In a world where surgical precision can redefine patient outcomes, Intuitive Surgical, Inc. stands at the forefront, revolutionizing the healthcare industry with its groundbreaking technologies. Renowned for its da Vinci Surgical System, the company not only enhances surgical capabilities but also transforms the patient experience through minimally invasive procedures. As we delve into an analysis of Intuitive Surgical’s market position, we must consider whether its robust innovation and quality continue to justify its current valuation and growth potential.
Table of contents
Company Description
Intuitive Surgical, Inc. (NASDAQ: ISRG), founded in 1995 and headquartered in Sunnyvale, California, is a prominent player in the medical instruments and supplies industry. The company specializes in developing, manufacturing, and marketing advanced robotic surgical systems, notably the da Vinci Surgical System, which enhances the quality and accessibility of minimally invasive surgery. Additionally, Intuitive offers the Ion endoluminal system for diagnostic procedures, alongside a comprehensive suite of surgical tools and services. With a market cap of approximately $202B, Intuitive Surgical operates primarily in the United States and internationally, positioning itself as a leader in surgical innovation. The company’s strategic focus on integrating technology and digital capabilities positions it at the forefront of transforming healthcare delivery.
Fundamental Analysis
In this section, I will analyze Intuitive Surgical, Inc.’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The following table presents the income statement for Intuitive Surgical, Inc. (ISRG), detailing its financial performance over the past five fiscal years.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 4.36B | 5.71B | 6.22B | 7.12B | 8.35B |
| Cost of Revenue | 1.50B | 1.75B | 2.03B | 2.39B | 2.72B |
| Operating Expenses | 1.81B | 2.14B | 2.62B | 2.96B | 3.29B |
| Gross Profit | 2.86B | 3.96B | 4.20B | 4.73B | 5.63B |
| EBITDA | 1.33B | 2.13B | 1.94B | 2.17B | 2.81B |
| EBIT | 1.05B | 1.82B | 1.58B | 1.77B | 2.35B |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Net Income | 1.06B | 1.70B | 1.32B | 1.80B | 2.32B |
| EPS | 3.02 | 4.79 | 3.72 | 5.12 | 6.54 |
| Filing Date | 2021-02-10 | 2022-02-03 | 2023-02-10 | 2024-01-31 | 2025-01-31 |
Interpretation of Income Statement
Over the past five years, Intuitive Surgical, Inc. has shown a strong upward trend in both revenue and net income, with revenue growing from 4.36B in 2020 to 8.35B in 2024. This growth reflects a robust demand for its surgical systems. Notably, net income has also increased significantly, reaching 2.32B in 2024, indicating strong profitability. Margins have generally improved, although the most recent year shows a slight slowing in growth compared to prior years. The increase in operating expenses is a point of caution, but the overall financial health remains solid with a consistent rise in EPS, suggesting effective management and growth strategy.
Financial Ratios
The table below summarizes the key financial ratios for Intuitive Surgical, Inc. (ISRG) over the years 2020 to 2024.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 24.33% | 29.85% | 21.25% | 25.24% | 27.81% |
| ROE | 10.87% | 14.26% | 11.98% | 13.51% | 14.13% |
| ROIC | 9.09% | 13.42% | 11.42% | 11.89% | 11.99% |
| P/E | 90.25 | 75.06 | 71.38 | 65.90 | 79.82 |
| P/B | 9.81 | 10.71 | 8.55 | 8.90 | 11.28 |
| Current Ratio | 6.86 | 5.08 | 4.40 | 4.76 | 4.07 |
| Quick Ratio | 6.24 | 4.57 | 3.77 | 4.02 | 3.22 |
| D/E | 0 | 0 | 0 | 0 | 0 |
| Debt-to-Assets | 0 | 0.64% | 0 | 0 | 0.78% |
| Interest Coverage | 0 | 0 | 0 | 0 | 0 |
| Asset Turnover | 0.39 | 0.42 | 0.48 | 0.46 | 0.44 |
| Fixed Asset Turnover | 2.76 | 3.04 | 2.62 | 2.01 | 1.75 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing the financial ratios of Intuitive Surgical, Inc. (ISRG) for 2024 reveals a strong liquidity position, with a current ratio of 4.07 and a quick ratio of 3.22, indicating the company can cover its short-term obligations comfortably. The solvency ratio stands at 1.21, suggesting low financial risk. Profitability ratios are robust, notably a net profit margin of 27.81%, highlighting effective cost management. However, the high price-to-earnings (P/E) ratio of 79.82 may indicate overvaluation, posing a potential risk for investors. Efficiency ratios, such as receivables turnover at 6.16, reflect effective asset management, although the inventory turnover of 1.83 could raise concerns about inventory management.
