Key Takeaways Intuitive Surgical's forward P/E has fallen to 30.26X, well below its 10-year median of 58.18X.ISRG posted 19% Q2 revenue growth, 28% adjusted EPS growth and 16% higher total procedures.da Vinci 5, SP and Ion adoption support growth, while U.S. moderation, China and costs remain risks. Intuitive Surgical (ISRG - Free Report) is trading at its cheapest valuation in the last 10 years following a decline of more than 40% after touching the $600 level in January this year. Its forward 12-month P/E of 30.26X is well below its 10-year median of 58.18X and high of 93.22X, although it remains above the Medical - Instruments industry’s 25.96X. The compression is notable given that ISRG continues to generate strong growth, but investors are increasingly factoring in moderating U.S. procedure trends, competitive pressure in China, higher costs and uncertainty around hospital capital spending. Its Value Score of D also indicates that the stock is not yet considered inexpensive despite the steep multiple contraction.
The latest quarter illustrates the disconnect between valuation and fundamentals. Second-quarter 2026 revenue increased 19% year over year to $2.89 billion, and adjusted EPS advanced 28%. Total procedures rose 16%, with da Vinci procedures increasing 15% and Ion procedures jumping 36%. Recurring revenue climbed 19% to $2.47 billion and represented 85% of total revenue. Utilization also remained healthy, increasing 3% for da Vinci and 11% for Ion.
Image Source: Zacks Investment Research
Forward Guidance Points to Durable Growth Despite ModerationManagement maintained its 2026 da Vinci procedure-growth forecast at 13.5-15.5%, expecting results toward the midpoint. General surgery in the United States and procedures outside urology internationally remain the principal growth drivers. Importantly, the outlook continues to reflect several near-term uncertainties, including changes in U.S. patient behavior following ACA premium-subsidy changes, China's tender volumes and competitive intensity, European capital pressures, Japan's recovery and the impact of obesity drugs.
There are encouraging developments beneath this guidance. International da Vinci procedures grew 20% in the second quarter, with Europe and Asia each advancing 20%, while the rest of the world increased 22%. This compares favorably with the first quarter, when international da Vinci procedures grew 19%. Japan also recorded improved system placements following favorable reimbursement decisions.
However, margin expansion is not guaranteed. Intuitive Surgical raised its 2026 adjusted gross-margin outlook to 68-69% from 67.5-68.5%, but continues to face higher freight and semiconductor-memory costs, faster growth of newer platforms and higher depreciation. Thus, the guidance supports continued growth but also indicates that investors should expect elevated spending and some profitability pressure during the platform transition.
Product Innovation Expands Long-Term OpportunityIntuitive Surgical's product pipeline provides a strong counterweight to near-term concerns. The company placed 468 da Vinci systems and 55 Ion systems in second quarter, while more than 1,700 da Vinci 5 systems are now installed. More than 100 planned da Vinci 5 updates are being rolled out, including improvements to telepresence, simulation-based training and care-team workflows.
The single-port platform is gaining traction rapidly, with SP procedures increasing 61% and its global installed base reaching 445 systems. Ion procedures rose 36% to 48,000 and have surpassed 400,000 cumulatively. The company is also progressing with ROSE and EBUS programs and has submitted a next-generation flexible robotic endoscope for FDA clearance.
These innovations strengthen ISRG's competitive position against lower-valued peers such as Medtronic (MDT - Free Report) and Stryker (SYK - Free Report) . MDT trades at 15.13X forward P/E, while SYK trades at 17.02X, both substantially below ISRG's 30.26X. Yet Medtronic's Hugo remains in an earlier commercialization phase, with management expecting more than 50,000 completed procedures by the end of its fiscal year, while Stryker's Mako has surpassed 2.5 million procedures globally across 47 countries.
Share-Price MovementISRG shares have declined 15% over the past three months against the Zacks Medical – Instruments industry's 10% growth. The broader Medical sector has jumped 9.6% during the same period, leaving Intuitive Surgical lagging both its industry and the wider medical sector.
While Medtronic shares have gained 15.1% in the past three months, Stryker declined 10.5%.
Image Source: Zacks Investment Research
Bottom LineISRG's valuation has clearly become more reasonable after the sharp share price decline, but the stock does not yet qualify as an outright bargain given its premium to the industry and D Value Score. The investment case rests on whether sustained procedure growth, da Vinci 5 adoption, higher utilization and expansion of SP and Ion can offset slower U.S. growth, China-related challenges, obesity-drug pressure and elevated costs.
For existing investors, the current risk-reward appears balanced enough to hold the stock rather than exit after the valuation reset. ISRG's current valuation makes the shares considerably cheaper than their historical valuation. However, prospective investors may want evidence of accelerating procedure growth and further margin improvement before committing aggressively. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
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.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
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 RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
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.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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?Looking at the 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.
Largest comparative meta-analysis of its kind found da Vinci robotic-assisted surgery was associated with shorter hospital stays and a faster return to work compared with laparoscopic and open surgery | Source: Intuitive Surgical, Inc.
SUNNYVALE, Calif., Sept. 08, 2026 (GLOBE NEWSWIRE) -- Intuitive (NASDAQ: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced the publication of a landmark systematic review and meta-analysis in the peer-reviewed Annals of Surgery Open.
The study analyzed data from more than 14 million da Vinci, laparoscopic and open procedures across 13 common benign (non-cancerous) conditions, making it the largest comparative meta-analysis of its kind. The authors found da Vinci surgery was associated with statistically significant improvements in select perioperative outcomes compared with laparoscopic and open surgery.
"Patients want confidence that their surgical approach will support a strong recovery and help them get back to work and to the people and moments that matter most to them. Surgeons and care teams need robust evidence to help guide those decisions," said Jaime Wong, MD, Chief Medical Officer at Intuitive. "Until now, evidence comparing surgical approaches for benign conditions has been spread across hundreds of studies. This analysis provides one of the most comprehensive assessments to date, helping patients and clinicians make more informed decisions."
Key findings
da Vinci surgery vs. laparoscopic surgery:
54% lower odds of conversion to open surgery13% lower odds of requiring a blood transfusionHospital stays approximately 4 hours shorterReturn to work approximately 2 days soonerLower postoperative pain scores and less pain medication useNo statistically significant differences in complications, infections, readmissions, or 30-day mortalityAverage operative time approximately 24 minutes longer da Vinci surgery vs. open surgery:
69% lower odds of requiring a blood transfusion46% lower odds of 30-day postoperative complications60% lower odds of surgical site infectionHospital stays approximately 2 days shorterReturn to work approximately 5 days soonerLower odds of intraoperative complications, readmission, reoperation, and 30-day mortality.37% lower odds of requiring pain medication within 30 daysAverage operative time approximately 46 minutes longer The analysis synthesized 14 years of published evidence spanning 32 countries, drawing from 13 randomized controlled trials, 21 prospective cohort studies, 101 database studies, and 231 retrospective cohort studies.
Led by Thomas H. Shin, MD, PhD, bariatric surgeon at Mass General Brigham, and conducted by researchers from the University of Virginia, Mass General Brigham, and Intuitive, the analysis examined procedures performed for benign conditions across gynecology, general surgery, bariatric surgery, urology, and hernia repair — including hysterectomy, cholecystectomy, and colorectal surgery.
“By bringing together evidence from randomized trials, prospective studies, and large real-world datasets, this analysis provides a broad view of perioperative outcomes across multiple procedures and specialties,” said Dr. Shin. “The findings add to our understanding of how surgical approaches compare while recognizing that the most appropriate approach depends on the procedure, patient, surgeon, and clinical setting.”
This study complements the previously published meta-analysis of 30-day surgical outcomes across seven oncological surgical procedures, led by Rocco Ricciardi, MD, MPH, chief of colon and rectal surgery at Massachusetts General Hospital. Together, the studies expand the comparative evidence available to patients, surgeons, and health systems across a broad range of benign and oncological conditions.
More than 21 million patients worldwide have been operated on by surgeons using the da Vinci system, with more than 3.1 million da Vinci procedures performed in 2025 alone.
About Intuitive
Intuitive (NASDAQ: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic surgery. Our technologies include the da Vinci surgical system and the Ion endoluminal system. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. At Intuitive, we envision a future of care that is less invasive and profoundly better, where disease is identified early and treated quickly, so that patients can get back to what matters most.
This material has been developed with, reviewed and approved by an independent physician/surgeon who is not an Intuitive employee. The physicians did not receive compensation from Intuitive.
About da Vinci Surgical Systems
There are several models of the da Vinci surgical system. The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery and offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. They use specialized instrumentation, including a miniaturized surgical camera and wristed instruments (i.e., scissors, scalpels, and forceps) that are designed to help with precise dissection and reconstruction deep inside the body.
For more information, please visit the company's website at www.intuitive.com.
Important Safety Information
Patient outcomes may depend on a number of factors including, but not limited to, patient characteristics, disease characteristics, and/or physician/surgeon experience. The da Vinci system is a tool used for minimally invasive surgery.
Patients should consult with their doctor to discuss both nonsurgical and surgical treatment options, including the benefits and risks associated with each. They should also ask whether surgery using the da Vinci system is appropriate for their specific situation. As with any surgical procedure, serious complications can occur, including, in rare cases, death. Potential risks include injury to tissues and organs, as well as the possibility of switching to alternative surgical techniques during the operation, which may result in longer operative times and increased risk of complications.
For a summary of the risks associated with surgery, refer to www.intuitive.com/safety.
For risks, contraindications, cautions, and warnings and full prescribing information, refer to the associated da Vinci surgical system user manual(s), or visit https://manuals.intuitivesurgical.com/market.
@2026 Intuitive Surgical Operations, Inc. All rights reserved. Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner.
In the latest trading session, Intuitive Surgical, Inc. (ISRG - Free Report) closed at $350.16, marking a -4.51% move from the previous day. This change lagged the S&P 500's 0.58% loss on the day. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.32%.
The stock of company has fallen by 6.78% in the past month, lagging the Medical sector's gain of 2.73% and the S&P 500's loss of 0.36%.
The investment community will be closely monitoring the performance of Intuitive Surgical, Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.61, marking a 8.75% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 14.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $11.81 billion, which would represent changes of +20.27% and +17.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Intuitive Surgical, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Intuitive Surgical, Inc. holds a Zacks Rank of #3 (Hold).
In the context of valuation, Intuitive Surgical, Inc. is at present trading with a Forward P/E ratio of 34.16. This expresses a premium compared to the average Forward P/E of 22.07 of its industry.
Also, we should mention that ISRG has a PEG ratio of 2.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical - Instruments industry stood at 2.33 at the close of the market yesterday.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Key Takeaways Intuitive Surgica's Ion procedures rose 36% year over year to 48,000 in the second quarter.Ion's installed base grew 21%, while availability expanded to 12 countries outside the United States.ROSE and EBUS could broaden Ion's pulmonary diagnostic capabilities and expand its addressable market. Intuitive Surgical’s (ISRG - Free Report) Ion robotic platform is increasingly emerging as a meaningful second growth engine alongside the company’s core da Vinci franchise. In the second quarter of 2026, Ion procedures increased 36% year over year to 48,000, demonstrating that adoption is accelerating even as the much larger da Vinci platform continues to dominate Intuitive Surgical’s procedure base. Cumulative Ion procedures have now surpassed 400,000, providing a growing body of clinical experience that can support physician confidence, training and broader adoption.
Ion’s installed base rose 21% year over year, creating a larger foundation for recurring procedure growth and expanding adoption among hospitals and physicians. Intuitive is also expanding Ion internationally, with the system now available in 12 countries outside the United States. This broadens its geographic growth runway and reduces reliance on domestic procedure growth.
The longer-term opportunity is particularly compelling because Ion is positioned around lung cancer diagnosis, an area where earlier and more accurate detection can potentially improve patient management. Lung cancer is the second fastest growing cancer type globally, indicating a robust growth potential.
Management continues to invest in technologies designed to expand Ion’s clinical utility, including ROSE and EBUS. These programs are designed to enhance the platform’s pulmonary diagnostic capabilities and potentially expand the range of procedures that can be performed using the Ion ecosystem.
From an investment perspective, Ion’s importance extends beyond its current revenue contribution. The combination of rapid procedure growth, a rising installed base, international expansion and additional diagnostic capabilities creates strong potential for compounding growth.
If ROSE and EBUS broaden clinical applications, Ion could evolve into a more comprehensive lung-diagnostic ecosystem. This would broaden its addressable market, strengthen Intuitive Surgical’s technology moat and create another platform for sustained procedure growth and recurring instrument-and-accessory revenues.
Peer Updates
Medtronic’s (MDT - Free Report) next growth engine is a portfolio of newer platforms, with Cardiac Ablation Solutions (“CAS”) standing out. CAS sales grew 88% in the first quarter of fiscal 2027, supported by Sphere-9, whose U.S. market share increased nine points sequentially. Management expects CAS to grow more than 2.5x the mid-teens market.
Robotics is another key growth driver with strong potential. Medtronic is complementing its Hugo platform with Touch Surgery Aide, enhanced instrumentation and Cornerstone’s Sentire system in select international markets.
In spine, AiBLE ecosystem and Stealth AXiS are early-stage growth drivers, while Symplicity’s transradial catheter could accelerate renal denervation adoption. Together, these platforms provide Medtronic with multiple avenues to gain market share and expand its addressable market.
Boston Scientific’s (BSX - Free Report) strongest future growth engine appears to be its electrophysiology (EP) portfolio, where next-generation products are designed to broaden both its ecosystem and addressable patient population.
Boston Scientific plans to launch FARAPULSE Ultra at scale in 2027 while expanding into the rapidly growing ICE market. The company is also developing next-generation FARAFLEX Ultra platform, which is likely to be available in 2028. These launches should complement FARAPOINT and existing FARAPULSE capabilities, with management expecting EP growth to strengthen in late 2027 and 2028.
Boston Scientific is expected to close the acquisition of Penumbra in the second half of 2027, which is likely to add growth drivers beyond EP. Penumbra’s portfolio is expected to strengthen cardiovascular growth following its planned acquisition, while the MiRus investment provides an option to enter TAVR.
ISRG’s Price Performance, Valuation and Estimates
Shares of ISRG have lost 35.3% so far this year compared with an 8.6% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 31.71X, above the industry average. However, it is significantly lower than its five-year median of 68.26X. 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.
HB Wealth Management LLC lowered its position in Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 14.6% in the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 23,518 shares of the medical equipment provider’s stock after selling 4,018 shares during the period. HB Wealth Management LLC’s holdings in Intuitive Surgical were worth $9,353,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently made changes to their positions in the company. Main Street Group LTD bought a new position in Intuitive Surgical in the first quarter worth $30,000. Compass Financial Management LLC bought a new stake in shares of Intuitive Surgical during the 2nd quarter valued at $30,000. Vermillion Wealth Management Inc. boosted its holdings in shares of Intuitive Surgical by 58.1% during the 1st quarter. Vermillion Wealth Management Inc. now owns 68 shares of the medical equipment provider’s stock valued at $31,000 after buying an additional 25 shares in the last quarter. Motiv8 Investments LLC purchased a new stake in shares of Intuitive Surgical in the 4th quarter worth about $34,000. Finally, Evergreen Advisors LLC purchased a new stake in shares of Intuitive Surgical in the 1st quarter worth about $35,000. Hedge funds and other institutional investors own 83.64% of the company’s stock.
Analyst Ratings Changes Several research analysts recently issued reports on the stock. Piper Sandler reiterated an “overweight” rating on shares of Intuitive Surgical in a research note on Friday, August 21st. JPMorgan Chase & Co. dropped their price objective on shares of Intuitive Surgical from $550.00 to $450.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Bank of America cut their price objective on shares of Intuitive Surgical from $520.00 to $515.00 in a report on Friday, June 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Intuitive Surgical in a research note on Friday, August 14th. Finally, KeyCorp reiterated an “overweight” rating on shares of Intuitive Surgical in a report on Wednesday, August 12th. Twenty-two investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $508.68.
Check Out Our Latest Report on ISRG Intuitive Surgical Price Performance Shares of NASDAQ:ISRG opened at $366.70 on Monday. The business has a fifty day moving average price of $381.44 and a 200-day moving average price of $428.20. The company has a market capitalization of $129.55 billion, a PE ratio of 42.00, a PEG ratio of 2.77 and a beta of 1.47. Intuitive Surgical, Inc. has a 1-year low of $328.57 and a 1-year high of $603.88.
Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The medical equipment provider reported $2.80 EPS for the quarter, beating the consensus estimate of $2.48 by $0.32. The company had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.83 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. Intuitive Surgical’s revenue for the quarter was up 18.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.81 EPS. On average, sell-side analysts anticipate that Intuitive Surgical, Inc. will post 8.87 earnings per share for the current fiscal year.
Insider Activity In related news, Director Gary S. Guthart sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $400.00, for a total value of $4,000,000.00. Following the completion of the transaction, the director directly owned 1,245,679 shares in the company, valued at $498,271,600. The trade was a 0.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gary Loeb sold 400 shares of the company’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $379.00, for a total value of $151,600.00. Following the completion of the transaction, the executive vice president directly owned 5,320 shares in the company, valued at $2,016,280. This trade represents a 6.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 11,635 shares of company stock worth $4,640,172. Corporate insiders own 0.60% of the company’s stock.
Intuitive Surgical Profile (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
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California State Teachers Retirement System raised its stake in Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 39,531.1% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 213,725,958 shares of the medical equipment provider’s stock after acquiring an additional 213,186,670 shares during the quarter. California State Teachers Retirement System owned approximately 60.50% of Intuitive Surgical worth $84,994,539,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also made changes to their positions in the stock. State Street Corp increased its position in Intuitive Surgical by 1.0% during the 4th quarter. State Street Corp now owns 15,701,591 shares of the medical equipment provider’s stock worth $8,892,753,000 after purchasing an additional 162,264 shares in the last quarter. Capital World Investors lifted its holdings in Intuitive Surgical by 1.7% in the 4th quarter. Capital World Investors now owns 7,856,018 shares of the medical equipment provider’s stock valued at $4,449,491,000 after purchasing an additional 127,526 shares in the last quarter. Norges Bank acquired a new stake in shares of Intuitive Surgical during the 4th quarter worth about $2,856,987,000. Invesco Ltd. boosted its stake in shares of Intuitive Surgical by 17.4% during the 4th quarter. Invesco Ltd. now owns 4,128,735 shares of the medical equipment provider’s stock worth $2,338,350,000 after purchasing an additional 611,268 shares during the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of 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 worth $1,667,388,000 after buying an additional 116,292 shares in the last quarter. 83.64% of the stock is currently owned by hedge funds and other institutional investors.
