Should You Buy Shares of Intuitive Surgical In February?

Intuitive Surgical (NASDAQ: ISRG) ended 2025 connected a beardown note. The tech/healthcare institution placed 532 of its da Vinci surgical robots successful the 4th quarter, up from 493 successful the last 4th of 2024. There are present 11,106 da Vinci systems operating astir the world, up 12% from the erstwhile year. But the large communicative isn't the robots.

From a big-picture perspective, Intuitive Surgical makes the da Vinci surgical robotic system. So, the information that it is selling much robots is bully news. But erstwhile you excavation successful a little, you'll find that selling the existent surgical robot accounted for lone astir 25% of income successful 2025. That's not a fluke; da Vinci income made up astir 24% of the income statement's apical enactment in 2024.

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The remainder of the aesculapian instrumentality company's gross comes from services, instruments, and accessories. Services are the smallest portion of the business, astatine astir 15% of revenue. So, the biggest concern is selling instruments and accessories, which relationship for astir 60% of wide sales.

That said, astir 75% of the company's gross is recurring successful nature. That's an annuity-like income watercourse that grows with each caller da Vinci portion installed. Recurring gross is the existent flywheel of the business, since robots request attraction and parts implicit time. Notably, much usage means much recurring revenue.

This is wherefore it is important to cognize that 18% much procedures were performed with the company's da Vinci strategy successful 2025 than successful 2024. That's good supra the maturation complaint of the installed base, showing beardown diligent request for surgical robots, too. The institution presently projects country maturation of up to 15% successful 2026.

There are aboriginal catalysts to see present arsenic well, with artificial quality a large opportunity. The institution is already integrating AI into its products to assistance surgeons. In precocious 2025, the institution received FDA support for an AI instrumentality that provides real-time ocular enhancements for doctors performing lung biopsies. While this is seemingly a tiny step, it could beryllium a captious tool, fixed that the lungs are perpetually moving. Essentially, immoderate pre-surgery images would beryllium retired of day by the clip the country began. Looking further out, it isn't a agelong to deliberation that AI could, someday, execute country each connected its own.

Still, Intuitive Surgical's strengths and opportunities haven't gone unnoticed connected Wall Street. The banal is trading with a price-to-earnings ratio of astir 67x. For comparison, the S&P 500 index (SNPINDEX: ^GSPC), which is trading adjacent all-time highs, has a P/E ratio of 28 times. If you person a worth bias, this is not a banal that you volition find interesting.