Track market-moving stories before they get noisy

Cadinha and Co. LLC decreased its stake in shares of Intuitive Surgical, Inc. (NASDAQ: ISRG) by 44.2% during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 28,413 shares of the medical equipment provider's stock after selling 22,531 shares during the

Intuitive Surgical (NASDAQ:ISRG – Get Free Report)‘s stock had its “buy” rating reiterated by stock analysts at BTIG Research in a research note issued on Wednesday, Benzinga reports. They currently have a $454.00 target price on the medical equipment provider’s stock. BTIG Research‘s price objective indicates a potential upside of 4.62% from the stock’s current price.

Other analysts have also issued reports about the stock. Leerink Partners cut their target price on shares of Intuitive Surgical from $573.00 to $454.00 and set an “outperform” rating for the company in a research note on Friday, July 17th. Oppenheimer reaffirmed an “outperform” rating and set a $500.00 price objective on shares of Intuitive Surgical in a research report on Wednesday. JPMorgan Chase & Co. cut their price target on shares of Intuitive Surgical from $550.00 to $450.00 and set an “overweight” rating on the stock in a report on Friday, July 17th. Truist Financial cut their target price on Intuitive Surgical from $580.00 to $510.00 and set a “buy” rating on the stock in a report on Thursday, July 16th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Intuitive Surgical in a report on Friday, August 14th. Twenty-five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $500.13.

Get Our Latest Research Report on ISRG

Intuitive Surgical Stock Performance Shares of ISRG opened at $433.95 on Wednesday. Intuitive Surgical has a one year low of $328.57 and a one year high of $603.88. The stock’s fifty day moving average is $393.50 and its 200-day moving average is $408.89. The firm has a market capitalization of $153.30 billion, a price-to-earnings ratio of 52.18, a price-to-earnings-growth ratio of 3.30 and a beta of 1.46. Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last released its quarterly earnings results on Tuesday, October 20th. The medical equipment provider reported $3.00 EPS for the quarter, topping analysts’ consensus estimates of $2.65 by $0.35. Intuitive Surgical had a net margin of 25.54% and a return on equity of 17.70%. The company had revenue of $3.05 billion for the quarter, compared to the consensus estimate of $2.91 billion. During the same period in the previous year, the firm earned $2.40 EPS. Intuitive Surgical’s revenue was up 21.7% on a year-over-year basis. Analysts forecast that Intuitive Surgical will post 8.87 EPS for the current fiscal year.

Insider Activity In other Intuitive Surgical news, VP Fredrik Widman sold 1,089 shares of Intuitive Surgical stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $374.44, for a total transaction of $407,765.16. Following the completion of the sale, the vice president owned 1,026 shares of the company’s stock, valued at approximately $384,175.44. The trade was a 51.49% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy L. Ladd sold 72 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $393.10, for a total value of $28,303.20. Following the completion of the transaction, the director directly owned 179 shares in the company, valued at $70,364.90. The trade was a 28.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 12,370 shares of company stock worth $4,891,989. 0.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows A number of institutional investors and hedge funds have recently added to or reduced their stakes in ISRG. Plato Investment Management Ltd purchased a new position in Intuitive Surgical in the 2nd quarter worth approximately $4,315,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Intuitive Surgical during the 2nd quarter valued at about $14,316,000. Hikari Power Ltd bought a new stake in Intuitive Surgical in the second quarter worth $5,619,000. Nykredit A S bought a new position in shares of Intuitive Surgical during the second quarter valued at about $48,464,000. Finally, NewEdge Advisors LLC increased its holdings in shares of Intuitive Surgical by 19.1% in the second quarter. NewEdge Advisors LLC now owns 50,825 shares of the medical equipment provider’s stock worth $20,212,000 after buying an additional 8,142 shares during the period. 83.64% of the stock is owned by institutional investors and hedge funds.

Intuitive Surgical News Summary Here are the key news stories impacting Intuitive Surgical this week:

Positive Sentiment: Strong quarterly execution: Q3 revenue increased 21.7% year over year to $3.05 billion, while adjusted EPS of $3.00 exceeded consensus estimates. Worldwide procedures grew approximately 15%, and da Vinci system placements rose to 546 from 427 a year earlier. Intuitive Surgical’s Q3 Earnings Beat Estimates on Strong System Sales Positive Sentiment: International growth and adoption remain attractive: Management highlighted continued global expansion, with Ion procedures increasing about 31% and total procedure volume maintaining double-digit growth. Lower instrument costs and longer instrument life are intended to broaden robotic-surgery adoption over time. Intuitive Surgical Earnings Call Highlights Global Growth Positive Sentiment: Several analysts remain bullish: Piper Sandler maintained its Buy rating, while JPMorgan raised its target to $475 and BofA kept a $470 target. Other firms reiterated positive ratings, supporting the long-term growth thesis. Piper Sandler Keeps Their Buy Rating on Intuitive Surgical Neutral Sentiment: Valuation raises the bar: With a P/E ratio above 50, investors appear to require exceptionally strong growth. Solid results therefore produced a muted reaction because expectations were already elevated. Intuitive Surgical Stock Faces a Q3 Earnings Valuation Reality Check Negative Sentiment: $450 million antitrust settlement charge: The proposed settlement reduced GAAP net income to $523 million, or $1.49 per diluted share, from $704 million a year earlier. Court approval is still required, adding uncertainty. Intuitive Surgical Reports Q3 2026 Earnings Impacted by $450M Antitrust Settlement Negative Sentiment: Growth outlook and margins concern investors: Intuitive narrowed 2026 da Vinci procedure-growth guidance to 14%–15%, cited slower U.S. momentum, and expects pricing and extended-use initiatives to reduce revenue per procedure by roughly 3%–5%. Intuitive Narrows 2026 Procedure Growth Outlook (Get Free Report)

Intuitive Surgical, Inc develops and manufactures robotic-assisted systems and related technologies for minimally invasive surgery. Its products are designed to help surgeons perform procedures through small incisions while providing enhanced visualization, precision and control. The company’s primary platform is the da Vinci Surgical System, which is used across a range of specialties, including urology, gynecology, general surgery, cardiothoracic surgery and other procedures.