Insider Transactions at Intuitive Surgical In related news, EVP Gary Loeb sold 400 shares of the stock in a transaction that occurred on 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 executive vice president owned 5,320 shares of the company’s stock, valued at approximately $2,016,280. This represents a 6.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 Intuitive Surgical stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $393.10, for a total transaction of $28,303.20. Following the transaction, the director directly owned 179 shares in the company, valued at approximately $70,364.90. This trade represents a 28.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 11,635 shares of company stock worth $4,640,172 in the last three months. 0.60% of the stock is currently owned by insiders.
Analyst Upgrades and Downgrades ISRG has been the topic of several recent analyst reports. Wall Street Zen downgraded shares of Intuitive Surgical from a “buy” rating to a “hold” rating in a research note on Saturday, August 15th. BTIG Research lowered their target price on shares of Intuitive Surgical from $512.00 to $469.00 and set a “buy” rating for the company in a research note on Friday, July 17th. KeyCorp reiterated an “overweight” rating on shares of Intuitive Surgical in a report on Wednesday, August 12th. Wells Fargo & Company reissued an “overweight” rating and set a $487.00 price target (down from $654.00) on shares of Intuitive Surgical in a research note on Friday, July 17th. Finally, Oppenheimer upgraded Intuitive Surgical from a “market perform” rating to an “outperform” rating and set a $500.00 price objective on the stock in a report on Wednesday, August 12th. Twenty-two research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Intuitive Surgical currently has a consensus rating of “Moderate Buy” and an average target price of $508.68. View Our Latest Stock Report on Intuitive Surgical
Intuitive Surgical Stock Performance Intuitive Surgical stock opened at $366.70 on Monday. Intuitive Surgical, Inc. has a 1 year low of $328.57 and a 1 year high of $603.88. The firm has a 50 day moving average price of $381.44 and a 200 day moving average price of $428.20. The company has a market cap of $129.55 billion, a price-to-earnings ratio of 42.00, a PEG ratio of 2.77 and a beta of 1.47.
Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The medical equipment provider reported $2.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.48 by $0.32. The company had revenue of $2.89 billion during the quarter, compared to analysts’ expectations of $2.83 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. The business’s quarterly revenue was up 18.4% compared to the same quarter last year. During the same period in the previous year, the company earned $1.81 EPS. Sell-side analysts predict that Intuitive Surgical, Inc. will post 8.87 EPS for the current year.
Intuitive Surgical Company Profile (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
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Intuitive Surgical (ISRG -0.85%) is a volatile stock to own. Since its initial public offering, the stock has suffered eight drawdowns of 30% or more. Two of the drawdowns were over 70%. Right now, the stock is in the middle of a drawdown that has it off its recent highs by roughly 40%.
Historically, the stock has recovered from each drawdown and gone on to higher highs. That suggests that the current sell-off is a buying opportunity. However, there have been big changes in the surgical robotics space that investors have to consider, as well. Here's a look at whether or not Intuitive Surgical is worth buying today. (Hint: Selling new robots isn't the biggest piece of the story.)
Image source: Getty Images.
Intuitive Surgical: Growth isn't what it used to be Intuitive Surgical was a pioneer in the surgical robots space, with its da Vinci system being one of the first and most widely available options. Being early allowed the company to grow its business at a fairly rapid clip. The fact that robot-assisted surgery generally requires smaller incisions and leads to better outcomes was a big selling point. Early on, investors tracked the company's da Vinci sales very closely, and they still do.
The sale of new da Vinci robots is important. But the market has new entrants, including medical device giants like Medtronic (MDT +1.15%) and Johnson & Johnson (JNJ -1.15%). These are well-heeled competitors with strong industry connections. The playing field is much different now than it was two decades ago. Simply put, there's more competition. So it makes sense that Intuitive Surgical's business would slow down a bit.
It is still selling da Vinci systems, noting that it placed 468 in the second quarter of 2026, up from 395 in the second quarter of 2025. But Wall Street clearly wasn't pleased, given the sell-off in the shares.
ISRG data by YCharts
What's interesting is that the first number the company talks about isn't new da Vinci placements; it is the number of surgeries performed with da Vinci robots. The number of surgeries rose 16% year over year, even though the number of da Vinci systems being used globally increased by 12%. That difference is very important.
The flywheel is parts and services Intuitive Surgical breaks down its revenues across new robot sales, services, and instruments and accessories (basically, parts). New robot sales accounted for only around 24% of total sales in the second quarter of 2026. So 75% of the company's top line comes from maintaining the surgical robots it already has in place.
These are annuity-like income streams that will remain in place until those da Vinci systems are no longer being used. Given the cost of a surgical robot and the demand for robotic surgery, it is unlikely that a hospital will prematurely shut down a da Vinci robot just to switch to a competitor's surgical robot. So growth may slow down, but the core of the business remains strong.
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And then there's the opportunity from continued technological advances. Most notably, artificial intelligence (AI) is already being used to assist surgeons. It doesn't seem unrealistic to believe that AI could perform basic surgery on its own someday. That would greatly increase access to medical care globally. In other words, there are still opportunities for Intuitive Surgical to grow. Perhaps that growth won't be as rapid, but so long as it continues to sell new da Vinci systems, its annuity-like parts-and-services business will grow even more powerful.
Intuitive Surgical looks historically cheap Intuitive Surgical is best suited to more aggressive growth investors. So conservative types should probably avoid the historically volatile stock. But, if you can stomach big price swings, history suggests that large drawdowns are a buying opportunity. And, notably, the stock's price-to-sales, price-to-earnings, and price-to-book ratios are all below their five-year averages. So, too, is the price-to-forward earnings ratio, which accounts for Wall Street's growth expectations. Basically, the current drawdown has left this growth stock looking cheap again.
Intuitive Surgical's latest version of the da Vinci system could unlock important opportunities. Novo Nordisk is still well-positioned to cash in on the GLP-1 market.
AXQ Capital LP increased its position in Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 301.1% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 15,239 shares of the medical equipment provider’s stock after purchasing an additional 11,440 shares during the quarter. Intuitive Surgical accounts for 0.7% of AXQ Capital LP’s portfolio, making the stock its 8th largest position. AXQ Capital LP’s holdings in Intuitive Surgical were worth $6,060,000 at the end of the most recent quarter.
A number of other large investors have also added to or reduced their stakes in ISRG. Brighton Jones LLC increased its position in shares of Intuitive Surgical by 24.9% in the 4th quarter. Brighton Jones LLC now owns 3,672 shares of the medical equipment provider’s stock worth $1,916,000 after purchasing an additional 731 shares during the last quarter. Sivia Capital Partners LLC lifted its position in shares of Intuitive Surgical by 3.8% during the second quarter. Sivia Capital Partners LLC now owns 928 shares of the medical equipment provider’s stock worth $504,000 after purchasing an additional 34 shares during the last quarter. Schnieders Capital Management LLC. grew its stake in Intuitive Surgical by 38.0% in the second quarter. Schnieders Capital Management LLC. now owns 973 shares of the medical equipment provider’s stock worth $529,000 after purchasing an additional 268 shares in the last quarter. Osterweis Capital Management Inc. acquired a new position in Intuitive Surgical in the second quarter worth about $200,000. Finally, Main Street Financial Solutions LLC increased its holdings in Intuitive Surgical by 92.4% in the second quarter. Main Street Financial Solutions LLC now owns 2,929 shares of the medical equipment provider’s stock valued at $1,592,000 after buying an additional 1,407 shares during the last quarter. 83.64% of the stock is owned by institutional investors and hedge funds.
Insiders Place Their Bets In related news, Director Gary S. Guthart sold 10,000 shares of the company’s stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $400.00, for a total value of $4,000,000.00. Following the completion of the sale, the director owned 1,245,679 shares of the company’s stock, valued at $498,271,600. This represents a 0.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark Brosius sold 77 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $375.57, for a total transaction of $28,918.89. Following the completion of the transaction, the executive vice president owned 881 shares of the company’s stock, valued at $330,877.17. This represents a 8.04% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,658 shares of company stock valued at $4,649,835 in the last quarter. 0.60% of the stock is owned by insiders.
Analyst Ratings Changes A number of equities research analysts have recently weighed in on ISRG shares. BTIG Research lowered their price target on Intuitive Surgical from $512.00 to $469.00 and set a “buy” rating for the company in a report on Friday, July 17th. BNP Paribas Exane upgraded Intuitive Surgical to an “outperform” rating in a research note on Tuesday, July 28th. The Goldman Sachs Group set a $558.00 price objective on shares of Intuitive Surgical in a report on Wednesday, May 27th. Royal Bank Of Canada lowered their target price on shares of Intuitive Surgical from $650.00 to $600.00 and set an “outperform” rating for the company in a research note on Monday, July 13th. Finally, Evercore set a $430.00 target price on shares of Intuitive Surgical in a report on Monday, July 6th. Twenty-two equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Intuitive Surgical has a consensus rating of “Moderate Buy” and a consensus target price of $508.68. View Our Latest Analysis on Intuitive Surgical
Intuitive Surgical Price Performance Shares of NASDAQ ISRG opened at $369.83 on Friday. Intuitive Surgical, Inc. has a 1-year low of $328.57 and a 1-year high of $603.88. The business’s fifty day moving average price is $382.20 and its two-hundred day moving average price is $429.04. The firm has a market capitalization of $130.65 billion, a PE ratio of 42.36, a P/E/G ratio of 2.81 and a beta of 1.47.
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 the consensus estimate of $2.48 by $0.32. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. The firm had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.83 billion. During the same period last year, the firm posted $1.81 EPS. Intuitive Surgical’s quarterly revenue was up 18.4% compared to the same quarter last year. Equities research analysts expect that Intuitive Surgical, Inc. will post 8.87 earnings per share for the current fiscal year.
Intuitive Surgical Company Profile (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
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Intuitive Surgical (ISRG -2.02%) has many qualities that appeal to investors, from a fantastic moat to a strong track record of earnings growth. But in recent months, that hasn't been enough to lift the stock. This robotic surgery leader has seen its stock price slide more than 30% so far this year.
Investors might be focusing on a slowdown in U.S. procedure growth, particularly in surgeries that can be postponed. And though overall growth still is climbing in the double digits, this may prompt investors to think twice before buying the stock.
But analysts, with an overwhelming majority of buy recommendations, aren't scared by the stock's worst stretch in years. Let's consider what they're focused on instead.
Image source: Getty Images.
A similar tough period First, let's take a look back in time to the stock's previous tough period. The last time Intuitive Surgical found itself in a similar position was in 2022, when the stock sank more than 40% from January through August. At that time, too, investors worried about pressure on procedure growth -- during phases of the pandemic, hospitals focused on treating coronavirus patients, and that resulted in the postponement of many elective surgeries. Meanwhile, as interest rates climbed, investors shied away from stocks that, like Intuitive Surgical, generally trade at premium valuations.
But here's the good news: Intuitive Surgical stock didn't remain in the doldrums. It then went on to gain over the next few years and even reached a record high last year.
Now, let's take a look at Intuitive Surgical's business. The company is the global leader in robotic surgery, with a market share of more than 70%. Intuitive Surgical's flagship Da Vinci robot is used for a wide range of minimally invasive procedures, from hernia repair to gallbladder surgery. Over time, this has helped the company consistently deliver growth in revenue and profit -- and generate strong returns on its investments.
ISRG Revenue (Annual) data by YCharts
What I like most about Intuitive Surgical is the company's fantastic moat, or competitive advantage, and its recurring revenue. I'll explain. Surgeons train on Da Vinci robots, so they are used to using them, and hospitals have invested millions of dollars in Da Vinci systems and want to amortize that investment. For those reasons, hospitals probably won't easily switch to a competitor, and this represents a moat for the company.
Intuitive Surgical's recurring revenue As for the recurring revenue, this is linked to Intuitive Surgical's sales of instruments and accessories needed for Da Vinci-guided surgeries. So once a hospital invests in a Da Vinci, the spending isn't over -- it continues to buy the necessary tools for procedures, and that actually makes up the lion's share of Intuitive Surgical's revenue. In the recent quarter, for example, instruments and accessories generated $1.7 billion in revenue, while the placement of systems brought in $685 million. This is positive because it shows that, when a hospital invests in a Da Vinci, the revenue opportunity for Intuitive Surgical is just beginning.
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Wall Street surely appreciates those two elements I just talked about, and it's part of the reason analysts remain bullish on the stock. But, right now, here's one thing analysts are particularly focused on -- and it's the reason they're not worried about the recent stock performance.
This is the trend we're seeing in systems placements. In the most recent quarter, Intuitive Surgical placed 468 Da Vinci systems, up from the placement of 395 in the same period a year ago. This helped the company grow its installed base to 11,710 systems as of June 30, a 12% gain over the year-earlier period.
This shows that hospitals continue to heavily invest in robotic systems -- and they wouldn't be doing this if they didn't project an increased need for them in the years to come. That bodes well for Intuitive Surgical's growth moving forward, even if it traverses a slow patch from time to time.
All of this explains why Wall Street isn't scared of Intuitive Surgical's recent stock performance -- and it makes Intuitive Surgical an excellent stock to buy and hold.
Key Takeaways Intuitive Surgical is prioritizing R&D over near-term leverage to support long-term growth.AI/ML, robotics, imaging and software are key areas of its R&D investment strategy.ISRG is expanding into GI, cardiac and lung procedures to broaden its clinical reach. Intuitive Surgical (ISRG - Free Report) is deliberately prioritizing research and development to fuel long-term growth, offsetting near-term challenges from macroeconomic uncertainty, healthcare policy changes and international competitive pressures.
In the second quarter, management said R&D expenses are growing faster than SG&A, a trend expected to continue through the remainder of 2026. The strategy reflects a long-term objective — using innovation to reach more patients, expand into new disease areas and strengthen the company's competitive differentiation rather than focusing on near-term operating leverage.
Artificial intelligence and machine learning are central to this investment strategy. Intuitive Surgical is directing R&D resources across AI/ML, robotics, instrumentation, imaging and advanced materials, while continuing to develop software capabilities around its robotic platforms. Management views these investments as tools to improve reliability, usability, efficiency and throughput, ultimately creating differentiated solutions and reducing the total cost of care.
The company is simultaneously expanding beyond its established procedures. Its next-generation flexible robotic endoscope is being developed for gastrointestinal applications, with a foundational noncommercial system recently submitted for FDA 510(k) clearance. This could provide Intuitive Surgical with a pathway into GI robotics and additional high-volume procedures over time.
Cardiac and lung interventions represent other important areas of R&D optionality. Cardiac procedures accelerated 39% in the second quarter, as Intuitive Surgical continues developing cardiac-specific instruments to support broader adoption. On the lung side, Ion procedures increased 36% to 48,000, with cumulative procedures exceeding 400,000. Development of the ROSE and EBUS programs, alongside expansion into 12 countries outside the United States, could broaden Ion's clinical utility and international opportunity.
The financial rationale is therefore centered on long-term benefits. Intuitive Surgical is effectively sacrificing some near-term expense leverage to build a broader technology and clinical moat. With more procedures, new indications and differentiated capabilities, the company can expand its addressable market while strengthening its ecosystem. Management's willingness to increase R&D spending despite macroeconomic headwinds signals that it views innovation, rather than cost cutting, as the more important driver of durable growth.
Peer UpdatesEdwards Lifesciences (EW - Free Report) is maintaining substantial R&D investment to extend its structural-heart leadership and create multiple future growth platforms. In the second quarter, R&D expense was $279 million, or 16% of sales, up from $276 million a year earlier, with management expecting R&D to account for 17% of 2026 sales.
The spending is focused on expanding the structural-heart portfolio, including next-generation SAPIEN X4S, PASCAL with Capture Clarity, EVOQUE and SAPIEN M3. Edwards is also generating clinical evidence to support new indications, including moderate and asymptomatic aortic stenosis. Management views these investments as multiyear opportunities capable of supporting roughly 10% long-term annual sales growth and strengthening its competitive moat through differentiated technology, evidence and indication expansion.
Glaukos (GKOS - Free Report) is channeling its strong revenue growth into R&D and clinical development to expand its ophthalmology pipeline and reinforce its competitive advantage. CFO Alex Thurman noted that R&D increased $8 million sequentially in the second quarter, with management continuing to prioritize investment in clinical programs even as operating leverage improves.
The pipeline spans five novel therapeutic platforms, 13 publicly disclosed programs and additional undisclosed assets, including Phase IIb/III development of next-generation iDose TREX, Phase IIIb work on iDose TRIO, a corneal-health screening device, customized third-generation iLink therapy and other programs. Management said the objective is to maximize both near- and long-term top-line growth while supporting two transformational commercial drivers, iDose TR and Epioxa. This sustained clinical investment could create successive product cycles, expand treatment categories and reinforce Glaukos' differentiated technology moat.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 34.2% so far this year compared with a 7.3% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 32.64X, above the industry average. However, it is significantly lower than its five-year median of 68.4X. ISRG carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways ISRG's first-half 2026 free cash flow surged 71% to $1.8B, while cash and investments hit $8.6B.ISRG is growing R&D faster than SG&A and plans more than 100 updates for the da Vinci 5 platform.ISRG is advancing a flexible robotic GI endoscope and investing across AI, robotics, imaging and materials. Intuitive Surgical's (ISRG - Free Report) surging cash generation is giving it a meaningful competitive edge as the robotic surgery leader doubles down on innovation. First-half 2026 free cash flow jumped 71% year over year to $1.8 billion, while cash and investments reached $8.6 billion, providing ample financial flexibility to fund research, manufacturing expansion and shareholder returns without compromising growth initiatives.
Management is using that financial strength to widen its technology moat. ISRG is intentionally growing R&D faster than SG&A, expanding manufacturing capacity with new hiring and facility investments, and rolling out more than 100 planned updates for the da Vinci 5 platform. The company is also advancing next-generation programs, including a flexible robotic GI endoscope, while supporting innovation across AI, robotics, imaging and advanced materials. Alongside these investments, ISRG repurchased $379 million of stock during the quarter, underscoring confidence in its long-term outlook.
