← All companies ← IRWD Manual ISSC → ← IRTC Medical Devices & Equipment ITGR →

ISRG, Intuitive Surgical Inc.

Medical Devices & Equipment consumer brand

Intuitive Surgical makes robotic-assisted systems that let a surgeon operate through small incisions while seated at a console, sold mainly to hospitals under the da Vinci and Ion names. It places the system once, then sells the instruments and accessories that each procedure consumes, plus service contracts and surgeon training. Most of its revenue comes not from the systems themselves but from those per-procedure instruments and accessories — the placed system is the razor, and every operation sells the blades.

By combining ingenuity and intelligent technology, we expand the potential of physicians to heal without constraints.

Among other capabilities, these products and services can augment the skills and improve the efficiency of clinicians and care teams while providing decision support and learning that can help deliver differentiated clinical and economic value for patients, providers, and payers when compared to the next best available treatment options.

Latest annual: FY2025 10-K

ISRG · Intuitive Surgical Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$10.1B

+20.5% YoY · 18% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $10.6B 5-yr avg $7.5B

Gross margin 66% 5-yr avg 67%

Operating margin 30.5% 5-yr avg 27.9%

ROIC 17% 5-yr avg 15%

Owner-earnings margin 27% 5-yr avg 24%

Free cash flow margin 27% 5-yr avg 19%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Instruments and accessories (60%), Systems (25%) and Services (16%).
What moves the needle: The business rests on the installed base: each system placed in a hospital pulls a stream of instrument and accessory sales for as long as surgeons use it, so the test is the size of that base and whether the recurring pull-through holds its price. Watch the switching costs the filing implies — a hospital that trains its surgeons on one platform does not lightly retrain them on another — and watch whether rival robots, which the filing names as a pricing threat, prove cheaper or more effective enough to break that habit. The bad case is in the record: surgical robotics is no longer a one-firm field, much of the demand turns on what payers and governments agree to reimburse, and regulators hold broad compliance and enforcement power over the product. The margins and returns that show whether the franchise is intact are in the record below.
Is it a good business?: Return on capital has run in the teens (median 16%, above 15% in 7 of 10 years). Owner earnings agree: roughly 29% of revenue reaches owners as cash, consistently. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Drafted from the company's filings and reviewed by hand; every number is shown in full in the sections below.

Where the money comes from

read the 10-K →

Instruments and accessories is 60% of revenue, with Systems the other meaningful line at 25%.

