Intuitive Surgical's 18.8% Revenue Surge Fails to Offset 10.1% Stock Slide Amid Valuation Concerns and 209th Trading Rank

Market Snapshot

On February 27, 2026, Intuitive SurgicalISRG-0.66% (ISRG) closed at $503.51, down 0.66% from its previous close of $506.88. The stock traded with a volume of 1.63 million shares, ranking 209th in trading activity that day. ISRG’s 52-week range is $425.00 to $603.88, with a market capitalization of $180.01 billion. Despite a 18.8% year-over-year revenue increase in Q4 2025, the stock has declined 10.1% over the past year, raising questions about its valuation. Analysts note a P/E ratio of 64.24 and a PEG ratio of 3.90, suggesting potential overvaluation despite strong long-term growth metrics.

Key Drivers

Intuitive Surgical’s Q4 2025 earnings report provided mixed signals. The company reported $2.53 per share (EPS), exceeding the $2.27 consensus estimate by $0.26, with revenue of $2.87 billion surpassing analyst expectations of $2.72 billion. Year-over-year, revenue grew 18.8%, and net margin stood at 28.38%. However, the stock’s recent decline reflects broader concerns about its valuation. A P/E ratio of 64.24 and a PEG ratio of 3.90 indicate that the stock trades at a premium relative to earnings growth, deterring some investors despite its dominant position in robotic-assisted surgery.

Insider transactions also weighed on sentiment. Executive Vice President Myriam Curet sold 421 shares at $494.96, reducing her ownership by 50.72%, while Director Gary S. Guthart sold 2,800 shares at $531.52, trimming his stake by 15.12%. These sales, disclosed via SEC filings, may signal internal skepticism about short-term price momentum. Total insider sales over 90 days reached $30.8 million, further fueling caution among shareholders.

Institutional activity, however, countered some of the downward pressure. Handelsbanken Fonder AB and US Bancorp increased their holdings, with the latter boosting its stake in ISRGISRG-0.66%. DNB Asset Management also raised its position, citing confidence in the company’s long-term growth. These moves highlight institutional recognition of Intuitive Surgical’s leadership in minimally invasive surgery and its expanding product portfolio, including the da Vinci surgical system and Ion endoluminal technology.

Analyst sentiment remains divided. Zacks Investment Research upgraded Intuitive Surgical to a “Strong Buy” (Zacks Rank #1), citing its 15.7% long-term earnings growth estimate and consistent outperformance of consensus estimates. Conversely, UBS lowered its price target from $600 to $570, reflecting concerns about near-term valuation. The stock’s beta of 1.65 underscores its volatility relative to the market, amplifying sensitivity to macroeconomic shifts and sector-specific risks.

The broader healthcare sector context also influences ISRG’s trajectory. Competitors like Cardinal Health (CAH) and Align Technology (ALGN) show mixed performance, but Intuitive Surgical’s dominance in robotic surgery remains unmatched. Its 52-week moving average of $531.21 and 200-day average of $511.26 suggest technical support near $500, though further declines could test the $425.00 level. With a projected 6.43 EPS for 2026, the company must balance innovation in AI-driven surgical tools with cost management to justify its premium valuation.

In conclusion, Intuitive Surgical’s stock performance reflects a tug-of-war between strong fundamentals and valuation concerns. While institutional buying and analyst optimism support its long-term potential, insider sales and high multiples create near-term headwinds. The company’s ability to maintain revenue growth and innovate in a competitive landscape will be critical in determining whether the stock regains its upward momentum.