Peers UpdateBoston Scientific (BSX - Free Report) delivered another solid quarter, with second-quarter 2026 revenues rising 7.5% to $5.44 billion and adjusted EPS climbing 15% to 86 cents. Growth was driven by strength across Interventional Cardiology, Neuromodulation and Vascular businesses, while the company continued investing in future platforms, including SEISMIQ IVL, hypertension therapies and FARAWAVE Ultra. However, management trimmed its full-year outlook as WATCHMAN and electrophysiology pressures weighed on near-term expectations.
Medtronic (MDT - Free Report) continues strengthening its electrophysiology franchise through innovation. The company secured an expanded CE Mark for the Affera Mapping and Ablation System with the Sphere-9 catheter to treat ventricular arrhythmias, making it the first all-in-one mapping and ablation, dual-energy catheter approved in Europe for ventricular ablation. Medtronic also received FDA Breakthrough Device Designation for the technology, while its U.S. Sphere VT pivotal trial is enrolling patients, positioning the platform for future market expansion in a fast-growing cardiac ablation segment.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 34.6% in the year-to-date period compared with the industry’s decline of 6.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, ISRG trades at a price-to-book ratio of 7.15, above the industry average. ISRG carries a Value Score of D.
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The Zacks Consensus Estimate for ISRG’s 2026 earnings implies a significant 20.3% improvement from the year-ago period.
Image Source: Zacks Investment Research
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, Intuitive Surgical, Inc. (ISRG - Free Report) was up +1.51% at $372.60. The stock's performance was ahead of the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.52%.
The company's shares have seen an increase of 3.99% over the last month, not keeping up with the Medical sector's gain of 4.64% and the S&P 500's gain of 4.34%.
Analysts and investors alike will be keeping a close eye on the performance of Intuitive Surgical, Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.61, reflecting a 8.75% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 14.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.74 per share and revenue of $11.81 billion, which would represent changes of +20.27% and +17.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Intuitive Surgical, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Intuitive Surgical, Inc. presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Intuitive Surgical, Inc. is at present trading with a Forward P/E ratio of 34.19. Its industry sports an average Forward P/E of 23.49, so one might conclude that Intuitive Surgical, Inc. is trading at a premium comparatively.
One should further note that ISRG currently holds a PEG ratio of 2.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments industry currently had an average PEG ratio of 2.36 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Intuitive Surgical, Inc. (ISRG - Free Report) .
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.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in ISRG?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 Intuitive Surgical leased a 316,000-square-foot Penang site, with operations expected to start in 2028.The facility will make da Vinci instruments and electromechanical devices and create 1,200 jobs by 2032.ISRG sees Asia Pacific as a major growth market as robotic-assisted surgery adoption rises across the region. Intuitive Surgical (ISRG - Free Report) recently announced it will expand its manufacturing presence in Asia Pacific with a new facility in Penang, Malaysia, as the company looks to strengthen its ability to meet the rising demand for robotic-assisted surgery in the region. ISRG has entered into a lease agreement with Penang Development Corporation for a 316,000-square-foot manufacturing facility at Bandar Cassia Technology Park.
Per management, Asia Pacific represents a significant growth opportunity for Intuitive Surgical, given the rising adoption of robotic-assisted surgery across the region. The investment highlights the company’s long-term commitment to the region and should strengthen its ability to provide customers with innovative, high-quality and reliable products while potentially expanding access to robotic-assisted surgery.
Likely Trend of ISRG Stock Following the NewsFollowing the announcement, shares of ISRG gained 0.2% at yesterday’s close. Year to date, shares of the company have declined 31% compared with the industry’s 8.4% loss. However, the S&P 500 has risen 12% in the same timeframe.
The new Penang facility is a positive development for ISRG as it expands production capacity in a region with substantial long-term potential for robotic-assisted surgery. Increasing local manufacturing capabilities should position the company to better serve healthcare providers, support rising demand for da Vinci systems and instruments and strengthen its competitive position in Asia Pacific.
ISRG currently has a market capitalization of $137.90 billion.
Image Source: Zacks Investment Research
More on the NewsAsia Pacific remains an important growth market for Intuitive Surgical. Since entering Asia Pacific more than two decades ago, the company’s da Vinci surgical systems have enabled surgeons to treat more than 2.5 million patients across 13 markets.
The facility is expected to begin operations in 2028 and create approximately 1,200 highly skilled jobs by 2032. It will manufacture surgical instruments and electromechanical devices used with the da Vinci surgical system, expanding ISRG’s global manufacturing footprint and supporting the company’s growth across Asia Pacific.
Mark Brosius, executive vice president and chief Manufacturing and Supply Chain officer at ISRG, emphasized that the expansion is part of the company’s long-term strategy to strengthen its global manufacturing network while maintaining operational excellence. He added that the new facility will play an integral role in supporting the consistent delivery of high-quality and innovative products to customers and patients.
Penang chief minister Chow Kon Yeow said Intuitive’s investment underscores the company’s confidence in the region’s established industrial infrastructure, skilled workforce and manufacturing capabilities. The project will further strengthen Penang’s medical technology ecosystem and support its goal of becoming a leading MedTech hub in Southeast Asia.
ISRG has been witnessing continued growth in minimally invasive care globally, with its da Vinci system serving as a key driver. The company’s efforts to develop a broader robotic-assisted surgery ecosystem through technology, clinical education and collaboration with healthcare providers should further support adoption across Asia Pacific.
Industry Prospects Favoring the MarketGoing by the data provided by Precedence Research, the Asia Pacific surgical robots market is predicted to be valued at $1.29 billion in 2026 and is expected to witness a CAGR of 11.6% through 2035.
The growth will be primarily driven by the growing preference for minimally invasive procedures. The rise in the aging population, incidence of chronic diseases and government-backed hospital modernization programs in multiple Asian countries are boosting demand for surgical procedures, thereby driving demand for robot-assisted surgeries.
Other NewsRecently, ISRG ended the second quarter on a strong note, with earnings and revenues beating the Zacks Consensus Estimate. U.S. da Vinci procedure growth slowed to 12% in the second quarter from 14% in the first quarter, amid weaker elective procedures and uncertainty over ACA premium subsidies. Bariatric procedures declined at a high-single-digit rate due to growing GLP-1 adoption.
While Intuitive Surgical maintained its full-year procedure growth outlook, it did not raise guidance, citing tougher second-half comparisons. Concerns over the planned 2027 extension of instrument life could pressure recurring Instruments & Accessories revenues. However, strong da Vinci 5 adoption, rising SP and Ion procedures, broader ASC penetration, software and AI innovations, and international growth opportunities support the company’s long-term outlook.
ISRG’s Zacks Rank & Key PicksIntuitive Surgical currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and The Cooper Companies (COO - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.
The Cooper Companies, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 adjusted EPS of $1.21, which beat the Zacks Consensus Estimate by 10%. Revenues of $1.08 billion beat the Zacks Consensus Estimate by 2.6%.
COO has an estimated long-term earnings growth rate of 8.3%. COO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.8%.
Intuitive Surgical (ISRG +0.22%) is a leading company in the robotic-assisted surgical space. Its da Vinci machines are widely used, and surgeons have performed millions of procedures with them. Intuitive has significant growth potential, as it could help revolutionize the healthcare industry.
This year, however, the healthcare stock has been nosediving. It's down around 30% thus far in 2026, and if that doesn't improve, it'll be its worst performance since 2008.
What's wrong with Intuitive Surgical stock, and is it heading even lower, or could now be an opportune time to load up on this growth stock?
Image source: Getty Images.
Intuitive's recent numbers didn't do enough to give investors confidence in the businessIn July, Intuitive reported its second-quarter earnings, covering the period through to the end of June. While the healthcare business posted double-digit growth, investors appeared unimpressed by the guidance.
While worldwide procedure growth in Q2 was solid at 16% and revenue was up 19%, investors may have been taken aback by the guidance: for the full year, the company is projecting da Vinci procedure growth within the range of 13.5% to 15.5%.
This is particularly concerning, as increased competition could erode Intuitive's market share in the future. Healthcare giant Johnson & Johnson recently obtained clearance from regulators for its Ottava robotic surgical system to be used in various soft tissue surgeries. Last year, medical device company Medtronic also obtained clearance for its Hugo robotic-assisted surgery system.
While Intuitive has a massive head start, news of greater competition ahead and the business reporting underwhelming growth may have sparked significant concerns for Intuitive's investors, especially as this isn't a cheap stock to own.
A high valuation may put more downward pressure on Intuitive's stockThe big problem with Intuitive's stock in recent years has been its incredibly high valuation, with it not uncommon to see the stock trade at around 80 times its trailing earnings. When a stock's valuation is that high, expectations will also be inflated. And if a company doesn't meet them, it can raise questions about whether the premium is justified, and investors may be thinking twice about that right now with Intuitive's stock.
Unfortunately, even with the stock falling sharply this year, it may not be all that cheap. It's trading at 45 times its trailing earnings, and on a forward basis, based on how profitable analysts expect the business to be in the year ahead, it's trading at a multiple of 36. By comparison, the average stock in the S&P 500 trades at 26 times its trailing earnings, and 21 times its expected future profits.
Intuitive, still trading at a premium, may continue to come under pressure in the coming weeks and months.
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Is Intuitive's stock worth buying for the long haul?This year, Intuitive's stock is underperforming the market by a wide margin, whereas it has typically been a market-beating stock in the past. The sell-off this year is even worse than the 26% decline it experienced in 2022 when the market crashed. If it stays around 30%, it'll be the worst single-year performance for Intuitive since 2008. That year, it crashed by nearly 61%.
The good news for investors, however, is that the robotic-assisted surgical market offers tremendous opportunities, and Intuitive isn't running out of room to grow anytime soon, even with increased competition. It may, however, require patience from investors, as the stock's valuation and modest growth could make it difficult for it to recover from the current headwinds.
Intuitive's stock was overvalued for a long time, and a correction was arguably long overdue. For investors willing to remain invested and hang on for the very long haul (i.e., more than just a few years), Intuitive may be a good buy right now.
Key Takeaways Intuitive Surgical rolled out the first phase of more than 100 planned da Vinci 5 software updates.My Intuitive renewals began in Q2, with no customers in the initial cohort opting out.Service revenues rose 21%, while revenue per da Vinci system increased 8%, partly due to da Vinci 5. Intuitive Surgical’s (ISRG - Free Report) software is increasingly becoming a core component of the da Vinci 5 value proposition, potentially extending the platform’s competitive moat beyond hardware. The company rolled out the first phase of more than 100 planned software updates during the second quarter, targeting telepresence, simulation-based training and Care Team workflow. Management also submitted multiple innovations for FDA 510(k) clearance, suggesting that the software roadmap is designed as an ongoing stream of capability enhancements rather than a one-time product launch.
The commercial significance is already evident in My Intuitive+, Intuitive Surgical’s integrated da Vinci 5 offering that combines telepresence, simulation, and AI-driven case insights. The company executed its first wave of My Intuitive+ renewals during the second quarter. Although the initial renewal cohort was small, no customer opted out, providing an early indication that customers see continuing value in the digital layer surrounding the robotic platform.
The roadmap also extends into practical workflow improvements. Three submitted features include tools designed to reduce communication between surgeons and care teams, improve multi-arm adjustments and introduce a digital ruler that allows surgeons to measure anatomy during procedures. Management said additional updates will focus on improving system efficiency and effectiveness, with further differentiated capabilities expected over the coming years.
This strategy could make da Vinci 5 increasingly difficult to evaluate purely as capital equipment. Continuous software enhancements can improve usability, efficiency and clinical capabilities after installation, encouraging customers to remain within the Intuitive ecosystem and supporting the company's broader recurring-revenue model. The second-quarter service revenues increased 21%, while service revenue per da Vinci system rose 8%, partly reflecting the higher mix of da Vinci 5 systems.
Peer UpdateFor competitors, the implication is significant — matching robotic hardware may not be enough. Intuitive Surgical is building a layered ecosystem spanning robotics, software, AI, training and workflow optimization. ISRG management believes these capabilities, supported by sustained R&D investment, can meaningfully differentiate its solutions and reduce total cost of care.
Stryker (SYK - Free Report) is also embedding digital capabilities into its Mako ecosystem to make robotic surgery more effective while creating a broader technology moat. Mako has evolved into a multispecialty platform spanning hip, knee, spine and shoulder, with more than 2.5 million procedures across 47 countries.
The company’s strategy increasingly links robotics with enabling technologies and procedural workflows, while the full commercial launch of Mako RPS adds a handheld option for surgeons and ASCs. Stryker is using clinical evidence and continuous product innovation to deepen adoption rather than relying solely on hardware placements. With record Mako installations and rising utilization, this integrated approach strengthens surgeon familiarity, builds procedural data advantages, and increases ecosystem stickiness, potentially making Mako harder for competitors to displace.
Zimmer Biomet (ZBH - Free Report) is building its robotic moat by combining ROSA with a broader technology-and-data ecosystem. The company delivered record capital sales in the second quarter, driven by ROSA with OptimiZe, TMINI and the next-generation ROSA Shoulder, while its Technology & Data, Bone Cement and Surgical category grew 21.5%.
Beyond robotics, Zimmer is integrating digital tools such as OrthoGrid, an AI-based navigation solution for direct anterior hip procedures that delivered its strongest quarter and is expected to accelerate. ROSA Shoulder further differentiates the platform through an improved interface and the ability to perform both anatomic and reverse procedures with humeral and glenoid resections. By combining robotics, AI navigation, data and differentiated workflows, Zimmer is building a broader technology ecosystem that can improve surgical precision while increasing customer engagement and competitive defensibility.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 31.1% so far this year compared with an 8.1% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 10.88X, above the industry average. But it is significantly lower than its five-year median of 15.78X. ISRG carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Intuitive Surgical's U.S. procedure growth slowed to 12% in Q2 from 14% in Q1 and 17% in Q4 2025.ACA coverage changes affected timing for some deferrable procedures, while disease burden remains unchanged.Intuitive Surgical maintained 2026 procedure growth guidance of 13.5-15.5%, targeting the midpoint. Intuitive Surgical (ISRG - Free Report) has faced a moderation in U.S. procedure growth during the first half of 2026, but management’s commentary suggests the slowdown is more likely a temporary demand-timing issue than evidence of a structural deterioration. U.S. da Vinci procedures grew 12% in the second quarter, down from 14% in the first quarter. da Vinci procedure growth was 17% in the fourth quarter of 2025.
Management pointed to a modest adverse impact from the expiration of enhanced ACA premium subsidies. Customer feedback indicated that changes in insurance coverage and premium dynamics affected the timing of patient visits, particularly for procedures that can be postponed.
Intuitive Surgical also stated that the underlying disease burden remains unchanged, implying that deferred benign procedures should eventually return as patients re-enter the healthcare system. Management also noted that the procedure moderation likely reflected a combination of ACA-related effects and the “law of large numbers,” rather than a single factor. The distinction between deferrable and non-deferrable procedures was particularly important, with the former showing greater moderation.
For the second half, investors should nevertheless expect some pressure on reported growth. Intuitive Surgical maintained its 2026 da Vinci procedure growth forecast of 13.5-15.5%, expecting performance toward the midpoint. Management flagged tougher U.S. comparisons in the third quarter, alongside seasonal effects internationally, while incorporating ACA-related patient behavior into its outlook.
At this stage, the slowdown does not appear structural. U.S. utilization still increased 3%, while system placements rose 24%, and management said ACA concerns had not affected the capital pipeline. Strong adoption of da Vinci 5 continues to support upgrades and capacity expansion. The key risk is the duration of deferred procedures, rather than weakening underlying demand for robotic surgery.
Peer UpdatesGlobus Medical’s (GMED - Free Report) robotic platform faced a softer Enabling Technologies quarter, with revenues declining 26% year over year to $26.1 million. The company attributed the decline primarily to its shift toward greater flexibility in capital acquisition, rather than explicitly citing ACA premium-subsidy changes.
Despite lower capital revenues, demand for Excelsius technology remained healthy. EGPS and eHub units deployed through sales, leases or rentals rose 25% year over year, while robotic utilization surpassed 137,000 procedures. Management also acknowledged tougher second-half comparisons and remained cautious on its outlook because of Enabling Technologies’ strategy shift and Nevro integration.
Stereotaxis’ (STXS - Free Report) robotic business continues to face commercialization and procedure-related headwinds, but management did not specify any headwind from ACA premium subsidy expiration. Revenues declined 13% year over year to $7.7 million, partly because no robotic system was delivered during the quarter.
Management also cited “general pressure on procedures” as the company transitions from Johnson & Johnson and ramps up its own catheter manufacturing. Catheter supply constraints remain a bigger near-term bottleneck as demand exceeds available production, limiting shipments despite customer orders. STXS’ robotic growth is currently constrained more by product availability, hospital adoption, and procedure volumes than by any clearly identified impact from ACA subsidy changes.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 29.2% so far this year compared with a 6.8% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 34.95X, above the industry average. But it is significantly lower than its five-year median of 69.05X. 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.
If you're not familiar with Intuitive Surgical (ISRG +2.00%), know this: It's a massive robotic surgical systems specialist, with a recent market value topping $135 billion. That market value was quite a bit higher not so long ago, though -- because while the stock has averaged annual gains of 17% over the past decade, it's down 33% so far in 2026.
Two key concerns about the company are competition from China and also, potentially, from OpenAI and artificial intelligence (AI). That might have caused some to sell the stock or simply to steer clear. But the new, lower price should still entice long-term believers: Intuitive Surgical's forward price-to-earnings (P/E) ratio was recently 35, well below its five-year average of nearly 54.
Image source: The Motley Fool.
The big question is where Intuitive Surgical goes from here; for investors, the future always matters much more than the past. I'd argue that Intuitive isn't going away, because it already has an installed base of more than 12,000 robotic surgery systems in more than 70 countries around the world.
Better still, while hospitals aren't buying its pricey robotic surgery systems every day, they are frequently spending money on instruments, accessories, and servicing the systems they have. That's recurring revenue, which recently made up about 75% of total revenue.
On top of that, the company isn't standing still. It keeps launching newer, improved systems, and its offerings are much more polished and proven than those of would-be competitors. For example, it's expanding into bronchoscopy, and is seeing a lot of use of its machines for emergency surgeries.
