Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 12 May, 25 | ISRG | Buy | USD 536.51 | USD 564.0 | USD 596.0 | 1 day | 11.1% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. It also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights. The company sells its products through direct sales organizations, such as capital and clinical sales teams. It has a collaboration agreement with FluoGuide A/S for head & neck cancer. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.
System Placement Surge: da Vinci 5 system placements rose significantly to 147 units in Q1 2025 from just 8 units in Q1 2024
Revenue Growth: Q1 2025 revenue increased 19% year-over-year to $2.25 billion, from $1.89 billion
Rising Compensation Costs: Share-based compensation increased to $190 million in Q1 2025, up from $156 million a year earlier, adding pressure to operating expenses
Margin Pressure: Non-GAAP gross profit margin is expected to decline from 69.1% in 2024 to a range of 65%–66.5% in 2025, largely due to tariff-related costs
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 536.51 | 493.0 | 564.0 | 596.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strong Procedure and System Growth
Intuitive Surgical reported robust operational growth in Q1 2025, with worldwide da Vinci procedures increasing approximately 17% year-over-year. The company placed 367 da Vinci surgical systems during the quarter, up from 313 in Q1 2024. Notably, placements of the new da Vinci 5 systems surged to 147 units, compared with only 8 units in the same period last year. This reflects accelerating adoption of the latest platform among healthcare providers.
Installed Base Expansion
As of March 31, 2025, Intuitive Surgical expanded its da Vinci surgical system installed base to 10,189 systems, marking a 15% increase from 8,887 systems at the end of Q1 2024. This growing installed base supports recurring revenue streams through instrument and accessory sales, as well as service agreements, which are essential to the company’s long-term revenue stability.
Revenue and Profitability Gains
Total revenue for Q1 2025 reached $2.25 billion, representing a 19% increase compared to $1.89 billion in the prior year quarter. Revenue growth was driven by increases in both procedure volumes and system placements. GAAP net income attributable to Intuitive Surgical rose to $698 million ($1.92 per diluted share) from $545 million ($1.51 per diluted share) a year earlier. On a non-GAAP basis, net income rose to $662 million ($1.81 per diluted share), up from $541 million ($1.50 per diluted share) in Q1 2024.
Segment Revenue Growth
Instruments and accessories revenue grew 18% year-over-year to $1.37 billion, supported by strong growth in both da Vinci and Ion procedures. Systems revenue rose to $523 million from $418 million in the previous year. System placements under operating lease arrangements increased to 198 units in Q1 2025 (107 under usage-based leases), compared to 159 units (94 usage-based) in Q1 2024, indicating a shift toward more flexible customer financing options.
Profitability and Operating Performance
GAAP income from operations rose to $578 million in Q1 2025 from $469 million in Q1 2024, while non-GAAP income from operations increased to $768 million from $630 million. The company also reported a $145 million excess tax benefit in Q1 2025, contributing $0.40 per share to GAAP earnings. Share-based compensation rose to $190 million, up from $156 million the prior year, reflecting expanded talent investments.
Liquidity and Financial Position
Intuitive Surgical ended the quarter with $9.10 billion in cash, cash equivalents, and investments, an increase of $269 million from the prior quarter. The cash position was bolstered by strong operating cash flow, partially offset by capital expenditures and taxes related to equity award settlements. The company’s healthy liquidity supports continued investment in R&D, infrastructure, and commercial initiatives.
2025 Full-Year Outlook
For the full year of 2025, Intuitive expects worldwide da Vinci procedure growth between 15% and 17%, compared with 17% in 2024. The company projects a non-GAAP gross profit margin between 65% and 66.5%, down from 69.1% in 2024, due to anticipated tariff impacts of approximately 1.7% of revenue. Non-GAAP operating expenses are expected to grow between 10% and 14%, in line with the prior year.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Intuitive Surgical Inc (NASDAQ: ISRG) at the closing market price of USD 536.51, as on May 09, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Medical Instruments & Supplies
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| ISRG Intuitive Surgical Inc |
-1.64 0.29% | 555.52 | 73.05 | 61.73 | 19.15 | 10.25 | 18.41 | 59.92 |
| ESLOY Essilor International SA |
1.21 0.82% | 147.91 | 35.39 | 24.81 | 3.63 | 2.20 | 4.00 | 16.25 |
| ESLOF EssilorLuxottica Société anonyme |
- -% | 292.25 | 35.71 | 25.13 | 3.62 | 2.23 | 4.00 | 16.25 |
| BDX Becton Dickinson and Company |
-2.68 1.52% | 173.99 | 37.72 | 15.92 | 3.25 | 2.49 | 4.08 | 17.10 |
| ALC Alcon AG |
0.27 0.31% | 88.34 | 39.92 | 28.41 | 4.48 | 2.02 | 4.85 | 31.45 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 09,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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