VALUATION HIGHLIGHTS

1. Intuitive Surgical Products constitute 83% of the Trefis price estimate for Intuitive Surgical's stock.
2. Intuitive Surgical Services constitute 15% of the Trefis price estimate for Intuitive Surgical's stock.

WHAT HAS CHANGED?

Latest Earnings: Second Quarter Fiscal 2026

Intuitive Surgical reported total revenue of $2.89 billion, representing a 19% increase year-over-year compared with $2.44 billion in the prior-year period. Non-GAAP diluted earnings per share came in at $2.80, up 28% from $2.19 last year. Growth was primarily driven by a 15% expansion in worldwide da Vinci procedure volume, strong uptake of the newly launched da Vinci 5 system, and a 12% expansion of the total installed platform base to 11,710 systems.

Note: Intuitive Surgical's FY'25 ended on December 31, 2025. Q2 FY'26 ended on June 30, 2026.

Next-Generation da Vinci 5 Placements Accelerate

The company accelerated the commercial placement of its advanced da Vinci 5 platform, installing 246 units during the quarter compared to 180 units in the second quarter of 2025. This rapid upgrade cycle highlights high institutional demand for advanced surgical workflows, analytics, and enhanced force-feedback capabilities despite temporary macroeconomic caution across near-term hospital capital spending budgets.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Intuitive Surgical's value that present opportunities for upside or downside to the current Trefis price estimate:

Robotic Surgical Systems

• Procedure Growth Trajectory: Worldwide da Vinci procedure growth guidance remains anchored around a 13.5% to 15.5% range for the full year. If global adoption tracks toward the upper bound or exceeds expectations due to rapid expansion in general surgery and thoracic procedures, it will provide substantial upside to recurring instrument revenues.
• Ambulatory Surgery Center Expansion: Increasing placement of refurbished older-generation systems and flexible usage-based operating leases within regional ambulatory surgery centers provides an expanded footprint. Faster onboarding of these cost-conscious networks could generate upside compared to traditional multi-million dollar upfront purchase assumptions.

For additional details, select a division from the interactive Trefis split for Intuitive Surgical at the top of the page.

BUSINESS SUMMARY

Intuitive Surgical designs, manufactures, and markets robotic-assisted surgical systems and endoluminal technologies, creating an integrated ecosystem of digital instruments, services, and multi-generational platforms for minimally invasive care.

SOURCES OF VALUE

The Instruments and Accessories segment commands the highest proportion of corporate value due to the highly predictable and recurring revenue streams tied directly to active surgical utilization.

Massive Global Installed Base Moat

With over 11,700 systems embedded in clinical institutions worldwide, the platform creates strong systemic switching costs and a highly captive market for proprietary consumables.

Next-Generation Technology Integration

The commercial rollout of the da Vinci 5 platform introduces integrated sensing and data analytics tools that improve operating room efficiency, deepening institutional loyalty.

KEY TRENDS

Evolution of Soft-Tissue Automation Platforms

The healthcare sector is seeing a massive influx of data-driven surgical tech, with rising clinical demand for artificial intelligence insights, real-time feedback, and automated workflow tracking.

Flexible Capital Leasing Frameworks

To counteract domestic hospital budget restrictions, management is increasingly shifting its system placement mix toward operational and usage-based lease structures to secure volume growth without large capital constraints.