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ISRG Gains Nearly 12% in a Month: Should You Buy, Hold or Sell?
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Key Takeaways
ISRG has gained nearly 12% in a month, outperforming the industry and broader market ahead of Q3 earnings.
Strong da Vinci 5 adoption, rising Ion procedures and higher utilization support Intuitive Surgical's growth.
ISRG trades at 36.04X forward earnings, while slower U.S. procedure growth and China headwinds pose risks.
Intuitive Surgical (ISRG - Free Report) has gained nearly 12% in a month, supported by investor confidence in robotic-assisted surgery and the company's expanding product portfolio. The company is scheduled to report third-quarter results after the market closes on Oct. 20. The quarterly results are likely to reflect sustained operational momentum.
The Zacks Consensus Estimate for sales is pinned at $2.88 billion, which implies growth of 15% year over year. The consensus mark for adjusted earnings per share (EPS) is pegged at $2.61, implying an 8.8% increase.
ISRG has demonstrated strong performance in the first half of 2026, underscoring the resilience of the company’s recurring-revenue model, supported by expanding robotic-system adoption and higher utilization.
For the first half, Intuitive Surgical's revenues increased approximately 21% year over year to $5.66 billion, while adjusted EPS rose 32.5% to $5.30. Recurring revenues rose 21% to $4.87 billion, accounting for about 86% of revenues. Procedure growth remained strong across both quarters with 17% in the first quarter, followed by 16% in the second quarter. da Vinci procedures grew 16% and 15% in the first and second quarters, respectively, while Ion procedures advanced 39% and 36%.
After declining in the first half of 2026 despite strong quarterly results, ISRG shares are likely regaining investors’ confidence ahead of its third-quarter results. The stock has outperformed its industry and sector as well as the broader market over the past month. The Zacks Medical – Instruments industry was up 3.4% while the broader Medical sector grew 0.1%. The S&P 500 Index improved 2.8% during the same period. The company also outperformed other medical-device makers — Stryker (SYK - Free Report) and Medtronic (MDT - Free Report) . While SYK shares were up 0.4%, MDT declined 0.8%.
1-Month Share Price Performance
Image Source: Zacks Investment Research
Factors That Could Drive ISRG's Growth in 2026
Growing Addressable Market and da Vinci 5 Adoption
Intuitive Surgical's expanding opportunity in robotic-assisted surgery remains a key growth driver. International markets offer considerable potential, with procedures outside the United States accounting for 38% of da Vinci volume in the first quarter compared with 25% a decade ago. In the second quarter, da Vinci procedures outside the United States increased 20%, supported by demand in Europe and Asia. Management maintained its full-year 2026 da Vinci procedure-growth outlook of 13.5-15.5%, with results expected closer to the midpoint.
The da Vinci 5 upgrade cycle is another important catalyst. Intuitive Surgical placed 468 da Vinci systems in the second quarter, up 18% year over year, including 246 da Vinci 5 systems. Its da Vinci 5 sales continue to reflect sequential growth, with installed base exceeding 1,700 systems and more than 15,000 surgeons having used the platform. Higher utilization, differentiated instrumentation and continued upgrades should support system placements and recurring instrument, accessory and service revenues.
Ion Adoption, Utilization and Digital Innovation
The Ion lung-biopsy platform is extending Intuitive Surgical's reach into the lung cancer diagnosis. Ion procedures increased 36% to 48,000 in the second quarter, taking cumulative procedures beyond 400,000. The company is advancing its rapid on-site tissue evaluation (ROSE) and endobronchial ultrasound (EBUS) programs, potentially strengthening Ion's clinical capabilities and adoption.
Meanwhile, rising utilization across its robotic platforms is strengthening the recurring-revenue model. da Vinci utilization increased 3% in the second quarter, while Ion utilization advanced 11%. Its single-port platform is also gaining traction, with procedures up 61% in the quarter. Intuitive Surgical's digital ecosystem, including My Intuitive+ and AI-driven case insights, is deepening customer engagement and helping build a competitive moat through surgical data, training and workflow improvements.
The competitive landscape is developing. Stryker reported its best-ever second-quarter Mako installations, with more than 2.5 million procedures completed across 47 countries. Medtronic expects its Hugo platform to surpass 50,000 procedures by the end of fiscal 2027 and is pursuing broader indications, including general and gynecologic surgery. These platforms reinforce the growing interest in surgical robotics. Although Mako focuses primarily on orthopedic procedures and Hugo is currently approved for urology, Intuitive Surgical has a broader soft-tissue and diagnostic robotics ecosystem.
