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How Surging da Vinci Utilization and New FDA Wins At Intuitive Surgical (ISRG) Has Changed Its Investment Story

Simply Wall St · 5d ago
  • In recent days, Intuitive Surgical reported continued strong demand for its da Vinci robotic systems, with surgery volumes rising faster than its growing installed base and supported by new FDA approvals for additional procedures.
  • This combination of higher utilization and expanded indications further entrenches the da Vinci platform inside hospitals, reinforcing Intuitive Surgical’s role at the center of robotic-assisted, minimally invasive surgery.
  • We’ll now explore how this surge in da Vinci procedure growth and new FDA indications could reshape Intuitive Surgical’s investment narrative.

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Intuitive Surgical Investment Narrative Recap

To own Intuitive Surgical, you need to believe robotic-assisted procedures will keep gaining share and that hospitals will keep prioritizing the da Vinci platform despite its premium pricing. The latest data on procedure growth outpacing system installations supports utilization as a key short term catalyst, while the biggest near term risk remains valuation sensitivity if hospitals or governments tighten capital and operating budgets. The recent news does not materially change those core drivers.

The most relevant update is the 20% year over year increase in da Vinci procedures against a 13% rise in installed systems, alongside new FDA indications. This reinforces the importance of procedure growth and recurring instruments and services revenue as the core engine behind Intuitive’s story, especially at a time when investors are weighing premium valuation against the potential for slower system placements if hospital budgets come under pressure.

Yet while utilization is rising, investors should be aware that hospital budget constraints and cheaper competing systems could...

Read the full narrative on Intuitive Surgical (it's free!)

Intuitive Surgical's narrative projects $13.4 billion revenue and $3.7 billion earnings by 2028. This requires 13.5% yearly revenue growth and about a $1.1 billion earnings increase from $2.6 billion today.

Uncover how Intuitive Surgical's forecasts yield a $596.36 fair value, in line with its current price.

Exploring Other Perspectives

ISRG 1-Year Stock Price Chart
ISRG 1-Year Stock Price Chart

Sixteen fair value estimates from the Simply Wall St Community span roughly US$326 to US$629 per share, reflecting very different expectations. Against that backdrop, the reliance on high margin recurring revenue from da Vinci consumables stands out as a key issue for the company’s performance and invites you to compare several alternative viewpoints.

Explore 16 other fair value estimates on Intuitive Surgical - why the stock might be worth 45% less than the current price!

Build Your Own Intuitive Surgical Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Intuitive Surgical research is our analysis highlighting 2 key rewards that could impact your investment decision.
  • Our free Intuitive Surgical research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Intuitive Surgical's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.