INTUITIVE SURGICAL INC (ISRG) Stock Analysis

Analysis from 10-Q filed 2025-10-22. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 15.4%. FCF margin 26.8%. D/E 0.0x. Source: 10-Q filed 2025-10-22.

Metric	Value	Context
ROIC	15.4%	Solid returns
FCF Margin	26.8%	Strong cash generation
Debt/Equity	0.0x	Conservative leverage

ROIC 15.4% — Top 25% of sector peers. FCF margin 26.8% — Top 5%.

Explore INTUITIVE SURGICAL INC: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for ISRG: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: INTUITIVE SURGICAL INC earns 15.4% ROIC, Top 25% in Healthcare

ROIC TTM 15.4%, sector median -2.8%, Top 25%. DuPont: NOPAT margin 25.5% × asset turnover 0.5x. Gross margin 66.3%. Operating margin 30.5%. Source: 10-Q filed 2025-10-22.

Metric	ISRG	Rating	Context
Return on Invested Capital (ROIC)	15.4%	Good	Above sector median of -2.8%
Return on Equity (ROE)	17.1%	Good	Efficient use of shareholder equity
Gross Margin	66.3%	Excellent	Strong pricing power
Operating Margin	30.5%	Excellent	Efficient operations

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Cash Flow: INTUITIVE SURGICAL INC generates $2.8B FCF at 26.8% margin, positive NaN/8 quarters

FCF TTM $2.8B. FCF margin 26.8%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-22.

Metric	ISRG	Rating	Context
Free Cash Flow Margin	26.8%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$2.8B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: INTUITIVE SURGICAL INC at 0.0x leverage

Debt/Equity 0.0x. Source: 10-Q filed 2025-10-22.

Metric	ISRG	Rating	Context
Debt to Equity	0.0x	Excellent	Conservative capital structure

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Valuation: INTUITIVE SURGICAL INC trades at 55.1x earnings

P/E 55.1x. EV/Sales 15.0x. FCF yield 1.7%. Source: 10-Q filed 2025-10-22.

Metric	ISRG	Rating	Context
P/E Ratio	55.1x	Warning	Premium valuation
EV/Sales	15.0x	Warning	Growth premium priced in
FCF Yield	1.7%	Warning	Lower cash yield

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Capital Allocation: INTUITIVE SURGICAL INC returns 2.1% shareholder yield

Total shareholder yield 2.1% (buyback 2.1%). Capital returned $3.4B TTM. Source: 10-Q filed 2025-10-22.

Metric	ISRG	Rating	Context
Total Shareholder Yield	2.1%	Adequate	Dividend + buyback yield combined
Buyback Yield	2.1%	Adequate	Active share repurchases
Total Capital Returned (TTM)	$3.4B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	15.4%	Top 25%	-
Free Cash Flow Margin	26.8%	Top 5%	-
Gross Margin	66.3%	Top 50%	1.0x above
Operating Margin	30.5%	Top 25%	13.4x above
Return on Equity (ROE)	17.1%	Top 25%	-
P/E Ratio	55.1x	N/A	-

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Financial Scorecard

Metric	ISRG	Rating	Sector Context
Return on Invested Capital (ROIC)	15.4%	Good	Top 25% of sector (median: -2.8%)
Free Cash Flow Margin	26.8%	Excellent	Top 5% of sector (median: 0.0%)
Gross Margin	66.3%	Excellent	Top 50% of sector (median: 63.7%)
Debt to Equity Ratio	0.0%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	55.1x	Warning	High expectations priced in
Free Cash Flow Yield	1.7%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is INTUITIVE SURGICAL INC's Return on Invested Capital (ROIC)?

INTUITIVE SURGICAL INC (ISRG) has a trailing twelve-month Return on Invested Capital (ROIC) of 15.4%. Sector median -2.8%. Source: 10-Q filed 2025-10-22.

Q: What is INTUITIVE SURGICAL INC's Free Cash Flow Margin?

INTUITIVE SURGICAL INC (ISRG) has a free cash flow margin of 26.8%, generating $2.8 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-22.

Q: What is INTUITIVE SURGICAL INC's P/E ratio and how does it compare to peers?

INTUITIVE SURGICAL INC (ISRG) trades at a P/E ratio of 55.1x, which is above the sector median of N/A. EV/Sales 15.0x. FCF yield 1.7%. Source: 10-Q filed 2025-10-22.

Q: What is INTUITIVE SURGICAL INC's revenue and earnings growth?

INTUITIVE SURGICAL INC (ISRG) grew revenue by 21.4% year-over-year. EPS +20.6% YoY. Source: 10-Q filed 2025-10-22.

Q: Is INTUITIVE SURGICAL INC buying back stock?

INTUITIVE SURGICAL INC (ISRG) repurchased $3.4 billion of stock over the trailing twelve months. This represents a buyback yield of 2.1%. Source: 10-Q filed 2025-10-22.

Q: How does INTUITIVE SURGICAL INC compare to competitors in Healthcare?

Compared to other companies in Healthcare, INTUITIVE SURGICAL INC (ISRG) shows: ROIC 15.4%, sector median -2.8% (Top 25%). FCF margin 26.8%, sector median 0.0% (Top 5%). Gross margin 66.3%, 2.6pp above sector median. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.

Q: What warning signs should I watch for with INTUITIVE SURGICAL INC?

No quantitative warning flags fired for INTUITIVE SURGICAL INC (ISRG) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-22.

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Data Source: Data sourced from 10-Q filed 2025-10-22. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.