The company also offers the Ion endoluminal system, which is designed to support minimally invasive lung biopsy procedures.

See Also Five stocks we like better than Intuitive Surgical Meta Bounces Back in Q3, But the Bigger Test Comes in 2027 There’s a New Q in Town: Invesco’s ETF Targets International Innovators Boarding Now—GE Aerospace’s Earnings Beat Comes With a Catch AI Spending Is Surging—But Which Stocks Still Win if It Slows Down?

Receive News & Ratings for Intuitive Surgical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Intuitive Surgical and related companies with MarketBeat.com's FREE daily email newsletter.

Intuitive Surgical, Inc. (ISRG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ISRG crossed above the 200-day moving average, suggesting a long-term bullish trend.

3.34K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways ISRG's Q3 earnings call outlines pricing cuts that could reduce instrument revenue per procedure by 3%-5%.ISRG narrows 2026 procedure growth guidance to 14%-15% and raises its gross margin outlook to 68.7%-69.3%.U.S. da Vinci procedure growth slowed to 10%, while international placements jumped 29% to 211 systems.
Intuitive Surgical, Inc. (ISRG - Free Report) used its third-quarter 2026 earnings call to outline instrument pricing reductions aimed at expanding robotic surgery adoption, particularly in cost-sensitive benign procedures.

Management also addressed slowing U.S. procedure growth, international expansion and product innovation while raising its gross margin outlook. The discussion emphasized balancing near-term pricing pressure with longer-term procedure opportunities.

ISRG Details Instrument Pricing ChangesCFO Jamie Samath said planned pricing actions, alongside mandated reductions in China, will lower da Vinci instruments and accessories (I&A) revenue per procedure by approximately 3% to 5% on a constant-mix basis once fully implemented.

Beginning in 2027, Intuitive Surgical plans to extend instrument useful lives and introduce volume-based pricing. China's reductions begin in November 2026, while broader implementation will progress throughout 2027.

Responding to JPMorgan's question about pricing elasticity, Samath expressed confidence that lower costs would encourage adoption. He expects modest margin pressure, with ongoing cost-reduction initiatives providing offsets.

Intuitive Surgical Narrows Its 2026 Procedure OutlookInvestor Relations Head Daniel Connally narrowed projected worldwide da Vinci procedure growth to 14%-15% for 2026, compared with the previous 13.5%-15.5% range. Management expects growth near the midpoint.

The company raised its non-GAAP gross margin outlook to 68.7%-69.3% from 68%-69%. The updated range incorporates an estimated 90-basis-point tariff impact.

Non-GAAP operating expense growth expectations remained unchanged at 11%-13%. Connally identified U.S. insurance-related uncertainty and competitive pressure in China among the factors influencing procedure expectations.

ISRG Addresses Slower U.S. Procedure GrowthU.S. da Vinci procedures increased 10%, compared with 16% growth in the year-earlier quarter. International da Vinci procedures grew 20%, supporting approximately 14% worldwide growth.

Responding to Wells Fargo's concerns about U.S. momentum, CEO David Rosa emphasized expanding adoption across benign general surgery. He highlighted clinical evidence, hospital economics and increased system availability as important drivers.

Samath identified ambulatory surgery centers (ASCs), additional surgical capacity and emerging procedures as priorities. The company placed 18 systems at U.S. ASCs during the quarter, including 15 XiR systems.

Intuitive Surgical Expands Its International FootprintInternational da Vinci placements increased 29% to 211 systems. Europe accounted for 115 placements, up 83%, while Asian placements increased 30% to 78 systems.

Rosa highlighted India's 42% procedure growth and improving trends in Japan. He also emphasized international adoption of benign procedures, supported by regulatory clearances, reimbursement and clinical evidence.

Samath reported 41% international benign procedure growth, accelerating from 37% in the preceding quarter. Management plans to expand into additional countries during 2027.

ISRG Advances Robotics and AI DevelopmentRosa highlighted expanding da Vinci 5 adoption, with more than 2,000 systems installed worldwide. The company also continued developing single-port instrumentation and broader surgical indications.

Management discussed voice-activated controls, automated arm movements and advanced visualization capabilities. Rosa characterized AI-controlled surgical motion as an early-stage opportunity requiring regulatory and clinical confidence.

On the Ion platform, development priorities include integrated endobronchial ultrasound and rapid on-site cytology. Rosa expects these technologies to improve diagnostic workflows and increase revenue per procedure.

Intuitive Surgical Discusses Q3 Margins and Capital AllocationISRG’s third-quarter 2026 revenues reached $3.05 billion, beating the Zacks Consensus Estimate of $2.88 billion. Non-GAAP earnings of $3 per share also surpassed the $2.61 consensus estimate.

