Analyst Ratings January 23, 2026

Stifel Affirms Strong Buy Recommendation on Intuitive Surgical After Robust Q4 Results

Analysts commend Intuitive Surgical's substantial revenue growth and optimistic 2026 outlook across procedure and margin metrics

By Ajmal Hussain ISRG
Stifel Affirms Strong Buy Recommendation on Intuitive Surgical After Robust Q4 Results
ISRG

Following an impressive fourth-quarter performance marked by notable revenue and earnings surpassing expectations, Stifel has reaffirmed its Buy rating on Intuitive Surgical with a $670 price target. The company achieved approximately 19% year-over-year revenue expansion and raised financial guidance for the upcoming year, underpinning optimistic market sentiment despite a wide range of analyst price targets.

Key Points

  • Intuitive Surgical's Q4 2025 revenues surged 19% year-over-year to $2.87 billion, surpassing estimates.
  • The company posted EPS of $2.53, well above consensus forecasts, with procedure volume growth of about 17%.
  • 2026 guidance includes procedure growth of 13-15%, gross margins of 67-68%, and operating expense increases of 11-15%.
  • Strong cash position estimated at $9 billion supports projected interest and other income between $355 million and $375 million in 2026.

Stifel has maintained its Buy rating on Intuitive Surgical (NASDAQ:ISRG), assigning a price target of $670, subsequent to the company unveiling its financial results for the fourth quarter of 2025. The surgical robotics leader, valued at roughly $188 billion, currently trades above InvestingPro's Fair Value estimate, with analyst price forecasts spanning from $378 to $750.

In the quarter, Intuitive Surgical reported revenue totaling $2.87 billion, indicating an approximate 19% increase compared to the same quarter in the previous year. This revenue figure notably exceeded both Stifel's and consensus forecasts, which were set at $2.72 billion.

Earnings per share (EPS) also outperformed expectations, reaching $2.53—well above Stifel's forecast of $2.24 and the consensus estimate of $2.25. Procedure volume expanded by circa 17%, slightly surpassing anticipated growth levels.

Looking ahead, Intuitive Surgical upheld its procedure growth guidance for 2026 within a range of 13% to 15%. Complementing this outlook, the company disclosed additional financial parameters, including projected gross margins between 67% and 68%, alongside anticipated operating expense increases ranging from 11% to 15%.

The firm also outlined expectations for interest and other income in 2026 to fall between $355 million and $375 million, supported by a healthy cash reserve amounting to approximately $9 billion.

Recent quarterly developments emphasize Intuitive Surgical's capacity to surpass market expectations: the company recorded 19% revenue growth, bolstered by about a 20% increase in systems revenue. This growth reflected an 8% rise in placements coupled with strong average selling prices.

Market analysts responded favorably to the earnings report. Truist Securities reiterated a Buy rating with a $650 price target, highlighting a 90 basis point enhancement in gross margin guidance for 2026. RBC Capital sustained its Outperform rating, noting quarterly revenue and EPS beat estimates by 4% and 11%, respectively. Piper Sandler raised its price target to $620, citing robust margin performance, while Raymond James increased its target to $615, emphasizing stronger-than-anticipated margins and earnings. Conversely, Evercore ISI reduced its price target to $550, retaining an “In Line” rating despite recognizing impressive growth in systems revenue and da Vinci 5 placements.

These diverse analyst responses collectively point to a broadly positive market outlook for Intuitive Surgical, underpinned by strong financial health and promising future performance indicators.

Risks

  • Operating expenses are forecasted to rise by 11-15%, which could pressure margins if revenue growth slows.
  • Although the revenue and earnings beats were strong, the wide range of analyst price targets reflects varied market expectations and potential valuation uncertainty.
  • Interest and other income projections rely on a substantial cash base, which exposes the company to fluctuations in investment income due to market conditions.

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