Is Intuitive Surgical Worth Your Investment? A Financial Deep Dive into Surgical Robotics

When evaluating whether to add Intuitive Surgical stock to your portfolio, the key question isn’t whether the company is performing well—it clearly is. Rather, investors need to make an intuitive judgment about whether the current price reflects fair value for long-term wealth building. The company’s latest results offer important clues for making that determination.

Strong Robot Deployment Signals in Early 2026

Intuitive Surgical’s fourth quarter 2025 results demonstrated momentum heading into 2026. The company deployed 532 da Vinci surgical robots in the final quarter of 2024, an uptick from 493 units in the same period the prior year. This represents consistent growth in hardware placements. More significantly, the global installed base of da Vinci systems has reached 11,106 units—a 12% increase compared to the previous year’s total.

However, the hardware sales figures, while positive, tell only part of the story. What truly excites analysts is what happens after each robot is installed.

The Real Revenue Engine: Recurring Income from Systems in Use

When you examine Intuitive Surgical’s income statement carefully, you’ll discover that actual robot hardware sales represent just around 25% of annual revenue—a figure that has remained consistent year over year. In 2024, da Vinci hardware comprised approximately 24% of total top-line revenue.

The remainder comes from what investors should pay close attention to: the recurring revenue streams built into the business model. Services account for roughly 15% of revenue, while the largest piece—approximately 60% of total sales—comes from instruments and accessories. Combined, these recurring elements represent around 75% of overall company revenue.

This recurring revenue structure functions like an annuity for investors. Every new da Vinci system installed generates a multiyear revenue stream as healthcare facilities require ongoing maintenance, replacement instruments, and accessory purchases. This is why a critical metric matters tremendously: in 2025, procedures performed with da Vinci systems increased 18% compared to 2024. This growth rate significantly outpaced the 12% expansion of the installed base itself, indicating strong end-user demand and utilization rates. The company currently projects up to 15% surgery growth for 2026.

AI Integration: The Next Frontier for Intuitive

Looking beyond current operations, artificial intelligence represents a substantial opportunity for Intuitive Surgical’s future. The company is actively embedding AI capabilities into its product ecosystem to enhance surgeon performance. A notable milestone came in late 2025 when the company received FDA approval for an AI tool designed to provide real-time visual enhancements during lung biopsy procedures.

This advancement may seem incremental, but it addresses a genuine surgical challenge. Because lungs are constantly in motion, any pre-operative imaging becomes outdated the moment surgery begins. AI-powered real-time visualization essentially creates live, enhanced imagery for physicians. Looking further ahead, while still speculative, AI technology could eventually support autonomous surgical capabilities—a transformational possibility for the entire industry.

Valuation Reality Check for Growth Investors

Despite Intuitive Surgical’s strong fundamentals and forward-looking opportunities, Wall Street has priced the stock accordingly. The company currently trades at a price-to-earnings (P/E) ratio near 67x. For context, the S&P 500 index, trading near all-time highs, carries a P/E ratio of approximately 28 times. For value-focused investors, this valuation presents an immediate red flag.

The historical perspective offers modest reassurance for growth investors, however. Over the past five years, Intuitive Surgical’s average P/E ratio hovered near 72x. Compared to that historical average, today’s valuation appears somewhat more reasonable. Still, when benchmarked against the broader growth stock universe—represented by the Vanguard Growth ETF at just under 40x P/E—Intuitive Surgical remains expensive. The company is trading at a premium, though not as steep as its historical peaks.

Making Your Investment Decision

Intuitive Surgical appears positioned for substantial long-term opportunity as surgical robotics technology continues advancing and AI capabilities expand. However, market participants have already recognized these prospects and incorporated them into current pricing. Anyone considering an Intuitive Surgical position must commit to a genuinely long-term holding horizon, or risk disappointment. The stock has experienced drawdowns exceeding 30% in the past—a volatility level that requires strong conviction.

For investors with patience and conviction about the company’s direction, the more prudent approach might be waiting for a meaningful market pullback before initiating a position. The opportunity isn’t disappearing, but entry points matter significantly for long-term returns.

Before making your final decision, recognize that experts identifying top-tier investment opportunities don’t always flag the most obvious choices. The companies that eventually generate life-changing returns often come from identifying quality businesses before the broader market recognizes their true potential.