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I'm not the only bullish investor (and shareholder) around. The Baron Health Care Fund recently wrote:
Medical device stocks ... broadly underperformed the market amid concerns that health care utilization trends could decelerate following the expiration of Affordable Care Act (ACA) subsidies. Concerns were further compounded by the potential impact of Medicaid work requirements expected to take effect in 2027. Despite these headwinds, we believe Intuitive [Surgical] can continue to grow revenue at a mid-teens rate for many years and [we] remain positive on the company's long-term growth outlook.
Wall Street remains generally positive on the stock, with most analysts rating it a buy. Take a closer look at this dynamic company and see what you think. For long-term, risk-tolerant investors, this could be a great buying opportunity.
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.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Mizuho analyst Brett Linzey upgraded IDEX Corp (NYSE:IEX) from Neutral to Outperform and raised the price target from $210 to $280. IDEX closed at $237.31 on Tuesday. See how other analysts view this stock. Deutsche Bank analyst Melissa Weathers upgraded Entegris Inc (NASDAQ:ENTG) from Hold to Buy and boosted the price target from $152 to $200. Entegris shares closed at $150.21 on Tuesday. See how other analysts view this stock. Oppenheimer analyst Suraj Kalia upgraded Intuitive Surgical Inc (NASDAQ:ISRG) from Perform to Outperform and announced a $500 price target. Intuitive Surgical closed at $401.23 on Tuesday. See how other analysts view this stock. Citizens analyst Rustam Kanga upgraded Okta Inc (NASDAQ:OKTA) from Market Perform to Market Outperform and announced a $170 price target. Okta shares closed at $150.33 on Tuesday. See how other analysts view this stock. Considering buying ISRG stock? Here’s what analysts think:
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Intuitive Surgical is rated a Hold, with a modeled +9.17% upside and a price target of $426.65. ISRG's growth thesis centers on untapped ASC procedure volume, overstated remanufacturing risks, and remanufacturing's role in expanding the installed base. Remanufacturing currently poses a limited threat, with sub-3% penetration and approval for only 4 out of 45+ instruments.
Intuitive Surgical (ISRG) rose 0.90% premarket after Oppenheimer upgraded the robotic surgery company to Outperform from Perform with a $500 price target. The f
I keep hitting the buy button on Intuitive Surgical (NASDAQ:ISRG | ISRG Price Prediction), and the recent drawdown has only made me press it harder. The stock is down 30.54% year to date, and I have been adding on the way down because the business under the ticker keeps getting better while the price keeps getting cheaper.
Here is what pulls me back every time: ISRG runs a razor and razorblade model in a surgical robotics category it built. Every da Vinci system placed in a hospital keeps paying for years through instruments, accessories, and services. That is the compounding engine I want owning a slice of for the next twenty years.
Three Reasons The Thesis Holds First, the installed base is doing exactly what a long-term compounder should do. The da Vinci fleet grew 12% to 11,710 systems in Q2 2026, and Ion grew 21% to 1,096 systems. Recurring instruments and accessories revenue hit $1.73 billion, up 18%, and recurring revenue now runs at 85% of total revenue. Non-GAAP gross margin expanded to 70.0% from 67.9%. Q2 revenue of $2.89 billion beat consensus, and management has beaten EPS estimates five consecutive quarters.
Second, the da Vinci 5 supercycle is real and early. ISRG placed 246 dV5 systems in Q2, including 114 dual consoles, and the dV5 installed base is just over 1,700 systems used by more than 15,000 surgeons. The platform brings 10,000x the processing power of previous generations, force-feedback sensing, and enhanced 3D visualization. Management is rolling out more than 100 planned updates to the da Vinci 5 platform. CFO Jamie Samath reminded us on the Q2 call that when Xi launched, “it took about seven years before we got to the peak trade-in volumes going from Si to Xi.” We are early in this one.
Third, the balance sheet lets me be patient. Cash and investments sit at $8.6 billion, up 153.46% year over year, against just $2.58 billion in total liabilities and $18.30 billion in shareholders’ equity. Free cash flow ran $1.8 billion in H1 2026, a 71% increase. The company bought back 0.9 million shares for $380 million in Q2 on top of a Q1 repurchase.
Why This One And Not The Alternatives Readers usually reach for Medtronic (NYSE:MDT) with its Hugo system or Johnson & Johnson (NYSE:JNJ) with the developing Ottava platform. My money keeps going to ISRG because the gap in scale is the whole ballgame. ISRG owns a da Vinci installed base of almost 13,000 systems worldwide and posted 15% global da Vinci procedure growth in Q2. Hugo is early commercial, Ottava is pre-commercial, and Stryker’s (NYSE:SYK) Mako plays in orthopedics, a separate vertical. ISRG’s $1,734,900,000 quarterly I&A stream stands alone in soft-tissue robotics.
The Risk I Take Seriously Tariffs are the real threat. ISRG makes instruments in Mexico and endoscopes in Germany, and guidance already bakes in an estimated 1.0% adverse impact from tariffs currently in effect. Additional tariffs could bite deeper. U.S. da Vinci procedure growth decelerated to 12% in Q2 2026 from 14% in Q1, partly because ACA subsidy expirations pushed some patients to defer care. The thesis still holds because CEO Dave Rosa put it plainly: “the underlying disease burden is unchanged, and deferred conditions typically progress and will ultimately require treatment.”
At $393.38, ISRG trades at a forward P/E of 35x with analyst consensus at $477.25 and a 23:9:1 buy/hold/sell split. My time horizon runs decades. I am buying a compounder with a widening moat during a hardware refresh cycle that only comes around once every seven years, and my finger stays on the button.
Contact [email protected] for any questions or corrections.
Intuitive Surgical (ISRG +1.36%) can be hard to own because the stock is prone to deep drawdowns. It is in a drawdown right now, with the stock down roughly 40% from its early 2025 high. Even after that drop, the price-to-earnings ratio remains lofty at 42x. This is not a stock for the faint of heart.
However, if you are a growth-oriented investor, you shouldn't give up on Intuitive Surgical. Historically, the stock has recovered from deep drawdowns and gone on to reach higher highs. There's a difference this time around due to increasing competition from medical device peers such as Medtronic (MDT +1.44%) and Johnson & Johnson (JNJ +0.88%). But that probably shouldn't stop more aggressive investors. Here's why.
Image source: Getty Images.
Intuitive Surgical isn't alone anymore Intuitive Surgical was an early leader in the surgical robotics space. The company's da Vinci system basically helped create the industry niche. So, early on, the question was about medical providers being willing to adopt a new technology. Surgical robotics is now a far more mature and well-accepted technology, generally enabling less invasive surgeries with better outcomes.
In late 2025, Medtronic received approval for its Hugo surgical robotic system in the United States. In mid-2026, J&J received approval for its OTTAVA surgical robot system. Both Medtronic and J&J are well-established competitors with strong industry connections. There is no doubt that they will be fierce competitors to Intuitive Surgical.
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That said, surgical robotic systems don't receive blanket approvals. They are approved to perform select types of surgery. The competition is, in some ways, limited to specific niches for now until they get further approvals. So the immediate impact of the new competition on Intuitive Surgical's da Vinci sales probably won't be huge. Notably, in the second quarter of 2026, the company sold 468 systems, up from 395 in the same quarter of 2025.
Intuitive Surgical's real flywheel isn't selling robots The total number of da Vinci systems in use worldwide is now 11,710. That's up 12% year over year. However, the number of surgeries performed with a da Vinci robot grew 16% year over year in the second quarter. That's important to note because it shows the demand for surgeries performed with a surgical robot. But it also highlights another key factor.
Intuitive Surgical generates only about 25% of its revenue from the sale of da Vinci systems. The other 75% comes from services (about 15% of sales) and Instruments and accessories (roughly 60%). It is important for the company to continue selling new da Vinci systems, but the real strength of the business lies in its parts and services business.
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The income from parts and services is annuity-like. The more da Vinci systems in place and the more they get used, the larger the company's recurring cash flow grows. And that money will keep rolling in so long as the da Vinci robots in place are being used. Intuitive Surgical's large lead over the competition gives it a strong business foundation that isn't going to go away. And that gives it the wherewithal to take on diversified healthcare giants like Medtronic and J&J as they enter the surgical robotics space.
There's room for more than one surgical robot At the end of the day, the healthcare sector is very large. There is likely to be room for more than one surgical robot system. And given Intuitive Surgical's strong industry position and recurring income streams, it has an important head start. While the stock is probably most appropriate for more aggressive growth-oriented investors, it is worth noting that the lofty 42x P/E ratio is actually well below the five-year average of 68x. Which means, historically speaking, the stock looks cheap right now.
Intuitive Surgical (NASDAQ:ISRG | ISRG Price Prediction) trades at $373.71, while the average Wall Street price target sits at $477.25. That leaves the stock roughly 28% below consensus, and Bernstein pegs fair value at $685, implying returns north of 83%.
Intuitive Surgical dominates the robotic-assisted surgery market with its da Vinci surgical system and Ion lung biopsy platform. It has an installed base of 11,710 da Vinci systems worldwide. Wall Street has treated it as a compounder for years, making the current gap between price and target notable.
How A Compounder Lost A Third Of Its Value ISRG is down 34.02% year to date and 21.17% over the past twelve months. The trigger was a slower guide, not a broken business. Full-year 2026 da Vinci procedure growth was set at 13.5% to 15.5%, a clear deceleration from the roughly 18% pace investors expected.
Tariffs compounded the damage. Instruments and accessories are manufactured in Mexico, endoscopes in Germany, and certain materials come from China. Management embedded a 1.0% revenue drag from tariffs into gross margin guidance and warned further escalation could materially hit results. HSBC downgraded the stock from Buy to Hold and cut its target from $604 to $391. A Class II recall of 11,113 da Vinci SP drapes added noise, and moderation in U.S. elective procedures tied to ACA subsidy expiration finished the decline.
Why The Bulls Are Still On Board Analysts remain bullish because the underlying business kept beating expectations through the selloff. Q2 2026 non-GAAP EPS came in at $2.80 versus a $2.50 consensus, revenue of $2.89 billion grew 18.5% year over year, marking the fifth consecutive quarterly beat. Non-GAAP gross margin expanded to 70.0% from 67.9%.
The bull thesis rests on the da Vinci 5 upgrade cycle. Placements hit 246 dV5 systems in Q2, and CFO Jamie Samath compared the trajectory to the Xi cycle, which “took about seven years before we got to the peak trade-in volumes.”. Add a growing recurring instruments base, $8.63 billion in cash, and an extended-use instrument program rolling out in 2027. The rating mix shows 7 analysts rate ISRG Strong Buy, 16 Buy, 9 Hold, and just 1 Sell.
Peers Held Up Better The medtech group softened in 2026, yet ISRG stands alone in drawdown depth. Its two closest scaled robotic peers held up far better, raising whether the market overcorrected on the leader.
Medtronic (NYSE:MDT) trades at $85.92, down just 9.03% YTD. Its Hugo robotic system cleared FDA for general surgery submission, but robotics is a small part of a diversified device portfolio. The Street target of $98.44 implies about 15% upside, with 18 Buys and 12 Holds.
Stryker (NYSE:SYK) sits at $337.43, off only 3.47% YTD after a Q2 beat driven by 9.0% organic growth and Mako robotic orthopedics. Its $381.50 target implies about 13% upside, with 23 Buys against 5 Holds.
The largest analyst-implied upside sits with Intuitive Surgical by a wide margin. Peers offer roughly half the implied return with far smaller drawdowns, suggesting ISRG’s punishment overshot its fundamental deterioration.
What The Tape Says Intuitive Surgical trades at $373.71 against an average analyst target of $477.25, implying roughly 28% upside from 33 covering analysts. The stock is down 34.02% year to date while the S&P 500 is up 12.71%, a spread of nearly 47 points against a former market darling.
Valuation still reflects that pedigree. Trailing P/E is 42 and forward P/E sits at 34, both premium to the broader medical device group. Bernstein’s $685 Street-high target is the outlier pinning the 83% figure in the headline, but consensus already argues the derating went too far.
The Case For And Against The bull case holds if the da Vinci 5 trade-in cycle mirrors the Xi ramp, tariff pressure caps near current guidance, and U.S. elective procedure growth stabilizes as ACA subsidy noise fades. In that scenario, the recurring instruments engine compounds, margins hold near 70%, and the stock reprices toward the Street’s $477.25 average within 12 to 18 months.
The bear case builds if tariffs escalate beyond the current 1.0% drag, Chinese domestic robotic competitors freeze that market, or GLP-1 pressure on bariatric procedures signals broader structural hits to surgical volume. A P/E of 42 leaves no room for error. On balance, the peer comparison makes the drawdown look excessive, but this story needs one more clean quarter before the tape trusts it again.
Contact [email protected] for any questions or corrections.
Key Takeaways Intuitive Surgical placed 246 da Vinci 5 systems as the installed base topped 1,700 systems.ISRG began rolling out the first of 100-plus software updates and filed new FDA 510(k) features.Intuitive Surgical expects da Vinci 5 upgrades to build over years, similar to the da Vinci Xi cycle. Intuitive Surgical's (ISRG - Free Report) second-quarter 2026 results suggest that the da Vinci 5 platform is evolving into more than a routine product refresh. It appears to be laying the foundation for a multi-year capital upgrade cycle driven by software innovation, clinical capabilities and a growing installed base.
The momentum was evident in the quarter's capital performance. Intuitive Surgical placed 468 da Vinci systems globally, including 246 da Vinci 5 systems, while the installed base of the latest-generation platform surpassed 1,700 systems. More than 15,000 surgeons have already used da Vinci 5 since its launch, indicating rapid physician adoption that could encourage additional hospitals to modernize their robotic surgery programs. Trade-ins also accelerated to 144 systems from 83 a year earlier, largely reflecting U.S. customers upgrading from older platforms.
Unlike previous hardware-centric product launches, da Vinci 5 has been designed as a software-enabled platform capable of continuous enhancements. During the quarter, Intuitive Surgical rolled out the first phase of more than 100 planned software updates focused on telepresence, simulation-based training and care-team workflow. The company also submitted multiple new features for FDA 510(k) clearance, reinforcing management's strategy of steadily expanding the platform's capabilities rather than relying on a single launch event.
Management also drew parallels with the successful da Vinci Xi upgrade cycle. The Xi transition required roughly seven years to reach peak trade-in volumes, and executives expect the da Vinci 5 upgrade cycle to follow a similarly progressive, multi-year path. As software updates continue to enhance the ecosystem, management believes the platform will become increasingly attractive to existing customers over time.
Notably, hospitals continue to invest despite macroeconomic concerns. Management described the U.S. capital environment as stable, with a healthy pipeline supported by leasing, which accounts for roughly 70% of U.S. system acquisitions. The company noted that customer interest in accessing the latest da Vinci 5 technology, higher utilization and additional system capacity have outweighed concerns surrounding healthcare reimbursement and broader economic uncertainty.
Peer UpdatesEdwards Lifesciences (EW - Free Report) is positioning itself for a multi-year product upgrade cycle through continuous innovation across its structural heart portfolio rather than relying on a single platform. Management highlighted several near-term catalysts, including the next-generation SAPIEN X4S platform currently in the ALLIANCE trial, an anticipated U.S. TAVR National Coverage Determination update, new PASCAL Capture Clarity technology, a U.S. tricuspid indication for PASCAL, the rollout of ECLIPTIS, and continued expansion of EVOQUE and SAPIEN M3.
The company believes these product launches, indication expansions and growing clinical evidence will gradually broaden patient access, reinforce physician adoption and support durable product refresh cycles and long-term structural heart growth.
Glaukos (GKOS - Free Report) is building a long-term upgrade cycle through a diversified ophthalmology pipeline spanning multiple therapeutic platforms. While iDose TR and Epioxa remain the company's primary commercial growth engines, management is advancing iDose TREX, iDose TRIO, a keratoconus screening device, third-generation customized iLink therapy, PRESERFLO MicroShunt, additional iStent infinite indications, an iLution therapy for Demodex blepharitis and GLK-401 for retinal disease.
The company also continues expanding Phase IV clinical evidence and commercial infrastructure to support adoption. Management believes that its pipeline programs can create successive innovation cycles, expand treatment paradigms and sustain growth well into the next decade.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 33.8% so far this year compared with a 10.7% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 32.74X, above the industry average. But, it is significantly lower than its five-year median of 69.11X. 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.
BankChampaign National Association purchased a new stake in Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 1,969 shares of the medical equipment provider’s stock, valued at approximately $908,000.
Other large investors also recently modified their holdings of the company. Prosperity Consulting Group LLC increased its stake in shares of Intuitive Surgical by 0.5% during the third quarter. Prosperity Consulting Group LLC now owns 4,033 shares of the medical equipment provider’s stock valued at $1,804,000 after acquiring an additional 19 shares during the period. Sunburst Financial Group LLC grew its position in Intuitive Surgical by 4.3% in the fourth quarter. Sunburst Financial Group LLC now owns 485 shares of the medical equipment provider’s stock worth $275,000 after acquiring an additional 20 shares in the last quarter. WoodTrust Financial Corp increased its position in Intuitive Surgical by 0.5% during the fourth quarter. WoodTrust Financial Corp now owns 4,180 shares of the medical equipment provider’s stock worth $2,367,000 after buying an additional 20 shares during the last quarter. North Star Investment Management Corp. raised its stake in shares of Intuitive Surgical by 8.5% in the 4th quarter. North Star Investment Management Corp. now owns 269 shares of the medical equipment provider’s stock valued at $152,000 after acquiring an additional 21 shares in the last quarter. Finally, Cornerstone Planning Group LLC raised its position in shares of Intuitive Surgical by 11.5% in the fourth quarter. Cornerstone Planning Group LLC now owns 203 shares of the medical equipment provider’s stock valued at $106,000 after purchasing an additional 21 shares during the period. 83.64% of the stock is owned by institutional investors and hedge funds.
Insider Activity at Intuitive Surgical In related news, SVP Iman Jeddi sold 5,625 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $420.55, for a total transaction of $2,365,593.75. Following the completion of the transaction, the senior vice president owned 6,463 shares in the company, valued at approximately $2,718,014.65. This represents a 46.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gary Loeb sold 400 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $424.14, for a total value of $169,656.00. Following the completion of the transaction, the executive vice president owned 5,720 shares of the company’s stock, valued at approximately $2,426,080.80. This represents a 6.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,606 shares of company stock valued at $2,786,967 over the last ninety days. Company insiders own 0.60% of the company’s stock.
