Intuitive Surgical, Inc.ISRGNASDAQ
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Executive Summary
Latest Data: Dec 2025Healthcare•Medical - Instruments & Supplies
$172.5BLarge Cap
A large-scale business, with exceptional profitability, showing strong growth priced at a premium.
Key Investment Themes
High-growth business (21% revenue expansion)
Exceptional 28% net margins
Premium valuation (60.4x P/E)
Business Narrative
Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System to enable complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung.
HealthcareMedical - Instruments & Supplies
Recurring Revenue
Revenue Mix
Single segment business
Bull Case
- +Strong revenue growth demonstrates market share expansion
- +Exceptional margins indicate durable competitive advantages
- +Strong cash generation funds reinvestment and shareholder returns
Bear Case
- -Premium valuation leaves limited margin of safety
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Strong double-digit revenue growth trend
- Best-in-class profit margins above 25%
- Free cash flow growing strongly, indicating quality earnings
- Conservative balance sheet with low debt levels
- Strong liquidity position with ample current assets
Watch Areas
- Premium valuation requires continued strong execution
Financial Health
Liquidity
Strong
Current Ratio4.87
≥2.0 = Excellent
Cash & Equivalents$3.4B
Leverage
Concern
Debt / Equity0.02
<1.0 = Low leverage
Interest Coverage0.00x
<2x = Tight
Efficiency
Watch
Return on Equity16.0%
≥15% = Excellent
Return on Capital13.7%
8-15% = Fair
Valuation Assessment
Market Cap
$172.5B
Large Cap
P/E (TTM)
60.4x
Elevated
vs 5Y avg: 72.6x (-17%)
P/S (TTM)
17.1x
Elevated
vs 5Y avg: 19.3x (-11%)
EV/EBITDA
46.1x
Elevated
vs 5Y avg: 57.2x
(-19%)
(-19%)
P/E Historical Range (5Y)
Min: 65.9xAvg: 72.6xNow: 60.4xMax: 79.8x
P/S Historical Range (5Y)
Min: 15.2xAvg: 19.3xNow: 17.1xMax: 22.4x
EV/EBITDA Historical Range (5Y)
Min: 47.8xAvg: 57.2xNow: 46.1xMax: 65.3x
Valuation Corridor
EXPENSIVE
PEG Ratio
2.70
P/E 60.4x / Growth 22.3% = Expensive
FCF Yield
1.4%
vs Cost of Capital ~8.0% = Weak
P/E Corridor (5Y)60.4x
65.9xFair: 67.4x-77.8x79.8x
P/S Corridor (5Y)17.1x
15.2xFair: 16.0x-22.4x22.4x
EV/EBITDA Corridor (5Y)46.1x
47.8xFair: 50.4x-64.0x65.3x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 69.3% | 67.4%↓2.7% | 66.4%↓1.6% | 67.5%↑1.6% | 66.0%↓2.2% |
| Operating Margin | 31.9% | 25.3%↓20.5% | 24.8%↓2.2% | 28.1%↑13.4% | 29.3%↑4.1% |
| Net Margin | 29.9% | 21.3%↓28.8% | 25.2%↑18.8% | 27.8%↑10.2% | 28.4%↑2.0% |
| Earnings Yield | - | - | - | - | - |
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