Revenue by product line, FY2025

Instruments and accessories60%$6.0B
Systems25%$2.5B
Services16%$1.6B

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$2.7B	$3.1B	$3.7B	$4.5B	$4.4B	$5.7B	$6.2B	$7.1B	$8.4B	$10.1B	$10.6B	RevenueRevenue
70%	70%	70%	69%	66%	69%	67%	66%	67%	66%	66%	Gross marginGross mgn
26%	26%	26%	26%	28%	26%	28%	28%	26%	24%	23%	SG&A / revenueSG&A/rev
9%	10%	11%	12%	14%	12%	14%	14%	14%	13%	13%	R&D / revenueR&D/rev
$950M	$1.1B	$1.2B	$1.4B	$1.0B	$1.8B	$1.6B	$1.8B	$2.3B	$2.9B	$3.2B	Operating incomeOp. inc.
35.1%	33.9%	32.2%	30.7%	24.1%	31.9%	25.3%	24.8%	28.1%	29.3%	30.5%	Operating marginOp. mgn
$738M	$671M	$1.1B	$1.4B	$1.1B	$1.7B	$1.3B	$1.8B	$2.3B	$2.9B	$3.0B	Net incomeNet inc.
25%	39%	12%	8%	12%	9%	17%	7%	13%	13%	16%	Effective tax rateTax rate
											Cash flow & returns
$1.1B	$1.1B	$1.2B	$1.6B	$1.5B	$2.1B	$1.5B	$1.8B	$2.4B	$3.0B	$3.4B	Operating cash flowOp. cash
$71M	$82M	$106M	$157M	$221M	$280M	$326M	$382M	$439M	$600M	$600M	DepreciationDeprec.
$100M	$182M	($325M)	($274M)	($192M)	($344M)	($671M)	($959M)	($1.0B)	($1.2B)	($1.0B)	Working capital & otherWC & other
$54M	$191M	$187M	$426M	$342M	$340M	$532M	$1.1B	$1.1B	$540M	$527M	CapexCapex
2.0%	6.1%	5.0%	9.5%	7.8%	5.9%	8.6%	14.9%	13.3%	5.4%	5.0%	Capex / revenueCapex/rev
$1.0B	$1.1B	$1.1B	$1.4B	$1.3B	$1.7B	$1.2B	$1.4B	$2.0B	$2.5B	$2.8B	Owner earningsOwner earn.
38.2%	33.8%	28.6%	32.2%	29.0%	30.6%	18.7%	20.1%	23.7%	24.7%	26.8%	Owner earnings marginOE mgn
$1.0B	$953M	$982M	$1.2B	$1.1B	$1.7B	$958M	$750M	$1.3B	$2.5B	$2.8B	Free cash flowFCF
38.2%	30.4%	26.4%	26.2%	26.2%	30.6%	15.4%	10.5%	15.6%	24.7%	26.8%	Free cash flow marginFCF mgn
$0	$0	$88M	$60M	$38M	$23M	$13M	$9M	$1M	$14M	$542M	AcquisitionsAcquis.
$43M	$2.3B	$0	$270M	$134M	$0	$2.6B	$416M	$0	$2.3B	—	BuybacksBuybacks
15%	16%	18%	18%	11%	16%	14%	16%	14%	18%	17%	ROICROIC
13%	14%	17%	17%	11%	14%	12%	14%	14%	16%	17%	Return on equityROE
13%	14%	17%	17%	11%	14%	12%	14%	14%	16%	17%	Retained to equityRetained/eq
											Balance sheet
$4.8B	$3.8B	$4.8B	$5.8B	$6.9B	$8.6B	$6.7B	$7.3B	$8.8B	$9.0B	$8.0B	Cash & investmentsCash+inv
$430M	$508M	$682M	$645M	$646M	$783M	$942M	$1.1B	$1.2B	$1.5B	$1.6B	ReceivablesReceiv.
$182M	$241M	$409M	$596M	$602M	$587M	$893M	$1.2B	$1.5B	$1.8B	$1.9B	InventoryInvent.
$69M	$83M	$101M	$124M	$82M	$121M	$147M	$189M	$193M	$255M	$333M	Accounts payablePayables
$544M	$667M	$991M	$1.1B	$1.2B	$1.2B	$1.7B	$2.2B	$2.5B	$3.1B	$3.2B	Operating working capitalOper. WC
$3.3B	$2.8B	$4.3B	$4.7B	$6.6B	$5.8B	$6.3B	$7.9B	$7.1B	$9.8B	$8.8B	Current assetsCur. assets
$597M	$663M	$821M	$1.0B	$965M	$1.1B	$1.4B	$1.7B	$1.7B	$2.0B	$1.9B	Current liabilitiesCur. liab.
5.4×	4.2×	5.3×	4.5×	6.9×	5.1×	4.4×	4.8×	4.1×	4.9×	4.6×	Current ratioCurr. ratio
$201M	$201M	$241M	$307M	$337M	$344M	$349M	$349M	$348M	$370M	$613M	GoodwillGoodwill
$6.5B	$5.8B	$7.8B	$9.7B	$11.2B	$13.6B	$13.0B	$15.4B	$18.7B	$20.5B	$20.1B	Total assetsAssets
($4.8B)	($3.8B)	($4.8B)	($5.8B)	($6.9B)	($8.6B)	($6.7B)	($7.3B)	($8.8B)	($9.0B)	($8.0B)	Net debt / (cash)Net debt
$5.8B	$4.8B	$6.7B	$8.3B	$9.7B	$11.9B	$11.0B	$13.3B	$16.4B	$17.8B	$17.5B	Shareholders’ equityEquity
6.6%	6.7%	7.0%	7.5%	9.1%	7.9%	8.2%	8.3%	8.1%	7.8%	7.7%	Stock comp / revenueSBC/rev
											Per share
354M	349M	356M	358M	361M	366M	362M	357M	362M	363M	360M	Shares out (diluted)Shares
$7.65	$8.99	$10.45	$12.50	$12.07	$15.61	$17.19	$19.93	$23.07	$27.75	$29.41	Revenue / shareRev/sh
$2.09	$1.92	$3.16	$3.85	$2.94	$4.66	$3.65	$5.03	$6.42	$7.87	$8.28	EPS (diluted)EPS
$2.92	$3.04	$2.98	$4.02	$3.50	$4.78	$3.22	$4.01	$5.46	$6.87	$7.88	Owner earnings / shareOE/sh
$2.92	$2.73	$2.76	$3.27	$3.17	$4.78	$2.65	$2.10	$3.60	$6.87	$7.88	Free cash flow / shareFCF/sh
$0.15	$0.55	$0.53	$1.19	$0.95	$0.93	$1.47	$2.98	$3.07	$1.49	$1.46	Cap. spending / shareCapex/sh
$16.34	$13.70	$18.74	$23.06	$26.96	$32.53	$30.50	$37.23	$45.40	$49.14	$48.57	Book value / shareBVPS

