Bernstein SocGen Group has increased its price target for Intuitive Surgical (NASDAQ:ISRG) to $750.00, up from the previous $740.00, while retaining an Outperform rating on the stock. This new target nearly matches the highest analyst price target of $740 for the robotic surgery company, which currently holds a market capitalization of $186.4 billion and trades at a price-to-earnings (P/E) ratio of 69.6.
The upward revision follows Intuitive Surgical's strong quarterly results. The company reported fourth-quarter earnings per share (EPS) of $2.53, marking a 14% increase and surpassing consensus estimates of $2.26 by 12%. These figures came despite a $70 million donation made to the Intuitive Foundation, which negatively impacted earnings by approximately 15 cents per share. Over the trailing twelve months, Intuitive Surgical's diluted EPS stands at $7.56. Analysts are projecting EPS of $8.87 for the fiscal year 2025.
Intuitive Surgical also showcased robust profitability during the quarter. Gross margin reached 67.8%, and operating margin was recorded at 37.3%, exceeding consensus expectations by 90 basis points and 160 basis points, respectively. Investment data from InvestingPro indicates that the company has maintained a solid gross profit margin of 66.4% over the past year, contributing to an overall financial health score of 3.19 out of 5, classified as "GREAT."
Looking ahead to fiscal year 2026, Intuitive Surgical provided favorable guidance. The company anticipates gross margins ranging between 67% and 68%, which aligns closely with the consensus estimate of 67.2%, factoring in an approximate 1.2% revenue impact from tariffs. Additionally, operating expenses are expected to grow between 11% and 15%, compared to the consensus forecast of 14%. Over the last year, the company has demonstrated consistent revenue growth, with a 22.2% increase leading to total revenues of $9.61 billion.
Bernstein SocGen also pointed to Intuitive Surgical's recent U.S. Food and Drug Administration (FDA) clearances for several cardiac procedures using its da Vinci SP (dv5) system equipped with non-force feedback instruments. Current clearances cover approximately 160,000 procedures annually, and the company foresees significant growth opportunities as it obtains approvals in more geographic regions. As a leading entity in the Healthcare Equipment & Supplies sector, Intuitive Surgical is strengthening its competitive positioning through innovation and regulatory advancements.
Additional highlights include Intuitive Surgical's fourth-quarter 2025 earnings report, which substantially exceeded Wall Street's expectations. The company posted EPS of $2.53, surpassing projections of $2.26 by 11.95%. Revenue also outperformed forecasts, with reported figures reaching $2.87 billion against an anticipated $2.75 billion, representing a 4.36% positive surprise. These strong results reflect the company’s successful strategic initiatives and growth in robotic-assisted surgery adoption.
While the stock experienced a modest uptick in after-hours trading following the earnings release, the focus remains on the solid financial performance and favorable outlook highlighted in the recent report.