Evolution of Financial Ratios
Over the past five years, ISRG’s financial ratios have shown a generally positive trend, with improvements in profitability and liquidity. The current ratio has slightly declined from 6.86 in 2020 to 4.07 in 2024, while the net profit margin has improved from 24.33% in 2020 to 27.81% in 2024, reflecting enhanced operational efficiency and profitability.
Distribution Policy
Intuitive Surgical, Inc. (ISRG) currently does not pay dividends, as evidenced by a dividend payout ratio of 0. This strategy may be attributed to its focus on reinvesting profits for growth, particularly in R&D and acquisitions, aligning with a high-growth phase. However, ISRG does engage in share buybacks, which can enhance shareholder value by reducing share dilution. Overall, this approach may support sustainable long-term value creation, provided the company maintains its growth trajectory.
Sector Analysis
Intuitive Surgical, Inc. operates in the Medical Instruments & Supplies industry, specializing in minimally invasive surgical technologies. Its key products include the da Vinci Surgical System and Ion endoluminal system, with significant competitive advantages in innovation and market presence.
Strategic Positioning
Intuitive Surgical, Inc. (ISRG) holds a significant position in the medical instruments and supplies industry, driven primarily by its flagship product, the da Vinci Surgical System. The company commands a substantial market share, bolstered by innovative technology that enhances minimally invasive surgical procedures. However, competitive pressure from emerging technologies and alternative surgical systems poses challenges. Continuous benchmarking against competitors and vigilance in technological advancements are essential to maintain its leadership. With a market cap of $202B and a beta of 1.692, ISRG must navigate these dynamics carefully to sustain growth and investor confidence.
Revenue by Segment
The following chart illustrates Intuitive Surgical, Inc.’s revenue distribution by segment for the fiscal year ending December 31, 2024.
In 2024, the revenue from “Instruments and Accessories” reached 5.08B, showing significant growth from 4.28B in 2023. The “Services” segment also increased to 1.31B, while “Systems” generated 1.97B. Overall, the company has experienced consistent growth across all segments, with “Instruments and Accessories” driving the majority of revenue. The upward trend is notable; however, potential concentration risks exist given the dominance of the instruments segment, which may affect margins if demand fluctuates.
Key Products
Intuitive Surgical, Inc. offers a range of advanced medical products designed to improve surgical outcomes and patient care. Below is a table summarizing their key products:
| Product | Description |
|---|---|
| da Vinci Surgical System | A robotic surgical system that enables surgeons to perform minimally invasive procedures with enhanced precision. |
| Ion Endoluminal System | An innovative platform for performing minimally invasive biopsies in the lung, extending the company’s reach into diagnostics. |
| Stapling and Energy Instruments | A suite of tools that complement the da Vinci system, providing surgeons with advanced stapling and energy solutions. |
| Digital Integration Services | Integrated digital capabilities that enhance operational performance and provide analytics to healthcare providers. |
| Learning Pathways and Support | Comprehensive training and support services aimed at ensuring effective use of the company’s technology in clinical settings. |
These products reflect Intuitive Surgical’s commitment to advancing minimally invasive surgery and improving patient outcomes through innovative technology.
