Intuitive Surgical Inc.
ISRG
$452.58
+0.11%
Intuitive Surgical Inc. is a global leader in robotic-assisted minimally invasive surgery, primarily through its da Vinci surgical system, which includes the robotic platform, instruments, accessories, and related services. The company operates as a dominant, vertically integrated platform within the medical instruments and supplies industry, with a formidable competitive moat built on its vast installed base of over 10,000 systems and extensive surgeon training programs. The current investor narrative is dominated by a debate between the company's robust underlying business growth and recurring revenue model against significant near-term headwinds, including a recent FDA safety flag concerning a surgical stapler and the stock's substantial valuation premium, which has led to heightened volatility and a sharp price correction from recent highs.…
ISRG
Intuitive Surgical Inc.
$452.58
Related headlines
ISRG 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Intuitive Surgical Inc.'s 12-month outlook, with a consensus price target around $588.35 and implied upside of +30.0% versus the current price.
Average Target
$588.35
11 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
11
covering this stock
Price Range
$362 - $588
Analyst target range
Analyst coverage is robust with 11 firms providing estimates, and recent institutional ratings show a generally bullish tilt with actions like Citigroup upgrading to 'Buy' and Freedom Capital moving to 'Buy' from 'Hold' in early 2026, though others like UBS maintain a 'Neutral' stance. The consensus revenue estimate for the forward period is $18.89 billion, with a wide EPS range from $15.61 to $17.77, averaging $16.55, indicating some divergence in earnings expectations among analysts. The full target price range is not explicitly provided in the data, but the wide EPS estimate spread signals meaningful uncertainty regarding the company's near-term earnings trajectory, potentially tied to the impact of recent regulatory news or macroeconomic factors on procedure volumes; a tight target spread would signal stronger conviction, which is currently absent. Insufficient data is available to calculate a precise average price target or implied upside/downside, but the pattern of recent analyst actions suggests a cautiously optimistic view tempered by valuation and regulatory concerns.
ISRG Technical Analysis
The stock is in a pronounced downtrend, having declined 10.84% over the past year and 19.56% year-to-date, significantly underperforming the broader market. As of the latest close of $452.07, the price is trading near the lower end of its 52-week range, approximately 25% above its 52-week low of $425 but a substantial 25% below its 52-week high of $603.88, indicating a significant retreat from peak levels and positioning the stock in a potential value zone, albeit with momentum still to the downside. Recent short-term momentum is decisively negative, with a 9.12% decline over the past month and a 19.56% drop over the past three months, accelerating the longer-term downtrend and suggesting persistent selling pressure rather than a temporary pullback; this is further evidenced by a 1-month relative strength of -4.84% against the S&P 500. Key technical support is anchored at the 52-week low of $425, while immediate resistance lies at the recent breakdown level near the 52-week high of $603.88; a sustained break below $425 could signal a deeper correction, while reclaiming the $600 level would require a major catalyst. The stock's beta of 1.68 indicates it is approximately 68% more volatile than the market, which, combined with a max drawdown of -25.05%, underscores its high-risk profile and necessitates careful position sizing for risk-averse investors.
Beta
1.68
1.68x market volatility
Max Drawdown
-24.4%
Largest decline past year
52-Week Range
$425-$604
Price range past year
Annual Return
+0.2%
Cumulative gain past year
| Period | ISRG Return | S&P 500 |
|---|---|---|
| 1m | -7.7% | -2.0% |
| 3m | -23.7% | -4.8% |
| 6m | +1.0% | -2.1% |
| 1y | +0.2% | +30.4% |
| ytd | -19.5% | -3.4% |
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ISRG Fundamental Analysis
Revenue growth remains robust, with Q4 2025 revenue reaching $2.87 billion, representing a strong 18.8% year-over-year increase, and the sequential quarterly trend from Q1 to Q4 2025 shows consistent top-line expansion from $2.25B to $2.87B. The growth is primarily driven by the high-margin recurring revenue streams, as evidenced by the Q4 segment data where Instruments and Accessories contributed $1.66 billion (58% of revenue), Services $422 million, and Systems $785.9 million, indicating a healthy 'razor-and-blade' model. Profitability is exceptional, with Q4 2025 net income of $794.8 million and a net margin of 27.7%, supported by a gross margin of 66.44%; margins have shown stability, with the quarterly gross margin ranging between 64.7% and 66.4% in 2025, reflecting pricing power and operational efficiency. The company is highly profitable with a return on equity of 16.02% and a return on assets of 9.39%, metrics that are superior for its industry. The balance sheet is fortress-like, featuring a minimal debt-to-equity ratio of 0.017, a strong current ratio of 4.87, and substantial liquidity. The company generates abundant cash, with trailing twelve-month free cash flow of $2.49 billion, providing ample internal funding for growth initiatives, research and development (which was $352.9 million in Q4), and potential share repurchases without reliance on external financing.
Quarterly Revenue
$2.9B
2025-12
Revenue YoY Growth
+0.18%
YoY Comparison
Gross Margin
+0.66%
Latest Quarter
Free Cash Flow
$2.5B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ISRG Overvalued?
Given the company's substantial net income, the primary valuation metric is the Price-to-Earnings (PE) ratio. The trailing PE is elevated at 70.78x, while the forward PE is significantly lower at 39.53x, indicating the market is pricing in strong future earnings growth, with the forward estimate implying a 44% year-over-year increase in EPS based on the provided data. Compared to sector averages, ISRG trades at a substantial premium; for instance, its forward PE of 39.5x is well above typical medical device peers, a premium justified by its dominant market position, superior growth profile (18.8% revenue YoY), and exceptional profitability (28.4% net margin), though it also introduces higher sensitivity to growth disappointments. Historically, the stock's current trailing PE of 70.8x is above its own multi-year range observed in the historical ratios data, which has fluctuated between approximately 48x and 85x over recent years; trading near the upper end of this historical band suggests the market has been pricing in very optimistic expectations, and the recent price correction may represent a normalization from peak valuation levels.
PE
70.8x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 49x~84x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
55.0x
Enterprise Value Multiple

