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Intuitive Surgical Pre-Q3 Analysis: Buy, Hold or Sell ISRG Stock Now?
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Key Takeaways
ISRG is projected to report Q3 revenues of $2.41B and EPS of $1.99, with 15.5-17% procedure growth in 2025.
Strong da Vinci 5 placements and Ion adoption likely drove ISRG's Q3, but bariatric weakness may offset gains.
Tariff risks, elevated valuation, and global CapEx strain could limit ISRG upside despite solid fundamentals.
Intuitive Surgical, Inc. (ISRG - Free Report) is set to report third-quarter 2025 earnings on Oct. 21. The Zacks Consensus Estimate for sales and earnings is pegged at $2.41 billion and $1.99 per share, respectively. Earnings per share estimates for ISRG have remained stable at $8.16 and $9.17 for 2025 and 2026, respectively, over the past 30 days. The company expects worldwide da Vinci procedures to increase approximately 15.5-17% in 2025, a trend that should have benefited the top line in the to-be-reported quarter.
Intuitive Surgical’s close peers, Thermo Fisher Scientific (TMO - Free Report) andBoston Scientific(BSX - Free Report) , are slated to announce their quarterly numbers in the upcoming week. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Estimate Movement
In the last reported quarter, ISRG delivered an earnings surprise of 14.06%. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.07%.
In the last reported quarter, Thermo Fisher Scientific and Boston Scientific delivered an earnings surprise of 2.68% and 4.17%, respectively.
Our proven model does not conclusively predict an earnings beat for Intuitive Surgical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Intuitive Surgical heads into its third-quarter earnings season with strong momentum from its second-quarter 2025 performance, underscored by robust procedure growth and broad adoption of the da Vinci 5 platform. Yet, ongoing tariff pressures and global CapEx constraints could temper the pace of expansion.
The Instruments & Accessories (I&A) segment remains a core revenue engine. In second-quarter, revenue per procedure held steady at nearly $1,800, supported by rising adoption of SP and da Vinci 5 instruments. The introduction of Force Feedback and the slimmer vessel sealer is likely to have further enhanced value per case in third-quarter. However, continued softness in bariatric volumes might have partially offset these gains.
The Systems segment is benefiting from strong demand for da Vinci 5. ISRG placed 180 da Vinci 5 systems in the second quarter, helping raise average selling prices (ASPs) to $1.5 million. With trade-ins gaining pace — 83 in the second quarter versus 21 last year — the upgrade cycle is expected to have continued into the third quarter. Measured rollouts in Europe and Japan might have added to system demand, though macroeconomic budget constraints in these regions likely remained a headwind.
The Services segment is likely to have continued its steady growth on the back of higher utilization and adoption of Intuitive Surgical’s digital ecosystem, including telepresence tools and data-driven case insights. Increasing integration of AI-enabled insights into clinical practice could have driven long-term stickiness.
Despite the upbeat fundamentals, tariffs remain a notable drag. Management estimates a nearly 100-basis-point impact on 2025 margins, with incremental effects rolling into cost of sales each quarter. Global CapEx pressures, particularly in Japan, China, and parts of Europe, might have limited system placements. Moreover, while U.S. performance remains robust, uncertainty around Medicaid coverage and hospital budgets could pose risks.
Price Performance & Valuation
Intuitive Surgical’s shares have lost 17% so far this year compared with the industry’s 9.7% decline. The company’s shares have underperformed the S&P 500 Index’s gain of 14.5% as well as the Zacks Medicalsector’s increase of 0.5%.
ISRG has also underperformed Thermo Fisher Scientific’s 3.2% gain as well as Boston Scientific’s 9.5% increase so far this year.
YTD Price Performance
Image Source: Zacks Investment Research
Now, let us take a look at the value Intuitive Surgical offers to its investors at current levels.
Currently, ISRG is trading at a premium compared to its industry, with a forward 12-month P/E of 48.64X compared with the industry’s 27.58X. However, the current valuation came down from a five-year high of 71.61X but is higher than the five-year low of 41.90X. ISRG has traded at a premium to the industry valuation in the past five years, reflecting the company's higher growth prospects. However, the current Value score of D reflects a high valuation.
ISRG's P/E F12M Graph
Image Source: Zacks Investment Research
Investment Thesis
Despite its elevated valuation, Intuitive Surgical is expected to sustain strong performance through the remainder of 2025, supported by solid da Vinci procedure growth and accelerating adoption of the Ion platform. Higher procedure pricing should further bolster sales, while rising volumes, improved system placements, and expanding service offerings across global markets are set to fuel top-line momentum.
The rollout of da Vinci SP in Europe and the broad launch of da Vinci 5 in the United States should continue to drive system adoption. That said, ongoing softness in bariatric procedures and lingering challenges in China may partially offset these gains in the near term.
At the same time, escalating trade tensions and newly imposed U.S. tariffs introduce fresh uncertainty, potentially weighing on global performance. Still, with key manufacturing operations anchored in the United States and Mexico, domestic revenues are well insulated from tariff exposure.
Conclusion
Although Intuitive Surgical has strong fundamental factors supporting its uptrend, we will caution investors against adding the stock to their portfolio before its earnings release. The company carries a favorable Zacks Rank; however, the Style Score of D does not reflect a major strength in the stock. The company’s high valuation may have factored in the strong fundamentals, including growth in procedures and installed base.
While current shareholders may hold their position, new investors should wait for the stock to release its third-quarter results and analyze the new updates before making an entry. However, valuation may continue to remain expensive as ISRG plans to expand its efforts to place systems beyond the United States, increase utilization in existing U.S. accounts and expand into additional indications in the next two years.