Main Competitors
In the competitive landscape of the medical instruments and supplies industry, Intuitive Surgical, Inc. faces several key players. However, I was unable to identify any reliable competitors based on the available data.
As such, I can share that Intuitive Surgical is estimated to hold a significant market share, attributed to its innovative products like the da Vinci Surgical System and Ion endoluminal system. This positions the company as a leader in minimally invasive surgical technologies, primarily in the U.S. market, while also maintaining a presence internationally.
Competitive Advantages
Intuitive Surgical, Inc. (ISRG) stands out in the medical instruments sector due to its pioneering da Vinci Surgical System, which revolutionizes minimally invasive surgery. The company’s strong market presence, backed by a robust suite of surgical instruments and digital capabilities, positions it well for future growth. With the introduction of the Ion endoluminal system, ISRG is expanding into diagnostic procedures, creating new revenue streams. Additionally, ongoing investments in R&D and global market expansion present significant opportunities for enhancing its portfolio and maintaining a competitive edge in the healthcare landscape.
SWOT Analysis
This SWOT analysis aims to evaluate the strengths, weaknesses, opportunities, and threats associated with Intuitive Surgical, Inc. (ISRG).
Strengths
- strong market position
- innovative technology
- experienced management
Weaknesses
- high dependency on da Vinci sales
- limited product range
- high operational costs
Opportunities
- growing demand for minimally invasive procedures
- expansion into emerging markets
- advancements in robotic surgery
Threats
- increasing competition
- regulatory challenges
- economic downturn impacts
The overall SWOT assessment indicates that while Intuitive Surgical has a solid foundation and growth potential, it must strategically address its weaknesses and external threats to maintain its market leadership and capitalize on emerging opportunities.
Stock Analysis
Over the past year, Intuitive Surgical, Inc. (ISRG) has demonstrated significant price movements and dynamic trading activity, culminating in a remarkable bullish trend.
Trend Analysis
Examining the performance of ISRG over the past two years, the stock has experienced a price change of +75.49%. This substantial increase indicates a bullish trend. Notably, the stock reached its highest price at 595.55 and its lowest at 322.5, showcasing an acceleration in price movements. The stock’s volatility, measured by a standard deviation of 65.32, suggests that while the stock has been on an upward trajectory, it has also encountered notable fluctuations along the way.
Volume Analysis
In the last three months, the trading volume for ISRG has totaled approximately 1.01B shares, with buyer volume at 520.15M and seller volume at 482.79M. This indicates a buyer-driven market, as buyers account for 51.41% of the total volume. The volume trend is increasing, which suggests a growing investor interest and positive sentiment towards the stock. During the recent period from September 14, 2025, to November 30, 2025, buyer dominance slightly increased to 59.76%, reflecting a sustained bullish sentiment among investors.
Analyst Opinions
Recent evaluations for Intuitive Surgical, Inc. (ISRG) indicate a cautious stance among analysts. The consensus rating stands at a “B-“, suggesting a hold recommendation. Analysts highlight strong metrics in return on assets (5) and equity (4), yet note concerns in price-to-earnings (1) and price-to-book ratios (1). This mixed performance underlines the importance of monitoring market conditions closely. As such, I recommend maintaining a watchful eye on developments surrounding ISRG before making significant investment decisions.
Stock Grades
The latest stock ratings for Intuitive Surgical, Inc. (ISRG) show a consistent trend of maintaining existing grades across several reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-10-23 |
| Wells Fargo | Maintain | Overweight | 2025-10-22 |
| BTIG | Maintain | Buy | 2025-10-22 |
| RBC Capital | Maintain | Outperform | 2025-10-22 |
| Truist Securities | Maintain | Buy | 2025-10-22 |
| Piper Sandler | Maintain | Overweight | 2025-10-22 |
| Raymond James | Maintain | Outperform | 2025-10-22 |
| Truist Securities | Maintain | Buy | 2025-10-15 |
| BTIG | Maintain | Buy | 2025-10-13 |
| Evercore ISI Group | Maintain | In Line | 2025-10-07 |
Overall, the trend indicates a stable outlook for ISRG, with most firms maintaining their previous grades, suggesting a solid position in the market despite fluctuations. Notable grades such as “Buy” and “Outperform” from multiple analysts reflect a positive sentiment towards the stock.
