Intuitive Surgical (NASDAQ: ISRG) saw its stock decline roughly 40% from its early 2025 high, bringing its price-to-earnings ratio down to 42x. This is well below the company's five-year average of 68x, according to a recent analysis.
The company, whose da Vinci system helped create the surgical robotics niche, faces increasing competition from medical device peers Medtronic (NYSE: MDT) and Johnson & Johnson (NYSE: JNJ). In late 2025, Medtronic received US approval for its Hugo surgical robotic system, and in mid-2026, Johnson & Johnson received approval for its OTTAVA system. However, these systems are approved for select types of surgery, not blanket approvals.
Da Vinci systems sold in Q2 2026, up from 395 in Q2 2025.
Despite competition, Intuitive Surgical's installed base and usage continue to grow. In the second quarter of 2026, the company sold 468 da Vinci systems, up from 395 in the same period last year. The total number of da Vinci systems in use worldwide reached 11,710, a 12% increase year over year. Surgeries performed with a da Vinci robot grew 16% year over year in the quarter.
Intuitive Surgical's revenue model is diversified: roughly 25% comes from the sale of da Vinci systems, with the remaining 75% from services (~15%) and instruments and accessories (~60%). This recurring revenue from parts and services is annuity-like and grows with the installed base and usage, supporting the company's financial stability.
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Disclosure: Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Intuitive Surgical and Medtronic, and recommends Johnson & Johnson and options on Intuitive Surgical.