Non-GAAP gross margin reached 69.9%, including a one-time tariff refund benefit. Samath attributed underlying improvement primarily to product cost reductions and operating leverage.

During the quarter, Intuitive Surgical repurchased $2.94 billion in shares. GAAP earnings reflected a $450 million antitrust settlement charge, with the agreement remaining subject to court approval.

ISRG Maintains Its Long-Term Investment PrioritiesAddressing Barclays' margin question, Samath reiterated a longer-term operating margin range of 35%-40%, while emphasizing opportunities to reinvest profitability into innovation and expansion.

Management's broader focus remains on improving surgical access through differentiated platforms, clinical evidence and customer economics. Pricing adjustments and continued research investment are central to that approach.

Intuitive Surgical's Zacks Rank & Style ScoresIntuitive Surgical currently carries a Zacks Rank #2 (Buy), indicating favorable near-term potential under Zacks' earnings estimate revision framework. Its Growth Score of B and Momentum Score of B reinforce its relative attractiveness in those investment styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, the Value Score of D indicates less favorable valuation characteristics, while the combined VGM Score of C reflects a more moderate overall profile. The Zacks Rank can change as analysts revise earnings estimates following the reported results.

Intuitive Surgical Inc (NASDAQ:ISRG) on Tuesday posted better-than-expected financial results for the third quarter.

For the quarter ended September 2026, Intuitive Surgical, Inc. (ISRG - Free Report) reported revenue of $3.05 billion, up 21.7% over the same period last year. EPS came in at $3.00, compared to $2.40 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.88 billion, representing a surprise of +5.84%. The company delivered an EPS surprise of +14.94%, with the consensus EPS estimate being $2.61.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Intuitive Surgical performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total System Units Placed - Total Company: 546 versus the four-analyst average estimate of 475.Da Vinci Surgical System Installed Base: 12,094 versus 12,080 estimated by three analysts on average.Revenue- Product (Instruments and accessories and Systems): $2.57 billion compared to the $2.38 billion average estimate based on five analysts. The reported number represents a change of +21.7% year over year.Revenue- Services: $482.2 million versus $457.34 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +21.8% change.Revenue- Systems: $769.1 million compared to the $650.13 million average estimate based on five analysts. The reported number represents a change of +30.3% year over year.Revenue- Instruments and accessories: $1.8 billion versus the five-analyst average estimate of $1.73 billion. The reported number represents a year-over-year change of +18.3%.Gross Profit- Service: $315.5 million versus the two-analyst average estimate of $303.04 million.Gross Profit- Product: $1.77 billion versus the two-analyst average estimate of $1.57 billion.View all Key Company Metrics for Intuitive Surgical here>>>

Shares of Intuitive Surgical have returned +7.9% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Intuitive Surgical, Inc. (ISRG) Q3 2026 Earnings Call Transcript

Intuitive Surgical beat quarterly estimates but disclosed an antitrust settlement and narrowed its procedure-growth forecast.

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

Grant Private Wealth Management Inc trimmed its position in Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 36.9% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 2,334 shares of the medical equipment provider’s stock after selling 1,367 shares during the quarter. Grant Private Wealth Management Inc’s holdings in Intuitive Surgical were worth $949,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Main Street Group LTD acquired a new position in shares of Intuitive Surgical in the 1st quarter valued at about $30,000. North Point Portfolio Managers Corp OH bought a new stake in shares of Intuitive Surgical during the 3rd quarter valued at about $27,000. Vermillion Wealth Management Inc. grew its position 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 during the last quarter. Evergreen Advisors LLC acquired a new stake in Intuitive Surgical during the first quarter worth about $35,000. Finally, Compass Financial Management LLC acquired a new stake in Intuitive Surgical during the second quarter worth about $30,000. 83.64% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Intuitive Surgical In related news, Director Amy Ladd sold 400 shares of the stock in a transaction dated 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 director owned 251 shares in the company, valued at $95,129. This represents a 61.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Fredrik Widman sold 1,089 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $374.44, for a total transaction of $407,765.16. Following the transaction, the vice president directly owned 1,026 shares in the company, valued at approximately $384,175.44. The trade was a 51.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 12,370 shares of company stock worth $4,891,989 over the last ninety days. Insiders own 0.60% of the company’s stock.

Analyst Upgrades and Downgrades ISRG has been the topic of a number of recent research reports. Wall Street Zen cut shares of Intuitive Surgical from a “buy” rating to a “hold” rating in a report on Sunday, September 20th. Weiss Ratings reiterated a “hold (c)” rating on shares of Intuitive Surgical in a research report on Friday, August 14th. Royal Bank Of Canada dropped their price target on Intuitive Surgical from $650.00 to $600.00 and set an “outperform” rating on the stock in a research report on Monday, July 13th. Evercore set a $430.00 price target on Intuitive Surgical in a report on Monday, July 6th. Finally, Stifel Nicolaus cut their price target on Intuitive Surgical from $670.00 to $550.00 and set a “buy” rating on the stock in a report on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $498.83. Get Our Latest Report on ISRG

Key Headlines Impacting Intuitive Surgical Here are the key news stories impacting Intuitive Surgical this week:

