Intuitive Surgical, Inc. (ISRG) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Intuitive Surgical, Inc.

Updated on October 21, 2026 · accounts published on October 20, 2026

A fast-growing, highly profitable business with a cash-rich balance sheet

Intuitive Surgical trades at a P/E of 51.9 over the last 12 months, 23 % below its ten-year median but 69 % above its sector median.

• Is Intuitive Surgical expensive or cheap? The P/E is 69 % above the sector median, but the stock has traded lower only 25 % of the time over the past decade.
• How is the business doing? Revenue grew 21 % over the last 12 months, with an operating margin of 28 %, close to its 29 % average since fiscal 2014.
• How strong is the balance sheet? Intuitive Surgical held net cash of $15.78 per share in fiscal 2025, about 3.7 % of the share price, with almost no debt.
• What to expect from the next earnings? Analysts expect EPS of $2.84 for the quarter to be reported on January 28, 2027, after 8 beats in the last 8 quarters.
• Does it invest enough in R&D and turn profit into cash? R&D was 13 % of revenue in fiscal 2025, below the 15 % healthcare benchmark, and free cash flow covered 87 % of net income.

Is Intuitive Surgical expensive or cheap?

Over the last 12 months Intuitive Surgical trades at a P/E of 51.9. That is 23 % below its ten-year median of 67.6 and well short of the decade peak of 120.8. The 249 companies in its sector have a median P/E of 30.7, so it still carries a 69 % premium to them. The stock is 27 % below its 52-week high of $592.85 and down 18 % over 12 months, which means the multiple has shrunk while earnings kept growing. Against its own history the stock looks less stretched than usual. Against its sector it remains one of the dearer names.

How is the business doing?

Over the last 12 months revenue rose 21 % and EPS 23 %, so earnings are growing slightly faster than sales. Profitability is steady but not rising. The operating margin of 28 % sits just under both the 29 % average for fiscal 2014-2025 and the 29 % of fiscal 2025, and the net margin is 26 %. Returns on capital stand out more. A ROIC of 17 % is 10.7 points above the sector median of 6 %. ROIC has stayed above 10 % in 9 of the last 10 fiscal years, and the weakest year was 9.1 % in 2020.

How strong is the balance sheet?

At the end of fiscal 2025 Intuitive Surgical held $16.63 of cash per share against just $0.85 of debt. That leaves net cash of $15.78, equal to 3.7 % of the current price. Net debt to EBITDA of -0.8× is far below the 2.5× ceiling considered healthy in healthcare. Over the last 12 months the current ratio of 3.30 means short-term assets cover short-term obligations more than three times. An Altman Z-score of 47.0 puts the company deep in the safe zone. The Piotroski score of 6 out of 9 is solid but not perfect.

What to expect from the next earnings?

On October 20, 2026 Intuitive Surgical reported EPS of $3.00 against $2.65 expected, a 13 % beat. It has topped estimates in each of the last 8 quarters. The next report is due on January 28, 2027, with consensus at $2.84 per share. Over the last 30 days the full-year 2026 EPS consensus has held at $10.80 among 16 analysts, and revenue forecasts have barely moved, so expectations have been flat for a month. Of the 57 analysts covering the company, 40 recommend buying, 12 holding and 5 selling.

Does it invest enough in R&D and turn profit into cash?

In healthcare the research pipeline is the hidden asset, because expiring patents mean lost revenue. Profits also need to turn into cash. That is why these metrics carry more weight here than in other sectors. In fiscal 2025 Intuitive Surgical spent 13 % of revenue on R&D, short of the 15 % considered healthy. Free cash flow equalled 87 % of net income, just under the 90 % mark. The gross margin of 66 % sits near the 70 % reference for branded pharma. On the other side, EPS compounded 21.5 % a year over fiscal 2020-2025, well above the 8 % healthy threshold, and the ROIC of 17 % over the last 12 months clears the 12 % bar.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.