Is Intuitive Surgical, Inc. (ISRG) A Good Stock To Buy Now?

Is ISRG a good stock to buy? We came across a bullish thesis on Intuitive Surgical, Inc. on Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we will summarize the bulls’ thesis on ISRG. Intuitive Surgical, Inc.'s share was trading at $451.29 as of April 21st. ISRG’s trailing and forward P/E were 59.16 and 46.51 respectively according to Yahoo Finance.

Intuitive Surgical (ISRG) is a global leader in robotic-assisted surgery, combining advanced robotics, 3D visualization, and precision instruments to enable minimally invasive procedures, and has established a dominant position with 70–80% market share in soft-tissue robotics. The company operates a highly durable razor-and-blade model, where roughly 85% of revenue is recurring from instruments, accessories, and service contracts, creating strong visibility, high margins, and long-term compounding potential.

Its installed base exceeds 11,000 systems, with over 3.1 million procedures performed in 2025 alone, reflecting sustained high-teens growth driven by increasing adoption, higher utilization, and expanding clinical indications. Recent innovations, particularly the da Vinci 5 platform, are enhancing system capabilities, unlocking new procedures such as cardiac surgery, and introducing software-driven upgrades and subscription layers that further deepen recurring revenue streams. Despite emerging competition and localized pressure in China, Intuitive’s moat remains significant, supported by switching costs, extensive clinical data, surgeon training ecosystems, and unmatched procedural breadth.

Financially, the company delivered strong 2025 results with 21% revenue growth, expanding margins, and $2.5 billion in free cash flow, supported by a pristine balance sheet with $9 billion in cash and no debt. While shares have corrected meaningfully, the underlying business remains resilient with a long runway, as less than 5% of eligible surgeries globally are performed robotically.

This creates a compelling long-term opportunity, with consistent double-digit growth driven by demographic tailwinds, rising surgical volumes, and continued technological advancement, positioning Intuitive Surgical as a best-in-class compounder in healthcare.

Previously, we covered a bullish thesis on Intuitive Surgical, Inc. (ISRG) by Kontra Investment Xchange in December 2024, which highlighted the company’s leadership in robotic surgery, strong da Vinci adoption, and long-term growth driven by low market penetration and expanding applications. ISRG’s stock price has depreciated by approximately 16.73% since our coverage. Daan | InvestInsights shares a similar view but emphasizes on recurring revenue strength and da Vinci 5 innovation.

Intuitive Surgical, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 109 hedge fund portfolios held ISRG at the end of the fourth quarter which was 99 in the previous quarter. While we acknowledge the risk and potential of ISRG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISRG and that has 10,000% upside potential, check out our report about this cheapest AI stock.