Positive Sentiment: Analysts at Erste Group Bank raised their earnings estimates for ISRG, suggesting improved expectations for the company’s upcoming results and longer-term profitability. Erste Group Bank Analysts Boost Earnings Estimates for ISRG Positive Sentiment: Recent results have shown double-digit growth in robotic-surgery procedures, revenue and Intuitive Surgical’s installed base of systems. That underlying operating momentum remains a key support for the investment case despite the stock’s broader underperformance this year. Intuitive Surgical Valuation and Growth Positive Sentiment: The shares increased in the prior session and outperformed the broader market that day, reflecting some investor support ahead of the earnings release. ISRG Beats Stock Market Upswing Neutral Sentiment: Investors are focused on third-quarter procedure growth, da Vinci system demand, revenue, margins and other operating metrics—not just earnings per share and revenue—to determine whether recent momentum is sustainable. ISRG Ahead of Q3 Earnings Negative Sentiment: Expectations are tempered by slowing U.S. procedure growth and headwinds in China. These issues could pressure system placements and margins, increasing the risk of an earnings-related market reaction. ISRG Q3 Earnings Preview Negative Sentiment: Despite double-digit growth, shares have declined substantially during 2026 and trade at a premium valuation. Investors are questioning whether a valuation around 33 times expected earnings adequately reflects the company’s growth prospects, particularly if procedure growth slows. ISRG Valuation Analysis Intuitive Surgical Stock Performance NASDAQ:ISRG opened at $426.70 on Monday. The stock has a market cap of $150.74 billion, a price-to-earnings ratio of 48.88, a PEG ratio of 3.22 and a beta of 1.46. Intuitive Surgical, Inc. has a 1 year low of $328.57 and a 1 year high of $603.88. The business has a fifty day moving average of $391.43 and a 200-day moving average of $409.44.

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

Intuitive Surgical Company Profile (Free Report)

Intuitive Surgical, Inc develops and manufactures robotic-assisted systems and related technologies for minimally invasive surgery. Its products are designed to help surgeons perform procedures through small incisions while providing enhanced visualization, precision and control. The company’s primary platform is the da Vinci Surgical System, which is used across a range of specialties, including urology, gynecology, general surgery, cardiothoracic surgery and other procedures.

The company also offers the Ion endoluminal system, which is designed to support minimally invasive lung biopsy procedures.

Further Reading Five stocks we like better than Intuitive Surgical These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom

Receive News & Ratings for Intuitive Surgical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Intuitive Surgical and related companies with MarketBeat.com's FREE daily email newsletter.

If you're not familiar with Intuitive Surgical (ISRG -0.27%), you might want to be. Here's why. Check out its long-term track record:

Period

Average Annual Gain

Year-to-date

(25.48%)

1 year

(3.14%)

3 years

15.61%

5 years

5.3%

10 years

18.20%

15 years

16.44%

Data source: Morningstar.com, as of Oct. 13, 2026.

As you can see, the past year has underwhelmed investors. But that's not reason to give up on the company -- because history has shown that patient investors can be well rewarded. Indeed, the stock slid some 26% in 2022, only to pop by 27% in 2023 and 55% in 2024.

Image source: The Motley Fool.

Intuitive Surgical has become an 800-pound gorilla in the realm of robotic surgical systems, with a recent market value of nearly $150 billion. Here are some eye-opening stats about it:

It has over 11,700 robotic surgical systems installed globally -- in more than 70 countries. (And these systems generally cost more than $1 million apiece -- often much more.)
It's growing at a good clip. In its second quarter, Intuitive placed 468 da Vinci systems, up from 395 in the year-prior quarter, and representing a total growth in its installed base of 12% year over year.
Its second-quarter revenue jumped 19% year over year, to $2.9 billion.

ISRG Intuitive Surgical$426.70-$1.16 (-0.27%)

NASDAQ · As of 4:00 PM ET 10/16/26

If you're a dividend enthusiast, as I am, you may be disappointed to learn that Intuitive Surgical's dividend yield is, well, 0%. (I'd argue that it makes up for that loss with solid share-price appreciation over the long term.) But note that it does repurchase shares now and then, and the effect of that delivers value to shareholders, as remaining shares become more valuable. Thus, incorporating buybacks, the company recently sported a "total" yield of 2.4%.

Should you invest in Intuitive Surgical?
There are ample reasons to consider investing in Intuitive Surgical, along with a few potential concerns:

The company has multiple ways to grow: It can (and does) introduce new or updated systems now and then, it aims to gain additional approvals for its systems to do more kinds of procedures (such as, recently bronchoscopies), and it's expanding its reach internationally.
Its business model is sticky -- and attractive: It makes money from selling costly systems, yes, but it generates more (much more) revenue from selling servicing and supplies for those systems. And that's recurring income -- which is music to a savvy investor's ears.
Its stock seems reasonably valued or somewhat undervalued at recent levels. Its recent forward-looking price-to-earnings ratio, for example, is 35, well below the five-year average of 52. (Both of those numbers are on the steep side, though.)
It does face increasing competition, not only in systems, but also in accessories and instruments.
Weight-loss drugs, now wildly popular, are likely to put pressure on robotic bariatric surgeries.
The company's growth has cooled a bit.

I'll divulge that I'm a shareholder, myself, with no plans to sell out of this stock anytime in the foreseeable future. I'm not terribly concerned that its shares have retreated a bit. I still see further growth ahead.

Selena Maranjian has positions in Intuitive Surgical. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool 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.