More Intuitive Surgical News Here are the key news stories impacting Intuitive Surgical this week:
Positive Sentiment: UBS upgraded ISRG, arguing that the selloff has been excessive. The call provides a counterpoint to recent target reductions and may support a rebound thesis as investors refocus on the company’s recurring instrument revenue and installed da Vinci system base. UBS upgrades Intuitive Surgical Positive Sentiment: Intuitive Surgical is expanding robotic-assisted surgery beyond its traditional urology strength, with general surgery and newer specialties offering additional long-term procedure growth opportunities. Robotic surgery expansion beyond urology Neutral Sentiment: HSBC downgraded ISRG from Buy to Hold but assigned a $391 price target, implying upside from recent levels. The mixed analyst signals reflect uncertainty about near-term growth rather than a fundamental change to the company’s long-term opportunity. Neutral Sentiment: Executive Vice President Mark Brosius sold small blocks of shares under a pre-arranged Rule 10b5-1 plan. The transactions totaled roughly $20,000 and reduced his holdings by about 2% in each sale, limiting their significance for investors. Intuitive Surgical insider sale Negative Sentiment: Investors remain concerned that U.S. procedure growth could soften and that deferred care may weigh on near-term utilization. Those concerns overshadowed the latest quarterly beat, in which revenue rose 18.4% year over year to $2.89 billion and EPS reached $2.80 versus the $2.48 consensus. Intuitive Surgical post-earnings selloff Analysts Set New Price Targets Several equities analysts recently weighed in on ISRG shares. Piper Sandler set a $357.44 price objective on Intuitive Surgical in a research report on Monday. BMO Capital Markets reiterated an “outperform” rating on shares of Intuitive Surgical in a research report on Monday, July 20th. BNP Paribas Exane upgraded Intuitive Surgical to an “outperform” rating in a research note on Tuesday. Truist Financial dropped their price objective on shares of Intuitive Surgical from $580.00 to $510.00 and set a “buy” rating for the company in a report on Thursday, July 16th. Finally, UBS Group began coverage on Intuitive Surgical in a report on Tuesday. They issued a “neutral” rating and a $500.00 price target for the company. Twenty equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Intuitive Surgical currently has an average rating of “Moderate Buy” and an average target price of $509.02.
Get Our Latest Research Report on ISRG
Intuitive Surgical Stock Down 0.0% NASDAQ:ISRG opened at $352.97 on Friday. The firm has a market capitalization of $124.70 billion, a P/E ratio of 40.43, a P/E/G ratio of 2.55 and a beta of 1.46. Intuitive Surgical, Inc. has a 12-month low of $328.57 and a 12-month high of $603.88. The stock’s fifty day simple moving average is $399.96 and its 200-day simple moving average is $452.67.
Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last announced its quarterly earnings results 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. The business had revenue of $2.89 billion for the quarter, compared to the consensus estimate of $2.83 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. Intuitive Surgical’s revenue for the quarter was up 18.4% on a year-over-year basis. During the same period last year, the company posted $1.81 EPS. As a group, equities research analysts expect that Intuitive Surgical, Inc. will post 8.87 earnings per share for the current year.
Intuitive Surgical Profile (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
Further Reading Five stocks we like better than Intuitive Surgical Microsoft Just Flipped the AI Spending Narrative Overnight Qualcomm’s Turnaround Is Working, So Why Is Wall Street Selling? Meta’s Earnings Show Why Wall Street Is Losing Patience With AI Spending Can Starbucks Keep This Turnaround Going? The Latest Results Say Yes Want to see what other hedge funds are holding ISRG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report).
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Intuitive Surgical, Inc. (ISRG - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned -17.2%, compared to the Zacks S&P 500 composite's -0.5% change. During this period, the Zacks Medical - Instruments industry, which Intuitive Surgical falls in, has gained 5.4%. The key question now is: What could be the stock's future direction?
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.
Earnings Estimate RevisionsRather 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 has changed +0.3% 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 changed +3.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $11.95 indicates a change of +11.3% from what Intuitive Surgical is expected to report a year ago. Over the past month, the estimate has changed +2.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Intuitive Surgical is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
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 +14.9%. The $11.78 billion and $13.18 billion estimates for the current and next fiscal years indicate changes of +17.1% and +11.9%, 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.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it 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 #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways ISRG is seeing procedure growth broaden beyond urology, led by U.S. general surgery and emerging specialties.Intuitive Surgical reported strong growth in cardiac, breast and benign procedures despite bariatric weakness.ISRG is investing in new instruments and lower-cost programs to support broader robotic surgery adoption. Intuitive Surgical (ISRG - Free Report) is steadily expanding its robotic-assisted surgery beyond its traditional strength in urology, with general surgery and emerging specialties becoming increasingly important growth drivers. Management reaffirmed that U.S. general surgery remains the primary contributor to procedure growth, supported by a 26% increase in after-hours procedures, highlighting broader hospital utilization and deeper penetration across routine surgical workflows.
The company's long-term growth story is being shaped by newer clinical applications. Cardiac procedures accelerated 39% year over year, while nipple-sparing mastectomy (NSM) procedures increased 43%, reflecting growing surgeon adoption despite both categories remaining in the early stages of commercialization. Intuitive Surgical is reinforcing these opportunities by investing in cardiac-specific instruments and expanding the clinical evidence base supporting NSM, laying the foundation for broader adoption over time.
Not every procedure category is moving in the same direction. Bariatric surgery remains a headwind, with U.S. da Vinci bariatric procedures declining at a high single-digit rate as rising GLP-1 drug adoption continues to reduce surgical demand. However, management emphasized that weakness in bariatrics is being offset by strength across other benign procedures.
Outside the United States, benign procedures now account for just over one-quarter of da Vinci volumes, with growth accelerating 37% during the quarter, underscoring the significant runway for robotic adoption in lower-acuity surgeries. The planned Extended Use Program, which will lower instrument costs for selected benign procedures beginning in 2027, is expected to further support adoption in cost-sensitive settings and geographies.
Intuitive Surgical's clinical momentum is becoming increasingly diversified. Growth across general surgery, cardiac, breast surgery, benign procedures and the expanding SP and Ion platforms demonstrates that the company's future is no longer dependent on urology alone. This broadening clinical footprint strengthens Intuitive Surgical's competitive positioning and provides multiple avenues for sustained procedure growth over the long term.
Peer UpdatesStryker (SYK - Free Report) is broadening the clinical reach of its Mako ecosystem by extending robotics across multiple orthopedic indications rather than relying solely on knee and hip arthroplasty. The company highlighted record first-quarter Mako installations and rising utilization globally, reflecting robust hospital demand. Mako Shoulder is scheduled for a full launch on the Mako 4 platform in mid-2026, opening a new upper-extremity indication. Stryker is also introducing the handheld Mako RPS system, targeting surgeons and ambulatory surgery centers seeking a lower-barrier entry into robotic surgery. Management believes these additions complement the core Mako franchise, expanding the addressable surgeon base and strengthening its orthopedic robotics leadership.
Zimmer Biomet (ZBH - Free Report) is expanding the clinical scope of its robotic portfolio through a broader technology ecosystem spanning knees, hips, shoulders and future autonomous robotics. Strong ROSA and TMINI sales, coupled with nearly 12% growth in its technology and data business, underscore rising adoption across orthopedic procedures.
The company is scaling ROSA Shoulder following positive surgeon feedback, with the platform supporting both anatomic and reverse shoulder arthroplasty while integrating seamlessly into the broader ROSA ecosystem. Zimmer Biomet is preparing to launch the semi-autonomous mBos robotic system after completing clinical enrollment, positioning robotics to address a wider range of orthopedic indications with enhanced precision, efficiency and workflow integration.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 37.7% so far this year compared with an 11.6% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 30.88X, above the industry average. But, it is significantly lower than its five-year median of 69.38X. ISRG carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 20.3% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amundi lifted its holdings in shares of Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 8.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,428,356 shares of the medical equipment provider’s stock after buying an additional 193,096 shares during the period. Amundi owned approximately 0.69% of Intuitive Surgical worth $1,119,448,000 at the end of the most recent reporting period.
Several other large investors also recently bought and sold shares of the business. Newbridge Financial Services Group Inc. lifted its holdings in shares of Intuitive Surgical by 300.0% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 44 shares of the medical equipment provider’s stock valued at $25,000 after buying an additional 33 shares during the period. Main Street Group LTD bought a new stake in shares of Intuitive Surgical in the first quarter worth $30,000. Laurel Wealth Advisors LLC bought a new stake in shares of Intuitive Surgical in the fourth quarter worth $31,000. Vermillion Wealth Management Inc. grew its holdings in shares of Intuitive Surgical by 58.1% in the first quarter. Vermillion Wealth Management Inc. now owns 68 shares of the medical equipment provider’s stock worth $31,000 after acquiring an additional 25 shares during the period. Finally, Turning Point Benefit Group Inc. increased its position in Intuitive Surgical by 833.3% during the fourth quarter. Turning Point Benefit Group Inc. now owns 56 shares of the medical equipment provider’s stock valued at $32,000 after acquiring an additional 50 shares during the last quarter. 83.64% of the stock is currently owned by institutional investors.
Key Stories Impacting Intuitive Surgical Here are the key news stories impacting Intuitive Surgical this week:
Positive Sentiment: Durable demand and improved margins: On its second-quarter earnings call, Intuitive Surgical highlighted continued demand for its da Vinci surgical systems and raised margin guidance. The company’s latest quarter also exceeded analyst expectations for revenue and earnings, supporting confidence in operating execution. ISRG Q2 Earnings Call Signals Durable Demand & U.S. Caution Positive Sentiment: Analysts see significant recovery potential: Wall Street’s average price target is substantially above the current trading level, with one analyst reportedly assigning a target of $685. The bullish view reflects expectations for further procedure growth, broader adoption of robotic-assisted surgery and recurring instrument and service revenue. Why Wall Street Thinks Intuitive Surgical Stock Could Soar Positive Sentiment: Patient-awareness campaign: Intuitive announced a collaboration with Deion “Coach Prime” Sanders to educate patients about surgical options and encourage discussions with physicians. The campaign could increase public awareness of da Vinci procedures, although its financial impact is likely longer term. Intuitive Collaborates with Deion Sanders Neutral Sentiment: Governance update: The board amended the company’s bylaws and proxy rules. The changes may affect shareholder proposals and corporate governance but do not appear to alter Intuitive Surgical’s operating outlook. Intuitive Surgical Tightens Shareholder Governance and Proxy Rules Negative Sentiment: U.S. growth and coverage risks: Management cautioned about slower U.S. procedure growth and deferred care. Separately, the loss of enhanced Affordable Care Act subsidies could reduce insurance coverage, potentially delaying elective procedures and limiting near-term demand. The ACA Coverage Debate Just Became a $50 Billion Question Intuitive Surgical Trading Up 1.4% NASDAQ ISRG opened at $361.80 on Wednesday. Intuitive Surgical, Inc. has a 12 month low of $328.57 and a 12 month high of $603.88. The stock has a market cap of $127.82 billion, a price-to-earnings ratio of 41.44, a PEG ratio of 2.58 and a beta of 1.46. The company’s 50 day moving average is $403.62 and its two-hundred day moving average is $455.95.
Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The medical equipment provider reported $2.80 earnings per share for the quarter, topping 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 during the quarter, compared to analyst estimates of $2.83 billion. During the same period in the prior year, the business posted $1.81 earnings per share. The company’s revenue was up 18.4% on a year-over-year basis. Sell-side analysts forecast that Intuitive Surgical, Inc. will post 8.87 EPS for the current year.
Insiders Place Their Bets In other news, SVP Iman Jeddi sold 5,625 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $420.55, for a total value of $2,365,593.75. Following the transaction, the senior vice president directly owned 6,463 shares in the company, valued at $2,718,014.65. The trade was a 46.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gary Loeb sold 400 shares of the company’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $424.14, for a total value of $169,656.00. Following the completion of the transaction, the executive vice president directly owned 5,720 shares of the company’s stock, valued at approximately $2,426,080.80. This trade represents a 6.54% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,550 shares of company stock valued at $2,767,249 in the last quarter. 0.60% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In A number of research analysts have weighed in on ISRG shares. Deutsche Bank Aktiengesellschaft lowered their target price on Intuitive Surgical from $440.00 to $366.00 and set a “sell” rating on the stock in a report on Tuesday, June 2nd. UBS Group started coverage on shares of Intuitive Surgical in a research report on Tuesday. They set a “neutral” rating and a $500.00 price target for the company. Truist Financial lowered their price objective on shares of Intuitive Surgical from $580.00 to $510.00 and set a “buy” rating on the stock in a research note on Thursday, July 16th. TD Cowen lowered shares of Intuitive Surgical from a “buy” rating to a “hold” rating in a research report on Tuesday. Finally, Leerink Partners reduced their target price on shares of Intuitive Surgical from $573.00 to $454.00 and set an “outperform” rating for the company in a report on Friday, July 17th. Twenty-one equities research analysts have rated the stock with 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 company has an average rating of “Moderate Buy” and an average price target of $517.21.
View Our Latest Report on Intuitive Surgical
Intuitive Surgical Company Profile (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
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Key Takeaways ISRG maintained 2026 da Vinci procedure growth guidance of 13.5-15.5%, near the midpoint.U.S. da Vinci procedure growth slowed to 12%, while international growth reached 20%.ISRG raised its 2026 non-GAAP gross-margin outlook to 68-69% from 67.5-68.5%. Intuitive Surgical, Inc. (ISRG - Free Report) used its second-quarter 2026 earnings call to emphasize strong platform adoption while acknowledging slower U.S. procedure growth in deferrable categories.
Management maintained its full-year procedure outlook, raised the gross-margin range and highlighted da Vinci 5, SP, Ion and lower-cost system options as the main levers for broader adoption.
Revenues of $2.89 billion exceeded the Zacks Consensus Estimate of $2.81 billion. Non-GAAP earnings of $2.80 per share beat the consensus estimate of $2.48.
ISRG Keeps Procedure Guidance IntactDaniel Connally, vice president and head of investor relations, said Intuitive still expects 2026 da Vinci procedure growth of 13.5% to 15.5%, with results closer to the midpoint.
The outlook continues to assume growth from U.S. general surgery and procedures outside urology internationally. It also incorporates ACA subsidy changes, China competition, European capital pressure, Japan funding dynamics and obesity drugs.
Second-half comparisons become tougher, particularly in the United States during the third quarter, while international holiday timing also affects quarterly growth patterns.
Intuitive Flags Softer U.S. Procedure TrendsDavid Rosa, chief executive officer, said U.S. da Vinci procedure growth moderated to 12%, with weakness concentrated in procedures patients can defer.
Rosa stated that customer feedback pointed to insurance coverage and premium changes as factors affecting treatment timing. Jamie Samath, chief financial officer and enterprise technology leader, also cited a law-of-large-numbers effect.
Bariatric procedures remained pressured by rising GLP-1 use, while after-hours procedures increased 26%. Outside the United States, da Vinci procedure growth reached 20%.
ISRG’s Capital Demand Remains FirmSamath said that the U.S. capital environment remained stable, supported by 267 system placements, up 24% year over year. About half of U.S. placements were trade-ins.
Da Vinci 5 demand drove upgrades, while leasing gave hospitals more flexibility when capital budgets were constrained. Around 70% of U.S. system acquisitions were under leasing arrangements.
A JPMorgan analyst questioned whether hospital finances could weaken. Samath responded that the pipeline remained healthy and had not been affected by ACA enrollment concerns.
Intuitive Expands Its Platform MixRosa said da Vinci 5 adoption remained strong, with 246 placements in the quarter, including 114 dual-console systems. The installed base exceeded 1,700 systems.
SP procedures grew 61%, helped by adoption in the United States and Korea. Ion procedures rose 36% to 48,000, taking cumulative procedures above 400,000.
Management also highlighted XiR for ambulatory surgery centers and cost-sensitive international markets. Samath said that about 130 XiR systems were installed, including roughly 50 in the United States.
ISRG Balances Access and Instrument EconomicsRosa stated Intuitive plans to extend the useful life of selected EndoWrist instruments in the first half of 2027 to lower customer costs in high-volume benign procedures.
Samath said that the impact will build progressively through 2027 rather than arrive as a step change. Pricing details are expected on the next earnings call.
Bank of America and Wolfe Research analysts pressed management on the potential effect on instruments and accessories revenue per procedure. Samath refrained from quantifying it but emphasized balancing growth and profitability.
Intuitive Raises Margin ExpectationsConnally raised the 2026 non-GAAP gross-margin outlook to 68% to 69% from 67.5% to 68.5%, while retaining an estimated 100-basis-point tariff impact.
Second-quarter non-GAAP gross margin was 70%, or 68.7% excluding a $36 million pretax tariff-refund benefit. Non-GAAP operating expenses increased 13%.
ISRG’s Strategic PostureManagement’s tone combined confidence in platform demand with caution around U.S. patient behavior, China pricing pressure and uneven international capital conditions.
The company is prioritizing R&D, software updates, new clinical applications and lower-cost access points while preserving investment in manufacturing and global commercial infrastructure.
What Zacks Signals Say About ISRGISRG carries a Zacks Rank #2 (Buy). Its Growth Score of B, Momentum Score of A and VGM Score of B are favorable, while the Value Score of D points to weaker value characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The combination supports growth and momentum-oriented interest. The Zacks Rank can change as earnings estimates are revised after the reported results.
Intuitive Surgical (ISRG +5.72%) has been one of the best growth stocks in the healthcare sector for years. It revolutionized surgical procedures with its da Vinci robotics-assisted surgery platform. So, when shares drop 44% from their high, investors notice. This is currently the stock's second-sharpest decline of the past decade.
But Wall Street hasn't lost faith in the stock. According to CNN Business, 71% of Wall Street analysts rate Intuitive Surgical stock as a buy. Based on 12-month price targets, shares could soar as much as 103%, while the median price target of $485 is about 43% above Intuitive Surgical's current price.
When you put the pieces together, it's clear why analysts remain bullish toward Intuitive Surgical: The stock's valuation has fallen drastically below its long-term average. Yet, it still dominates robotics-assisted surgery, and its new da Vinci 5 system is gaining momentum. All of this makes the stock an obvious rebound candidate. Here's what you need to know.
