Intuitive Surgical, Inc. (NASDAQ:ISRG) reported robust fourth-quarter financial results that surpassed market expectations, yet its shares remained essentially unchanged on the trading day following the announcement. The medical device company, known primarily for its da Vinci surgical systems, posted adjusted earnings per share of $2.53, exceeding the consensus estimate of $2.26. Total revenue for the quarter reached $2.86 billion, beating the anticipated $2.74 billion figure.
The company's performance was driven by a substantial increase in global procedures during the quarter, which rose approximately 18% year over year. This growth was supported by widespread gains across both the da Vinci robotic surgical platform and the Ion endoluminal system. Specifically, procedures involving the da Vinci system climbed about 17%, while Ion procedures experienced a significant 44% increase relative to the same quarter in the previous year.
Intuitive Surgical also reported a rise in new system placements during the period, with a notable uptick in deployments of its advanced da Vinci 5 models. The installed base for da Vinci systems expanded by 12% year over year, whereas the Ion installed base grew 24% compared to the prior year's quarter.
The company attributed its strong fourth-quarter results to increased procedure volumes, higher system placements, and ongoing expansion of its installed base. From a profitability standpoint, Intuitive Surgical recorded GAAP income from operations of $864 million for the quarter ended 2025, up from $735 million in the same period a year earlier. On a non-GAAP basis, operating income rose to $1.07 billion, representing growth from $930 million a year prior.
Financial stability was further demonstrated by the company's cash position, which stood at $9.03 billion at the end of the quarter. This represented an increase of $600 million over the third quarter, largely fueled by operational cash flow, though partially offset by share repurchase activities and capital investments.
In reaction to the latest results, several analysts adjusted their price targets for Intuitive Surgical stock. Bernstein analyst Lee Hambright maintained an Outperform rating and increased the price target from $740 to $750. Conversely, Evercore ISI Group's Vijay Kumar held an In-Line rating but lowered his price target from $580 to $550. BTIG's Ryan Zimmerman kept a Buy rating with a $616 price target.
Despite exceeding earnings and revenue forecasts, Intuitive Surgical's shares saw little movement, trading marginally down by 0.10% to $525.64 at the time of this report. This limited price reaction suggests that the market had largely anticipated the strong quarterly performance. The mixed responses from analysts reflect varying perspectives on the stock's near-term valuation and growth trajectory amid shifting market dynamics.