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Intuitive Surgical Pre-Q3 Analysis: Buy, Hold or Sell ISRG Stock Now?
Key Takeaways
Intuitive Surgical, Inc. (ISRG - Free Report) is set to report third-quarter 2025 earnings on Oct. 21. The Zacks Consensus Estimate for sales and earnings is pegged at $2.41 billion and $1.99 per share, respectively. Earnings per share estimates for ISRG have remained stable at $8.16 and $9.17 for 2025 and 2026, respectively, over the past 30 days. The company expects worldwide da Vinci procedures to increase approximately 15.5-17% in 2025, a trend that should have benefited the top line in the to-be-reported quarter.
Intuitive Surgical’s close peers, Thermo Fisher Scientific (TMO - Free Report) andBoston Scientific(BSX - Free Report) , are slated to announce their quarterly numbers in the upcoming week. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
Estimate Movement
In the last reported quarter, ISRG delivered an earnings surprise of 14.06%. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.07%.
In the last reported quarter, Thermo Fisher Scientific and Boston Scientific delivered an earnings surprise of 2.68% and 4.17%, respectively.
Intuitive Surgical, Inc. Price and EPS Surprise
Intuitive Surgical, Inc. price-eps-surprise | Intuitive Surgical, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Intuitive Surgical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
ISRG has an Earnings ESP of -0.10% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note
Intuitive Surgical heads into its third-quarter earnings season with strong momentum from its second-quarter 2025 performance, underscored by robust procedure growth and broad adoption of the da Vinci 5 platform. Yet, ongoing tariff pressures and global CapEx constraints could temper the pace of expansion.
The Instruments & Accessories (I&A) segment remains a core revenue engine. In second-quarter, revenue per procedure held steady at nearly $1,800, supported by rising adoption of SP and da Vinci 5 instruments. The introduction of Force Feedback and the slimmer vessel sealer is likely to have further enhanced value per case in third-quarter. However, continued softness in bariatric volumes might have partially offset these gains.
The Systems segment is benefiting from strong demand for da Vinci 5. ISRG placed 180 da Vinci 5 systems in the second quarter, helping raise average selling prices (ASPs) to $1.5 million. With trade-ins gaining pace — 83 in the second quarter versus 21 last year — the upgrade cycle is expected to have continued into the third quarter. Measured rollouts in Europe and Japan might have added to system demand, though macroeconomic budget constraints in these regions likely remained a headwind.
The Services segment is likely to have continued its steady growth on the back of higher utilization and adoption of Intuitive Surgical’s digital ecosystem, including telepresence tools and data-driven case insights. Increasing integration of AI-enabled insights into clinical practice could have driven long-term stickiness.
Despite the upbeat fundamentals, tariffs remain a notable drag. Management estimates a nearly 100-basis-point impact on 2025 margins, with incremental effects rolling into cost of sales each quarter. Global CapEx pressures, particularly in Japan, China, and parts of Europe, might have limited system placements. Moreover, while U.S. performance remains robust, uncertainty around Medicaid coverage and hospital budgets could pose risks.
Price Performance & Valuation
Intuitive Surgical’s shares have lost 17% so far this year compared with the industry’s 9.7% decline. The company’s shares have underperformed the S&P 500 Index’s gain of 14.5% as well as the Zacks Medicalsector’s increase of 0.5%.
ISRG has also underperformed Thermo Fisher Scientific’s 3.2% gain as well as Boston Scientific’s 9.5% increase so far this year.
YTD Price Performance
Image Source: Zacks Investment Research
Now, let us take a look at the value Intuitive Surgical offers to its investors at current levels.
Currently, ISRG is trading at a premium compared to its industry, with a forward 12-month P/E of 48.64X compared with the industry’s 27.58X. However, the current valuation came down from a five-year high of 71.61X but is higher than the five-year low of 41.90X. ISRG has traded at a premium to the industry valuation in the past five years, reflecting the company's higher growth prospects. However, the current Value score of D reflects a high valuation.
ISRG's P/E F12M Graph
Image Source: Zacks Investment Research
Investment Thesis
Despite its elevated valuation, Intuitive Surgical is expected to sustain strong performance through the remainder of 2025, supported by solid da Vinci procedure growth and accelerating adoption of the Ion platform. Higher procedure pricing should further bolster sales, while rising volumes, improved system placements, and expanding service offerings across global markets are set to fuel top-line momentum.
The rollout of da Vinci SP in Europe and the broad launch of da Vinci 5 in the United States should continue to drive system adoption. That said, ongoing softness in bariatric procedures and lingering challenges in China may partially offset these gains in the near term.
At the same time, escalating trade tensions and newly imposed U.S. tariffs introduce fresh uncertainty, potentially weighing on global performance. Still, with key manufacturing operations anchored in the United States and Mexico, domestic revenues are well insulated from tariff exposure.
Conclusion
Although Intuitive Surgical has strong fundamental factors supporting its uptrend, we will caution investors against adding the stock to their portfolio before its earnings release. The company carries a favorable Zacks Rank; however, the Style Score of D does not reflect a major strength in the stock. The company’s high valuation may have factored in the strong fundamentals, including growth in procedures and installed base.
While current shareholders may hold their position, new investors should wait for the stock to release its third-quarter results and analyze the new updates before making an entry. However, valuation may continue to remain expensive as ISRG plans to expand its efforts to place systems beyond the United States, increase utilization in existing U.S. accounts and expand into additional indications in the next two years.