Where Will Intuitive Surgical Be in 5 Years?
Key Takeaways
The stock has a long history of making long-term shareholders very wealthy.
Article Overview
Quick insights and key information
5 min read
Estimated completion
investment
Article classification
July 26, 2025
07:00 AM
The Motley Fool
Original publisher
Interestingly, Interestingly, The stock has a long history of making long-term holders very wealthy
Intuitive Surgical (ISRG 1, given the current landscape. 46%) is one of the best success stories you'll find in the healthcare sector
On the other hand, At the same time, The company has helped patients worldwide as a pioneer in robotic-assisted surgery, and its success has driven the stock to returns of over 25,000% since its initial public offering (IPO) in 2000 (noteworthy indeed)
The company's flagship da Vinci system remains its crown jewel today and continues to drive fitable growth from an increasingly larger installed base
Yet the stock has wavered recently, currently sitting in the middle of its 52-week range
Is this a dip worth buying for the next five years, or is Intuitive Surgical losing its edge
Meanwhile, Here is where the stock may go over the coming years
Nevertheless, Image source: Intuitive Surgical
A hefty valuation could be weighing on the price Intuitive Surgical currently trades at a price-to-earnings (P/E) ratio of 75 (quite telling)
Meanwhile, analysts estimate the company will grow earnings by an average of just over 13. 8% annually over the long term
At the same time, The company has a sterling reputation for its long track record of and investment performance; however, it's challenging to justify such a high valuation for the growth Wall Street anticipates
At the same time, the broader S&P 500 healthcare sector is trading near the low end of its 52-week range, which suggests that healthcare stocks aren't particularly at the moment
Furthermore, Although the broader stock market is near all-time highs, individual stocks, entire industries, or market sectors may be hot or cold at any given time, given the current landscape
Nevertheless, In contrast, Sometimes, the simple explanation is the correct one
Market sentiment is working against the healthcare sector, so Intuitive Surgical's expensive valuation appears to be weighing on the stock
Intuitive Surgical still has more growth ahead That said, market dynamics can and will change over time, and five years is a considerable amount of time
Additionally, Top-line and bottom-line growth tend to drive a stock's long-term performance, so it's essential to understand where a company stands in its journey
Intuitive Surgical currently sells two systems: its da Vinci system, available in single- and multi-port configurations, used for a variety of soft tissue cedures, and the Ion, the company's newer system, used for performing minimally invasive peripheral lung biopsies, given current economic conditions
As of June 30, there are 10,488 da Vinci systems installed worldwide, generating recurring revenue for Intuitive Surgical as these systems consume supplies and require servicing over time
The global da Vinci installed base performed 17% more cedures in Q2 than the prior year, indicating that growth remains relatively healthy (no pun int)
Market analysis shows company estimates its core (da Vinci) addressable market at apximately 8 million annual soft tissue cedures, based on the da Vinci systems' current regulatory apvals and capabilities
Meanwhile, Considering da Vinci systems will perform over 3 million cedures this year, it seems that Intuitive Surgical still has room for solid short- and medium-term growth, and that's speaking to organic growth, as in more installed systems and cedures
As a bonus, Intuitive Surgical has zero debt, is highly fitable, and has $4
Additionally, 5 billion in cash
Management could lean more into repurchases to help grow its earnings per
Given all of this, the 13% annualized growth rate Wall Street anticipates seems achievable (which is quite significant)
Where might the stock price be in five years, given the current landscape
Investors can extrapolate this growth rate to see where the stock may trade over time
Additionally, 8% growth rate to Intuitive Surgical's trailing-12-month earnings per of $6
Nevertheless, 82, the company's earnings would grow something this: 2026: $7, in today's financial world. 76 2027: $8. 83 2028: $10. 05 2029: $11. 44 2030: $13. 02 The stock has averaged a P/E ratio of 62 over the past 10 years, so here is where the stock may trade in five years, based on its current valuation and some other scenarios: Price-to-Earnings Ratio July 2030 Price Total Upside or Downside 75 $976 91% 65 $846 66% 55 $716 40% 45 $586 15% 35 $456 (11%) Calculations by author (fascinating analysis)
Nevertheless, If Intuitive Surgical reverts closer to its long-term averages, the current valuation could easily continue to weigh on the stock, in today's financial world
Furthermore, Therefore, investors may want to err on the side of caution and focus on the lower valuations
Nevertheless, If the broader market stumbles, Intuitive Surgical could even drop to a P/E ratio below its long-term norms
It's always good to build a margin of safety into these exercises, amid market uncertainty
Intuitive Surgical hasn't lost its edge, but it is an overvalued stock
Investors may want to prepare for a five-year period in which the stock ders underwhelming returns, in case Intuitive Surgical's valuation returns to a more appriate level for its expected growth
Nevertheless, The Author Justin Pope is a contributing Stock Market Analyst at The Motley Fool covering all market sectors, with a focus on information nology, consumer discretionary, consumer staples, and industrials
At the same time, Prior to The Motley Fool, Justin was a manager for an industrial company
In his free time, Justin enjoys rooting for mediocre sports teams (something worth watching), considering recent developments
His eternal optimism has enabled him to take the stock market's occasional lashings in stride, in today's market environment
Nevertheless, Nevertheless, TMFbeardedFi Justin Pope has no position in any of the stocks mentioned
Additionally, Additionally, The Motley Fool has positions in and recommends Intuitive Surgical (which is quite significant) (this bears monitoring)
On the other hand, The Motley Fool has a disclosure policy.
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