Intuitive Surgical: Still Worth the Scalpel?

Alright, folks, settle in. We’re talking about Intuitive Surgical (ISRG 0.71%). Now, I’ve seen a lot of companies come and go, more than I’ve had hot lunches, and this one… well, this one builds robots that do surgery. Surgery! It’s like something out of a bad science fiction movie, except it’s real, and it’s making some people a lot of money. Last year, though, things got a little…complicated. Seems President Trump decided to play hardball with trade, and even robots aren’t immune to tariffs. Who knew?

And now, this year? More trouble. The market threw a bit of a hissy fit after Intuitive Surgical’s latest earnings report. But hold on to your hats, because this dip…this might just be a chance to snatch up some shares before the robots take over everything. Don’t say I didn’t warn you.

Guidance Was Weak (But So Was My Last Attempt at Ballroom Dancing)

Look, the fourth quarter of 2025 wasn’t a disaster. Revenue grew 19% to $2.87 billion. Not bad for a company that lets machines wield scalpels. The number of procedures using their fancy da Vinci system jumped 17%. And earnings per share? Up 17.6% to $2.21. Solid, folks, solid. Like a good borscht. But then…the guidance. Oh, the guidance.

They’re predicting da Vinci procedure volume will grow between 13% and 15% this year. That’s down from 18% in 2025. Now, I’m no mathematician, but that sounds…slower. And slower growth means slower revenue. Investors don’t like that. They want zoom, zoom, zoom, not a leisurely stroll. It’s like expecting a chariot race from a donkey. Intuitive Surgical is already trading at 54 times forward earnings, which is…ambitious. It’s like paying for a yacht and then realizing there’s no ocean.

Why Intuitive Surgical is Still a Buy (Unless the Robots Revolt)

Alright, alright, slow down the panic. Even if growth slows, Intuitive Surgical has a pretty good thing going. Robotic-assisted surgery is still in its infancy, even now. Think about it. And let’s not forget the aging population. More old folks mean more surgeries. It’s a grim thought, but a good one for Intuitive Surgical. It’s like a perpetually refilling cookie jar.

They’ve built a “moat,” as the fancy finance types say. It’s hard for competitors to break in. High switching costs, barriers to entry…it’s all very intimidating. Plus, they’ve got mountains of data proving their robots actually improve patient outcomes. That’s a big deal. Although, I suspect the robots are secretly taking credit. They’re plotting, I tell you, plotting!

Now, about that valuation. It looks a little rich, but if you factor in expected growth, it’s not quite as outrageous. Their price/earnings-to-growth multiple is 3.2. Still a bit pricey, but for a company with this kind of potential and competitive advantage, it’s not a terrible deal. Think of it as a slightly overpriced herring. Still delicious, but you might haggle a little.

Look, there’s bound to be some volatility in the short term. But over the long haul, Intuitive Surgical still looks like a pretty good stock to buy and hold. Unless, of course, the robots decide they’ve had enough and start their own company. Then all bets are off. I’m just saying, keep an eye on those blinking lights.

2026-01-31 15:52

Guidance Was Weak (But So Was My Last Attempt at Ballroom Dancing)

Why Intuitive Surgical is Still a Buy (Unless the Robots Revolt)

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