📊 ISRG Key Takeaways
Is Intuitive Surgical Inc. (ISRG) a Good Investment?
Intuitive Surgical exhibits exceptional financial health with 66% gross margins, 30% operating margins, and strong 20.5% revenue growth, complemented by debt-free balance sheet and $808.6M free cash flow generation. Primary concern is net income declining 0.7% YoY despite strong revenue growth, indicating margin compression that requires monitoring.
Intuitive Surgical shows high-quality fundamentals with strong double-digit revenue growth, elite margins, robust free cash flow generation, and an exceptionally strong balance sheet with no long-term debt. The main caution is that net income slightly declined despite strong sales growth, which suggests some expense or mix pressure, but overall profitability, liquidity, and cash generation remain strong.
Why Buy Intuitive Surgical Inc. Stock? ISRG Key Strengths
- Exceptional profitability: 66.1% gross margin and 29.6% net margin demonstrate strong pricing power and operational efficiency
- Robust cash generation: $808.6M free cash flow with 29.2% FCF margin provides financial flexibility for R&D and shareholder returns
- Fortress balance sheet: Debt-free with $2.0B cash, 4.61x current ratio, and $17.5B equity base ensures financial stability
- Solid topline growth: 20.5% YoY revenue increase to $2.8B demonstrates sustained market demand for core products
- Revenue growth of 20.5% with gross margin of 66.0% indicates strong demand and pricing power
- Operating margin of 29.3% and free cash flow margin of 24.7% reflect highly efficient, scalable operations
- Debt-free balance sheet, $3.37B in cash, and strong current and quick ratios support excellent financial resilience
ISRG Stock Risks: Intuitive Surgical Inc. Investment Risks
- Margin compression: Net income declined 0.7% YoY despite 20.5% revenue growth, signaling potential cost pressures or strategic investments eroding profitability
- Capital deployment efficiency: ROE of 4.7% and ROA of 4.1% despite 30%+ operating margins suggest large asset base may have limited operational leverage
- Earnings growth dependency: EPS growing 22.6% while net income declined indicates reliance on share buybacks rather than organic earnings expansion
- Net income declined 0.7% year over year despite strong revenue growth, which may signal rising costs or margin mix pressure
- Growth may depend on continued procedure expansion and capital system placements, which can be sensitive to hospital spending cycles
- High profitability could face pressure from competition, regulatory changes, or increased investment in innovation and commercialization
Key Metrics to Watch
- Operating margin trend (currently 30.9%) - assess whether margin compression is temporary or structural
- Free cash flow sustainability and capital allocation priorities
- Gross margin by product segment to identify sources of profitability pressure
- Operating margin and net margin trend
- Revenue growth relative to free cash flow growth
Intuitive Surgical Inc. (ISRG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 29.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 4.61x current ratio provides a solid financial cushion.
ISRG Profit Margin, ROE & Profitability Analysis
ISRG vs Healthcare Sector: How Intuitive Surgical Inc. Compares
How Intuitive Surgical Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Intuitive Surgical Inc. Stock Overvalued? ISRG Valuation Analysis 2026
Based on fundamental analysis, Intuitive Surgical Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Intuitive Surgical Inc. Balance Sheet: ISRG Debt, Cash & Liquidity
ISRG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Intuitive Surgical Inc.'s revenue has grown significantly by 76% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.03 reflects profitable operations.
ISRG Revenue Growth, EPS Growth & YoY Performance
ISRG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.3B | $698.4M | $1.92 |
| Q3 2025 | $2.0B | $565.1M | $1.56 |
| Q2 2025 | $2.0B | $526.9M | $1.46 |
| Q1 2025 | $1.9B | $544.9M | $1.51 |
| Q3 2024 | $1.7B | $415.7M | $1.16 |
| Q2 2024 | $1.8B | $420.8M | $1.18 |
| Q1 2024 | $1.7B | $355.3M | $1.00 |
| Q3 2023 | $1.6B | $324.0M | $0.90 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Intuitive Surgical Inc. Dividends, Buybacks & Capital Allocation
ISRG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Intuitive Surgical Inc. (CIK: 0001035267)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ISRG
What is the AI rating for ISRG?
Intuitive Surgical Inc. (ISRG) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ISRG's key strengths?
Claude: Exceptional profitability: 66.1% gross margin and 29.6% net margin demonstrate strong pricing power and operational efficiency. Robust cash generation: $808.6M free cash flow with 29.2% FCF margin provides financial flexibility for R&D and shareholder returns. ChatGPT: Revenue growth of 20.5% with gross margin of 66.0% indicates strong demand and pricing power. Operating margin of 29.3% and free cash flow margin of 24.7% reflect highly efficient, scalable operations.
What are the risks of investing in ISRG?
Claude: Margin compression: Net income declined 0.7% YoY despite 20.5% revenue growth, signaling potential cost pressures or strategic investments eroding profitability. Capital deployment efficiency: ROE of 4.7% and ROA of 4.1% despite 30%+ operating margins suggest large asset base may have limited operational leverage. ChatGPT: Net income declined 0.7% year over year despite strong revenue growth, which may signal rising costs or margin mix pressure. Growth may depend on continued procedure expansion and capital system placements, which can be sensitive to hospital spending cycles.
What is ISRG's revenue and growth?
Intuitive Surgical Inc. reported revenue of $2.8B.
Does ISRG pay dividends?
Intuitive Surgical Inc. does not currently pay dividends.
Where can I find ISRG SEC filings?
Official SEC filings for Intuitive Surgical Inc. (CIK: 0001035267) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ISRG's EPS?
Intuitive Surgical Inc. has a diluted EPS of $2.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ISRG a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Intuitive Surgical Inc. has a BUY rating with 85% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ISRG stock overvalued or undervalued?
Valuation metrics for ISRG: ROE of 4.7% (sector avg: 15%), net margin of 29.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ISRG stock in 2026?
Our dual AI analysis gives Intuitive Surgical Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ISRG's free cash flow?
Intuitive Surgical Inc.'s operating cash flow is $911.9M, with capital expenditures of $103.3M. FCF margin is 29.2%.
How does ISRG compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 29.6% (avg: 12%), ROE 4.7% (avg: 15%), current ratio 4.61 (avg: 2).