Valued at a market cap of $168.4 billion, Intuitive Surgical, Inc. (ISRG) is the global leader in robotic-assisted, minimally invasive surgery, best known for its da Vinci Surgical System and Ion endoluminal platform. Founded in 1995 and headquartered in Sunnyvale, California, the company has maintained dominance in the robotic surgery space for over two decades through continuous innovation, most recently with the da Vinci 5 system, featuring enhanced computing power and force feedback. 

This healthcare giant has struggled to keep up with the broader market over the past 52 weeks. Shares of Intuitive Surgical have rallied 3.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 13.3%. Moreover, on a YTD basis, the stock is down 10%, compared to SPX’s 8.3% return. 

Zooming in further, ISRG has also considerably lagged behind the SPDR S&P Health Care Equipment ETF’s (XHE) 7.2% decline over the past 52 weeks and 8.9% downtick on a YTD basis. 

On Jul. 22, Intuitive Surgical delivered its Q2 2025 earnings, and its shares dipped 1.8% in the next trading session. Its revenue rose 21% year-over-year to $2.44 billion, driven by a 17% increase in da Vinci procedures, higher system placements, and a 14% expansion of its installed base to over 10,400 systems. Non-GAAP net income reached $798 million and $2.19 per share. Instrument and accessory sales grew 18% to $1.47 billion, and the company ended the quarter with $9.53 billion in cash and investments. Intuitive also gained key regulatory clearances for its da Vinci 5 system in Europe and Japan, and raised its full-year 2025 outlook, projecting da Vinci procedure growth of 15.5%–17% and strong margins.

For the current fiscal year, ending in December, analysts expect ISRG’s EPS to rise marginally year over year to $6.54. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. 

Among the 29 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 18 “Strong Buy,” two “Moderate Buy,” eight “Hold,” and one “Strong Sell” rating. 

This configuration is slightly bearish than a month ago, with 20 analysts suggesting a “Strong Buy” rating. 

On July 23, RBC Capital raised its price target on Intuitive Surgical to $615 from $605, maintaining an “Outperform” rating after the company delivered strong quarterly results.

The mean price target of $597.12 represents a 27.1% premium from ISRG’s current price levels, while the Street-high price target of $685 suggests an upside potential of 45.8%.