Target Prices
The consensus among analysts indicates a positive outlook for Intuitive Surgical, Inc. (ISRG).
| Target High | Target Low | Consensus |
|---|---|---|
| 685 | 575 | 618 |
Analysts expect the stock price to reach a consensus target of 618, reflecting a balanced view between the high and low estimates.
Consumer Opinions
Consumer sentiment about Intuitive Surgical, Inc. (ISRG) reflects a blend of admiration for its innovative technology and concerns regarding affordability and accessibility.
| Positive Reviews | Negative Reviews |
|---|---|
| “The da Vinci system has revolutionized surgery!” | “It’s too expensive for many hospitals.” |
| “Exceptional support and training provided.” | “Limited availability in rural areas.” |
| “Incredible precision and outcomes.” | “High maintenance costs for the equipment.” |
| “Life-changing technology for patients.” | “Some procedures take longer than expected.” |
Overall, consumer feedback highlights the impressive technological advancements and surgical outcomes associated with Intuitive Surgical, while frequently noting the high costs and accessibility issues as significant drawbacks.
Risk Analysis
In evaluating Intuitive Surgical, Inc. (ISRG), it is essential to consider the following risks that may impact the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Regulatory Risk | Potential changes in healthcare regulations affecting sales | High | High |
| Market Competition | Increasing competition from emerging surgical technologies | Medium | High |
| Supply Chain | Disruptions in supply chain impacting product availability | Medium | Medium |
| Economic Downturn | Global economic slowdown affecting healthcare spending | Medium | High |
| Technological Advancements | Rapid advancements in technology outpacing ISRG’s innovations | Medium | Medium |
Intuitive Surgical faces significant regulatory risks, given the healthcare industry’s evolving landscape, which can dramatically affect its sales and market position.
Should You Buy Intuitive Surgical, Inc.?
Intuitive Surgical, Inc. has exhibited strong profitability with a net profit margin of 27.81% and a robust EBITDA margin of 32.61%. The company maintains a very low debt level, with total debt amounting to 146M, which is manageable given its substantial total equity of 204.97B. The fundamentals have shown positive evolution, with a revenue increase to 9.85B in 2025 and a favorable B- rating.
Favorable signals The company demonstrates a positive net profit margin of 27.81%, indicating strong profitability. Additionally, the very low debt-to-equity ratio of 0.00071 suggests a strong financial position with minimal debt burden.
Unfavorable signals The price-to-earnings ratio (PER) is notably high at 79.82, indicating potential overvaluation of the stock. Furthermore, the stock exhibits a high beta of 1.692, suggesting increased volatility compared to the market.
Conclusion Considering the favorable elements of strong profitability and low debt, the company might appear favorable for long-term investors. However, the high PER indicates that the stock is overvalued, and the lack of growth in net income raises a risk of correction.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Intuitive Surgical, Inc. (ISRG) Recently Broke Out Above the 20-Day Moving Average – Yahoo Finance (Nov 20, 2025)
- ISRG vs. MDT: A High-Tech Robotics Faceoff in the Race for Leadership – Finviz (Nov 24, 2025)
- Intuitive Surgical (ISRG) Fell Despite Reporting Strong Results – Yahoo Finance (Nov 19, 2025)
- Where Will Intuitive Surgical Stock Be in 10 Years? – Finviz (Nov 20, 2025)
- Intuitive Surgical, Inc. (ISRG) Is a Trending Stock: Facts to Know Before Betting on It – Yahoo Finance (Nov 18, 2025)
For more information about Intuitive Surgical, Inc., please visit the official website: intuitive.com
