Founded in 1995 and headquartered in Sunnyvale, California, Intuitive Surgical is a global leader in robotic assisted, minimally invasive surgery. The company has around 15,600 employees. It has revolutionized modern surgical care with the introduction of its flagship product, the da Vinci Surgical System, in 2000. This advanced platform enables surgeons to perform complex procedures with enhanced precision, dexterity, and control through small incisions. Intuitive Surgical's technology is utilized across various specialties, including urology, gynecology, general surgery, and cardiothoracic procedures. In addition, the company offers the Ion system, a robotic platform designed for minimally invasive lung biopsies. With a strong emphasis on innovation, training, and clinical support, Intuitive Surgical has installed more than 8,600 systems in over 70 countries.
Q1 25 boost from da Vinci
Intuitive Surgical posted its Q1 25 results on July 22, 2025, up 21.4% y/y to $2.4bn. This growth was driven by a rise in procedures, system placements, and higher sales of instruments and accessories, particularly from the new da Vinci 5 systems. Globally, da Vinci procedures grew approximately 17% y/y compared to Q2 2024. The company expanded its installed base of da Vinci surgical systems to 10,488 units in Q2 2025, marking a 14% increase from Q2 2024.
EBIT rose by 31% y/y to $743m, helped by operational efficiency and margins expanding by 224bp to 30.5%. Net income, therefore, rose by 24.9% y/y to $658m. In addition, Intuitive Surgical has consistently outperformed analysts' revenue estimates for the past seven quarters.
New factory strengthens supply
In July 2025, Intuitive Surgical inaugurated a state-of-the-art manufacturing facility in Parvomay, Bulgaria, encompassing 160,000 square feet of production space and an additional 26,000 square feet for offices. The plant initially focuses on producing 3D endoscopes for da Vinci systems, with plans to expand to surgical instruments and consumables. Starting with a workforce of 110-140 employees, the company aims to increase this number to approximately 300 by 2030. The investment, totaling around BGN 80m, has been endorsed by the Bulgarian Innovation Ministry as a significant milestone for the region’s health tech industry.
In addition, Intuitive Surgical announced that the US Food and Drug Administration has approved its Vessel Sealer Curved, an electrosurgical instrument designed for use with the da Vinci systems. This instrument, capable of sealing, cutting, grasping, and dissecting tissue, is the company's first advanced energy tool cleared for transecting lymphatic vessels. The FDA approval includes grasping and blunt dissection of tissue, bipolar coagulation, and mechanical transection of blood vessels up to 7mm in diameter, lymphatic vessels, and tissue bundles that fit within the device's jaws.
Strong fundamentals with cash growth
Intuitive Surgical reported a solid top line performance over FY 21-24, posting a revenue CAGR of 13.5% to $8.4bn, driven by rollout of new platforms like da Vinci5, Ion endoluminal systems and SP single-port which helped in volumes growth. EBIT rose at a CAGR of 9.2% to $2.4bn in FY 24, with a margin of 28.4%. Net income increased to 10.9% CAGR over the same period, reaching $2.3bn on FY 24.
Cash from operations rose from $2.1bn to $2.4bn over FY 21-24. Cash and cash equivalent surged from $1.3bn at the end of FY 21 to $2bn on the end of FY 24, helped by a positive earnings trajectory and steady cash inflow from operations. However, the company’s gearing, also rose from 0.7% to 0.9%.
In comparison. Edwards Lifesciences Corporation, a local peer, reported a revenue CAGR of just 1.3% over the past three years, reaching $5.4bn in FY 24. EBIT decreased at a CAGR of minus 2.3% to $1.5bn on FY 24, with margins contracting by 30.3% to 27.2%. However, net income rose at a CAGR of 40.6% to $4.2bn.
Optimistic views from analysts
Over the past 12 months, the company’s stock has delivered strong returns of approximately 12.4%. In comparison, Edwards Lifesciences Corporation’s stock delivered higher returns of approximately 28.3%.
Intuitive Surgical is currently trading at a P/E of 67.8x, based on FY 25 estimated EPS of $7.3, which is lower than its 3-year historical average of 73x but higher than that of Edwards Lifesciences Corporation (33.3x). Likewise, the company is currently trading at an EV/EBIT multiple of 49x, based on the FY 25 estimated EBIT of $3.3bn, which is lower than its 3-year historical average of 50.4x but higher than Edwards Lifesciences Corporation’s multiple of 26.9x.
Intuitive surgical is generally liked by the 30 analysts who monitor it: 22 have “Buy” ratings, with the other eight having “Hold” ratings for an average target price of $583.6, implying an 17.7% upside potential from its current trading price.
Analysts’ views are further supported by an anticipated EBIT CAGR of 15.7% over FY 24-27, reaching $4.7bn, with margins expanding by 249bp to 34.5% in FY 27. In addition, analysts estimate a net profit CAGR of 15.2%, reaching $3.5bn with margins of 27.7%, with EPS expected to increase to $9.7 in FY 27 from $6.4 in FY 24. Likewise, analysts estimate an EBIT CAGR of 10.9%. However, Edwards Lifesciences Corporation has a net profit CAGR of minus 25%.
Overall, Intuitive continues to strengthen its global leadership in robotic-assisted surgery with the successful rollout in da Vinci 5 system and the inauguration of new manufacturing facility in Bulgaria. The company benefits from strong growth, expanding its installed base, and launching advanced surgical instruments like the FDA-cleared Vessel Sealer Curved.
However, it faces several risks including rising competition, regulatory delays, and economic factors affecting procedure volumes. High system costs may limit adoption, while reliance on da Vinci systems increases vulnerability to market shifts, recalls, or obsolescence. supply chain disruptions also pose operational challenges. Changes in healthcare policies or reimbursement rates could impact its revenue.
