Stifel has maintained its Buy rating on Intuitive Surgical (NASDAQ:ISRG), assigning a price target of $670, subsequent to the company unveiling its financial results for the fourth quarter of 2025. The surgical robotics leader, valued at roughly $188 billion, currently trades above InvestingPro's Fair Value estimate, with analyst price forecasts spanning from $378 to $750.
In the quarter, Intuitive Surgical reported revenue totaling $2.87 billion, indicating an approximate 19% increase compared to the same quarter in the previous year. This revenue figure notably exceeded both Stifel's and consensus forecasts, which were set at $2.72 billion.
Earnings per share (EPS) also outperformed expectations, reaching $2.53—well above Stifel's forecast of $2.24 and the consensus estimate of $2.25. Procedure volume expanded by circa 17%, slightly surpassing anticipated growth levels.
Looking ahead, Intuitive Surgical upheld its procedure growth guidance for 2026 within a range of 13% to 15%. Complementing this outlook, the company disclosed additional financial parameters, including projected gross margins between 67% and 68%, alongside anticipated operating expense increases ranging from 11% to 15%.
The firm also outlined expectations for interest and other income in 2026 to fall between $355 million and $375 million, supported by a healthy cash reserve amounting to approximately $9 billion.
Recent quarterly developments emphasize Intuitive Surgical's capacity to surpass market expectations: the company recorded 19% revenue growth, bolstered by about a 20% increase in systems revenue. This growth reflected an 8% rise in placements coupled with strong average selling prices.
Market analysts responded favorably to the earnings report. Truist Securities reiterated a Buy rating with a $650 price target, highlighting a 90 basis point enhancement in gross margin guidance for 2026. RBC Capital sustained its Outperform rating, noting quarterly revenue and EPS beat estimates by 4% and 11%, respectively. Piper Sandler raised its price target to $620, citing robust margin performance, while Raymond James increased its target to $615, emphasizing stronger-than-anticipated margins and earnings. Conversely, Evercore ISI reduced its price target to $550, retaining an “In Line” rating despite recognizing impressive growth in systems revenue and da Vinci 5 placements.
These diverse analyst responses collectively point to a broadly positive market outlook for Intuitive Surgical, underpinned by strong financial health and promising future performance indicators.