Robotic surgical arm in a modern hospital room, highlighting medical technology driving healthcare stock rotation. Key Points Healthcare stocks rebounded in 2025, but select growth names are emerging outside traditional biotech. Medical technology and healthcare services offer recurring revenue and lower binary risk. Intuitive Surgical, Edwards Lifesciences, and IQVIA provide different paths to long-term healthcare growth. Interested in IQVIA Holdings Inc.? Here are five stocks we like better. Hea ...

Core Viewpoint - Intuitive Surgical is facing several challenges, particularly in Asia and with its product placements, but there are still promising opportunities for growth in robotic surgery. Group 1: Challenges - Procedure growth in Japan remains below expectations, with the Japanese Ministry of Health nearing the end of its evaluation of reimbursement guidelines for additional robotic procedures, set to take effect in June 2026 [3][4]. - Increased competition from Chinese robotic surgical systems companies is impacting Intuitive's performance, as local suppliers are favored in provincial tenders, leading to lower pricing [4][5]. - The company has seen a significant decline in Ion system placements, with only 42 systems placed in Q4 2025 compared to 69 in the same period the previous year, attributed to U.S. customers focusing on increasing utilization [6][7]. Group 2: Growth Projections - Intuitive Surgical projects da Vinci procedure growth of 13% to 15% for 2026, which is below the 18% growth achieved in 2025, indicating a slowdown [9]. - Factors contributing to this slowdown include capital pressures in Europe and potential impacts on U.S. hospitals from changes to Affordable Care Act premium subsidies and Medicaid funding [10]. Group 3: Opportunities - A study published in the Annals of Surgery found that patients undergoing robotic-assisted surgeries were 50% less likely to require subsequent open surgery compared to those with laparoscopic procedures, highlighting the effectiveness of robotic surgery [11]. - There is a significant opportunity for Intuitive Surgical, with approximately 20 million soft tissue surgical procedures performed annually that could benefit from robotic assistance [12].

Key Points Bristol Myers Squibb just announced an important partnership with Microsoft that involves AI. Intuitive Surgical has integrated AI real-time processing into its surgical robots, but that could be just the start. 10 stocks we like better than Bristol Myers Squibb › Artificial intelligence chip giant Nvidia has grown to be the largest component of the S&P 500, as Wall Street jumps on the AI bandwagon. There's no question that AI is going to be a world-changing technology. However, it isn't ...

Core Insights - Intuitive Surgical reported strong fourth-quarter earnings and revenue, surpassing analyst expectations, driven by growth in da Vinci and Ion procedures [1][2] Financial Performance - Adjusted earnings per share reached $2.53, exceeding the consensus estimate of $2.26 [1] - Revenue increased to $2.87 billion, surpassing expectations of $2.75 billion, marking a 19% rise from $2.41 billion in the same quarter last year [1] Procedure Growth - Da Vinci procedures grew by 17%, while Ion procedures saw a significant increase of 44% during the quarter [2] - The company placed 532 da Vinci systems in the quarter, up from 493 a year earlier, expanding the installed base to 11,106 systems, a 12% year-over-year increase [2] Revenue Breakdown - Revenue from instruments and accessories rose 17% to $1.66 billion [2] - Systems revenue increased to $786 million from $655 million in the prior-year quarter [2] Future Outlook - The company forecasts worldwide da Vinci procedure growth of approximately 13% to 15% in 2026, a decrease from 18% growth projected for 2025 [3] - Intuitive Surgical anticipates a non-GAAP gross profit margin of 67% to 68% of revenue, factoring in an estimated 1.2 percentage point impact from tariffs [3]

Key Takeaways ISRG posted Q4 EPS of $2.53 and revenues of $2.87B, beating estimates and lifting the stock 2.4% after hours.ISRG saw 19.1% revenue growth from higher da Vinci placements and rising global procedure volume.ISRG's gross margin fell 210 bps to 67.6% as operating and R&D expenses rose year over year.Intuitive Surgical (ISRG) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.53, which beat the Zacks Consensus Estimate of $2.25 by 12.4%. The bottom line improved 14.5% year over y ...

