Intuitive Surgical (ISRG) is widely recognized as a leader in the field of minimally invasive surgery (MIS). The da Vinci Surgical System, the company’s flagship product, is an advanced robotic surgical system that has been dominating the robotic surgery market. In just 30 years of operation, the company has installed 10,189 da Vinci systems worldwide, serving over 50,000 surgeons in 70 countries. 

Intuitive Surgical has several key moats that give it an edge over its competitors. Plus, the company reported another strong quarter, highlighting robust demand and the ongoing evolution of robotic-assisted surgery.

With the artificial intelligence (AI) revolution gaining traction, Intuitive may be able to advance its systems, proving to be an excellent investment for inIvestors interested in AI-driven healthcare stocks.

Valued at $181 billion, ISRG stock has dipped 1.7% year-to-date, compared to the broader market dip of 6.3%. 

Intuitive Surgical Is Expanding Rapidly

The da Vinci systems provide greater precision, faster patient recovery, and better clinical outcomes. The company makes money not only by selling these systems but also by selling instruments and accessories, as well as providing maintenance and training services. 

What makes Intuitive Surgical’s business model particularly appealing is that the da Vinci system requires a significant initial investment. Plus, once installed, hospitals and surgical centers must continue to purchase instruments, accessories, and services, which provides Intuitive with consistent and recurring revenue. This heavy reliance on recurring revenue is appealing because it provides stability and predictability in future earnings. Furthermore, as the installed base of da Vinci systems expands, so will the demand for instruments and services. 

In the most recent first quarter, the company reported a 17% increase in global da Vinci procedures over the previous year. Intuitive deployed 367 da Vinci systems during the quarter, including 147 da Vinci 5 systems, 19 SP (Single Port) systems, and 49 ION systems.  This led to a 19% year-over-year increase in revenue to $2.25 billion. Systems revenue increased 25%, while instruments and accessories revenue increased 18%. Adjusted earnings rose 20.6% to $1.81 per share.

Last year, the company introduced its fifth-generation robotic system, da Vinci 5. In the Q1 earnings call, management stated that the da Vinci 5 rollout is progressing as expected. Over 32,000 procedures were performed using the system in Q1 alone, spanning a variety of surgical specialties.

Furthermore, the ION system, which supports robotic-assisted lung biopsies, saw a 58% increase in procedures year-over-year, reaching 31,000 in the first quarter. Management stated that tariffs had an impact on the company’s cost structure, particularly 125% tariffs on finished products and subassemblies entering China, 145% tariffs on Chinese components entering the U.S., and 10%-25% tariffs on certain components from Europe and Mexico. Intuitive expects these trade dynamics to add 1.7% of revenue in additional costs in 2025, prompting the company to revise its pro forma gross margin guidance to 65% to 66.5%. 

Looking ahead, the company plans to fully commercialize da Vinci 5 while also improving digital tools and data capabilities for surgical insight and operational efficiency. Intuitive anticipates a 15% to 17% increase in procedures for the full year of 2025.

Competitive Advantages Will Keep the Business Thriving

Intuitive has several moats that ensure its unrivaled dominance in the market for robotic-assisted surgery. In this space, the company has an advantage due to its early entry. Obtaining FDA approval for surgical robots is time-consuming and costly. Intuitive’s head start and extensive portfolio of clearances create a significant barrier to entry for new competitors. 
Furthermore, the da Vinci system has been in development for more than two decades and boasts unparalleled technological sophistication. Intuitive invests heavily in research and development, spending more than $316.2 million in the first quarter to keep its systems cutting-edge. Hospitals also spend significant money training surgeons to use these systems. Thus, higher switching costs prevent hospitals from switching products even when a cheaper alternative is available.  

Despite trade headwinds, Intuitive Surgical is well-positioned to maintain its momentum, thanks to AI and technological innovation, the growing robotic surgery market, and an expanding global footprint. Financially, Intuitive holds a strong, debt-free balance sheet. At the end of the first quarter, it had $9.1 billion in cash, cash equivalents, and investments. This strong financial foundation allows Intuitive to reinvest in R&D and make strategic acquisitions.

Analysts covering ISRG expect full-year revenue and earnings to grow by 15.5% and 6.5%, respectively. Intuitive stock trades at 53 times forward 2026 earnings, which is expensive but reflects high expectations for future growth. As a result, long-term investors can benefit from the strong growth of this AI robotic stock. 

Is ISRG Stock a Buy, Hold, or Sell on Wall Street?

On Wall Street, overall, Intuitive stock is a “Moderate Buy.” Out of the 28 analysts that cover the stock, 18 rate it a “Strong Buy,” two suggest a “Moderate Buy,” and eight rate it a “Hold.” The average target price of $602.60 is 18% above current levels. The high price estimate of $687 implies 35% upside over the next 12 months.