Intuitive Surgical, Inc. (ISRG)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Intuitive Surgical as a quality medical-device franchise priced for a lot of future success. The business sells robotic surgical systems and related minimally invasive products, and the filed numbers show real scale: revenue was $10.1B in fiscal year 2025, the year ended 2025-12-31, up from $8.4B in fiscal year 2024, the year ended 2024-12-31; net income was $2.9B versus $2.3B; diluted EPS was $7.87 versus $6.42. The balance sheet is fortress-like, with D/E of 0.01, an Altman Z-score of 30.14, and trailing free cash flow of $3.6B. FairStock's ROE is 17.42%, though ROCE is only 10.51%, so the returns are good but not extraordinary on capital employed. The latest quarter is mixed: in fiscal Q3 2026, the quarter ended 2026-09-30, revenue was $3.0B and net income $522.8M, or $1.49 per diluted share, versus revenue of $2.5B and net income of $704.4M, or $1.95 per diluted share, in fiscal Q3 2025, the quarter ended 2025-09-30. Revenue rose while profit fell in that quarter. At the 2026-10-26 close of $451.63, FairStock's P/E is 51.73, P/B 8.80, EV/EBITDA 33.44, FCF yield 2.3%, PEG 2.14, and Graham Number $94.28, leaving a margin of safety of -379.73%. That is not a Graham bargain. The Lynch category is FAST GROWER, with five-year profit growth of 21.9% and revenue growth of 18.2%, but the recent profit decline matters. I would call it a great business, but the price already assumes much goes right; the FairStock score of 48/100 fits that tension.

In plain English: Intuitive Surgical makes robotic systems and instruments used by surgeons for minimally invasive care. The business looks financially strong, with rising annual revenue and very little debt, but profit in the latest quarter was lower than a year earlier. At $451.63, the shares look expensive compared with the company's earnings and cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer