the semi-autonomous mBos robotic system after completing clinical enrollment, positioning robotics to address a wider range of orthopedic indications with enhanced precision, efficiency and workflow integration.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 37.7% so far this year compared with an 11.6% decline of the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 30.88X, above the industry average. But, it is significantly lower than its five-year median of 69.38X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intuitive Surgical (NASDAQ:ISRG | ISRG Price Prediction) trades at $356.83, while the average Wall Street price target sits at $484.40. That leaves roughly a 36% gap between current price and Street consensus.

Intuitive builds the da Vinci robotic surgery platform and the Ion lung biopsy system, dominating soft tissue surgical robotics. Wall Street has debated whether that moat holds amid tariffs, softer U.S. procedure growth, and da Vinci 5 margin questions.

Bernstein, the most bullish analyst on the name, targets $685, implying almost 92% upside from here.

The Selloff That Broke a Compounder ISRG has fallen 37% year to date, from $566.36 at the end of 2025 to today’s level. That drawdown well exceeds 30% while the underlying business kept growing.

Q2 2026 was a clean beat. Revenue came in at $2.89 billion, up 18.54% year over year, and non-GAAP EPS of $2.80 topped the $2.5037 consensus. It was the fifth consecutive quarter of beating estimates. Shares still dropped 11.25% the day after earnings.

The guide spooked investors. Management guided full-year da Vinci procedure growth to 13.5% to 15.5%, down from 18% in 2025. U.S. da Vinci growth decelerated from 14% in Q1 to 12% in Q2, with CEO Dave Rosa citing ACA premium dynamics, high-single-digit declines in bariatric cases from GLP-1 usage, and China tender softness. Tariff exposure across Mexico, Germany, and China manufacturing compressed the multiple hard.

Why Bernstein Still Sees a Double Bernstein maintains an Outperform rating and cut its target from $750 to $685 to account for near-term procedure volatility and multiple compression. Even after the trim, it remains the most optimistic shop on the Street. The thesis rests on three pillars: a da Vinci 5 upgrade cycle multiplier, recurring revenue durability, and an international monopolistic moat.

Q2 data supports each leg. Da Vinci 5 placements hit 246 of 468 total placements, with U.S. placements up 24% as customers upgrade from Xi. Recurring revenue was $2.47 billion, roughly 85% of the total. International procedures grew 21%, with Europe and Asia both at 20%. Non-GAAP gross margin expanded to 70.0%, aided by a $36 million tariff refund but still up meaningfully year over year.

Consensus remains constructive. Ratings break out to 22 Buy, 9 Hold, and 2 Sell, and CEO commentary has been consistently positive through recent quarters. The bull case ties recovery to procedure growth reacceleration in 2027 as deferred cases return, ongoing da Vinci 5 mix shift lifting system ASPs (already $1.6 million versus $1.5 million prior year), and the Extended Use Program on ENDORIST instruments broadening adoption in cost-constrained markets.

Peers Held Up While ISRG Slid This selloff is largely idiosyncratic. Nearest large-cap med device peers have declined far less.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Intuitive Surgical didn't make the cut. Grab the names FREE today.

Medtronic (NYSE:MDT) is down 10.83% year to date at $84.22, with its Hugo robotic surgery platform now FDA cleared and Cardiac Ablation growing 78%. Analyst posture skews Buy with modest single-digit implied upside to consensus.

Stryker (NYSE:SYK) sits at $336.74, off just 3.67% year to date after a Q1 cyber incident. The Mako orthopedic robotics platform and Inari vascular deal have kept analysts constructive, with Buy ratings dominant and mid-teens implied upside.

The largest analyst-implied upside in this peer group sits with ISRG by a wide margin. This is a single-name reset.

What the Numbers Actually Say At $356.83 against a consensus target of $484.40, implied upside runs roughly 36%. Bernstein’s $685 stretches that to nearly 92%.

ISRG is down 37% year to date and 28.04% over the past year, while the S&P 500 is up 8.38% year to date and 16.01% over 12 months. Shares trade at a P/E of roughly 39, compressed from 2025 premium multiples.

Cash on the balance sheet is $8.6 billion, and the company repurchased $379 million of stock in Q2 at an average price of $439. Management is buying above current levels.

The Verdict on a $130 Billion Reset The bull case for Intuitive Surgical holds if the procedure growth deceleration is a 2026 pothole rather than a new normal. Recovery runs through da Vinci 5 mix continuing to lift ASPs and service revenue, ACA-related patient deferrals unwinding as coverage stabilizes, and tariff impacts staying within the 100 basis points already baked into guidance. Recurring revenue at 85% of the total is a hard base to break.

The bear case takes over if U.S. procedure growth stalls in the low double digits, if China competition and pricing pressure escalate beyond current tender softness, or if further tariffs blow through management’s guardrails. A 39x P/E on a business growing procedures 13% to 15% leaves little room for another guide down.

On balance, lean constructive. The peer set remains committed to surgical robotics, the balance sheet is fortress, and management is repurchasing above current price. Bernstein’s $685 is aspirational, but consensus at $484 looks achievable if the 2027 comp resets even modestly favorably.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Intuitive Surgical didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Key Takeaways Intuitive Surgical kept full-year procedure growth guidance despite slower U.S. da Vinci procedures.ISRG expanded operating margin and raised gross margin outlook on cost cuts and manufacturing efficiencies.Intuitive Surgical's advanced AI software, robotics and international expansion will support long-term growth. Intuitive Surgical (ISRG - Free Report) continues to command a valuation premium over the medical technology industry, though that premium has narrowed significantly. The stock currently trades at 9.89X forward 12-month sales, its lowest level in the past 18 months compared with a historical median of 15.89X, while the industry trades at 3.77X. The compressed multiple reflects investor concerns over moderating U.S. procedure growth, but the company's latest results suggest its long-term competitive advantages remain intact.

The key overhang is slowing procedure growth. U.S. da Vinci procedures rose 12% in the second quarter, below recent trends, as management cited deferred benign surgeries due to changes in ACA premium subsidies and the law of large numbers. However, the company maintained its full-year procedure growth guidance of 13.5-15.5%, expecting results near the midpoint, indicating confidence that deferred demand will eventually return.

Meanwhile, profitability continues to strengthen. Second-quarter adjusted gross margin expanded 30 basis points (bps) to 70% and adjusted operating margin expanded 330 bps to 42%, supported by product cost reductions, operating leverage and robust adoption of da Vinci 5. Management also raised its full-year gross margin outlook by 50 bps to 68-69%, highlighting the ability of the business to offset inflationary pressures through scale and manufacturing efficiencies.

Beyond procedures, Intuitive Surgical is widening its competitive moat through software and ecosystem expansion. The company rolled out the first wave of more than 100 planned da Vinci 5 software updates, renewed its My Intuitive+ AI-enabled digital platform without customer opt-outs and continues to invest heavily in AI and workflow automation. Product innovation remains robust with continued momentum in SP and Ion, expansion of XiR into cost-sensitive markets, development of a next-generation GI robotic platform and new cardiac-specific technologies.

Geographic diversification also provides an important growth lever. While China remains challenging, strong momentum in Europe, India, Japan and other international markets, coupled with favorable reimbursement changes and broader robotic adoption, supports long-term expansion. Investments in new indications, higher-value software offerings and next-generation robotics reinforce Intuitive Surgical's durable growth profile. Although near-term procedure moderation may keep valuation multiples below historical peaks, the company's innovation engine, recurring revenue model and expanding global footprint justify its continued premium over industry peers.

