Intuitive Surgical (ISRG)
Health Care · $160B market cap · SEC CIK 0001035267
ahead of 74% of the S&P 500 · #16 of 59 in Health Care
Next reports on Jan 20, 2027, after the close, with analysts expecting $3.01 in earnings per share.
52-week range $328.57 to $603.88. 25% below its 52-week high and 37% above its low.
The case for ISRG
- Revenue up 20.4% on the year.
- Generated $2.5B of free cash flow in FY2025, 25% of revenue.
- 26% of revenue drops through to net profit.
- Has compounded revenue at 18.2% a year over five years.
- Return on equity of 17%.
- Carries essentially no debt.
The case against
- Pricey for its growth: 54.0× earnings, where 20% a year of growth would justify about 38×.
- Priced at 13.8× sales, which leaves no room for a stumble.
- Trailed the S&P 500 by 30 points over the past year.
- Free-cash-flow yield of 1.6% is lower than 93% of Health Care companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 43 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 83 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 77 |
| Momentumhow the price has behaved lately | 50 |
| Stabilityhow violently it moves, what it owes and what it pays you | 50 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +20.4% |
|---|---|
| Over 5 years | +18.2% a year |
| FY2025 revenue | $10.1B (+21%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $2.5B |
|---|---|
| Of revenue | 25% |
| Of profit | 87% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 67% |
|---|---|
| Operating margin | 28% |
| Net margin, FY24 → FY25 → now | 27.8% → 28.4% → 25.5% |
Debt vs. cash
Is the balance sheet healthy? Yes, little debt
| Cash | $3.4B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 0.00× |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 54.0× |
|---|---|
| Fair P/E for its growth | 38× |
| P/FCF | 64.1× |
| Forward P/E | 35.3× |
| EV / EBITDA | 44.0× |
At 54.0× earnings it trades above the 38× that 20% a year of growth would justify. At 64.1× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Intuitive Surgical's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $10.1B | $8.4B | $7.1B | $6.2B | $5.7B |
| Change on the year | +21% | +17% | +14% | +9% | — |
| Free cash flow | |||||
| Free cash flow | $2.5B | $1.3B | $750M | $958M | $1.7B |
| Of revenue | 25% | 16% | 11% | 15% | 31% |
| Profit margins | |||||
| Gross margin | 66.0% | 67.5% | 66.4% | 67.4% | 69.3% |
| Operating margin | 29.3% | 28.1% | 24.8% | 25.3% | 31.9% |
| Net margin | 28.4% | 27.8% | 25.2% | 21.3% | 29.9% |
| Debt vs. cash | |||||
| Cash | $3.4B | $2.0B | $2.8B | $1.6B | $1.3B |
What Intuitive Surgical says it does
In this report, “Intuitive Surgical,” “Intuitive,” the “Company,” “we,” “us,” and “our” refer to Intuitive Surgical, Inc. and its wholly and majority-owned subsidiaries. Product and brand names and logos, including Intuitive, da Vinci, and Ion, are trademarks or registered trademarks of Intuitive Surgical, Inc. or one of its subsidiaries or of their respective owners. Additional information about our trademarks can be found on our website at www.intuitive.com/trademarks. Although we reference our trademarks located on our website, this list of trademarks and any other materials on our corporate website are not incorporated by reference into this Form 10-K or any of our other filings under the Securities Act of 1933, as amended, or the Exchange Act. Company Background As part of Intuitive’s mission, we believe that minimally invasive care is life-enhancing care. By combining ingenuity and intelligent technology, we expand the potential…