Banque Pictet & Cie SA lowered its holdings in shares of Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 4.6% in the third quarter, according to its most recent disclosure with the SEC. The firm owned 35,243 shares of the medical equipment provider’s stock after selling 1,706 shares during the period. Banque Pictet & Cie SA’s holdings in Intuitive Surgical were worth $14,331,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of the business. James T. Borello RIA increased its position in Intuitive Surgical by 63.1% during the third quarter. James T. Borello RIA now owns 106 shares of the medical equipment provider’s stock worth $43,000 after acquiring an additional 41 shares during the period. Pension & Wealth Management Advisors Inc. raised its holdings in Intuitive Surgical by 76.9% in the 3rd quarter. Pension & Wealth Management Advisors Inc. now owns 1,433 shares of the medical equipment provider’s stock valued at $583,000 after acquiring an additional 623 shares in the last quarter. Daytona Street Capital LLC raised its holdings in Intuitive Surgical by 657.2% in the 3rd quarter. Daytona Street Capital LLC now owns 7,845 shares of the medical equipment provider’s stock valued at $3,177,000 after acquiring an additional 6,809 shares in the last quarter. Walser Wealth Management Company A Ltd Liability Co lifted its position in shares of Intuitive Surgical by 61.8% during the 3rd quarter. Walser Wealth Management Company A Ltd Liability Co now owns 1,306 shares of the medical equipment provider’s stock valued at $531,000 after acquiring an additional 499 shares during the period. Finally, V Square Quantitative Management LLC lifted its position in shares of Intuitive Surgical by 13.7% during the 3rd quarter. V Square Quantitative Management LLC now owns 3,735 shares of the medical equipment provider’s stock valued at $1,519,000 after acquiring an additional 450 shares during the period. Institutional investors and hedge funds own 83.64% of the company’s stock.

Analysts Set New Price Targets Several research firms have commented on ISRG. BNP Paribas Exane raised shares of Intuitive Surgical to an “outperform” rating in a report on Tuesday, July 28th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Intuitive Surgical in a research report on Wednesday, August 12th. KeyCorp restated an “overweight” rating on shares of Intuitive Surgical in a research report on Wednesday, August 12th. Wells Fargo & Company restated an “overweight” rating and set a $487.00 target price (down from $654.00) on shares of Intuitive Surgical in a research note on Friday, July 17th. Finally, UBS Group reaffirmed a “buy” rating on shares of Intuitive Surgical in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Intuitive Surgical has an average rating of “Moderate Buy” and a consensus price target of $498.83.

Get Our Latest Report on Intuitive Surgical Intuitive Surgical Stock Performance Shares of NASDAQ:ISRG opened at $426.70 on Friday. Intuitive Surgical, Inc. has a 52-week low of $328.57 and a 52-week high of $603.88. The business’s 50 day simple moving average is $391.43 and its two-hundred day simple moving average is $409.74. The firm has a market cap of $150.74 billion, a P/E ratio of 48.88, a PEG ratio of 3.23 and a beta of 1.46.

Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last released 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. Intuitive Surgical had a return on equity of 16.91% and a net margin of 28.45%. The firm had revenue of $2.89 billion during the quarter, compared to the consensus estimate of $2.83 billion. During the same quarter in the previous year, the company posted $1.81 earnings per share. The company’s quarterly revenue was up 18.4% on a year-over-year basis. On average, equities analysts forecast that Intuitive Surgical, Inc. will post 8.87 earnings per share for the current fiscal year.

Intuitive Surgical News Roundup Here are the key news stories impacting Intuitive Surgical this week:

Positive Sentiment: Analysts at Erste Group Bank raised their earnings estimates for ISRG, suggesting improved expectations for the company’s upcoming results and longer-term profitability. Erste Group Bank Analysts Boost Earnings Estimates for ISRG Positive Sentiment: Recent results have shown double-digit growth in robotic-surgery procedures, revenue and Intuitive Surgical’s installed base of systems. That underlying operating momentum remains a key support for the investment case despite the stock’s broader underperformance this year. Intuitive Surgical Valuation and Growth Positive Sentiment: The shares increased in the prior session and outperformed the broader market that day, reflecting some investor support ahead of the earnings release. ISRG Beats Stock Market Upswing Neutral Sentiment: Investors are focused on third-quarter procedure growth, da Vinci system demand, revenue, margins and other operating metrics—not just earnings per share and revenue—to determine whether recent momentum is sustainable. ISRG Ahead of Q3 Earnings Negative Sentiment: Expectations are tempered by slowing U.S. procedure growth and headwinds in China. These issues could pressure system placements and margins, increasing the risk of an earnings-related market reaction. ISRG Q3 Earnings Preview Negative Sentiment: Despite double-digit growth, shares have declined substantially during 2026 and trade at a premium valuation. Investors are questioning whether a valuation around 33 times expected earnings adequately reflects the company’s growth prospects, particularly if procedure growth slows. ISRG Valuation Analysis Insider Activity In other news, VP Fredrik Widman sold 1,089 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $374.44, for a total value of $407,765.16. Following the completion of the sale, the vice president owned 1,026 shares in the company, valued at $384,175.44. This represents a 51.49% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy Ladd sold 400 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $379.00, for a total transaction of $151,600.00. Following the completion of the sale, the director owned 251 shares of the company’s stock, valued at approximately $95,129. This represents a 61.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 12,370 shares of company stock worth $4,891,989. Company insiders own 0.60% of the company’s stock.

Intuitive Surgical Profile (Free Report)

Intuitive Surgical, Inc develops and commercializes robotic-assisted systems and related technologies designed to support minimally invasive medical procedures. The company’s products are intended to help surgeons perform operations through small incisions while providing enhanced visualization, precision, and control.

Its principal product is the da Vinci Surgical System, a platform used across a range of specialties, including general surgery, urology, gynecology, thoracic surgery, and cardiac procedures.