Intuitive Surgical Inc (NASDAQ:ISRG) reported better-than-expected financial results for the fourth quarter after the market close on Thursday.Intuitive Surgical reported revenue of $2.87 billion for the fourth quarter, beating analyst estimates of $2.75 billion, according to Benzinga Pro. The robotic-assisted surgery company reported fourth-quarter adjusted earnings of $2.53 per share, beating analyst estimates of $2.26 per share.Intuitive Surgical expects full-year 2026 worldwide da Vinci procedures to in ...

Intuitive Surgical Inc (NASDAQ:ISRG) reported better-than-expected financial results for the fourth quarter after the market close on Thursday.Intuitive Surgical reported revenue of $2.87 billion for the fourth quarter, beating analyst estimates of $2.75 billion, according to Benzinga Pro. The robotic-assisted surgery company reported fourth-quarter adjusted earnings of $2.53 per share, beating analyst estimates of $2.26 per share.Intuitive Surgical expects full-year 2026 worldwide da Vinci procedures to in ...

Core Viewpoint - Intuitive Surgical (ISRG) stock remained relatively flat after a late-Thursday increase, following a strong fourth-quarter earnings report but disappointing 2026 guidance [1] Financial Performance - The company reported an adjusted earnings per share of $2.53, surpassing expectations of $2.27 [1] - Sales for the quarter reached $2.87 billion, indicating robust performance in the robotics surgery sector [1] Market Reaction - Despite the strong earnings report, the stock's performance was muted, reflecting investor concerns over future guidance [1]

Core Insights - Intuitive Surgical, Inc. (ISRG) reported revenue of $2.87 billion for the quarter ended December 2025, reflecting an 18.8% increase year-over-year, with EPS at $2.53 compared to $2.21 in the same quarter last year [1] - The reported revenue met the Zacks Consensus Estimate of $2.87 billion, while the EPS exceeded the consensus estimate of $2.25 by 12.61% [1] Financial Performance Metrics - The installed base of the Da Vinci Surgical System reached 11,106, slightly above the five-analyst average estimate of 11,088 [4] - Revenue from products (instruments, accessories, and systems) was $2.44 billion, surpassing the seven-analyst average estimate of $2.31 billion, marking an 18.3% year-over-year increase [4] - Revenue from services was reported at $422 million, exceeding the average estimate of $404.99 million by seven analysts, representing a 21.5% increase compared to the previous year [4] - Revenue from systems was $785.9 million, significantly above the seven-analyst average estimate of $670.95 million, indicating a year-over-year growth of 20.1% [4] Stock Performance - Intuitive Surgical's shares have returned -9.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Intuitive Surgical reported strong Q4 2025 results with adjusted EPS of $2.53, exceeding estimates of $2.26 and increasing by 14.5% from Q4 2024's $2.21 [2] - Revenue reached $2.87 billion, a 19% year-over-year increase, surpassing the consensus of $2.75 billion, while full-year revenue hit $10.1 billion (+21%) [2][4] - The current price of approximately $526 reflects a valuation of 59x trailing adjusted EPS of $8.93, consistent with its five-year average of 60x [2][6] Q4 Performance - Global da Vinci procedures increased by 18%, with U.S. general surgery gains and a 23% growth internationally [4][8] - Recurring revenue accounted for 81% of total revenue at $2.3 billion, rising by 20%, highlighting the strength of the annuity model [4] - Pro forma operating margins reached 37%, with GAAP income from operations at $864 million [4] 2026 Guidance - Management projects global procedure growth of 13%-15%, a slowdown from 2025's 18%, with adjusted EPS guidance of $9.80-$10.00 indicating growth of 10%-12% [6] - The cautious outlook may present a buying opportunity despite the slowdown narrative [6] Valuation Considerations - The historical average valuation of 60x seems comfortable, yet high-teens growth in procedures and industry-leading margins suggest a potential premium is warranted [6] - The strong fundamentals from Q4 results suggest potential for multiple expansion from the current 59x valuation [7] Financial Strength - Annual free cash flow doubled to $2.5 billion from $1.3 billion, funding $2.3 billion in share repurchases at an average price of $478 [8] - Pro forma net income reached $914 million in Q4, an increase from $805 million in the previous year [8] Growth Drivers - Opportunities for growth include surpassing the 13%-15% guidance through the ramp of da Vinci 5, increased international market penetration, and new indications [9] - The strength of free cash flow supports returns while financing R&D [9]