ISRG changes
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- Price
- $460.56
- Discount category
- Far above intrinsic value
- Next earnings
- 2027-01-20
- Next earnings is estimate
- Yes
- Company name
- Intuitive Surgical
- Sector
- Medical devices
- About
- Intuitive Surgical makes the da Vinci robotic surgical systems and the Ion endoluminal system for lung biopsies. Hospitals buy or lease the systems, and they then buy instruments and accessories for each procedure and pay for service. Instruments and accessories gave $1.80 billion of the $3.05 billion of revenue in Q3 2026. The installed base was 12,094 da Vinci systems and 1,152 Ion systems at September 30, 2026, and customers did more than 10,000 procedures a day on average in Q3 2026. It sells multi-port da Vinci systems, including da Vinci 5, and a single-port system. Revenue was $10.1 billion in 2025. The company is based in Sunnyvale, California.
- Thesis
- Intuitive Surgical trades at a premium because investors pay for a leader in robotic surgery with recurring revenue. Each new system adds years of sales of instruments, accessories and service. Worldwide procedures grew about 15% in Q3 2026, the company placed 546 da Vinci systems, and revenue grew 22% to $3.05 billion. Non-GAAP EPS rose to $3.00 from $2.40. For the premium to be earned, four things must be true. Da Vinci procedures must keep growing in the mid-teens, as the 2026 guidance of 14% to 15% says. Da Vinci 5 and Ion must keep winning placements and use in new types of surgery and in new countries. Margins must hold against tariffs and against new robotic systems from large medical device companies. The court must approve the $450 million antitrust settlement. The Q4 2026 report with the 2027 outlook, expected in late January 2027, is the next test. The premium can shrink if procedure growth slows, if hospitals cut capital budgets, or if competitors win large customers on price.
- Risks
- New robotic surgery systems from large medical device companies can win hospitals on price. Lower prices for systems or instruments can lower growth and margins. Hospitals need capital budgets to buy systems. Lower hospital profits, cuts in public health spending or high interest rates can slow placements. Tariffs cost $72.4 million in the first nine months of 2026, and the 2026 margin guidance includes a tariff cost of 0.9% of revenue. New tariffs, or a stop to refunds of IEEPA tariffs, can lower margins. The $450 million antitrust settlement needs preliminary and final court approval, and class members can object. If the court does not approve it, the case continues.
- Balance sheet
- Cash: $6.8B Debt: $0.0M Net cash: $6.8B Intuitive Surgical has no debt. Cash, cash equivalents and investments were $6.80 billion at September 30, 2026, down from $9.03 billion at December 31, 2025, mainly because it bought back $4.42 billion of shares in the first nine months of 2026. Cash from operations was $3.20 billion in the same period, and purchases of property, plant and equipment were $329 million. The board raised the buyback authorization to $5.0 billion in April 2026. The antitrust settlement is a one-time payment of $450 million, which the company recorded as a charge in Q3 2026. Shares outstanding were 346.6 million on October 15, 2026. As of 2026-09-30.
- Checkpoints
- Jan 20, 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: 2027 guidance for da Vinci procedure growth in the low to mid teens and stable margins pass; guidance for growth near 10% or lower margins fails. 2027 (estimate): Court approval of the antitrust settlement. Pending. Watch: Final approval on the agreed terms of $450 million and injunctive relief passes; a rejection or a larger payment fails.
- Recent events
- 2026-11-02: Intuitive appointed Aaron Martin, President of Insurance at Humana, to its board, effective January 1, 2027. 2026-10-20: Intuitive reported Q3 2026 results. Worldwide procedures grew about 15%, with da Vinci up 14% and Ion up 31%. It placed 546 da Vinci systems, of which 315 were da Vinci 5. Revenue grew 22% to $3.05 billion. In October 2026, Intuitive agreed to settle the da Vinci antitrust class action for a one-time payment of $450 million and agreed injunctive relief, without any admission of liability, and the court must still approve it. GAAP EPS fell to $1.49 because of the $450 million charge, and non-GAAP EPS rose to $3.00 from $2.40. Intuitive bought back 7.8 million shares for $2.94 billion. It expects 2026 da Vinci procedure growth of 14% to 15%. 2026-07-16: Intuitive reported Q2 2026 results. Worldwide procedures grew about 16%, and revenue grew 19% to $2.89 billion. Non-GAAP EPS was $2.80. Refunds of IEEPA tariffs added $0.08 per share. 2026-05-28: Intuitive named Taylor Patton Chief Commercial and Marketing Officer from July 1, 2026. Henry Charlton became Senior Vice President of Global Business Operations. 2026-04-21: Intuitive reported Q1 2026 results. Worldwide procedures grew about 17%, and revenue grew 23% to $2.77 billion. Non-GAAP EPS was $2.50. 2026-03-02: Intuitive completed the purchase of its distribution business in Italy, Spain and Portugal from ab medica, Abex and Excelencia Robótica. These countries had more than 470 da Vinci systems at the end of 2025. 2026-01-22: Intuitive reported 2025 results. Revenue was $10.06 billion, up from $8.35 billion in 2024, and non-GAAP EPS was $8.93. Da Vinci procedures grew about 17% in Q4 2025.