Peer UpdatesGlaukos (GKOS - Free Report) continues to command a premium valuation, trading at 12.54X forward sales, well above its five-year median of 9.9X and the industry's 3.77X, reflecting investors' confidence in its ability to create entirely new ophthalmology markets. The first quarter reinforced this narrative with 41% revenue growth, driven by rapid adoption of iDose TR, a raised full-year revenue outlook and the commercial launch of Epioxa. Management believes Epioxa can become another transformational growth platform. Beyond these launches, an expanding clinical pipeline, growing reimbursement support, international glaucoma expansion and a disciplined focus on operating leverage strengthen the long-term investment case. While execution risks around Epioxa reimbursement and competitive pressures remain, sustained innovation, multiple growth drivers and a diversified ophthalmology portfolio support Glaukos' ability to justify its premium valuation over time.

IDEXX Laboratories (IDXX - Free Report) trades at 8.81x forward sales, below its five-year median of 10.14x but still well above the industry's 3.77x, reflecting its durable competitive advantages in veterinary diagnostics. The first quarter demonstrated why investors continue to assign a premium, as the company delivered 14% reported revenue growth, expanded operating margins and raised full-year guidance despite declining clinic visits. Growth continues to be driven by higher diagnostics utilization, premium instrument placements, expanding recurring revenues, cloud-based software adoption and AI-enabled innovations such as inVue Dx and Cancer Dx. High customer retention, increasing international penetration and continued software integration further reinforce recurring revenue visibility. Although softer wellness visits remain a near-term headwind, IDEXX's innovation-led ecosystem, pricing power and expanding diagnostics penetration position the company to sustain a premium valuation relative to peers over the long run.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 38.2% so far this year compared with a 16.3% decline for the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-sales of 9.89X, above the industry average. It is trading close to its five-year low of 9.66X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 17.3% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The robotic surgery company said U.S. procedure growth moderated relative to recent trends and its expectations at the start of the year, driven mainly by procedures that patients can defer.

China Competition And International HeadwindsDuring the earnings call, CEO David Rosa said the operating environment in China remains difficult.

“In China, the environment remains challenging. We continue to see lower tender activity, increased domestic robotic competition, and policy-driven pricing pressure.”

Rosa added that the company continues to navigate policy changes, including charge code revisions and China’s 15th Five-Year Plan quota process.

“We continue to operate through a dynamic policy environment, including charge code changes and the 15th Five-Year Plan quota process. We are engaging with provincial governments on the charge code policy and are progressing through the green channel process for both SP and Da Vinci 5. When cleared, these platforms will bring additional differentiated capabilities to Chinese customers and their patients.”

In Japan, Rosa noted that new reimbursement policies supporting robotic surgery took effect on June 1, expanding coverage for additional procedures and providing incentives for higher utilization.

US Procedure Growth SlowsChief Financial Officer Jamie Samath said the expiration of enhanced Affordable Care Act premium subsidies affected some patients and contributed to softer procedure growth.

“Patients impacted by the expiration of subsidies for ACA Enhanced premiums. Looking at benign procedures, a subset of which can be deferred, we saw a slight moderation in procedure growth rate that started in Q1. U.S. da Vinci Bariatric cases continued to feel the impact of rising GLP-1 usage, declining high single digits during the quarter.”

Analysts Cut Price ForecastsWilliam Blair said Intuitive Surgical’s more than 10% after-hours decline reflects elevated investor expectations rather than a deterioration in the company’s long-term outlook.

The brokerage said maintaining, rather than raising, its 2026 procedure growth guidance disappointed investors given the stock’s premium valuation.

It also flagged several near-term headwinds, including weaker Affordable Care Act-related procedure volumes, intensifying competition in China, slowing growth as the business scales, and pricing initiatives that could heighten competitive concerns.

William Blair said those factors may create uncertainty around earnings and limit upside over the next few quarters. However, it maintained its Outperform rating, citing Intuitive Surgical’s industry-leading earnings growth profile. The firm added that greater clarity on these issues, along with continued execution, could support the stock after several quarters.

Piper Sandler said U.S. procedure growth slowed by about 200 basis points sequentially and fell short of Wall Street expectations. The firm also noted that maintaining full-year procedure growth guidance of 13.5% to 15.5% disappointed investors. Analyst Adam Maeder reiterated an Overweight rating but lowered the price forecast to $470 from $580.