Sales & EPS Growth Rates
Image Source: Zacks Investment Research
ISRG Holds Premium Valuation
Intuitive Surgical has enjoyed a premium valuation for several years due to its focus and leadership in the accelerating robotic surgery market. Despite the recent rebound and premium over the industry, the stock appears undervalued, trading near its lowest level in five years.
ISRG trades at a forward 12-month P/E of 36.04X, well below its five-year median of 67.31X but above the Medical - Dental Supplies industry’s 27.2X. Stryker and Medtronic trade at 17.36X and 15.11X, respectively. These multiples highlight the premium investors continue to pay for Intuitive Surgical's growth potential.
5-Year P/E F12M Valuation
Image Source: Zacks Investment Research
Challenges That Could Limit Upside
Despite these positive drivers, Intuitive Surgical faces near-term demand and execution risks. U.S. da Vinci procedure growth moderated to 12% in the second quarter from 14% in the first quarter, partly reflecting weaker growth in deferrable procedures and potential effects from changes in healthcare coverage. Rising GLP-1 adoption also continued to hurt bariatric procedures, which declined at a high-single-digit rate during the second quarter.
China remains another headwind. Lower tender activity, domestic competition and policy-driven pricing pressure constrained system placements. Moreover, da Vinci 5 is yet to receive clearance in mainland China. Meanwhile, higher input costs, including freight and semiconductor memory, could also weigh on margins, although faster growth in newer platforms and higher system upgrades create additional profitability considerations.
Conclusion
Intuitive Surgical's strong monthly gain reflects renewed confidence in its growth outlook. Strong da Vinci 5 adoption, Ion procedure growth, improving utilization and expanding digital capabilities support the company's long-term opportunity. Nevertheless, slower U.S. procedure growth, GLP-1-related bariatric pressure and Chinese competition remain risks, while the stock still trades at a premium to its industry and peer valuations.
Given its Zacks Rank #2 (Buy) and Zacks Growth Score of B, ISRG looks attractive for investors seeking exposure to robotic-assisted surgery. Existing investors with a long-term outlook may consider adding to their positions, provided the company continues to execute well enough to justify its premium valuation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
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ISRG Gains Nearly 12% in a Month: Should You Buy, Hold or Sell?
Key Takeaways
Intuitive Surgical (ISRG - Free Report) has gained nearly 12% in a month, supported by investor confidence in robotic-assisted surgery and the company's expanding product portfolio. The company is scheduled to report third-quarter results after the market closes on Oct. 20. The quarterly results are likely to reflect sustained operational momentum.
The Zacks Consensus Estimate for sales is pinned at $2.88 billion, which implies growth of 15% year over year. The consensus mark for adjusted earnings per share (EPS) is pegged at $2.61, implying an 8.8% increase.
ISRG has demonstrated strong performance in the first half of 2026, underscoring the resilience of the company’s recurring-revenue model, supported by expanding robotic-system adoption and higher utilization.
For the first half, Intuitive Surgical's revenues increased approximately 21% year over year to $5.66 billion, while adjusted EPS rose 32.5% to $5.30. Recurring revenues rose 21% to $4.87 billion, accounting for about 86% of revenues. Procedure growth remained strong across both quarters with 17% in the first quarter, followed by 16% in the second quarter. da Vinci procedures grew 16% and 15% in the first and second quarters, respectively, while Ion procedures advanced 39% and 36%.
After declining in the first half of 2026 despite strong quarterly results, ISRG shares are likely regaining investors’ confidence ahead of its third-quarter results. The stock has outperformed its industry and sector as well as the broader market over the past month. The Zacks Medical – Instruments industry was up 3.4% while the broader Medical sector grew 0.1%. The S&P 500 Index improved 2.8% during the same period. The company also outperformed other medical-device makers — Stryker (SYK - Free Report) and Medtronic (MDT - Free Report) . While SYK shares were up 0.4%, MDT declined 0.8%.
