Intuitive Surgical (ISRG) Stock Forecast & Price Target

Intuitive Surgical has experienced substantial share performance, with a remarkable growth of 80% since the start of 2024, significantly outpacing the S&P 500's 28% increase. A combination of expanding surgical indications, advancements in instrumentation, and new product introductions is expected to drive continued revenue acceleration, with the company reporting revenue of $2.41 billion, representing a 25% year-over-year increase, along with an 18% growth in da Vinci procedures. Furthermore, the ongoing enhancements and geographical expansion position Intuitive Surgical favorably within a large and rapidly growing market for robotic-assisted minimally invasive surgery, suggesting strong future sales potential.

Intuitive Surgical’s guidance for fiscal year 2025 reflects lower-than-expected gross margin estimates (67-68%) compared to the analyst’s model (68.7%), alongside anticipated operating expense growth of 10-15% year-over-year which is also above previous expectations. Additionally, the company has reported a decline in adjusted bariatrics volumes and underwhelming procedure growth in China, indicating potential challenges in maintaining revenue growth in key markets. Furthermore, macroeconomic uncertainties are constraining hospital capital budgets and future robotic system purchases, alongside market resistance to new surgical approaches, significantly impacting the firm’s growth outlook and competitive position.