Intuitive Surgical Price ActionISRG Price Action: Intuitive Surgical shares were down 13.14% at $349.45 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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Key Takeaways Intuitive Surgical is relying on technology, clinical evidence and its ecosystem to defend market leadership.ISRG uses da Vinci 5 and refurbished XiR to serve different budgets while protecting premium positioning.Intuitive Surgical emphasizes value, training, AI tools and services instead of competing on price. Intuitive Surgical (ISRG - Free Report) is navigating an increasingly competitive robotic surgery landscape as domestic Chinese manufacturers, European innovators and large global medtech companies expand their presence. Management acknowledged persistent competitive and pricing pressures in China, particularly amid lower tender activity and policy-driven pricing. The company, however, remains confident that it can preserve its leadership through differentiated technology, strong clinical evidence and a comprehensive ecosystem, rather than competing solely on price.

A key pillar of Intuitive Surgical's strategy is a tiered product portfolio that addresses varying customer budgets without diluting its premium positioning. The flagship da Vinci 5 targets hospitals seeking advanced capabilities such as Force Feedback, AI-enabled digital features and higher utilization, while the refurbished Xi (XiR) platform serves cost-sensitive markets, particularly outside the United States.

Management believes XiR offers a compelling value proposition because customers receive access to the full Intuitive Surgical ecosystem — including instruments, software, services and training — at a more affordable price point. This segmentation allows the company to compete across multiple price tiers while protecting margins on its latest-generation platform.

Rather than engaging in price wars, Intuitive Surgical continues to focus on value-based selling. Management said customer discussions increasingly focus on the overall value of a robotic surgery program — including improved patient outcomes, greater procedural efficiency, higher utilization and expansion of minimally invasive surgery — rather than the upfront purchase price of a robot. The company is also tailoring pricing and commercial strategies by geography while working with policymakers to strengthen reimbursement frameworks and demonstrate long-term clinical and economic benefits.

Perhaps Intuitive Surgical's strongest competitive moat remains its ecosystem. Beyond a large installed base, the company offers integrated surgeon training, digital services through My Intuitive+, telepresence capabilities, clinical evidence generation and AI-driven innovations powered by real-world surgical data. Management believes this combination of technology, outcomes data, service infrastructure and customer support creates a durable competitive advantage that will be difficult for newer entrants to replicate as global competition intensifies.

Peer UpdatesGlobus Medical (GMED - Free Report) is defending its position in robotic spine surgery by combining differentiated technology with a broader procedural ecosystem rather than competing on hardware alone. Management emphasized that ExcelsiusGPS continues to benefit from its ground-up design, navigation-based workflow, ease of use and proven reliability across nearly 130,000 robotic procedures. The company stated that newer competing systems are yet to match its accuracy and workflow efficiency.

GMED is also strengthening its moat through robotics pull-through, flexible leasing and rental models that expand placements while driving recurring implant revenues. Integration of patient-specific implants, navigation, robotics and surgical intelligence into a closed-loop ecosystem further differentiates Globus Medical, while aggressive surgeon recruitment and cross-selling help capture market share despite intensifying competition from Medtronic and other entrants.

Stereotaxis (STXS - Free Report) is responding to intensifying competition by transforming itself from a single-product robotics company into a comprehensive endovascular robotics platform. Rather than relying on its legacy robotic system, the company has launched GenesisX, MAGiC robotic ablation catheters and the Synchrony digital surgery cockpit, reducing its historical dependence on Johnson & Johnson while expanding recurring revenue opportunities.

Management believes GenesisX's ability to operate in existing catheter labs without construction significantly broadens its addressable market. At the same time, investments in AI, automation, wireless robotic platforms and the Robocath acquisition position Stereotaxis to compete across electrophysiology, neurovascular and cardiovascular interventions. By building an integrated ecosystem of robotics, proprietary devices and digital intelligence, the company aims to create a differentiated long-term competitive position despite growing global competition.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 32.9% so far this year compared with a 13% decline for the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 34.18X, above the industry average. But, it is still lower than its five-year median of 69.50X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 16.6% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intuitive Surgical's (ISRG 6.86%) stock is having a tough year. The stock has fallen 30% from its 52-week high, with a decline of more than 25% in the first seven months or so of 2026. There are multiple reasons for this drop, but the biggest issue isn't the company's business. Here's why this sell-off may not be as scary as it seems.

