Since May 2025, Intuitive Surgical has been in a holding pattern, posting a small return of 0.8% while floating around $536.20. The stock also fell short of the S&P 500’s 19.8% gain during that period.

Is now the time to buy ISRG? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free for active Edge members.

Why Does Intuitive Surgical Spark Debate?

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Two Things to Like:

1. Elevated Demand Drives Higher Sales Volumes

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful Surgical Equipment & Consumables - Specialty company because there’s a ceiling to what customers will pay.

Intuitive Surgical’s system placement punched in at 427 in the latest quarter, and over the last two years, averaged 12.7% year-on-year growth. This performance was impressive and shows its offerings have a unique value proposition (and perhaps some degree of customer loyalty).

2. Outstanding Long-Term EPS Growth

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Intuitive Surgical’s EPS grew at an astounding 20.9% compounded annual growth rate over the last five years, higher than its 17.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

One Reason to be Careful:

New Investments Fail to Bear Fruit as ROIC Declines

A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. On average, Intuitive Surgical’s ROIC decreased by 2.7 percentage points annually over the last few years. Only time will tell if its new bets can bear fruit and potentially reverse the trend.

Final Judgment

Intuitive Surgical’s positive characteristics outweigh the negatives. With its shares underperforming the market lately, the stock trades at 58.2× forward P/E (or $536.20 per share). Is now a good time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More Than Intuitive Surgical

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