ISRG Research Update — September 13, 2026 (Updated)
Updated Thesis
Intuitive Surgical develops, produces, and commercializes the da Vinci surgical system and the Ion endoluminal system, along with instruments, accessories, training, and digital solutions that drive a large installed-base and recurring-revenue model. Business quality is high: TTM gross margin of 66.7%, operating margin of 31.3%, net margin of 28.4%, ROE of 17.8%, and revenue growth of 18.5% with earnings growth of 24.3% in the most recent quarter. The stock trades at $399.52, or 12.79x sales, 45.12x trailing earnings, 43.95x free cash flow, and 30.71x EV/EBITDA, which screens as cheap relative to its own five-year history but still reflects a premium absolute multiple.
The investment grade as of this refresh is B — solid business quality. A-tier business, B-tier valuation with 22.4% upside to $488.97 fair value.
Grade Change
In this research cycle, the investment grade for Intuitive Surgical, Inc. moved from A- to B. A-tier business, B-tier valuation with 22.4% upside to $488.97 fair value.
Key Metrics at a Glance
- Revenue growth: +18.5% year over year
- Net margin: 28.4%
- Fair value upside: +22.4% to our estimate of $489
Current price: $399.52
These figures reflect our most recent data pull and are one input into a multi-factor valuation framework.
Our 12–18 Month Outlook
Quality companies held over a multi-year horizon benefit from compounding fundamentals and the patience to ride through short-term volatility. Intuitive Surgical, Inc. remains in our covered universe with a solid-quality assessment. We update research when material data changes — earnings revisions, management shifts, or regime changes in valuation — not on every price fluctuation.
Long-term accumulation of quality businesses at fair or better prices is the core of the Patient Accumulator approach. Research updates like this one inform whether to add, hold, or wait for a better zone — not whether to react to short-term price moves.
[View full ISRG research →](/stocks/ISRG)