Intuitive Surgical has yet another big drawdown If you look back to Intuitive Surgical's initial public offering, it has suffered through eight drawdowns of 30% or more. So the current decline isn't really unusual for the growth-oriented stock.

Image source: Getty Images.

In fact, the medical device maker's recent performance has been pretty solid. In the fourth quarter of 2025, its installed base of surgical robots increased 12% year over year. In the first quarter of 2026, the installed base was larger 12% year over year, too. There hasn't been a dramatic shift in direction here.

That said, the real story isn't the number of new da Vinci surgical systems it sells. Robot sales only account for around 25% of the company's revenues. The rest comes from the sale of services, instruments, and accessories. These are annuity-like income streams that will continue to flow as long as the da Vinci robots that support them are in use. It is an attractive growth story, with each new da Vinci robot building an ever stronger income stream from selling what amounts to parts and services.

The big problem, and a smaller one The most notable issue for Intuitive Surgical's stock price is really investor perception. Even after the dramatic drawdown, the stock's price-to-earnings ratio remains lofty at 50x. What's shocking is that this figure is well below the five-year average of 69x. Over the past five years, the P/E has reached as high as 84x. Investors have a history of pricing in a lot of good news here.

With such a lofty P/E ratio, it doesn't take much of a shift in investor sentiment to cause a sizable stock pullback. So far, after each big pullback, however, the stock has eventually gone on to even higher highs. That doesn't mean that pattern will repeat this time around, but it does suggest growth investors who have been watching from the sidelines should take a second look at what might be a wish-list stock.

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The deeper issue here is that Intuitive Surgical is no longer the leader it once was. It helped create the surgical robotics market and remains one of the industry's most important players. But there are new, formidable competitors to consider, including Medtronic (MDT 5.11%), among others. That could make it harder for Intuitive Surgical to sell its robots in the future, even if the market is large enough to support more than one surgical robotic system. Still, hospitals that have bought a da Vinci system aren't going to suddenly stop using it just because other surgical robots are on the market.

Pay attention to new da Vinci placements, but remember the real flywheel When Intuitive Surgical reports second-quarter earnings, investors should pay close attention to the number of da Vinci systems it has in place. A dramatic slowdown in growth would be worrying and could further compress the stock's valuation. However, the story is much more robust than just the sale of robots, given that parts and services are the main drivers of revenues.

That's why you'll also want to look at the number of surgeries performed with a da Vinci system. The company entered 2026 expecting that figure to rise between 13% and 15%, down from 18% in 2025. However, the first quarter was above the target range at 17%, suggesting that Intuitive Surgical is still a fast-growing company even if investors are less excited about the future than they were not too long ago. And even if the full-year number drops to 13%, it will hardly suggest that Intuitive Surgical's business model is broken.

Intuitive Surgical, Inc. (NASDAQ:ISRG) will release its second quarter earnings report after the closing bell on Thursday, July 16.

Analysts expect the Sunnyvale, California-based company to report quarterly earnings of $2.50 per share, up from $2.19 per share in the year-ago period. The consensus estimate for Intuitive Surgical’s quarterly revenue is $2.82 billion. It reported $2.44 billion last year, according to Benzinga Pro.

On May 28, Intuitive announced the promotion of global senior vice president of Intuitive’s endoluminal business Taylor Patton to chief commercial and marketing officer.

