Valued at a market cap of $199.7 billion, Intuitive Surgical, Inc. (ISRG) develops, manufactures, and markets robotic systems designed to improve the quality and accessibility of minimally invasive surgery. The Sunnyvale, California-based company’s flagship product, the da Vinci Surgical System, enables surgeons to perform complex procedures with enhanced precision and control through small incisions. 

This healthcare giant has outpaced the broader market over the past 52 weeks. Shares of Intuitive Surgical have rallied 39.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. Moreover, on a YTD basis, the stock is up 6.7%, compared to SPX’s 1% return. 

Zooming in further, ISRG has also considerably outperformed the SPDR S&P Health Care Equipment ETF’s (XHE) 4.8% decline over the past 52 weeks and 5.9% downtick on a YTD basis. 

On Apr. 22, ISRG delivered its Q1 results, and shares of the company surged 1.9% in the following trading session. Its overall revenue of $2.3 billion improved 19.2% from the year-ago quarter, with instruments and accessories revenues rising by 18% year-over-year to $1.4 billion. An increase in da Vinci procedure volume, more system placements, and a larger installed base of da Vinci systems supported its robust top line growth. Moreover, its adjusted earnings climbed 20.7% year-over-year to $1.81 per share. However, on the downside, due to the impact of tariffs, the company revised its fiscal 2025 adjusted gross profit margin guidance downward, now expecting it to range between 65% and 66.5% of revenue.

For the current fiscal year, ending in December, analysts expect ISRG’s EPS to decline 3.4% year over year to $6.26. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. 

Among the 28 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 18 “Strong Buy,” two “Moderate Buy,” and eight “Hold” ratings. 

This configuration is slightly less bullish than three months ago, with 19 analysts suggesting a “Strong Buy” rating. 

On Apr. 27, Raymond James Financial, Inc. (RJF) analyst Jayson Bedford reiterated a “Buy” rating on ISRG but lowered its price target to $592, which indicates a 6.3% potential upside from the current levels. 

The mean price target of $589.96 represents a 5.9% premium from ISRG’s current price levels, while the Street-high price target of $675 suggests a upside potential of 21.2%.