1-Month Share Price Performance
Image Source: Zacks Investment Research
Factors That Could Drive ISRG's Growth in 2026
Growing Addressable Market and da Vinci 5 Adoption
Intuitive Surgical's expanding opportunity in robotic-assisted surgery remains a key growth driver. International markets offer considerable potential, with procedures outside the United States accounting for 38% of da Vinci volume in the first quarter compared with 25% a decade ago. In the second quarter, da Vinci procedures outside the United States increased 20%, supported by demand in Europe and Asia. Management maintained its full-year 2026 da Vinci procedure-growth outlook of 13.5-15.5%, with results expected closer to the midpoint.
The da Vinci 5 upgrade cycle is another important catalyst. Intuitive Surgical placed 468 da Vinci systems in the second quarter, up 18% year over year, including 246 da Vinci 5 systems. Its da Vinci 5 sales continue to reflect sequential growth, with installed base exceeding 1,700 systems and more than 15,000 surgeons having used the platform. Higher utilization, differentiated instrumentation and continued upgrades should support system placements and recurring instrument, accessory and service revenues.
Ion Adoption, Utilization and Digital Innovation
The Ion lung-biopsy platform is extending Intuitive Surgical's reach into the lung cancer diagnosis. Ion procedures increased 36% to 48,000 in the second quarter, taking cumulative procedures beyond 400,000. The company is advancing its rapid on-site tissue evaluation (ROSE) and endobronchial ultrasound (EBUS) programs, potentially strengthening Ion's clinical capabilities and adoption.
Meanwhile, rising utilization across its robotic platforms is strengthening the recurring-revenue model. da Vinci utilization increased 3% in the second quarter, while Ion utilization advanced 11%. Its single-port platform is also gaining traction, with procedures up 61% in the quarter. Intuitive Surgical's digital ecosystem, including My Intuitive+ and AI-driven case insights, is deepening customer engagement and helping build a competitive moat through surgical data, training and workflow improvements.
The competitive landscape is developing. Stryker reported its best-ever second-quarter Mako installations, with more than 2.5 million procedures completed across 47 countries. Medtronic expects its Hugo platform to surpass 50,000 procedures by the end of fiscal 2027 and is pursuing broader indications, including general and gynecologic surgery. These platforms reinforce the growing interest in surgical robotics. Although Mako focuses primarily on orthopedic procedures and Hugo is currently approved for urology, Intuitive Surgical has a broader soft-tissue and diagnostic robotics ecosystem.
Sales & EPS Growth Rates
Image Source: Zacks Investment Research
ISRG Holds Premium Valuation
Intuitive Surgical has enjoyed a premium valuation for several years due to its focus and leadership in the accelerating robotic surgery market. Despite the recent rebound and premium over the industry, the stock appears undervalued, trading near its lowest level in five years.
ISRG trades at a forward 12-month P/E of 36.04X, well below its five-year median of 67.31X but above the Medical - Dental Supplies industry’s 27.2X. Stryker and Medtronic trade at 17.36X and 15.11X, respectively. These multiples highlight the premium investors continue to pay for Intuitive Surgical's growth potential.
5-Year P/E F12M Valuation
Image Source: Zacks Investment Research
Challenges That Could Limit Upside
Despite these positive drivers, Intuitive Surgical faces near-term demand and execution risks. U.S. da Vinci procedure growth moderated to 12% in the second quarter from 14% in the first quarter, partly reflecting weaker growth in deferrable procedures and potential effects from changes in healthcare coverage. Rising GLP-1 adoption also continued to hurt bariatric procedures, which declined at a high-single-digit rate during the second quarter.
China remains another headwind. Lower tender activity, domestic competition and policy-driven pricing pressure constrained system placements. Moreover, da Vinci 5 is yet to receive clearance in mainland China. Meanwhile, higher input costs, including freight and semiconductor memory, could also weigh on margins, although faster growth in newer platforms and higher system upgrades create additional profitability considerations.
Conclusion
Intuitive Surgical's strong monthly gain reflects renewed confidence in its growth outlook. Strong da Vinci 5 adoption, Ion procedure growth, improving utilization and expanding digital capabilities support the company's long-term opportunity. Nevertheless, slower U.S. procedure growth, GLP-1-related bariatric pressure and Chinese competition remain risks, while the stock still trades at a premium to its industry and peer valuations.
Given its Zacks Rank #2 (Buy) and Zacks Growth Score of B, ISRG looks attractive for investors seeking exposure to robotic-assisted surgery. Existing investors with a long-term outlook may consider adding to their positions, provided the company continues to execute well enough to justify its premium valuation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.