Intuitive Surgical shares fell 1.2% to close at $406.78 on Friday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying ISRG stock? Here’s what analysts think:

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Key Takeaways ISRG sees about 300,000 U.S. appendectomies as an addressable market still being evaluated.Intuitive Surgical said early analyses showed da Vinci outperformed laparoscopy on multiple measures.ISRG expects appendectomy to lift procedure volume, though lower reimbursement may weigh on revenue mix. Although the appendectomy is in its early stages, it is emerging as one of the newest growth avenues for Intuitive Surgical’s (ISRG - Free Report) robotic surgery franchise. During the first quarter of 2026, the company highlighted continued strength in U.S. general surgery, with cholecystectomy and appendectomy procedures collectively growing 31%.

The growth was primarily supported by increasing use of da Vinci systems during after-hours and weekend surgeries. Management also noted that appendectomy represents an addressable market of roughly 300,000 annual procedures in the United States, though it is still evaluating what proportion of that market is realistically suitable for robotic surgery.

A key catalyst for broader adoption is the emergence of encouraging clinical evidence. Management stated that several institution-level analyses showed da Vinci surgery delivering superior outcomes across multiple functional measures compared with conventional laparoscopy. While these findings remain preliminary and require validation through larger clinical studies, they provide an important foundation for expanding robotic use in a procedure traditionally dominated by laparoscopic techniques.

However, reimbursement remains a meaningful constraint. Intuitive Surgical acknowledged that appendectomy is a relatively quick procedure with comparatively low reimbursement, limiting the immediate economic incentive for hospitals to adopt robotics broadly. The company believes stronger clinical evidence will be necessary before robotic appendectomy gains wider acceptance despite its promising outcomes.

From an investment perspective, appendectomy is likely to drive higher procedure volume, but the impact on margins may not be material in the near term. Higher procedure counts could increase utilization of Intuitive Surgical’s installed base, particularly during evenings and weekends, supporting recurring instrument and accessory revenues.

The lower reimbursement profile suggests the procedure may generate lower revenue per case than more complex robotic surgeries, creating a potential mix headwind. Even so, successful expansion into high-volume general surgery procedures aligns with Intuitive Surgical’s long-term strategy of broadening robotic adoption beyond its traditional specialties, reinforcing sustainable procedure growth over time.

Peer UpdatesZimmer Biomet (ZBH - Free Report) is expanding its robotic surgery opportunity by broadening both procedural indications and platform capabilities rather than relying solely on knee arthroplasty. The company has fully commercialized ROSA Shoulder, enabling robotic assistance for both anatomic and reverse shoulder replacements through glenoid reaming and humeral resection. The company is already developing a second-generation system with tighter integration into the broader ROSA digital ecosystem.

Beyond shoulders, Zimmer is preparing the semi-autonomous mBos robotic platform for a 2027 launch, positioning it as a faster, more accurate and easier-to-use system that could democratize robotic orthopedics across additional procedures. Coupled with investments in more than 200 robotic clinical specialists and continued growth of ROSA and TMINI, the company is building a multi-platform robotics portfolio designed to unlock new procedure categories and expand its addressable market.

Stryker (SYK - Free Report) is widening Mako's growth runway by transforming the platform from a knee-and-hip robot into a multifunctional orthopedic ecosystem. Following record first-quarter Mako installations, the company plans a full Mako 4 launch for shoulder surgery in mid-2026 while adding advanced hip and revision hip procedures that simplify technically demanding operations.

Management believes these new indications will increase robot utilization and ultimately drive demand for additional systems as hospitals require greater robotic capacity. Stryker is also targeting surgeons who have been hesitant to adopt full robotics through the new Mako RPS handheld system, particularly in ambulatory surgery centers, thereby expanding its customer base beyond traditional Mako users. The company indicated that more robotic indications are under development, reinforcing its strategy of creating new market opportunities through continuous procedural expansion rather than relying only on implant growth.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 23.6% so far this year compared with a 12.4% decline of the industry.

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From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 39.08X, above the industry average. But, it is still lower than its five-year median of 69.80X. ISRG carries a Value Score of D.

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The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 16.6% rise from the year-ago period’s level.