The da Vinci 5 is building momentum Intuitive Surgical is known for its da Vinci robotics platform, which assists surgeons with various surgical procedures. It launched the first da Vinci system in 2000. As you might guess, today's technology is far better than it was nearly 30 years ago. The company has released new generations of its da Vinci platform over the years, improving its capabilities and driving new system sales.
Image source: Intuitive Surgical.
The da Vinci 5 received FDA approval in the United States in March 2024 and continues to boost sales. Intuitive Surgical placed 468 da Vinci systems in Q2 2026, up from 395 the prior year. Of those, 246 (52%) were fifth-generation systems, versus 180 (45%) in Q2 2025. The higher mix of da Vinci 5 systems is driving higher average system prices.
More advanced systems also drive growth by making hospitals more efficient. Data from U.S. hospitals shows 11% higher utilization with da Vinci 5 systems compared to previous generations. In other words, hospitals can perform more procedures in less time, and do so more safely.
Selling systems isn't even the real business anymore It's obviously important that Intuitive Surgical continues to install more da Vinci systems in more hospitals. But systems aren't how the company actually makes most of its money at this point. Intuitive Surgical is a textbook razor-and-blade business, where the da Vinci is a large, up-front, one-time sale. Each installed system then generates years of recurring sales from parts, services, and maintenance.
The company currently has 11,710 da Vinci systems installed worldwide. The larger Intuitive Surgical's install base grows, the less system sales actually matter in the financials. System sales accounted for only 23.6% of total revenue in the second quarter. These recurring sales are more profitable than the systems, which is why the company's gross profit margins are consistently over 66%.
As more hospitals upgrade to the da Vinci 5, increased utilization will drive even more recurring sales of parts and services, as more procedures mean more supplies and maintenance. These are all little layers of compounding that all contribute to company-wide growth.
Today's Change
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19.30
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356.80
If the business is doing well, why is the stock down? Naturally, reading all this optimism raises this very fair question. The answer might be pretty straightforward: price.
Intuitive Surgical has been an excellent business for a long time. As a result, investors have happily paid a premium for the stock. Shares have typically traded at around 64-65 times the company's trailing 12-month earnings throughout the past decade. Last year, the stock peaked at around 95 times earnings, an eye-poppingly high valuation, even for a stock that's typically always expensive.
The downfall from such high prices can be brutal when the market's momentum turns against a stock. Sure, Intuitive Surgical isn't perfect. Management has noted short-term margin headwinds, thanks to tariffs on components. Except now the stock is trading at only 38-39 times its earnings, well below its norms.
Is this a broken business? I don't think so.
The broader business is still growing, and there's no clear threat to its dominance in a lucrative robotics-assisted surgery market. Analysts see Intuitive Surgical growing earnings by an average of 15%-16% annually over the next three to five years. In all, analyst price targets simply reflect an excellent stock tracking higher, back toward its long-term averages. If you agree, it's a great time to consider buying and holding.
Intuitive Surgical (NASDAQ:ISRG | ISRG Price Prediction) trades at $356.83, while the average Wall Street price target sits at $484.40. That leaves roughly a 36% gap between current price and Street consensus.
Intuitive builds the da Vinci robotic surgery platform and the Ion lung biopsy system, dominating soft tissue surgical robotics. Wall Street has debated whether that moat holds amid tariffs, softer U.S. procedure growth, and da Vinci 5 margin questions.
Bernstein, the most bullish analyst on the name, targets $685, implying almost 92% upside from here.
The Selloff That Broke a Compounder ISRG has fallen 37% year to date, from $566.36 at the end of 2025 to today’s level. That drawdown well exceeds 30% while the underlying business kept growing.
Q2 2026 was a clean beat. Revenue came in at $2.89 billion, up 18.54% year over year, and non-GAAP EPS of $2.80 topped the $2.5037 consensus. It was the fifth consecutive quarter of beating estimates. Shares still dropped 11.25% the day after earnings.
The guide spooked investors. Management guided full-year da Vinci procedure growth to 13.5% to 15.5%, down from 18% in 2025. U.S. da Vinci growth decelerated from 14% in Q1 to 12% in Q2, with CEO Dave Rosa citing ACA premium dynamics, high-single-digit declines in bariatric cases from GLP-1 usage, and China tender softness. Tariff exposure across Mexico, Germany, and China manufacturing compressed the multiple hard.
Why Bernstein Still Sees a Double Bernstein maintains an Outperform rating and cut its target from $750 to $685 to account for near-term procedure volatility and multiple compression. Even after the trim, it remains the most optimistic shop on the Street. The thesis rests on three pillars: a da Vinci 5 upgrade cycle multiplier, recurring revenue durability, and an international monopolistic moat.
Q2 data supports each leg. Da Vinci 5 placements hit 246 of 468 total placements, with U.S. placements up 24% as customers upgrade from Xi. Recurring revenue was $2.47 billion, roughly 85% of the total. International procedures grew 21%, with Europe and Asia both at 20%. Non-GAAP gross margin expanded to 70.0%, aided by a $36 million tariff refund but still up meaningfully year over year.
Consensus remains constructive. Ratings break out to 22 Buy, 9 Hold, and 2 Sell, and CEO commentary has been consistently positive through recent quarters. The bull case ties recovery to procedure growth reacceleration in 2027 as deferred cases return, ongoing da Vinci 5 mix shift lifting system ASPs (already $1.6 million versus $1.5 million prior year), and the Extended Use Program on ENDORIST instruments broadening adoption in cost-constrained markets.
Peers Held Up While ISRG Slid This selloff is largely idiosyncratic. Nearest large-cap med device peers have declined far less.
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Medtronic (NYSE:MDT) is down 10.83% year to date at $84.22, with its Hugo robotic surgery platform now FDA cleared and Cardiac Ablation growing 78%. Analyst posture skews Buy with modest single-digit implied upside to consensus.
Stryker (NYSE:SYK) sits at $336.74, off just 3.67% year to date after a Q1 cyber incident. The Mako orthopedic robotics platform and Inari vascular deal have kept analysts constructive, with Buy ratings dominant and mid-teens implied upside.
The largest analyst-implied upside in this peer group sits with ISRG by a wide margin. This is a single-name reset.
What the Numbers Actually Say At $356.83 against a consensus target of $484.40, implied upside runs roughly 36%. Bernstein’s $685 stretches that to nearly 92%.
ISRG is down 37% year to date and 28.04% over the past year, while the S&P 500 is up 8.38% year to date and 16.01% over 12 months. Shares trade at a P/E of roughly 39, compressed from 2025 premium multiples.
Cash on the balance sheet is $8.6 billion, and the company repurchased $379 million of stock in Q2 at an average price of $439. Management is buying above current levels.
The Verdict on a $130 Billion Reset The bull case for Intuitive Surgical holds if the procedure growth deceleration is a 2026 pothole rather than a new normal. Recovery runs through da Vinci 5 mix continuing to lift ASPs and service revenue, ACA-related patient deferrals unwinding as coverage stabilizes, and tariff impacts staying within the 100 basis points already baked into guidance. Recurring revenue at 85% of the total is a hard base to break.
The bear case takes over if U.S. procedure growth stalls in the low double digits, if China competition and pricing pressure escalate beyond current tender softness, or if further tariffs blow through management’s guardrails. A 39x P/E on a business growing procedures 13% to 15% leaves little room for another guide down.
On balance, lean constructive. The peer set remains committed to surgical robotics, the balance sheet is fortress, and management is repurchasing above current price. Bernstein’s $685 is aspirational, but consensus at $484 looks achievable if the 2027 comp resets even modestly favorably.
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SUNNYVALE, Calif., July 27, 2026 (GLOBE NEWSWIRE) -- Intuitive (NASDAQ: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced a collaboration with Deion “Coach Prime” Sanders to help increase patient awareness and understanding of surgical options, including robotic-assisted surgery with da Vinci systems.
Surgical decisions following a diagnosis are among the most complex, emotional, and time-sensitive that patients and their families face, yet independent research shows many patients struggle to find clear, trustworthy information about robotic-assisted surgery.1 This collaboration aims to increase patient and caregiver awareness and understanding of surgical options, supporting more informed conversations between patients and their physicians and, ultimately, more confident decision-making.
In 2025, after being diagnosed with bladder cancer, Coach Prime chose to undergo robotic surgery with da Vinci following discussions with his physician about his available options and the risks and benefits associated with each. His choice was based on what mattered most to him, including his recovery and returning to his daily life and responsibilities.
“When I was diagnosed, I learned quickly that you have choices when it comes to surgery, but not every patient knows to ask about them,” said Coach Prime. “I want to inspire others to talk with their doctors, ask questions, and understand what’s possible.”
Coach Prime is now using his experience to help others facing health diagnoses and decisions better understand their options – encouraging patients to seek information, ask questions, and engage in informed discussions with their physicians about their care.
“Patients deserve to understand the surgical options available to them and how those options may align with what matters most in their lives,” said Jaime Wong, MD, Chief Medical Officer at Intuitive. “Hearing how others navigated similar decisions can help make complex choices feel more tangible and less overwhelming. When patients are informed, they have more meaningful conversations with their physicians and make decisions with greater confidence.”
More than 20 million patients worldwide have been operated on by surgeons using da Vinci systems.2 When performed by a trained surgeon, robotic-assisted surgery with da Vinci systems can help enable more precise and less invasive surgery, compared to open surgery, and depending on the procedure, may result in fewer complications, shorter recovery time and less pain.3
Additional Resources
Patients can learn more at davincisurgery.com.Read more: Jaime Wong, MD, Chief Medical Officer at Intuitive, shares his perspective on patient empowerment and how patients can have meaningful conversations with their physicians about surgical options.
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1 Jauniaux, B., Anand, A., Abbas, R., & Harji, D. P. (2025). From expectations to experiences: A systematic review of patient and public perspectives on robotic surgery. Journal of Robotic Surgery, 19(1), 484. https://doi.org/10.1007/s11701-025-02649-y
2 Intuitive data on file
3 Ricciardi R, et al. The COMPARE Study: Comparing Perioperative Outcomes of Oncologic Minimally Invasive Laparoscopic, da Vinci Robotic, and Open Procedures: A Systematic Review and Meta-analysis of the Evidence. Ann Surg. 2025;281(5):748-763.
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 system and the Ion endoluminal system. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. At Intuitive, we envision a future of care that is less invasive and profoundly better, where disease is identified early and treated quickly, so that patients can get back to what matters most.
About da Vinci Surgical Systems
There are several models of the da Vinci surgical system. The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery and offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. They use specialized instrumentation, including a miniaturized surgical camera and wristed instruments (i.e., scissors, scalpels, and forceps) that are designed to help with precise dissection and reconstruction deep inside the body. The da Vinci surgical system is a tool used for surgery; it does not treat cancer.
Important Safety Information
Patients should consult with their doctor to discuss both nonsurgical and surgical treatment options, including the benefits and risks associated with each. They should also ask whether surgery using the da Vinci system is appropriate for their specific situation. As with any surgical procedure, serious complications can occur, including, in rare cases, death. Potential risks include injury to tissues and organs, as well as the possibility of switching to alternative surgical techniques during the operation, which may result in longer operative times and increased risk of complications.
For a summary of the risks and considerations associated with surgery, please refer to intuitive.com/surgery.
Comments reflect an individual patient experience that may or may not be reproducible and are not generalizable. Patient outcomes may depend on a number of factors, including but not limited to patient characteristics, disease characteristics, and/or physician/surgeon experience. The da Vinci system is a tool used for surgery, but it does not treat cancer.
Coach Prime has received compensation from Intuitive for his testimonial.
@2026 Intuitive Surgical Operations, Inc. All rights reserved. Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner.
Forward-Looking Statements
This press release contains forward-looking statements which relate to expectations concerning matters that are not historical facts. Statements using words such as “estimates,” “projects,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “may,” “will,” “can,” “could,” “should,” “would,” “targeted,” “potential,” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements are necessarily estimates reflecting the judgment of Intuitive’s management and involve a number of risks and uncertainties that could cause actual results or impacts on its operations, financial performance, and business position to differ materially from those suggested by the forward-looking statements.
These forward-looking statements include, but are not limited to, statements related to research and development of products and services, manufacturing of products, integration of products, obtaining of regulatory approvals, technical and other performance of products and services, and making products and services available to more patients and health care professionals.
These forward-looking statements should be considered in light of various important factors and involve known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of Intuitive, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, among others, economic conditions in the geographic markets in which we operate, changes in governmental regulations, regulatory approval priorities, resources, and timelines, regulatory enforcement priorities, governmental investigations and civil litigation, and other factors discussed in Intuitive’s Annual Reports and other filings with relevant securities regulators.
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 Intuitive’s Annual Report on Form 10-K for the year ended December 31, 2025, as updated by its other filings with the U.S. Securities and Exchange Commission. Intuitive’s actual results may differ materially and adversely from those expressed in any forward-looking statements, and it undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law.
Bank of Nova Scotia boosted its holdings in shares of Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 13.9% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 618,138 shares of the medical equipment provider’s stock after buying an additional 75,579 shares during the quarter. Bank of Nova Scotia owned 0.17% of Intuitive Surgical worth $284,959,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds have also bought and sold shares of ISRG. Norges Bank acquired a new stake in shares of Intuitive Surgical in the fourth quarter worth $2,856,987,000. J. Stern & Co. LLP lifted its position in Intuitive Surgical by 18,504.6% during the fourth quarter. J. Stern & Co. LLP now owns 2,127,248 shares of the medical equipment provider’s stock valued at $1,204,788,000 after purchasing an additional 2,115,814 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in Intuitive Surgical by 1,043.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,342,121 shares of the medical equipment provider’s stock valued at $760,124,000 after purchasing an additional 1,224,734 shares during the period. Polen Capital Management LLC purchased a new stake in Intuitive Surgical in the fourth quarter valued at $477,225,000. Finally, Amundi boosted its holdings in Intuitive Surgical by 29.7% in the third quarter. Amundi now owns 3,227,472 shares of the medical equipment provider’s stock valued at $1,451,362,000 after purchasing an additional 739,444 shares during the last quarter. 83.64% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In Several equities research analysts have weighed in on ISRG shares. Robert W. Baird cut their price target on Intuitive Surgical from $525.00 to $500.00 and set an “outperform” rating on the stock in a research report on Friday, July 17th. Bank of America lowered their target price on Intuitive Surgical from $520.00 to $515.00 in a research note on Friday, June 12th. Mizuho set a $500.00 target price on Intuitive Surgical and gave the stock a “neutral” rating in a report on Wednesday, July 15th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Intuitive Surgical in a report on Monday. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Intuitive Surgical in a research report on Tuesday, May 19th. Twenty-one research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Intuitive Surgical has an average rating of “Moderate Buy” and a consensus target price of $523.46.
Get Our Latest Analysis on ISRG
Trending Headlines about Intuitive Surgical Here are the key news stories impacting Intuitive Surgical this week:
Positive Sentiment: Intuitive outlined its AI-enabled future for surgical care, including a five-layer AI framework and real-time telesurgical collaboration, reinforcing its innovation pipeline and potential to deepen its competitive moat. Intuitive Shares Vision for an AI-Enabled Future of Healthcare Positive Sentiment: Analyst coverage continues to view ISRG as an attractive long-term MedTech growth name, citing the expanding robotic surgery ecosystem and innovation pipeline. ISRG vs. ABT: Which MedTech Giant Is the Smarter Investment Now? Positive Sentiment: CONMED expanded AirSeal robotic compatibility for the da Vinci 5 hex cannula, which supports broader adoption of Intuitive’s newest system. CONMED Expands AirSeal Robotic Solution for da Vinci 5 Hex Cannula Neutral Sentiment: Multiple analyst roundups reiterated that Wall Street generally still rates ISRG favorably, but these reports were largely commentary rather than new fundamental catalysts. Wall Street Analysts Think Intuitive Surgical (ISRG) Is a Good Investment: Is It? Neutral Sentiment: Recent coverage also emphasized that Intuitive remains a premium valuation story, with valuation support coming from margins, AI software, and international growth, but with slower U.S. procedure growth creating uncertainty. Can ISRG Maintain Its Premium Valuation Amid Slower Procedure Growth? Negative Sentiment: J&J’s entry into U.S. robotic surgery increased concerns that da Vinci’s dominance could face real competition, helping pressure sentiment toward ISRG. J&J enters US robotic surgery market after device gets marketing authorization Negative Sentiment: Analysts have also trimmed fair value estimates and growth assumptions, citing slower procedure growth and broader MedTech multiple compression, which reinforces concerns that upside may be more limited near term. Intuitive Surgical (ISRG) Stock Sees Fair Value Cut As Analysts Trim Growth Views Insider Buying and Selling at Intuitive Surgical In other news, Director Amy L. Ladd sold 500 shares of Intuitive Surgical stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $473.46, for a total value of $236,730.00. Following the sale, the director owned 239 shares in the company, valued at $113,156.94. This trade represents a 67.66% decrease in their ownership of the stock. The sale 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, SVP Iman Jeddi sold 5,625 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $420.55, for a total transaction of $2,365,593.75. Following the sale, the senior vice president directly owned 6,463 shares of the company’s stock, valued at $2,718,014.65. This represents a 46.53% 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. Insiders have sold a total of 7,169 shares of company stock valued at $3,059,135 over the last ninety days. Corporate insiders own 0.60% of the company’s stock.
Intuitive Surgical Price Performance Shares of ISRG stock opened at $332.02 on Friday. Intuitive Surgical, Inc. has a 1-year low of $328.57 and a 1-year high of $603.88. The company has a market cap of $117.30 billion, a price-to-earnings ratio of 38.03, a PEG ratio of 2.47 and a beta of 1.46. The stock has a 50 day simple moving average of $408.55 and a 200-day simple moving average of $460.85.
Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last released 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. The firm had revenue of $2.89 billion for the quarter, compared to analysts’ expectations of $2.83 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. The firm’s revenue for the quarter was up 18.4% compared to the same quarter last year. During the same quarter last year, the company earned $1.81 EPS. Analysts anticipate that Intuitive Surgical, Inc. will post 8.84 earnings per share for the current fiscal year.
Intuitive Surgical Profile (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
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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 1.69, 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 1.69 approximates between Strong Buy and Buy.
