Barclays has revised its price target for Intuitive Surgical (ISRG, Financial), bringing it down to $635 from the previous figure of $684. This adjustment follows the company's first-quarter earnings report. Despite the lowered target, Barclays maintains an Overweight rating on the stock.
The revised outlook takes into account ongoing tariffs between the United States and China, which are set at 145% and 125%, respectively. Additionally, limited influence from Mexico's tariffs is expected. The firm perceives these tariff discussions as significant enough to clear uncertainties and bolster investment confidence.
Barclays remains optimistic about Intuitive Surgical, citing strong first-quarter performance and robust business fundamentals as key factors supporting its continued endorsement of the stock. Investors are encouraged to consider this stock with increased conviction.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for Intuitive Surgical Inc (ISRG, Financial) is $587.84 with a high estimate of $675.00 and a low estimate of $470.00. The average target implies an upside of 20.48% from the current price of $487.93. More detailed estimate data can be found on the Intuitive Surgical Inc (ISRG) Forecast page.
Based on the consensus recommendation from 33 brokerage firms, Intuitive Surgical Inc's (ISRG, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Intuitive Surgical Inc (ISRG, Financial) in one year is $485.45, suggesting a downside of 0.51% from the current price of $487.93. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Intuitive Surgical Inc (ISRG) Summary page.
ISRG Key Business Developments
Release Date: April 22, 2025
- Revenue: $2.25 billion, a 19% increase year-over-year.
- Da Vinci Procedure Growth: 17% overall; 18.5% on a day-adjusted basis.
- Da Vinci System Placements: 367 systems, a 17% increase from last year.
- Installed Base Growth: 15% increase in the installed base of da Vinci Systems.
- Average System Utilization: Grew 2% year-over-year.
- Gross Margin: 66.4%, down from 67.6% last year.
- Pro Forma Net Income: $662 million or $1.81 per share, up from $541 million or $1.50 per share last year.
- GAAP Net Income: $698 million or $1.92 per share, compared to $545 million or $1.51 per share last year.
- Cash and Investments: $9.1 billion, up from $8.8 billion at the end of last year.
- ION Procedure Growth: 58% increase year-over-year.
- SP Procedure Growth: 94% increase year-over-year.
- Capital Expenditures: $117 million for the quarter.
- Lease Buyout Revenue: $39 million, up from $29 million last year.
- Pro Forma Effective Tax Rate: 22.3%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intuitive Surgical Inc (ISRG, Financial) reported strong procedure growth of 17% in the first quarter, with notable strength in general surgery in the US and regional performance in India, Korea, and the UK.
- The company placed 367 da Vinci systems in the quarter, including 147 da Vinci 5 systems, indicating robust demand for their latest technology.
- Revenue grew by 19% year-over-year, driven by solid procedure growth and capital performance.
- The rollout of da Vinci 5 is progressing well, with 147 systems placed and over 32,000 procedures performed, showcasing successful adoption.
- Intuitive Surgical Inc (ISRG) increased its full-year 2025 procedure growth forecast to a range of 15% to 17%, reflecting confidence in continued strong performance.
Negative Points
- The company faces potential challenges from tariffs, with an expected impact of approximately 1.7% of revenue in 2025, which could increase costs.
- Capital placements outside the US showed mixed performance, with stresses in key markets like Germany, the UK, and Japan due to financial pressures and healthcare spending constraints.
- The trade environment, particularly US-China tariffs, poses risks to future capital sales and may impact the ability to win tenders in China.
- Operating expenses increased by 12% year-over-year, driven by higher headcount and facilities-related costs, which could pressure margins.
- The company is supply-constrained on force-sensing instruments, limiting the ability to meet demand for this technology.