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The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways ISRG posted 23% revenue growth in Q1 2026, exceeding 17% procedure growth on pricing strength.ISRG cited SAGES data showing da Vinci Force Feedback lowered tissue force during surgery.ISRG is expanding AI and digital tools to strengthen workflow, automation and clinical value. Intuitive Surgical’s (ISRG - Free Report) long-term competitive advantage increasingly rests on its “Quintuple Aim” strategy, a framework centered on delivering better clinical outcomes, improved patient experience, enhanced care team efficiency, lower total cost of care, and broader access to treatment.

Management continues to position this strategy as the foundation behind the company’s premium pricing, particularly as the adoption of its newest da Vinci 5 platform accelerates. In the first quarter of 2026, management highlighted that revenue growth of 23% outpaced procedure growth of 17%, reflecting what executives described as “innovation-led revenue growth” driven by differentiated product capabilities and accretive pricing.

The pricing premium appears increasingly supported by measurable clinical evidence. Recent clinical abstracts presented at the SAGES conference demonstrated lower tissue force during procedures using da Vinci Force Feedback instrumentation, reinforcing management’s belief that greater precision can improve surgical outcomes. Similarly, the company emphasized emerging clinical evidence showing improved appendectomy outcomes compared with traditional laparoscopy, supporting broader procedural adoption.

The Quintuple Aim strategy is also deeply tied to Intuitive Surgical’s expanding digital and AI ecosystem. By leveraging surgical video, force data, kinematics and connected EMR integration, the company aims to improve workflow optimization, anatomy identification and future automation capabilities, creating a differentiated ecosystem that competitors may struggle to replicate.

However, long-term pricing power ultimately depends on maintaining superior clinical value. As robotic surgery competition intensifies globally, particularly from lower-cost entrants in China and Europe, Intuitive Surgical faces the risk that competitors could narrow the outcome gap while offering more affordable alternatives. For now, ISRG’s extensive clinical evidence, technology leadership and integrated ecosystem continue to justify its premium positioning.

Peer UpdatesEdwards Lifesciences (EW - Free Report) continues to support premium pricing through its strong clinical differentiation, long-term evidence generation, and technological leadership in structural heart therapies. In the first quarter of 2026, Edwards reported 12.7% sales growth, driven largely by robust demand for its SAPIEN TAVR platform, where average selling prices remained stable despite competitive pressure.

A major factor supporting premium pricing is the company’s unmatched clinical evidence base, including 7-year PARTNER 3 and 10-year PARTNER II durability data, which management said continues to reinforce physician confidence in SAPIEN’s long-term valve performance.

Premium pricing benefits from Edwards Lifesciences’ differentiated portfolio across TAVR, EVOQUE, PASCAL, and SAPIEN M3, supported by continued innovation, expanding indications, and strong physician adoption. The company’s ability to deliver superior clinical outcomes and maintain leadership in structural heart therapies continues to justify its pricing power globally.

Glaukos (GKOS - Free Report) is maintaining premium pricing through innovative ophthalmology therapies, backed by differentiated clinical outcomes, expanding reimbursement coverage, and first-mover advantage in new treatment categories. In the first quarter, Glaukos posted record sales growth of 41%, supported by strong adoption of iDose TR, which generated approximately $54 million in quarterly sales.

Premium pricing strength is primarily driven by 22 peer-reviewed clinical publications demonstrating strong efficacy, safety, and durability, giving physicians confidence in the product’s long-term therapeutic value. The company is further strengthening pricing power through Epioxa, a novel incision-free keratoconus treatment designed to improve patient experience, reduce procedural pain, and deliver meaningful clinical outcomes.

Expanding payer coverage, including access to more than 100 million covered commercial lives and new CMS reimbursement pathways, reinforces Glaukos’ ability to command premium pricing while building long-term market leadership in interventional ophthalmology.

ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 28.5% so far this year compared with a 14.1% decline of the industry.

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From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 36.64X, above the industry average. But, it is still lower than its five-year median of 69.93X. ISRG carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 16.6% rise from the year-ago period’s level.

Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.