Robust global uptake of da Vinci procedures powered Intuitive Surgical’s (NASDAQ: ISRG) notable Q1 performance.The company achieved a 17% year-over-year rise in procedure volume, contributing to revenues of $2.25 billion and adjusted earnings per share of $1.81. These results surpassed consensus estimates of $2.19 billion and $1.73, respectively.
Although ISRG’s share price rose following the earnings announcement, we remain optimistic about its long-term growth. We cover this in greater detail below. However, if you seek a potentially less volatile option, the High-Quality portfoliohas delivered robust historical returns, outpacing the S&P 500 by exceeding 91% since inception.
How Did ISRG Perform in Q1?
Intuitive Surgical’s revenue climbed to $2.25 billion in Q1 2025, marking a 19% year-over-year gain, driven mainly by a 17% increase in global da Vinci procedure volume. The quarter saw the placement of 367 da Vinci systems, including 147 of the newly introduced da Vinci 5 systems in the U.S., expanding the total installed base by 15% year-over-year to 10,189 units. Additionally, the operating margin rose by 90 basis points to 25.7%. Together, higher revenue and margin expansion produced a 21% net income increase, with earnings of $1.81 per share, up from $1.50 in the same period last year.
For full-year 2025, Intuitive Surgical forecasts global da Vinci procedure volume growth between 15% and 17%. The company also expects gross margin to decline to 65%–66.5%, down from 69.1% in 2024, and foresees higher operating expenses.
Is ISRG Stock Fairly Valued?
After a robust Q1 report, Intuitive Surgical’s stock climbed immediately. Yet, reviewing its annual returns over the past four years shows pronounced volatility relative to the S&P 500. The stock posted returns of 32% in 2021, –26% in 2022, 27% in 2023, and 55% in 2024.
By contrast, the Trefis High-Quality Portfolio, consisting of 30 stocks, exhibits much lower volatility and has comfortably outperformed the S&P 500 over the same four-year span. This is because HQ Portfolio stocks have delivered stronger returns with lower risk than the benchmark, as shown in HQ Portfolio performance metrics.
In the context of uncertain macroeconomic factors such as tariffs and the trade conflict with China, could ISRG repeat its 2022 underperformance relative to the S&P 500 over the next 12 months — or will it experience a strong rebound? We estimate Intuitive Surgical’s valuation at $558 per share, implying roughly 10% upside.
With a current stock price of $510, Intuitive Surgical’s trailing price-to-earnings (P/E) ratio stands at 67, aligning with its five-year average of 68. Historically, ISRG has traded at high multiples given its limited competition in the robotic surgery sector. This premium could extend further if da Vinci procedure volumes continue their strong growth. Indeed, our analysis — ISRG Stock To $5000? — offers a bullish forecast, projecting significant expansion in ISRG’s market share of surgical procedures.
Although ISRG stock seems to have upside potential, it is useful to compare how Intuitive Surgical’s peers perform on key metrics. You can access further industry-wide comparisons at Peer Comparisons.