Of the 32 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 65.6% 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.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed 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 a Good Investment?In terms of earnings estimate revisions for Intuitive Surgical, the Zacks Consensus Estimate for the current year has increased 3.1% over the past month to $10.7.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar 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 #2 (Buy) for Intuitive Surgical. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Intuitive Surgical may serve as a useful guide for investors.
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For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Intuitive Surgical, Inc. (ISRG - Free Report) Headquartered Sunnyvale, CA, Intuitive Surgical Inc designs, manufactures and markets the da Vinci surgical system, Ion endoluminal system and related instruments and accessories. The da Vinci surgical system is an advanced robot-assisted surgical system. The surgical system comprises a surgeon’s console, patient-side cart, 3-D vision system, da Vinci Skills Simulator and Firefly Fluorescence Imaging.
ISRG is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. ISRG has a Growth Style Score of B, forecasting year-over-year earnings growth of 19.8% for the current fiscal year.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.31 to $10.70 per share. ISRG boasts an average earnings surprise of +16.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, ISRG should be on investors' short list.
SUNNYVALE, Calif., July 23, 2026 (GLOBE NEWSWIRE) -- Intuitive (NASDAQ: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, will outline its vision for how artificial intelligence (AI) can help shape the future of surgical care and address key healthcare challenges at the Society of Robotic Surgery's (SRS) annual conference in Hollywood, Florida.
Key Takeaways Rising P/E ratios often signal investor confidence, earnings strength and further upside potential. The screen identifies stocks with accelerating earnings growth and sustained price momentum. AIM, HAS, FOX, COR and ISRG pair rising P/Es with strong earnings performance. Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio is, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not just low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of AIM ImmunoTech (AIM - Free Report) , Hasbro (HAS - Free Report) , Fox (FOX - Free Report) , Cencora Inc. (COR - Free Report) and Intuitive Surgical (ISRG - Free Report) .
Rising P/E: A Useful ToolThe concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
The Winning StrategyIn order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.
EPS growth estimate for the current year is greater than or equal to last year’s actual growth
Percentage change in last year’s EPS should be greater than or equal to zero
(These two criteria point to flat earnings or a growth trend over the years.)
Percentage change in price over four weeks greater than the percentage change in price over 12 weeks
Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks
(These two criteria show that price of the stock is increasing consistently over the said timeframes.)
Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500
Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500
(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)
Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%
(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)
In addition, we place a few other criteria that lead us to some likely outperformers.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.
Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 62.
Here are five out of the 62 stocks:
AIM ImmunoTech: The Zacks Rank #2 (Buy) AIM ImmunoTechis an immuno-pharma company. It is focused on the research and development of therapeutics to treat multiple types of cancers and immune-deficiency diseases. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average four-quarter earnings surprise of AIM is 52.66%.
Hasbro: The Zacks Rank #2 company designs, manufactures and markets games, toys and licensed products.
The average four-quarter earnings surprise of HAS is 23.60%.
Fox: The Zacks Rank #2 company produces and distributes news, sports and entertainment content.
The average four-quarter earnings surprise of FOX is 38.99%.
Cencora: The Zacks Rank #2 company is one of the largest pharmaceutical distribution and healthcare solutions providers globally.
The average four-quarter earnings surprise of COR is 1.59%.
Intuitive Surgical: The Zacks Rank #2 company designs, manufactures and markets the da Vinci surgical system, Ion endoluminal system and related instruments and accessories.
The average four-quarter earnings surprise of ISRG is 16.53%.
Key Takeaways ISRG's recurring revenue rose 19% to $2.47 billion, accounting for 85% of total revenue.Da Vinci and Ion procedures grew 16%, led by 36% Ion growth and a 61% increase in SP procedures.Intuitive Surgical faces slower U.S. growth, bariatric declines and pressure on China placements. Intuitive Surgical (ISRG - Free Report) remains a procedure-driven growth story built around robotic systems, instruments, services and software.
The central question for investors is whether da Vinci 5, SP, Ion and digital tools can keep expanding clinical reach while offsetting weaker areas such as bariatric surgery, U.S. deferrable procedures and China placements.
ISRG Builds on a Broad Robotic PlatformIntuitive Surgical’s platform spans da Vinci multi-port systems, the da Vinci SP single-port platform and Ion. Da Vinci supports robot-assisted soft tissue surgery across general surgery, urology, gynecology, cardiothoracic care and head and neck specialties.
Ion extends the company into minimally invasive lung biopsy through a flexible, robotic-assisted, catheter-based platform. ISRG is building a broader care ecosystem designed to widen procedure reach across specialties and settings.
Intuitive Surgical Gains From Recurring RevenueRecurring revenue is central to the model because instruments, accessories, leases and services rise with utilization and installed-base growth. In the second quarter of 2026, recurring revenue increased 19% to $2.47 billion.
That represented 85% of total revenue, making the business less dependent on one-time system sales. Instruments and accessories revenues rose 18% to $1.73 billion, while service revenues grew 21% to $472 million.
ISRG Procedure Growth Still Drives the StoryProcedure volume remains the key operating indicator. In the second quarter of 2026, total da Vinci and Ion procedures increased 16% year over year, including 15% da Vinci growth and 36% Ion growth.
International da Vinci procedures rose 20%, with Europe and Asia each up 20%. SP procedures increased 61%, while cardiac and nipple-sparing mastectomy procedures rose 39% and 43%, respectively. Management maintained its 2026 da Vinci procedure growth outlook of 13.5% to 15.5%, with expectations near the midpoint.
Intuitive Surgical Expands the Ecosystem With Digital ToolsSoftware and data are becoming more important to the Intuitive Surgical’s business model. The company began rolling out more than 100 planned da Vinci 5 updates focused on telepresence, simulation-based training and care-team workflow.
It also completed its first My Intuitive+ renewals, covering telepresence, simulation and artificial intelligence-driven case insights. No customer in the initial cohort opted out, suggesting these tools can deepen engagement and make the installed base more valuable.
What ISRG Investors Should Watch NextThe bottom line is that ISRG still has a clear platform-dependent growth scenario. Da Vinci 5 upgrades, Ion adoption, SP growth, recurring revenue and digital tools all support a wider ecosystem.
Risks remain visible. U.S. da Vinci procedure growth moderated to 12% in the second quarter from 14% in the first quarter, bariatric procedures declined at a high-single-digit rate and China remains pressured by lower tender activity, local competition and policy-driven pricing.
Medtronic plc (MDT - Free Report) and Johnson & Johnson (JNJ - Free Report) are relevant comparables for investors tracking surgical robotics and digitally enabled medical technology. Their presence keeps the competitive context important, even as ISRG maintains a competitive moat with high installed systems, improving utilization and procedure-linked revenue as well as strong clinical evidence.
Investors should pair this operating view with ISRG’s current Zacks Rank #2 (Buy) and Zacks Style Scores of B before forming a fuller stock view. The Zacks Rank is a short-term timeliness indicator, while the Style Scores help evaluate value, growth and momentum characteristics. Higher grades, especially A or B, are more favorable when considered alongside top-ranked stocks, but they should be weighed with procedure trends, placement dynamics and margin risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways ISRG procedures rose 16% as revenue increased 19% to $2.89 billion in the second quarter.Intuitive Surgical's Ion procedures climbed 36%, with its installed base reaching 1,096 systems.ISRG faces tariff costs, weaker bariatric demand and margin pressure from newer product mix. Intuitive Surgical (ISRG - Free Report) is being shaped by more than quarterly revenue growth. The company is tied to wider robotic surgery adoption, expansion into minimally invasive diagnostics and deeper use of software inside hospital programs.
Those themes still come with limits. Tariffs, product mix, hospital spending patterns and shifting procedure demand remain important.
ISRG Benefits From Robotic Care ExpansionIntuitive Surgical remains positioned around the move toward minimally invasive and robot-assisted care. Its da Vinci platform supports procedures across general surgery, urology, gynecology, cardiothoracic care, and head and neck specialties.
Worldwide procedures across da Vinci and Ion rose 16% year over year in second-quarter 2026, including 15% growth for da Vinci. Revenue increased 19% to $2.89 billion, supported by procedure volumes, leasing revenues and installed-base expansion. Medtronic plc (MDT - Free Report) and Johnson & Johnson (JNJ - Free Report) give investors broader medtech comparisons, while ISRG offers a more focused robotic care profile.
Intuitive Surgical Pushes Beyond Surgery With IonIon expands Intuitive Surgical beyond traditional surgery into diagnostic, endoluminal procedures. The flexible, robotic-assisted catheter platform supports minimally invasive lung biopsy, extending the company’s opportunity outside soft tissue surgery. This also helps the company to tap the lucrative lung cancer market.
Ion procedures increased 36% to 48,000 in the quarter, while cumulative procedures exceeded 400,000. Intuitive Surgical placed 55 Ion systems, expanded the Ion installed base 21% year over year to 1,096 systems, and has installed Ion in 12 countries outside the United States.
ISRG Turns Software Into a Strategic AssetSoftware is becoming a larger part of Intuitive Surgical’s platform value. The company began rolling out the first phase of more than 100 da Vinci 5 updates aimed at telepresence, simulation-based training and care-team workflow.
The My Intuitive+ renewal cycle adds another signal. The company executed its first renewals for offerings covering telepresence, simulation and AI-driven case insights, and no customer in the initial cohort opted out. Better training, workflow support and case insights can make the installed base more useful over time.
Intuitive Surgical Faces Cost and Demand ShiftsThe trend story is not one-sided. Intuitive Surgical remains exposed to tariffs, freight, semiconductor memory costs and the mix of newer products. Its second-quarter adjusted gross margin was 70%, helped by a $36 million pretax tariff refund. Excluding that benefit, the margin would have been 68.7%.
Management raised its 2026 adjusted gross margin outlook to 68-69%, but the range still includes an estimated tariff impact equal to 1% of revenues. U.S. da Vinci procedures grew 12% in the quarter, down from 14% in the first quarter, as some benign procedures were deferred. Bariatric procedures declined at a high-single-digit rate amid greater GLP-1 use.
What Trend Signals Mean for ISRGISRG’s trend profile remains attractive, but not frictionless. Robotics adoption, Ion lung biopsy growth and digital ecosystem development support the expansion case, while tariffs, capital budgets and procedure mix create constraints.
The current operating picture also makes Zacks Rank and Style Scores important for context. Zacks Rank reflects earnings estimate revision trends, while Style Scores help investors evaluate value, growth and momentum characteristics. A favorable combination is most useful when a stock has a top Zacks Rank and stronger Style Scores.
ISRG’s current Zacks Rank #2 (Buy), Value Score of D, Growth Score of B, Momentum Score of A and VGM Score of B should be checked separately. Investors should pair the company’s trend signals with those indicators before deciding whether the setup supports a bullish or selective stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways ISRG revenues rose 18.5% to $2.89 billion as worldwide da Vinci and Ion procedures increased 16%.Intuitive Surgical held $8.63 billion in liquidity and generated $1.8 billion in first-half free cash flow.Tariffs, weaker bariatric demand, China pressure and trade-in-heavy placements keep execution risks elevated. Intuitive Surgical (ISRG - Free Report) still offers investors a high-quality growth profile, but the case is not just about procedure gains.
The buy-or-wait debate depends on whether procedure growth, recurring revenues and financial flexibility can offset tariff pressure, mix changes and uneven hospital capital spending.
ISRG Still Has a Durable Growth EngineIntuitive Surgical’s growth engine is driven by strong performance across all its segments. Revenues rose 18.5% year over year to $2.89 billion, helped by higher procedure volumes, system leasing revenues, installed-base expansion and rising service revenues.
Worldwide procedures across da Vinci and Ion increased 16%. Da Vinci procedures grew roughly 15%, while Ion procedures advanced 36%, showing growth from the core surgical platform and newer diagnostic applications.
The installed base also supports a compounding model. Intuitive Surgical placed 468 da Vinci systems, including 246 da Vinci 5 systems, and placed 55 Ion systems.
Medtronic plc (MDT - Free Report) remains a relevant comparison as surgical robotics becomes a broader medtech battleground. Johnson & Johnson (JNJ - Free Report) also belongs in the discussion as large device companies invest in operating-room platforms.
Intuitive Surgical’s Balance Sheet Adds FlexibilityIntuitive Surgical ended the second quarter with $8.63 billion in cash, cash equivalents and investments, up $650 million sequentially. That liquidity matters because this business requires constant investment.
The company generated $1.8 billion of free cash flow in the first half of 2026, up 71% from the prior-year period. Cash generation funded $379 million of share repurchases and $112 million of capital expenditures.
This financial base gives Intuitive Surgical room to keep investing through cycles. Management is prioritizing research and development growth to support platforms, instruments and digital capabilities.
ISRG Faces Pressure on Margins and MixThe caution case starts with margins. Intuitive Surgical raised its 2026 adjusted gross margin outlook to 68-69%, but that range still includes an estimated tariff impact equal to 1% of revenues.
Second-quarter adjusted gross margin was 70%, helped by a $36 million pretax refund of previously paid tariffs. Excluding that benefit, the margin would have been 68.7%.
Procedure mix is another constraint. U.S. da Vinci procedures rose 12%, down from 14% in the first quarter, as some benign procedures were deferred.
Bariatric procedures declined at a high-single-digit rate amid greater GLP-1 use. Cholecystectomy growth and lower bariatric volumes also limited instrument and accessory revenue per procedure.
Intuitive Surgical’s Placement Risks Deserve AttentionSystem placement trends need context. Da Vinci placements rose 18.5% year over year to 468 systems, but about half of U.S. placements were trade-ins.
Leasing gives hospitals more flexibility, representing 54% of total da Vinci placements. Still, capital purchases remain sensitive to hospital budgets, financing conditions and government tender timing.
Outside the United States, China remains a pressure point because of lower tender activity, domestic competition and policy-driven pricing. Parts of Europe also face government budget constraints.
How ISRG’s Stock Case Comes TogetherISRG’s investment case is a balance between durable quality and real execution risk. The bull case rests on recurring revenue, procedure growth, platform breadth and a cash-rich balance sheet.
The cautious case is also clear. Tariffs, regional capital cycles, weaker bariatric demand and the planned extended-use instrument program could reduce revenue per procedure before higher volumes offset the impact.
The stock’s operating profile should be paired with ISRG’s current Zacks Rank #2 (Buy) and Zacks Style Scores of B before investors form a view. The Zacks Rank focuses on earnings estimate revisions, while the Style Scores frame value, growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For now, Intuitive Surgical looks more like a quality business that needs selective entry discipline than an all-clear buy. Strong growth supports the long-term story, but margin and placement risks keep the debate active.
Key Takeaways Intuitive Surgical kept full-year procedure growth guidance despite slower U.S. da Vinci procedures.ISRG expanded operating margin and raised gross margin outlook on cost cuts and manufacturing efficiencies.Intuitive Surgical's advanced AI software, robotics and international expansion will support long-term growth. Intuitive Surgical (ISRG - Free Report) continues to command a valuation premium over the medical technology industry, though that premium has narrowed significantly. The stock currently trades at 9.89X forward 12-month sales, its lowest level in the past 18 months compared with a historical median of 15.89X, while the industry trades at 3.77X. The compressed multiple reflects investor concerns over moderating U.S. procedure growth, but the company's latest results suggest its long-term competitive advantages remain intact.
The key overhang is slowing procedure growth. U.S. da Vinci procedures rose 12% in the second quarter, below recent trends, as management cited deferred benign surgeries due to changes in ACA premium subsidies and the law of large numbers. However, the company maintained its full-year procedure growth guidance of 13.5-15.5%, expecting results near the midpoint, indicating confidence that deferred demand will eventually return.
Meanwhile, profitability continues to strengthen. Second-quarter adjusted gross margin expanded 30 basis points (bps) to 70% and adjusted operating margin expanded 330 bps to 42%, supported by product cost reductions, operating leverage and robust adoption of da Vinci 5. Management also raised its full-year gross margin outlook by 50 bps to 68-69%, highlighting the ability of the business to offset inflationary pressures through scale and manufacturing efficiencies.
Beyond procedures, Intuitive Surgical is widening its competitive moat through software and ecosystem expansion. The company rolled out the first wave of more than 100 planned da Vinci 5 software updates, renewed its My Intuitive+ AI-enabled digital platform without customer opt-outs and continues to invest heavily in AI and workflow automation. Product innovation remains robust with continued momentum in SP and Ion, expansion of XiR into cost-sensitive markets, development of a next-generation GI robotic platform and new cardiac-specific technologies.
Geographic diversification also provides an important growth lever. While China remains challenging, strong momentum in Europe, India, Japan and other international markets, coupled with favorable reimbursement changes and broader robotic adoption, supports long-term expansion. Investments in new indications, higher-value software offerings and next-generation robotics reinforce Intuitive Surgical's durable growth profile. Although near-term procedure moderation may keep valuation multiples below historical peaks, the company's innovation engine, recurring revenue model and expanding global footprint justify its continued premium over industry peers.
Peer UpdatesGlaukos (GKOS - Free Report) continues to command a premium valuation, trading at 12.54X forward sales, well above its five-year median of 9.9X and the industry's 3.77X, reflecting investors' confidence in its ability to create entirely new ophthalmology markets. The first quarter reinforced this narrative with 41% revenue growth, driven by rapid adoption of iDose TR, a raised full-year revenue outlook and the commercial launch of Epioxa. Management believes Epioxa can become another transformational growth platform. Beyond these launches, an expanding clinical pipeline, growing reimbursement support, international glaucoma expansion and a disciplined focus on operating leverage strengthen the long-term investment case. While execution risks around Epioxa reimbursement and competitive pressures remain, sustained innovation, multiple growth drivers and a diversified ophthalmology portfolio support Glaukos' ability to justify its premium valuation over time.
IDEXX Laboratories (IDXX - Free Report) trades at 8.81x forward sales, below its five-year median of 10.14x but still well above the industry's 3.77x, reflecting its durable competitive advantages in veterinary diagnostics. The first quarter demonstrated why investors continue to assign a premium, as the company delivered 14% reported revenue growth, expanded operating margins and raised full-year guidance despite declining clinic visits. Growth continues to be driven by higher diagnostics utilization, premium instrument placements, expanding recurring revenues, cloud-based software adoption and AI-enabled innovations such as inVue Dx and Cancer Dx. High customer retention, increasing international penetration and continued software integration further reinforce recurring revenue visibility. Although softer wellness visits remain a near-term headwind, IDEXX's innovation-led ecosystem, pricing power and expanding diagnostics penetration position the company to sustain a premium valuation relative to peers over the long run.
