Intuitive Surgical Shares Surge 2.46% on $920M Volume, Ranking 126th in Market Activity After Q4 Earnings Outperform

Market Snapshot

Intuitive Surgical (ISRG) surged 2.46% on February 25, 2026, with a trading volume of $0.92 billion, marking a 33.04% increase from the previous day. The stock ranked 126th in market activity, reflecting heightened investor interest. This performance followed the company’s Q4 2025 earnings report, which exceeded expectations and drove a 0.56% after-hours price gain to $526.60. The rally was supported by strong revenue growth and operational metrics, as detailed in recent earnings disclosures.

Key Drivers

The recent stock price increase for Intuitive SurgicalISRG+2.46% was primarily fueled by its Q4 2025 earnings report, which demonstrated robust financial performance. The company reported earnings per share (EPS) of $2.53, surpassing the consensus estimate of $2.26, while revenue reached $2.87 billion, exceeding the forecasted $2.75 billion. This 11.95% EPS surprise and 4.36% revenue surprise underscored the company’s ability to outperform expectations, a trend consistent with prior quarters. For instance, in Q3 2025, ISRGISRG+2.46% also beat forecasts with a 20.60% EPS surprise and 4.15% revenue surprise, contributing to a 14.95% stock price increase. The Q4 results reinforced confidence in the company’s market leadership, particularly in robotic-assisted surgeries, and were further amplified by annual revenue growth of 21% to $10.1 billion.

A critical factor behind the stock’s momentum was the significant international expansion of da Vinci procedures. Global procedure growth increased by 18% year-over-year, with a 23% rise in non-U.S. markets. This expansion highlights Intuitive Surgical’s ability to penetrate emerging markets and diversify its revenue streams. The company’s free cash flow also surged to $2.5 billion in 2025, up from $1.3 billion in 2024, while pro forma operating margins reached 37%, reflecting disciplined cost management and pricing power. These financial metrics, combined with a 13-15% projected growth rate for da Vinci procedures in 2026, positioned the company as a resilient player in the medical technology sector.

Management’s guidance and strategic focus further bolstered investor sentiment. The company projected gross margins between 67-68% for 2026, emphasizing platform expansion and digital ecosystem development. CEO Dave Rosa acknowledged ongoing challenges from Chinese competitors and regulatory shifts but stressed that the company remains “in the early stages of its journey.” This optimism, coupled with a history of consistent revenue beats—such as the 26.29% EPS and 9.55% revenue surprises in Q4 2024—suggested a durable growth trajectory. Additionally, the stock’s performance was supported by its strong earnings history, including a 21.34% net income growth in Q4 2024 and a 12.83% increase in 2025.

Despite short-term volatility, such as a 2.75% price drop in Q2 2025 following a 13.47% EPS surprise and 3.83% revenue surprise, the company’s long-term fundamentals remained intact. The recent earnings report and guidance effectively mitigated prior concerns, as evidenced by the 0.56% after-hours price jump. Analysts highlighted the company’s gross margin resilience and international expansion as key differentiators, with management’s emphasis on innovation in robotic-assisted surgeries reinforcing its competitive edge. While challenges such as regulatory scrutiny and competitive pressures persist, Intuitive Surgical’s financial strength and market leadership continue to underpin its stock’s upward trajectory.