Read More Five stocks we like better than Intuitive Surgical Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

Receive News & Ratings for Intuitive Surgical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Intuitive Surgical and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways ISRG's Q3 earnings are expected to rise 8.75% to $2.61 per share, with sales projected to grow 15% to $2.88B.ISRG's Q3 performance may benefit from international procedure growth and strong da Vinci 5 demand.ISRG's Q3 margins may face pressure from China pricing challenges, higher freight costs and increased R&D. Intuitive Surgical (ISRG - Free Report) is scheduled to report third-quarter 2026 earnings on Oct. 20, after the market closes. The company’s performance is expected to reflect continued adoption of robotic-assisted surgery, including its da Vinci and Ion platforms. However, moderating U.S. procedure growth, competitive pressures in China and a premium valuation could influence investor sentiment.

Intuitive Surgical’s third-quarter results are likely to reflect the balance between continued procedure growth, system demand and recurring revenue strength, and headwinds from moderating U.S. activity, China-related pricing pressure and higher costs. Management’s commentary on regional procedure trends, system placements and gross margins should provide important clues about the sustainability of quarterly growth and the company’s ability to meet consensus estimates.

Stock Performance and Earnings Surprise HistoryIntuitive Surgical’s shares gained 2.3% during the third quarter compared with the Zacks Medical Instruments industry’s 13.8% growth. The stock outperformed Stryker (SYK - Free Report) , which declined 12.5%, but narrowly exceeded GE HealthCare Technologies Inc. (GEHC - Free Report) , which gained 2.1%.

Image Source: Zacks Investment Research

ISRG has a strong earnings surprise record. The company’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.53%. This track record provides a constructive backdrop, although past beats do not guarantee another earnings surprise.

Image Source: Zacks Investment Research

Consensus Estimates and RevisionsThe Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $2.61 per share, indicating growth of 8.75% from the year-ago quarter, according to the supplied estimates. The consensus estimate for revenues is pinned at $2.88 billion, implying growth of 15%.

The EPS estimate has remained unchanged at $2.61 over the past seven days. This stability indicates that the near-term earnings outlook has remained largely unchanged during the period, although the direction of future estimate revisions remains uncertain.

Image Source: Zacks Investment Research

Key Factors Shaping ISRG’s Q3 ResultsProcedure Growth and Utilization: Intuitive Surgical’s third-quarter performance is likely to have been influenced by the pace of procedure growth, particularly in the United States, where demand moderated in the second quarter. U.S. da Vinci procedure growth slowed to 12%, as patients appeared to defer certain procedures amid changes in coverage and premium dynamics.

This trend may have continued into the third quarter, potentially limiting recurring revenue growth from instruments and accessories. In contrast, international da Vinci procedures grew 20% in the second quarter, with Europe and Asia each reporting 20% growth. Sustained international momentum is likely to have partly offset softer U.S. demand, although the extent of this contribution remains uncertain.

System Placements and Revenue Mix: Strong demand for newer platforms supported Intuitive Surgical’s second-quarter placements of 468 da Vinci systems and 55 Ion systems. This momentum is likely to have supported system revenues in the third quarter, although customer purchasing decisions and capital budget constraints may have influenced placement volumes.

Adoption of da Vinci 5 could have contributed to system sales, while demand for the lower-cost XiR platform may have supported placements among budget-conscious customers. The number of reported placements and the mix of systems sold may indicate whether capital equipment demand remained strong enough to support recurring revenue growth.

Ion Procedures and International Demand: Ion procedures increased 36% in the second quarter, making utilization growth an important contributor to the company’s quarterly performance. Continued adoption of the platform is likely to have supported recurring revenues in the third quarter, although the magnitude of this contribution will become clearer when results are reported. International markets might have also provided support, given the strong procedure growth in the second quarter. Investors should assess whether these growth drivers were sufficient to offset moderation in the U.S. market.

Pricing Pressure and Margins: China’s challenging operating environment is likely to have remained a headwind in the third quarter, with lower tender activity, stronger domestic competition and policy-driven pricing pressure potentially affecting system placements and revenue mix. Cost pressures also remain important. Management cited higher freight and semiconductor memory costs, alongside product and regional mix, as factors affecting profitability in the second quarter.

Although the company raised its 2026 adjusted gross margin outlook to 68-69%, third-quarter results are likely to indicate whether revenue growth and operating execution were sufficient to absorb these pressures. Higher research and development spending may have affected operating leverage and earnings growth.

What Our Model Unveils for ISRG StockOur proven model does not conclusively predict an earnings beat for Intuitive Surgical this time around. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here, as you can see below.

Earnings ESP: Intuitive Surgical has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: ISRG carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Valuation and Investment OutlookISRG is trading at a forward 12-month price-to-earnings (P/E F12M) of 35.87X compared with 27.19X for its industry. The valuation premium reflects investor expectations for sustained growth but leaves less room for disappointment.

Image Source: Zacks Investment Research

Stryker is trading at 17.30X P/E F12M and GE HealthCare at 12.89X. These lower multiples do not necessarily indicate that ISRG is overvalued relative to its peers, given differences in business mix.

ConclusionIntuitive Surgical’s expanding procedure base, strong earnings-surprise history and continued platform adoption support its long-term investment case. Nevertheless, moderating U.S. demand, intensifying competition in China, rising investment needs and a premium valuation warrant caution ahead of the results. Existing shareholders may consider holding their positions, while prospective investors should evaluate procedure growth, margin performance and management’s updated outlook before initiating a position.

