| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 16 | 42.1x | 17.8x | Bottom tier | |
Growth | 84 | 20.7% | 7.1% | Top tier | |
Quality | 85 | 15.4% | 4.5% | Top tier | |
Safety | 95 | — | 2.6x | Top tier | |
Capital Return | 54 | — | 2.12% | Around median | |
Momentum | 14 | -16.3% | 2.9% | Bottom tier | |
Sentiment | 68 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Intuitive Surgical develops an ecosystem for minimally invasive surgery and interventions that includes the multiport da Vinci platforms, the single-port da Vinci SP, and the ION platform for lung cancer diagnosis. Its business model combines system sales and leasing with recurring revenue from instruments, accessories, and maintenance; in quarter 2 of fiscal 2026, recurring revenue reached $2.47 billion, or 85% of total revenue, while systems revenue was $685 million, instruments and accessories revenue was $1.73 billion, and services revenue was $472 million.
In quarter 2 of fiscal 2026, revenue increased 19% to $2.89 billion, and the financial statements reported gross profit of $2.0 billion, net income of $818.1 million, and earnings per share of $2.29. This equates to a GAAP gross margin of approximately 69% and a net income margin of approximately 28%, while the adjusted operating margin was 42% and the adjusted gross margin was 70%; however, the latter benefited from a $36 million tariff refund and would have been 68.7% without this effect.
Growth was supported by broader utilization and an expanding installed base: total procedures increased 16%, including 15% for da Vinci procedures and 36% for ION procedures, while the installed bases of the two systems grew 12% and 21%, respectively, bringing the combined total close to 13 thousand systems worldwide. During the quarter, the company placed 468 da Vinci systems, including 246 da Vinci 5 systems and 38 SP systems, in addition to 55 ION systems; the da Vinci 5 installed base exceeded 1.7 thousand systems used by more than 15 thousand surgeons.
The average analyst price target is $491.15, within a wide range from $357.44 to $651, with the overall consensus at a “Buy” rating. The average is approximately 18.7% below the 52-week range high of $603.88 and approximately 49.5% above its low of $328.57, reflecting a significant gap between analyst scenarios despite strong results and the UBS upgrade on August 10, 2026. The provided data did not include a published price-to-earnings ratio, so the risk assessment is based on the target range and the breadth of the 52-week range relative to slowing U.S. procedure growth and pressures in China and on margins.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Recurring revenue from instruments and services reached $2.47 billion, or 85% of total quarterly revenue of $2.89 billion. Instruments and accessories generated $1.73 billion, while services revenue reached $472 million. This growth was supported by expansion of the installed base by 12% for da Vinci systems and 21% for ION systems.
The company placed 246 da Vinci 5 systems out of 468 da Vinci systems during the quarter, including 114 dual-console units. The da Vinci 5 installed base exceeded 1.7 thousand systems, and more than 15 thousand surgeons had used it since launch. The company also began the first phase of more than 100 planned updates to improve simulation training, remote presence, and care-team workflows.
U.S. da Vinci procedure growth was 12% in quarter 2 of fiscal 2026 versus 14% in quarter 1 of fiscal 2026. Management said during the July 16, 2026 call that some customers observed an impact from changes in patient coverage and ACA premium dynamics, particularly in deferrable procedures. It added that the law of large numbers also contributed to the slowdown, while bariatric procedures declined by a high-single-digit percentage as GLP-1 use increased.
Automated analysis for informational purposes only — not investment advice.
SP procedures grew 61% in quarter 2 of fiscal 2026, and its global installed base reached 445 systems after 38 systems were placed during the quarter. ION procedures increased 36% to 48 thousand procedures, exceeding 400 thousand procedures cumulatively, with 55 systems placed during the quarter. ION expanded to 12 countries outside the United States, while SP targets single-port applications including colorectal and thoracic procedures.
On July 16, 2026, management maintained its da Vinci procedure growth outlook at between 13.5% and 15.5%, with the result expected to be closer to the midpoint of the range. It raised its adjusted gross margin outlook to 68%–69% from a previous range of 67.5%–68.5%. It also expected adjusted operating expenses to grow between 11% and 13%, with research and development continuing to grow faster than selling and administrative expenses.
Management described China as a difficult market because of lower tender activity, intensifying local competition, and policy-related pricing pressure. The company placed only 2 systems in China during quarter 2 of fiscal 2026, and da Vinci 5 was not cleared in mainland China as of July 16, 2026. In contrast, da Vinci procedures outside the United States grew 20%, with both Europe and Asia recording growth of 20%, but management also noted government budget pressures in some European markets and Japan.
