Very little debt to repay and plenty of cash on hand, so it is hard to shake.
Metrics · D/E ~5% · Current Ratio 4.96
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 38.7 · P/B 6.7
💡Effective da Vinci robot monopoly: 31.3% operating margin, 17.4% ROE, debt-free. P/E 38.7 is below its 5-yr avg (69x) but still high.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (margins and ROE are TTM; effectively debt-free) · P/E and P/B recomputed on the July 24 close, as of 2026-07-24
Business Summary · Key Value Metrics
The effective monopoly in the da Vinci surgical robot. It sells robotic systems to hospitals and earns recurring revenue from the instruments and accessories consumed each procedure plus service (a razor-and-blade model). The installed base is 11,106 systems worldwide, and about 75% of revenue is recurring. TTM revenue $11.03B, operating margin 31.3%, ROE 17.4%.
Current Price
$337.50
+1.65%+$5.48· Close 2026-07-24
Analyst Consensus Target (external reference)
$490.47
Avg. of 32 external analysts · stockanalysis (S&P Global 32-analyst consensus, Buy · high $685 / low $324)
P/E (TTM)
38.7x
TTM · below the 5-yr avg (69x)
ROE
17.4%
TTM · on a debt-free base
Operating margin
31.3%
TTM · above diversified peers
Net margin
28.4%
TTM
Debt/Equity
Debt-free
current ratio 4.96
Market cap
$119.2B
as of 2026-07-24
Economic Moat · Key Business Segments
ISRG's moat is 20 years of installed da Vinci systems and the switching costs layered on top. A hospital that adopts da Vinci trains its surgeons on it and must keep buying dedicated instruments, making the system very hard to replace. About 75% of revenue is recurring — instruments, accessories, and service consumed per procedure — so cash flow holds even if new-system sales (25% of revenue) fall in a downturn. Q2 2026 procedure volume rose ~18% YoY and the installed base reached 11,106 (Source: company IR, stockanalysis).
Installed-base lock-in
11,106 systems worldwide. Surgeon training and dedicated instruments keep hospitals from switching.
75% recurring revenue
Instruments, accessories, and service consumed per procedure. Cash flow holds through downturns.
20-year ecosystem
Clinical data, surgeon networks, and regulatory approvals form the entry barrier.
Fortress balance sheet
Effectively debt-free, 4.96 current ratio. No forced-sale or funding pressure in a crash.
10-Year Financial Trends
Revenue compounded at a 9-year CAGR of +15.7% ($2.7B in 2016 to $10.1B in 2025), operating income +13.4%, net income +16.2%. 2017 EPS ($1.92) was depressed by a TCJA deferred-tax write-down and 2020 ($2.94) by the COVID halt to elective surgery (that year's 63.4x/92.8x P/E mirror it). Operating margin recovered from a 24.1% trough (2020) to 29.3% (2025). Q2 2026: revenue $2.89B (+19% YoY), EPS $2.29 — but the stock sits ~44% below its high after 2026 procedure-growth guidance of 13.5-15.5%, down from 18% in 2025.
9-Year CAGR: Revenue +15.7% · Operating Income +13.4% · Net Income +16.2% · EPS +14.2%
Source: SEC EDGAR 10-K (revenue, operating income, net income, diluted EPS, equity); fiscal year-end closes from Yahoo Finance; cross-checked against stockanalysis. EPS is standardized to current terms for the 3:1 splits in 2017 and 2021 (recomputed as net income ÷ diluted shares); P/E is year-end close ÷ diluted EPS and matches stockanalysis for 2021-2025. 2017 was depressed by a TCJA deferred-tax write-down and 2020 by the COVID halt to elective surgery.
Mega-Cap Value Metric Comparison
As a pure-play robot maker, ISRG's 31.3% operating margin and 28.4% net margin far exceed diversified peers Medtronic (20.0%) and Stryker (19.5%), and its 38.7x P/E reflects that premium. The key variable is durability: the 20-year near-monopoly is ending as Medtronic (Hugo) and J&J (Ottava) enter the market (Source: stockanalysis, company IR).
End of the 20-year monopoly— Medtronic's Hugo (FDA-cleared for urology Dec 2025) and J&J's Ottava (cleared July 2026) are entering. Installed base and switching costs limit near-term share loss, but medium-term price and share pressure is a real structural threat.Source: company 10-K, industry reports
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Slowing procedure growth— The company guided 2026 da Vinci procedure growth to 13.5-15.5% (midpoint 14.5%), a clear slowdown from 18% in 2025, as management turned cautious on ACA headwinds and uncertainty. This slowdown is the direct cause of the -44% drawdown.Source: company IR, industry reports
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Still-rich valuation— The 38.7x P/E is below the 5-year average of 69x but still a market premium. Continued slowing could compress the multiple further.Source: stockanalysis
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GLP-1 and tariffs— GLP-1 weight-loss drugs modestly cut bariatric procedures, but gallbladder and hernia surgery offset, keeping total procedures at +18%. 2026 guidance embeds a ~1.2% revenue tariff impact.Source: company IR
✦ ValueCrab Dashboard PreviewISRG $337.5 +1.65% · as of 2026-07-24
Q. What are the key value metrics for Intuitive Surgical (ISRG)?P/E (TTM) 38.7, ROE 17.4%, operating margin 31.3%, net margin 28.4%, effectively debt-free, and a 9-year revenue CAGR of +15.7% (Source: stockanalysis, SEC EDGAR, as of 2026-07-24).
Q. Why is the stock 44% below its high?Despite Q2 2026 revenue up 19%, the company did not raise its full-year da Vinci procedure-growth guidance and set it at 13.5-15.5% — a slowdown from 18% in 2025 — disappointing the market. The business is not broken; expectations for the pace of growth reset lower.
Q. How serious is competitive entry?Medtronic's Hugo and J&J's Ottava received FDA clearances in 2025-2026, ending a 20-year monopoly. But hospitals already train surgeons on da Vinci and use its dedicated instruments, so near-term share loss is limited. Medium-term price and share pressure is a real risk to watch.
Q. Isn't a 38x P/E expensive?It is above the market, yes. But ISRG's 5-year average P/E was 69x, and 38.7x is a low range for the stock's history. The premium reflects 31% operating margins and 75% recurring revenue; if growth keeps slowing, that premium can shrink. ValueCrab does not provide buy/sell judgments.