In its upcoming report, Intuitive Surgical, Inc. (ISRG - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.61 per share, reflecting an increase of 8.8% compared to the same period last year. Revenues are forecasted to be $2.88 billion, representing a year-over-year increase of 15%.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Given this perspective, it's time to examine the average forecasts of specific Intuitive Surgical metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts' assessment points toward 'Revenue- Product (Instruments and accessories and Systems)' reaching $2.38 billion. The estimate suggests a change of +12.7% year over year.

Analysts forecast 'Revenue- Services' to reach $457.34 million. The estimate indicates a change of +15.5% from the prior-year quarter.

Analysts predict that the 'Revenue- Systems' will reach $650.13 million. The estimate suggests a change of +10.1% year over year.

The collective assessment of analysts points to an estimated 'Revenue- Instruments and accessories' of $1.73 billion. The estimate indicates a year-over-year change of +13.7%.

The average prediction of analysts places 'Total System Units Placed - Total Company' at 475 . Compared to the present estimate, the company reported 427 in the same quarter last year.

The consensus estimate for 'Da Vinci Surgical System Installed Base' stands at 12,080 . The estimate is in contrast to the year-ago figure of 10,763 .

Analysts expect 'Total Number of Procedures' to come in at 902,959 . The estimate compares to the year-ago value of 797,000 .

According to the collective judgment of analysts, 'Gross Profit- Service' should come in at $303.04 million. Compared to the present estimate, the company reported $252.60 million in the same quarter last year.

It is projected by analysts that the 'Gross Profit- Product' will reach $1.57 billion. Compared to the present estimate, the company reported $1.41 billion in the same quarter last year.

The consensus among analysts is that 'Cost of revenue- Service' will reach $160.38 million.

Based on the collective assessment of analysts, 'Cost of revenue- Product' should arrive at $776.87 million.

View all Key Company Metrics for Intuitive Surgical here>>>

Over the past month, shares of Intuitive Surgical have returned +9.9% versus the Zacks S&P 500 composite's +1.4% change. Currently, ISRG carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Intuitive Surgical, Inc. (ISRG - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Intuitive Surgical is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Intuitive Surgical, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Intuitive SurgicalFor the fiscal year ending December 2026, this company is expected to earn $10.74 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Intuitive Surgical. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.5%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Intuitive Surgical to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Woodstock Corp lifted its holdings in shares of Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 4.3% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 84,643 shares of the medical equipment provider’s stock after purchasing an additional 3,503 shares during the period. Intuitive Surgical comprises approximately 2.8% of Woodstock Corp’s investment portfolio, making the stock its 8th largest holding. Woodstock Corp’s holdings in Intuitive Surgical were worth $34,418,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in ISRG. Invesco Ltd. boosted its stake in Intuitive Surgical by 17.4% in the fourth quarter. Invesco Ltd. now owns 4,128,735 shares of the medical equipment provider’s stock valued at $2,338,350,000 after acquiring an additional 611,268 shares during the last quarter. Bank of America Corp DE grew its holdings in Intuitive Surgical by 3.3% during the first quarter. Bank of America Corp DE now owns 3,616,973 shares of the medical equipment provider’s stock valued at $1,667,388,000 after purchasing an additional 116,292 shares during the period. Bank of New York Mellon Corp purchased a new stake in Intuitive Surgical in the second quarter worth $1,335,753,000. Amundi increased its position in Intuitive Surgical by 8.6% in the first quarter. Amundi now owns 2,428,356 shares of the medical equipment provider’s stock worth $1,119,448,000 after buying an additional 193,096 shares during the last quarter. Finally, J. Stern & Co. LLP increased its position in Intuitive Surgical by 18,504.6% in the fourth quarter. J. Stern & Co. LLP now owns 2,127,248 shares of the medical equipment provider’s stock worth $1,204,788,000 after buying an additional 2,115,814 shares during the last quarter. Institutional investors own 83.64% of the company’s stock.

Wall Street Analyst Weigh In ISRG has been the subject of several research reports. UBS Group assumed coverage on Intuitive Surgical in a research note on Tuesday, July 28th. They set a “neutral” rating and a $500.00 price target for the company. Leerink Partners cut their target price on shares of Intuitive Surgical from $573.00 to $454.00 and set an “outperform” rating for the company in a research report on Friday, July 17th. Citigroup lowered their price target on shares of Intuitive Surgical from $590.00 to $500.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. HSBC downgraded shares of Intuitive Surgical from a “buy” rating to a “hold” rating and set a $391.00 price objective for the company. in a report on Thursday, July 30th. Finally, Mizuho set a $500.00 target price on Intuitive Surgical and gave the stock a “neutral” rating in a research report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $501.98.

View Our Latest Report on ISRG Insider Buying and Selling at Intuitive Surgical In related news, VP Fredrik Widman sold 1,089 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $374.44, for a total value of $407,765.16. Following the sale, the vice president directly owned 1,026 shares of the company’s stock, valued at $384,175.44. This trade represents a 51.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary S. Guthart sold 10,000 shares of Intuitive Surgical stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $400.00, for a total value of $4,000,000.00. Following the completion of the sale, the director owned 1,245,679 shares in the company, valued at approximately $498,271,600. This represents a 0.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 12,370 shares of company stock valued at $4,891,989. 0.60% of the stock is currently owned by corporate insiders.

