Assessing Intuitive Surgical (ISRG) Valuation After Q4 2025 Growth And Da Vinci 5 Momentum

Intuitive Surgical (ISRG) is back in focus after its Q4 2025 report showed 18.9% revenue growth, supported by higher procedure volumes and additional da Vinci system placements, along with positive commentary on the new da Vinci 5 platform.

See our latest analysis for Intuitive Surgical.

The Q4 2025 beat and enthusiasm around da Vinci 5 helped lift sentiment in the near term, with a 1 day share price return of 2.46% to US$506.17. However, the 90 day share price return of 11.85% and 1 year total shareholder return of 12.87% show that momentum has cooled after strong multi year gains, even as Intuitive Surgical continues to roll out new systems and expand Ion usage.

If this earnings move has you thinking about where medical technology goes next, it could be worth scanning 28 healthcare AI stocks as a starting list of potential ideas.

With the stock retreating over the past quarter and year, even as revenue and net income growth remain in double digits and analyst targets sit above the current US$506.17 price, is there now a genuine opportunity, or is the market already accounting for the next leg of growth?

Most Popular Narrative: 17.3% Undervalued

With Intuitive Surgical last closing at US$506.17 and the most followed narrative pointing to a fair value of US$611.82, the gap between price and narrative assumptions is hard to ignore.

Ongoing product innovation (including full launch of da Vinci 5, integrated force feedback, and digital/AI case insights), coupled with R&D to expand into adjacent specialties, enhances clinical outcomes and surgeon efficiency supporting future procedure growth, higher system ASPs, and increased recurring instrument and accessory revenues.

Read the complete narrative.

Curious what kind of revenue climb, margin profile, and future earnings multiple would justify that higher fair value? The narrative leans on ambitious growth, steady profitability, and a premium valuation usually reserved for market leaders. The exact mix of those assumptions is where the story gets interesting.

Result: Fair Value of US$611.82 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still pressure points to watch, including tighter hospital budgets in key regions and growing competition in instruments that could weigh on high margin consumables.

Find out about the key risks to this Intuitive Surgical narrative.

Another View: Price Tag Tells a Different Story

While the narrative fair value of US$611.82 suggests upside, the current P/E of 62.9x stands well above the US Medical Equipment industry at 30.8x, peers at 35.1x, and a fair ratio of 37.7x. That premium points to valuation risk. How much optimism are you really paying for?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and valuation questions has you thinking, it makes sense to look at the numbers yourself and decide quickly where you stand. You can get a clearer feel for what is driving sentiment by checking the 3 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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