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With a market cap of $210.8 billion, Intuitive Surgical, Inc. (ISRG) designs, manufactures, and markets advanced robot-assisted surgical systems, including the da Vinci Surgical System and the Ion endoluminal system, enabling minimally invasive procedures. The company offers a range of surgical instruments, accessories, and digital solutions, along with comprehensive customer support services.
Shares of the medical device maker have outperformed the broader market over the past 52 weeks. ISRG has surged 55.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.7%. Moreover, ISRG stock has risen 13.4% on a YTD basis, compared to SPX's 2.2% YTD gain.
Looking closer, the Sunnyvale, California-based company has also outpaced the Health Care Select Sector SPDR Fund's (XLV) marginal rise over the past 52 weeks.
Despite Intuitive Surgical's stronger-than-expected Q4 2024 adjusted EPS of $2.21 on Jan. 23, shares fell over 4% the next day. While total revenue rose 24.9% year-over-year to $2.4 billion, in line with estimates, the 3.3% increase in revenue per procedure was driven by higher SP procedures but was partially offset by a lower mix of higher-margin bariatric procedures and more cholecystectomy procedures. Additionally, the lower mix of leased systems, though boosting system sales, created uncertainty around recurring revenue streams. Investors also reacted to the decline in cash and investments, which dropped to $8.8 billion quarter-over-quarter.
For the current fiscal year, ending in December 2025, analysts expect ISRG’s EPS to decline marginally year-over-year to $6.43. However, the company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 27 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.”
On Jan. 25, BTIG raised its price target on Intuitive Surgical to $622 while maintaining a “Buy” rating. The firm highlighted that system sales exceeded expectations by 58 units, 170 bps procedure growth, and a rising da Vinci 5 installed base of 362 units.
As of writing, ISRG is trading below the mean price target of $642.40. The Street-high price target of $711 implies a modest potential upside of 20.1% from the current price levels.
