Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the 14 Best Large Cap Stocks to Invest In Now. On December 18, TipRanks reported that Truist increased its price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) from $620 to $650 and maintained its Buy rating on the stock. This update comes as part of a broader research note previewing 2026 for MedTech. Truist has a more positive outlook on the MedTech industry heading into 2026 based on a more attractive relative sector valuation. However, the firm’s anal ...

Core Insights - Intuitive Surgical (ISRG) has entered a bullish phase marked by a golden crossover, indicating potential for sustained gains ahead, supported by robust fundamentals [1][29] Group 1: Financial Performance - ISRG's third-quarter performance showed a 20% increase in global procedures, with da Vinci surgeries expanding by 19%, indicating strong multi-platform momentum [4] - The Zacks Consensus Estimate for earnings per share has been revised upward, with current and next fiscal year estimates at $8.61 and $9.57, reflecting year-over-year growth rates of 17.3% and 11.2% respectively [17][18] Group 2: Product Adoption and Utilization - The rapid adoption of the da Vinci 5 (dV5) system is a key driver, with approximately 67,000 procedures performed in the quarter, up from 50,000 in the previous quarter [9] - Utilization in the U.S. increased by 2%, while international utilization rose by 8%, driven by strong uptake in markets like India, Korea, and Taiwan [10] Group 3: Market Expansion - International markets are crucial for ISRG's growth, with non-U.S. da Vinci volumes seeing significant contributions from various surgical categories, indicating a diversified international mix [13][14] - The company is deploying refurbished Xi systems in price-sensitive markets, creating new opportunities in Asia and Latin America [14] Group 4: Competitive Positioning and Innovation - The integration of digital tools and future innovations, such as force-feedback technologies, enhances ISRG's competitive advantage and supports long-term utilization growth [15][16] - The Ion robotic-assisted bronchoscopy system has outperformed expectations, with a 52% increase in procedures, highlighting its role in early-stage lung cancer diagnosis [5] Group 5: Challenges and Market Conditions - Despite strong performance, ISRG faces potential headwinds from margin pressures, challenges in China, and uncertainties related to GLP-1 weight-loss drugs affecting bariatric surgery volumes [19][20][21] - The company's gross margin has declined by 90 basis points year-over-year to 68%, influenced by tariff impacts and rising facility costs [21] Group 6: Valuation and Price Performance - ISRG shares have surged 23.1% over the past three months, significantly outperforming peers like Medtronic and Stryker [22] - Currently, ISRG trades at a forward P/E of 60.51X, which is higher than the industry average of 30.5X, indicating a premium valuation [26]

Group 1 - Intuitive Surgical, Inc. (NASDAQ:ISRG) is recognized as a top stock with significant upside potential, with a Buy rating and a price target of $650 from Bank of America Securities [1] - The company's total addressable market is projected to grow from 1.8 million procedures in 2009 to approximately 8 million procedures by 2025, with a strong focus on cardiovascular procedures [2] - Intuitive Surgical is actively pursuing opportunities in the cardiovascular sector by hiring a head of cardio and posting multiple job openings for cardiovascular sales managers [3] Group 2 - The company is enhancing its technology with innovations such as force feedback and improved visualization features in the da Vinci 5 (dV5) system, aimed at increasing the adoption of robotic procedures in cardiovascular surgeries [3] - Intuitive Surgical develops and markets robotic surgical systems, including the da Vinci surgical system and the Ion endoluminal system [4]

Core Insights - Intuitive Surgical (ISRG) reported strong second-quarter 2025 results, with adjusted earnings per share (EPS) of $2.19, exceeding estimates by 14.1% and showing a 23% year-over-year improvement [1][11] - Revenue reached $2.44 billion, reflecting a 21% increase year over year, driven by higher installed systems and increased da Vinci procedure volume [2][9] Revenue Details - Total revenues of $2.44 billion surpassed the Zacks Consensus Estimate by 3.9% [2] - Revenue growth was consistent at constant currency, indicating strong operational performance [2] Segmental Performance - **Instruments & Accessories**: Revenue of $1.47 billion, up 18.5% year over year, driven by a 17% increase in da Vinci procedure volume and significant growth in Ion and SP platform procedures [3] - **Systems**: Revenue of $574.7 million, up 28.2% year over year, supported by increased system placements and higher average selling prices, with 395 da Vinci systems shipped [4] - **Services**: Revenue of $391.2 million, reflecting a 23.3% increase from the previous year [5] Margins and Expenses - Adjusted gross profit was $1.66 billion, a 17.8% year-over-year increase, with a gross margin of 67.9%, down 200 basis points from the prior year [6] - Selling, general and administrative expenses rose to $561.2 million, up 6.8% year over year, while research and development expenses increased to $313.3 million, up 11.9% [6] Operating Performance - Adjusted operating income totaled $946.6 million, a 25.5% year-over-year increase, with an operating margin of 38.8%, up 130 basis points from the previous year [7] Financial Position - The company ended the quarter with cash, cash equivalents, and investments totaling $9.53 billion, an increase from $9.1 billion in the previous quarter [8] - Total assets increased to $20.16 billion from $19.22 billion a year ago [10] Market Outlook - ISRG raised its 2025 procedure growth guidance to 15.5-17% and updated gross margin guidance to 66-67% [15] - The da Vinci 5 system saw broad launch with 180 placements, contributing to a total installed base of 689 [12] - Global da Vinci procedures increased by 17% year over year, with notable growth in both domestic and international markets [13]