Intuitive Surgical Stock Performance Shares of ISRG stock opened at $427.64 on Tuesday. The company has a market capitalization of $151.08 billion, a PE ratio of 48.99, a price-to-earnings-growth ratio of 3.20 and a beta of 1.46. Intuitive Surgical, Inc. has a 52-week low of $328.57 and a 52-week high of $603.88. The business’s fifty day moving average is $387.41 and its 200 day moving average is $410.47.

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

(Free Report)

Intuitive Surgical, Inc develops and commercializes robotic-assisted systems and related technologies designed to support minimally invasive medical procedures. The company’s products are intended to help surgeons perform operations through small incisions while providing enhanced visualization, precision, and control.

Its principal product is the da Vinci Surgical System, a platform used across a range of specialties, including general surgery, urology, gynecology, thoracic surgery, and cardiac procedures.

Further Reading Five stocks we like better than Intuitive Surgical Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment

Receive News & Ratings for Intuitive Surgical Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Intuitive Surgical and related companies with MarketBeat.com's FREE daily email newsletter.

Intuitive Surgical, Inc. (ISRG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned +13.2% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Medical - Instruments industry, to which Intuitive Surgical belongs, has gained 6.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Intuitive Surgical is expected to post earnings of $2.61 per share, indicating a change of +8.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of $10.74 for the current fiscal year indicates a year-over-year change of +20.3%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $11.98 indicates a change of +11.6% from what Intuitive Surgical is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Intuitive Surgical.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Intuitive Surgical, the consensus sales estimate of $2.88 billion for the current quarter points to a year-over-year change of +15%. The $11.74 billion and $13.21 billion estimates for the current and next fiscal years indicate changes of +16.7% and +12.5%, respectively.

Last Reported Results and Surprise HistoryIntuitive Surgical reported revenues of $2.89 billion in the last reported quarter, representing a year-over-year change of +18.5%. EPS of $2.8 for the same period compares with $2.19 a year ago.

Compared to the Zacks Consensus Estimate of $2.81 billion, the reported revenues represent a surprise of +3.08%. The EPS surprise was +12.9%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Intuitive Surgical is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Intuitive Surgical. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Intuitive Surgical, Inc. (ISRG - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Intuitive Surgical currently has an average brokerage recommendation (ABR) of 1.63, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.63 approximates between Strong Buy and Buy.

Of the 32 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 68.8% and 6.3% of all recommendations.

Brokerage Recommendation Trends for ISRG

Check price target & stock forecast for Intuitive Surgical here>>>

While the ABR calls for buying Intuitive Surgical, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is ISRG Worth Investing In?In terms of earnings estimate revisions for Intuitive Surgical, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $10.74.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Intuitive Surgical. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Intuitive Surgical.

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.

24.85K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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.

Premium Feature

Moneyball Superscore

86/100

Today's Change

(

-1.35

%) $

-5.55

Current Price

$

406.63

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.

Intuitive Surgical, Inc. (ISRG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned +10.1% over the past month versus the Zacks S&P 500 composite's +1% change. The Zacks Medical - Instruments industry, to which Intuitive Surgical belongs, has gained 3.7% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Intuitive Surgical is expected to post earnings of $2.61 per share, indicating a change of +8.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $10.74 points to a change of +20.3% from the prior year. Over the last 30 days, this estimate has changed -0.4%.

For the next fiscal year, the consensus earnings estimate of $11.98 indicates a change of +11.6% from what Intuitive Surgical is expected to report a year ago. Over the past month, the estimate has changed +0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Intuitive Surgical.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Intuitive Surgical, the consensus sales estimate for the current quarter of $2.88 billion indicates a year-over-year change of +15%. For the current and next fiscal years, $11.74 billion and $13.21 billion estimates indicate +16.7% and +12.5% changes, respectively.

Last Reported Results and Surprise HistoryIntuitive Surgical reported revenues of $2.89 billion in the last reported quarter, representing a year-over-year change of +18.5%. EPS of $2.8 for the same period compares with $2.19 a year ago.

Compared to the Zacks Consensus Estimate of $2.81 billion, the reported revenues represent a surprise of +3.08%. The EPS surprise was +12.9%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Intuitive Surgical is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Intuitive Surgical. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

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.

Intuitive Surgical, Inc. (ISRG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned -3.6%, compared to the Zacks S&P 500 composite's -2.4% change. During this period, the Zacks Medical - Instruments industry, which Intuitive Surgical falls in, has remained unchanged. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Intuitive Surgical is expected to post earnings of $2.61 per share, indicating a change of +8.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $10.74 points to a change of +20.3% from the prior year. Over the last 30 days, this estimate has changed -0.4%.

For the next fiscal year, the consensus earnings estimate of $11.98 indicates a change of +11.6% from what Intuitive Surgical is expected to report a year ago. Over the past month, the estimate has changed -0.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Intuitive Surgical.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Intuitive Surgical, the consensus sales estimate of $2.88 billion for the current quarter points to a year-over-year change of +15%. The $11.74 billion and $13.21 billion estimates for the current and next fiscal years indicate changes of +16.7% and +12.5%, respectively.

Last Reported Results and Surprise HistoryIntuitive Surgical reported revenues of $2.89 billion in the last reported quarter, representing a year-over-year change of +18.5%. EPS of $2.8 for the same period compares with $2.19 a year ago.

Compared to the Zacks Consensus Estimate of $2.81 billion, the reported revenues represent a surprise of +3.08%. The EPS surprise was +12.9%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Intuitive Surgical is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Intuitive Surgical. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.