As the world leader in robotic surgery, Intuitive Surgical is in a good position to continue expanding
Do you want to buy in?
Having some sizable, expanding businesses with dominant market shares in reliable industries like healthcare in your portfolio can be reassuring during uncertain times. An excellent illustration is the world leader in robotic surgery, Intuitive Surgical (Nasdaq: ISRG). Hospitals across 70 countries have more than 11,000 da Vinci robotic surgery systems and more than 1,000 Ion robotic endoluminal biopsy/minor procedure systems installed by Intuitive Surgical. Sitting at a console with an enlarged three-dimensional view of the operating site, the surgeon operating one of these systems manipulates instruments with a wider range of motion than the human hand.
With the exception of specialized markets like orthopaedics, Intuitive Surgical holds a 6070% market share in the installed base of robotic surgery systems and roughly 80% of general soft-tissue systems worldwide. With a compound annual growth rate (CAGR) of 16.5 percent, the robotic surgery market is expected to reach £64 billion in 2035 from £16 billion in 2026.
The moat of Intuitive Surgical is broad.
Four characteristics of Intuitive Surgical create a broad moat to safeguard its commanding market share. First, it invested more than £1.3 billion in research and development of new products in 2025, including the currently manufactured fifth-generation da Vinci systems. Its collection of over 4,500 patents, which prevent rivals from stealing its cutting-edge systems, comes in second.
Problems with BFIA today. The third is its unmatched surgical database, which was acquired from over 20 million da Vinci system-performed surgeries. The AI and software integrated into Intuitive's systems are continuously improved through the use of this database.
Lastly, over 66,000 surgeons worldwide have received training from Intuitive's da Vinci robotic surgery program. Naturally, surgeons with da Vinci system training who intend to relocate to a new hospital request that the new facility set up a da Vinci system.
Further growth is being driven by three factors as well. The first is that robotic surgery is less invasive (keyhole) than traditional surgery, which guarantees shorter hospital stays and better patient outcomes (e.g., fewer complications). For this reason, robotic surgery is expanding at a 16.5 percent CAGR.
The second is the use of robotic surgery for additional procedures since the US regulator approved the first two procedures in 2000: prostatectomy and gall bladder removal. For instance, 160,000 minimally invasive heart procedures are now possible in the US and Korea alone thanks to the early 2026 regulatory approval granted to da Vinci 5 systems for nine distinct cardiac procedures.
The third is expanding Intuitive's services to additional hospitals and nations. Distributors typically serve a nation at first, but as the company expands, Intuitive begins to serve clients directly in order to offer a more complete service. By purchasing the current distributors in Italy, Spain, Portugal, and Malta, Intuitive started conducting direct business there in March 2026. Growth is probably going to be faster as a result.
Revenues at Intuitive Surgical increased by 20.5 percent to £10.065 billion in 2025. The pre-tax profit increased by 23.8 percent to £3.31 billion. In 2025, diluted earnings per share increased by 22.6 percent to £7.87. The balance sheet is solid, with net cash of over £9 billion. Revenue increased by 23% in the first quarter of 2026 compared to the first quarter of 2025, indicating continued strong growth. Continue shopping.
Intuitive Surgical's performance.
The share price chart of Intuitive Surgical.
This foundation is crucial because instruments, accessories, and services account for roughly 75% of total revenue. As more surgical procedures are performed on the machines, this revenue rises. Revenue for the first quarter of 2026 was £2.77 billion, up 23% from the same period the previous year. Da Vinci procedures saw a 16% increase, while Ion procedures saw a 39% increase. Additionally, nine new cardiac procedures utilizing da Vinci 5 have recently been approved, which could result in an additional 160,000 procedures in the US and Korea alone.
In the first quarter of 2026, 52 Ion systems and 431 da Vinci systems were installed, increasing the installed base. There were 232 da Vinci 5 systems in total, as opposed to 147 during the same time last year. Sales in southern Europe should increase as a result of the new direct sales organization.
On a non-GAAP basis, Intuitive Surgical anticipates a gross profit margin of 67.5% to 68.5% of revenue, up from 67.6% in 2025. This covers the effect of one percent revenue tariffs. This suggests that the ex-tariff margin will probably increase because Intuitive has a history of overdelivering and underpromising.
The majority of the 38 analysts who cover the stock rate it as a "buy" (19), "overweight" (6), and "hold" (11). At the current price of £420, the forward price-earnings (p/e) ratio for 2027 is 36.7, and for 2028 it is 31.6. The average target price for a year is £582. Although the company doesn't pay dividends, its solid financial standing allowed it to spend £2.3 billion on share buybacks in 2025, which helped to boost the share price. Adding this lucrative growth stock to your portfolio is worthwhile.
Note: Dr. Michael Tubbs is a shareholder in Intuitive Surgical.
Leave a comment on: Intuitive Surgical: a consoling stock during difficult times