Intuitive Surgical (ISRG) Stock Forecast & Price Target

Intuitive Surgical has demonstrated strong financial performance, with ISRG shares appreciating by 80% since the beginning of 2024, significantly outperforming the S&P 500's 28% gain during the same period. The company's robust revenue growth is evidenced by a 25% year-over-year increase, amounting to $2.41 billion, alongside an 18% year-over-year rise in da Vinci procedure volumes, indicating a rising demand for its surgical systems. Furthermore, the anticipated expansion of procedural indications and instrumentation advancements positions Intuitive Surgical to leverage its extensive installed base and accelerate revenue and earnings growth in the rapidly evolving robotic and minimally invasive surgery sectors.

Intuitive Surgical's initial gross margin guidance for FY '25, estimated at 67-68%, fell short of internal projections, indicating potential pressure on profitability. Additionally, the company reported a year-over-year decline in adjusted bariatrics volumes and slower procedure growth in China, which may hinder revenue growth in key markets. Contributing to a negative outlook are adverse macroeconomic factors impacting hospital capital budgets, market resistance to innovative robotic platforms, and the longer than anticipated rollout of next-generation systems, compounded by external tariffs on imports.