ISRG’s Price Performance, Valuation and EstimatesShares of ISRG have lost 38.2% so far this year compared with a 16.3% decline for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-sales of 9.89X, above the industry average. It is trading close to its five-year low of 9.66X. ISRG carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Intuitive Surgical’s 2026 earnings implies a 17.3% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical (ISRG 0.95%) delivered its second-quarter earnings report last week. It crushed the average analyst bottom-line estimate for profitability and edged past the consensus for revenue. Why, then, was the stock punished by a concentrated investor sell-off that it hasn't yet recovered from?
Here's a look at the quarter and -- more importantly -- whether the company's weakened share price makes it an irresistible bargain.
Image source: The Motley Fool.
Robots in the room Intuitive -- a next-generation medical device company that specializes in surgical robots -- booked total revenue of $2.89 billion, up almost 19% year over year, in the quarter.
That was on the back of a roughly 16% rise in the number of procedures performed by the company's robots. Currently, Intuitive offers two product lines, da Vinci (for general surgical use) and Ion (a specialized system for diagnosing lung issues).
Breaking that down further, da Vinci procedures worldwide rose by around 15%, and those for Ion advanced at a 36% clip. Those figures from U.S. procedures were 12% for da Vinci -- down from 14% in the first quarter -- and 21% for Ion.
The number of da Vinci systems in place with clients at the end of the quarter was 11,710, 12% higher than at the same time in 2025. The installed base of Ion rose by 21% to 1,096.
Turning to profitability, net income not under generally accepted accounting principles (GAAP) landed at just over $1 billion, or $2.80 per share. That represented a nearly 26% improvement over the year-ago profit. On average, prognosticators tracking Intuitive stock were expecting $2.82 billion in revenue and merely $2.51 per share in non-GAAP (adjusted) net income.
Intuitive charges its clients for the single- and limited-use instruments needed for each Ion or da Vinci procedure; purchasing or leasing the system is only the initial expense for those customers. On top of that, the company earns its keep from services such as training and maintenance; these are highly sophisticated robotic surgical tools, after all.
Intuitive makes most of its revenue from the per-procedure charges. It breaks its top line down into three streams, with these fees comprising the instruments and accessories category. This brought in more than $1.73 billion in the quarter, for growth of 18%.
As for the other two, systems is the company's revenue bucket for those initial customer buys/leases. This also grew handsomely, rising by 19% to $685 million. Finally, services (again, maintenance, training, etc.) increased by 21% to over $472 million.
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Eyes on the declines In other words, there was growth all over the place in Intuitive's fundamentals. So why the sell-off?
Most likely, the culprit was the decline in growth of da Vinci procedures in the U.S., its most important market. Also, management maintained its guidance for da Vinci worldwide procedure growth of around 13.5% to 15.5% for the full year, with adjusted gross profit margin hitting 68% to 69%.
So da Vinci procedures experienced a sequential slowdown in the company's most critical market, and for 2026, international growth might land a bit below the second-quarter result.
On top of that, in Intuitive's conference call disseminating the quarter's results, management indicated that closer scrutiny of high expenses in China's healthcare system could put some pressure on its business in that sizable market.
The power of incumbency To me, this is a classic case of high expectations meeting closer-to-the-ground reality. Even the most innovative companies can't keep high growth rates forever. Yet I don't feel that the da Vinci procedure dynamic represents a sufficient (current and potential) slowdown to warrant selling out of Intuitive.
Which, let's bear in mind, is still a leader in robotic surgery after all these years -- da Vinci was introduced over 25 years ago. Intuitive still has a mighty market share approaching 80% in soft-tissue procedures, even though monster rivals like device king Medtronic have spent, and are continuing to spend, billions of dollars developing rival systems.
With its relatively long presence in this niche yet high-potential healthcare segment, Intuitive is well established with practitioners and hospital operators. It's also, thanks to its business model, locked in as a robo-surgery provider with many of them. It isn't easy or quick to switch to a new system, nor are there many choices on the market.
Meanwhile, this planet's population -- and that of the U.S. -- is aging proportionally, meaning it'll require more healthcare. And, it follows, more surgical procedures that Intuitive's machines can assist with.
Given all that, I wouldn't be worried about slight dips in Intuitive's growth. I also wouldn't fret about the company's seemingly high valuations, given its potential to at least sustain its double-digit growth cadence. For me, this stock is clearly and compellingly a buy candidate.
Intuitive Surgical (ISRG +1.08%), maker of the da Vinci robotic-assisted surgical systems, recently posted a strong quarter. But despite consistently solid numbers, the stock itself has been in a tailspin this year. As of Monday's close, it was down 38% thus far in 2026, and it's not just trading at a new 52-week low, but it's at a multi-year low as well; the last time it was at these levels was back in early 2024.
What's behind the stock's struggles this year, and could this be a glorious opportunity for long-term investors to buy the stock at a discount?
Image source: Getty Images.
Intuitive Surgical's growth has been looking much better of late Last week, Intuitive Surgical posted its second-quarter numbers, which yet again featured double-digit growth. Revenue of $2.9 billion for the period ending June 30 rose by 19% year over year. Over the past year, its growth rate has been comfortably above 15%. With hospitals resuming normal procedures and demand being higher, it's looking more like a top growth stock again.
ISRG Revenue (Quarterly YoY Growth) data by YCharts
The number of da Vinci procedures rose by 15%, and the install base for the surgical system also rose by 12%, totaling 11,710 as of the end of the period. It's an excellent sign that the business is growing well and with a higher install base, winning over new customers as well, setting itself up for even more growth ahead.
However, despite the solid numbers, the stock has been struggling this year. The company's Chief Financial Officer, Jamie Samath, noted that the expiration of the Affordable Care Act's enhanced premiums had a "modest adverse impact" on procedures during the quarter, which may help explain some of the market's apprehension. There's also been a decline in bariatric cases due to the rising popularity of GLP-1 weight loss drugs.
While the business has been doing well, these headwinds are preventing Intuitive from doing even better.
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Intuitive Surgical stock is currently trading at 33 times its estimated future earnings (based on analyst estimates), which is considerably lower than its past levels, as it wasn't uncommon for the multiple to be as high as around 70. Its elevated valuation may have also been a key reason for the stock's decline this year.
However, now with a lighter valuation, Intuitive's stock may be a great buy. The company has been posting strong numbers, and with plenty of growth opportunities still out there related to robotic-assisted surgery, this can be an excellent investment to buy and hold for the long haul.
David Jagielski, CPA has no position in any of the stocks mentioned. 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.
Andra AP fonden grew its position in Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 139.7% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 50,050 shares of the medical equipment provider’s stock after purchasing an additional 29,168 shares during the period. Andra AP fonden’s holdings in Intuitive Surgical were worth $23,073,000 as of its most recent SEC filing.
Several other large investors also recently made changes to their positions in ISRG. Draper Asset Management LLC boosted its stake in shares of Intuitive Surgical by 41.9% in the fourth quarter. Draper Asset Management LLC now owns 5,029 shares of the medical equipment provider’s stock valued at $2,848,000 after buying an additional 1,485 shares during the period. Deutsche Bank AG lifted its holdings in shares of Intuitive Surgical by 9.6% in the fourth quarter. Deutsche Bank AG now owns 1,522,191 shares of the medical equipment provider’s stock worth $862,108,000 after acquiring an additional 132,966 shares during the last quarter. Oppenheimer Asset Management Inc. grew its stake in shares of Intuitive Surgical by 29.3% during the fourth quarter. Oppenheimer Asset Management Inc. now owns 71,077 shares of the medical equipment provider’s stock worth $40,255,000 after buying an additional 16,119 shares during the last quarter. Procyon Advisors LLC grew its position in Intuitive Surgical by 787.8% during the 4th quarter. Procyon Advisors LLC now owns 4,794 shares of the medical equipment provider’s stock worth $2,715,000 after acquiring an additional 4,254 shares during the last quarter. Finally, Robinhood Asset Management LLC bought a new stake in Intuitive Surgical during the 4th quarter worth approximately $6,478,000. Institutional investors and hedge funds own 83.64% of the company’s stock.
Wall Street Analysts Forecast Growth ISRG has been the subject of several analyst reports. Wall Street Zen upgraded shares of Intuitive Surgical from a “hold” rating to a “buy” rating in a report on Saturday, June 13th. Raymond James Financial reiterated an “outperform” rating and issued a $483.00 price target (down from $577.00) on shares of Intuitive Surgical in a report on Friday. Wells Fargo & Company reiterated an “overweight” rating and set a $487.00 price objective (down from $654.00) on shares of Intuitive Surgical in a report on Friday. Bank of America decreased their price target on Intuitive Surgical from $520.00 to $515.00 in a report on Friday, June 12th. Finally, Mizuho set a $500.00 target price on shares of Intuitive Surgical and gave the company a “neutral” rating in a report on Wednesday, July 15th. Twenty-one investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $523.46.
Get Our Latest Research Report on ISRG
Intuitive Surgical Trading Up 2.2% Shares of NASDAQ ISRG opened at $353.17 on Tuesday. Intuitive Surgical, Inc. has a 12 month low of $342.10 and a 12 month high of $603.88. The firm has a market capitalization of $125.08 billion, a price-to-earnings ratio of 40.45, a PEG ratio of 2.80 and a beta of 1.46. The business has a 50-day moving average of $413.94 and a 200-day moving average of $465.58.
Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last announced its earnings results on Tuesday, April 21st. The medical equipment provider reported $2.50 earnings per share for the quarter, beating analysts’ consensus estimates of $2.08 by $0.42. Intuitive Surgical had a net margin of 28.45% and a return on equity of 17.09%. The business had revenue of $2.77 billion for the quarter, compared to the consensus estimate of $2.62 billion. During the same period last year, the firm posted $1.81 earnings per share. Intuitive Surgical’s quarterly revenue was up 23.0% on a year-over-year basis. On average, analysts predict that Intuitive Surgical, Inc. will post 8.62 earnings per share for the current year.
Insider Transactions at Intuitive Surgical In related news, SVP Iman Jeddi sold 5,625 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $420.55, for a total value of $2,365,593.75. Following the transaction, the senior vice president owned 6,463 shares of the company’s stock, valued at $2,718,014.65. This represents a 46.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gary Loeb sold 400 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $424.14, for a total value of $169,656.00. Following the sale, the executive vice president owned 5,720 shares in the company, valued at $2,426,080.80. The trade was a 6.54% 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. Insiders have sold 7,169 shares of company stock valued at $3,059,135 in the last quarter. Insiders own 0.60% of the company’s stock.
Key Headlines Impacting Intuitive Surgical Here are the key news stories impacting Intuitive Surgical this week:
Positive Sentiment: Some market commentary argues ISRG’s recent correction may have reset expectations, with oversold technical conditions and improving earnings estimate revisions potentially setting up a near-term rebound. Down 15% in 4 Weeks, Here’s Why You Should You Buy the Dip in Intuitive Surgical (ISRG) Positive Sentiment: Zacks highlighted Intuitive Surgical as a trending stock with strong growth characteristics, saying the company’s fundamentals and growth profile may appeal to investors looking for long-term outperformance. 3 Reasons Growth Investors Will Love Intuitive Surgical (ISRG) Positive Sentiment: Another piece noted investor interest in ISRG remains elevated, suggesting the stock is staying on traders’ radar even after recent weakness. Intuitive Surgical, Inc. (ISRG) Is a Trending Stock: Facts to Know Before Betting on It Neutral Sentiment: Commentary focused on whether investors should prioritize Intuitive Surgical’s current robot sales or its longer-term growth opportunity, reinforcing the debate around valuation versus future expansion. What’s More Important For Intuitive Surgical: Today’s Robots Or Tomorrow’s Growth? Negative Sentiment: Several analyst updates were cautious, with firms including Stifel, Sanford C. Bernstein, and Citigroup lowering price targets or expectations, which likely added to the selling pressure on ISRG. Stifel Nicolaus Lowers Intuitive Surgical (NASDAQ:ISRG) Price Target to $550.00 About Intuitive Surgical (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
See Also Five stocks we like better than Intuitive Surgical The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding ISRG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report).
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AlTi Global Inc. grew its holdings in shares of Intuitive Surgical, Inc. (NASDAQ:ISRG – Free Report) by 353.2% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 3,023 shares of the medical equipment provider’s stock after purchasing an additional 2,356 shares during the quarter. AlTi Global Inc.’s holdings in Intuitive Surgical were worth $1,394,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Fiduciary Financial Group LLC boosted its position in shares of Intuitive Surgical by 2.1% in the fourth quarter. Fiduciary Financial Group LLC now owns 920 shares of the medical equipment provider’s stock worth $521,000 after purchasing an additional 19 shares during the period. Prosperity Consulting Group LLC raised its position in shares of Intuitive Surgical by 0.5% during the 3rd quarter. Prosperity Consulting Group LLC now owns 4,033 shares of the medical equipment provider’s stock valued at $1,804,000 after purchasing an additional 19 shares during the period. Sunburst Financial Group LLC lifted its stake in shares of Intuitive Surgical by 4.3% during the 4th quarter. Sunburst Financial Group LLC now owns 485 shares of the medical equipment provider’s stock valued at $275,000 after buying an additional 20 shares in the last quarter. WoodTrust Financial Corp boosted its holdings in Intuitive Surgical by 0.5% in the 4th quarter. WoodTrust Financial Corp now owns 4,180 shares of the medical equipment provider’s stock worth $2,367,000 after buying an additional 20 shares during the period. Finally, North Star Investment Management Corp. boosted its holdings in Intuitive Surgical by 8.5% in the 4th quarter. North Star Investment Management Corp. now owns 269 shares of the medical equipment provider’s stock worth $152,000 after buying an additional 21 shares during the period. Hedge funds and other institutional investors own 83.64% of the company’s stock.
Wall Street Analyst Weigh In A number of research firms have commented on ISRG. Raymond James Financial reissued an “outperform” rating and set a $483.00 price target (down from $577.00) on shares of Intuitive Surgical in a report on Friday. BMO Capital Markets reissued an “outperform” rating on shares of Intuitive Surgical in a research note on Monday. Robert W. Baird lowered their price target on Intuitive Surgical from $525.00 to $500.00 and set an “outperform” rating on the stock in a report on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Intuitive Surgical in a research note on Tuesday, May 19th. Finally, Evercore set a $430.00 price objective on shares of Intuitive Surgical in a report on Monday, July 6th. Twenty-one analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $523.46.
Read Our Latest Research Report on Intuitive Surgical
Intuitive Surgical Stock Performance NASDAQ:ISRG opened at $353.17 on Tuesday. The firm has a market capitalization of $125.08 billion, a PE ratio of 40.45, a PEG ratio of 2.80 and a beta of 1.46. The stock’s fifty day moving average is $413.94 and its 200 day moving average is $465.58. Intuitive Surgical, Inc. has a fifty-two week low of $342.10 and a fifty-two week high of $603.88.
Intuitive Surgical (NASDAQ:ISRG – Get Free Report) last posted its quarterly earnings data on Tuesday, April 21st. The medical equipment provider reported $2.50 EPS for the quarter, topping the consensus estimate of $2.08 by $0.42. Intuitive Surgical had a net margin of 28.45% and a return on equity of 17.09%. The company had revenue of $2.77 billion during the quarter, compared to analyst estimates of $2.62 billion. During the same period in the previous year, the firm earned $1.81 earnings per share. Intuitive Surgical’s quarterly revenue was up 23.0% compared to the same quarter last year. Equities analysts forecast that Intuitive Surgical, Inc. will post 8.62 EPS for the current year.
Insider Activity at Intuitive Surgical In related news, SVP Iman Jeddi sold 5,625 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $420.55, for a total value of $2,365,593.75. Following the sale, the senior vice president directly owned 6,463 shares of the company’s stock, valued at $2,718,014.65. This represents a 46.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gary Loeb sold 400 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $424.14, for a total value of $169,656.00. Following the completion of the sale, the executive vice president owned 5,720 shares in the company, valued at approximately $2,426,080.80. The trade was a 6.54% 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. In the last ninety days, insiders have sold 7,169 shares of company stock worth $3,059,135. Insiders own 0.60% of the company’s stock.
Key Intuitive Surgical News Here are the key news stories impacting Intuitive Surgical this week:
Positive Sentiment: Some market commentary argues ISRG’s recent correction may have reset expectations, with oversold technical conditions and improving earnings estimate revisions potentially setting up a near-term rebound. Down 15% in 4 Weeks, Here’s Why You Should You Buy the Dip in Intuitive Surgical (ISRG) Positive Sentiment: Zacks highlighted Intuitive Surgical as a trending stock with strong growth characteristics, saying the company’s fundamentals and growth profile may appeal to investors looking for long-term outperformance. 3 Reasons Growth Investors Will Love Intuitive Surgical (ISRG) Positive Sentiment: Another piece noted investor interest in ISRG remains elevated, suggesting the stock is staying on traders’ radar even after recent weakness. Intuitive Surgical, Inc. (ISRG) Is a Trending Stock: Facts to Know Before Betting on It Neutral Sentiment: Commentary focused on whether investors should prioritize Intuitive Surgical’s current robot sales or its longer-term growth opportunity, reinforcing the debate around valuation versus future expansion. What’s More Important For Intuitive Surgical: Today’s Robots Or Tomorrow’s Growth? Negative Sentiment: Several analyst updates were cautious, with firms including Stifel, Sanford C. Bernstein, and Citigroup lowering price targets or expectations, which likely added to the selling pressure on ISRG. Stifel Nicolaus Lowers Intuitive Surgical (NASDAQ:ISRG) Price Target to $550.00 About Intuitive Surgical (Free Report)
Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.
In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.
See Also Five stocks we like better than Intuitive Surgical The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
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Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Intuitive Surgical, Inc. (ISRG - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this company a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Intuitive Surgical is 16.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 17% this year, crushing the industry average, which calls for EPS growth of 10.7%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Intuitive Surgical is 15.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 0.9%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 19.5% over the past 3-5 years versus the industry average of 8%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Intuitive Surgical have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month.
Bottom LineIntuitive Surgical has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Intuitive Surgical well for outperformance, so growth investors may want to bet on it.
