Intuitive Surgical (NASDAQ:ISRG) Issues Quarterly Earnings Results, Beats Expectations By $0.35 EPS

Key Points

• Intuitive Surgical beat quarterly expectations: The medical equipment provider reported $3.00 in EPS versus the $2.65 consensus and revenue of $3.05 billion, ahead of the $2.91 billion estimate.
• Robotic-surgery demand remains strong: Da Vinci 5 placements rose to 246 from 180 a year earlier, while procedure volume increased approximately 15%, supporting analysts’ generally positive outlook.
• Valuation and leasing create risks: Shares traded near $438 at a P/E of 50.17, while greater use of operating leases could increase capital intensity. Analysts nevertheless maintain a “Moderate Buy” consensus with an average target price of $498.83.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) announced its quarterly earnings results on Tuesday. The medical equipment provider reported $3.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.65 by $0.35, FiscalAI reports. The firm had revenue of $3.05 billion during the quarter, compared to the consensus estimate of $2.91 billion. Intuitive Surgical had a return on equity of 16.91% and a net margin of 28.45%.

Intuitive Surgical Stock Performance

Intuitive Surgical stock traded up $4.82 during trading on Tuesday, hitting $438.00. The company's stock had a trading volume of 2,650,114 shares, compared to its average volume of 2,406,196. The stock's fifty day moving average is $392.22 and its 200 day moving average is $409.24. Intuitive Surgical has a 1-year low of $328.57 and a 1-year high of $603.88. The stock has a market capitalization of $154.74 billion, a price-to-earnings ratio of 50.17, a P/E/G ratio of 3.22 and a beta of 1.46.

Analyst Ratings Changes

ISRG has been the topic of several recent analyst reports. Evercore set a $430.00 target price on Intuitive Surgical in a research report on Monday, July 6th. Stifel Nicolaus reduced their price target on Intuitive Surgical from $670.00 to $550.00 and set a "buy" rating for the company in a report on Friday, July 17th. KeyCorp restated an "overweight" rating on shares of Intuitive Surgical in a research note on Wednesday, August 12th. BNP Paribas Exane upgraded Intuitive Surgical to an "outperform" rating in a research note on Tuesday, July 28th. Finally, Truist Financial dropped their price objective on Intuitive Surgical from $580.00 to $510.00 and set a "buy" rating on the stock in a report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $498.83.

Trending Headlines about Intuitive Surgical

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

• Positive Sentiment: Strong robotic-surgery demand: Analysts point to rising procedure volumes, da Vinci 5 adoption and recurring revenue from instruments, accessories and service. Intuitive placed 246 da Vinci 5 systems in the second quarter, compared with 180 a year earlier, while procedures increased approximately 15%. 3 Wall Street Analysts See Intuitive Surgical Hitting $500
• Positive Sentiment: Analyst support: TD Cowen maintained a Buy rating and a $485 price target, citing robust robotic demand and potential upside if forecasts prove conservative. Several analysts see a path toward $500 as the installed base and procedure volumes expand. Intuitive Surgical Analyst Maintains Buy
• Positive Sentiment: Lower-cost adoption strategy: Intuitive plans to extend the useful life of surgical instruments beginning in 2027. Although this may reduce revenue per procedure initially, lower operating costs could make robotic surgery more attractive to hospitals and broaden long-term adoption. Why ISRG Is Lowering Instrument Costs Despite Strong Profitability
• Neutral Sentiment: Earnings are the immediate catalyst: Intuitive Surgical is scheduled to report after the market close. Investors are looking for procedure growth, da Vinci 5 placements, operating margins and management’s outlook. Revenue growth is expected to moderate to 15.6% year over year from 22.9% in the comparable quarter last year. Intuitive Surgical Q3 2026 Earnings Preview
• Negative Sentiment: Leasing raises capital-intensity concerns: Operating leases represented 54% of second-quarter da Vinci placements, up from 49% a year earlier. Leasing may accelerate hospital adoption, but it requires Intuitive to fund equipment before realizing its lifetime returns. The stock’s elevated valuation also leaves less room for an earnings or guidance miss. Does Leasing Make Growth More Durable or More Capital Intensive?

Insider Transactions at Intuitive Surgical

In related news, Director Gary S. Guthart sold 10,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $400.00, for a total transaction 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 approximately $498,271,600. This represents a 0.80% 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, VP Fredrik Widman sold 1,089 shares of the firm's stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $374.44, for a total transaction of $407,765.16. Following the completion of the transaction, the vice president directly owned 1,026 shares in the company, valued at approximately $384,175.44. This represents a 51.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,370 shares of company stock valued at $4,891,989 in the last quarter. Insiders own 0.60% of the company's stock.

About Intuitive Surgical

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

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

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