Shares of Intuitive Surgical (ISRG 0.51%) zoomed 23% higher this week, according to data from S&P Global Market Intelligence. The leader in robotic-assisted surgery released its Q3 earnings on Oct. 21, which beat investor expectations. Revenue growth accelerated, and the company has begun to repurchase heaps of its shares outstanding on the cheap. The stock is now up 124% in the last five years.
Here's why shares of Intuitive Surgical rose this week, and whether you should add the stock to your portfolio right now.
NASDAQ: ISRG
Key Data Points
More Da Vinci systems
The more of its robotic surgery systems are placed in hospitals and medical clinics, the more money Intuitive Surgical makes. It sells the Da Vinci and Ion robotic systems that are used in increasing amounts of surgeries around the world.
Last quarter, Intuitive Surgical placed 427 surgical systems, up from 379 in the third quarter of 2024 and 395 in the second quarter of 2025. This acceleration led to $2.5 billion in quarterly revenue, up 23% year over year and representing an acceleration from 21% revenue growth in the second quarter. Profit margins look strong, with EBIT margin (earnings before interest and taxes) expanding to 29% over the last 12 months and consistently growing since the beginning of 2023.
What's more, Intuitive Surgical repurchased 4 million shares of its common stock for just under $2 billion in the quarter. This timing on shares outstanding shows that Intuitive Surgical management thinks its stock was cheap last quarter, utilizing its cash position of $9.5 billion at the end of last quarter and putting it to good use.
For 2025, Intuitive Surgical is guiding for 17% growth in Da Vinci surgery procedures, which shows the steady penetration of robotic surgeries around the globe. This is a massive tailwind that should remain intact for many decades.
Image source: Intuitive Surgical.
Is Intuitive Surgical stock a buy?
Robotic surgeries are a huge growth sector, and Intuitive Surgical has dominated the market for years. In the last 10 years, its revenue has grown by a cumulative 300%, and should keep growing at a double-digit annual rate for the foreseeable future. If it keeps deploying new Da Vinci systems to hospitals, its revenue will steadily rise.
That does not necessarily mean Intuitive Surgical stock is a slam-dunk buy for investors today. Shares now trade at a price-to-earnings ratio (P/E) of 73, which is near one of its highest levels of the last decade, and more than twice the level of the S&P 500 (SNPINDEX: ^GSPC) average.
Sure, this is a business with a durable growth tailwind, but price still matters when buying a stock. Now is not the time to add Intuitive Surgical to your portfolio.