Share counts before 2019 are restated ×3 for a stock split, so per-share figures sit on one basis.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+15.4%/yr	+18.1%/yr
Owner earnings / share	+10.0%/yr	+14.4%/yr
EPS	+15.9%/yr	+21.8%/yr
Capital spending / share	+28.8%/yr	+9.5%/yr
Book value / share	+13.0%/yr	+12.8%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked. Share counts on the current split basis.

Share count

363Mpeak FY2021

ROIC

18%low FY2020

Gross margin

66%low FY2020

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$2.5Bowner earningsvs.$2.9Bnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business reported $2.9B of profit but $2.5B of owner earnings: $365M less than the profit line, taken out by capital spending and the timing of cash.

Reported net income$2.9B

Owner earnings$2.5B · 25% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$2.9B	$2.3B	$1.8B	$1.3B	$1.7B
Depreciation & amortizationnon-cash charge added back	+$600M	+$439M	+$382M	+$326M	+$280M
Stock-based compensationreal costnon-cash, but a real cost	+$788M	+$677M	+$593M	+$513M	+$449M
Working capital & othertiming of cash in and out, other non-cash items	−$1.2B	−$1.0B	−$959M	−$671M	−$344M
Cash from operations	$3.0B	$2.4B	$1.8B	$1.5B	$2.1B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$540M	−$439M	−$382M	−$326M	−$340M
Owner earnings	$2.5B	$2.0B	$1.4B	$1.2B	$1.7B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	−$672M	−$682M	−$206M	—
Free cash flow	$2.5B	$1.3B	$750M	$958M	$1.7B
Owner-earnings marginowner earnings ÷ revenue	25%	24%	20%	19%	31%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $788M), owner earnings is nearer $1.7B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$5.9B

Net cash, debt-free

Cash $3.4B + ST investments $2.6B − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $5.9B, on net the company owes nothing, and can act from strength when others can't. It also holds $3.1B in longer-dated marketable securities; counting those, it sits at net cash of $9.0B. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 224d

Long (60+ days)

DSO 55 + DIO 196 − DPO 27 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median 17%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 29%

High through the cycle

10-yr median margin, range 19%–38%; latest $2.5B = operating cash $3.0B − maintenance capex $540M

Industry peers: median 19%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 25% of revenue this year, a 29% median across 10 years. Treating stock comp as the real expense it is (less $788M of SBC) leaves $1.7B.
Are earnings backed by cash? 1.06×

Cash-backed

Cash from ops $3.0B ÷ net income $2.9B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 92%

Returns most of it

Dividends + buybacks $2.3B ÷ Owner Earnings $2.5B

What this means
Of $2.5B Owner Earnings, $2.3B (92%) went back to shareholders, $0 dividends, $2.3B buybacks. Net of $788M stock comp, the real buyback was about $1.5B. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.90×

Maintaining

Capex $540M ÷ depreciation $600M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $10.1B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 4.87×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +175%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $6.57/share (latest year $8.06), the averaged base the calculator's gate runs on, and book value is $50.33/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Operating margin 34% → 27% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about 34% early to 27% lately, median 29% — competition or costs are biting in.
Owner earnings growth +9%/yr

What this means
Owner earnings grew about 9% a year over the record.
Worst year 2020 · 24.1% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“If we fail to obtain protection for the intellectual property rights concerning our AI technologies, or later have our intellectual property rights invalidated or otherwise diminished, our competitors may be able to take advantage of our research and development efforts to develop competing products, which could advers…”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$8.8B

Cash & short-term investments$4.5B
Receivables$1.6B
Inventory$1.9B
Other current assets$752M

Current liabilities$1.9B

Accounts payable$333M
Other current liabilities$1.6B

Current ratio4.61×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.59×stricter: inventory excluded

Cash ratio2.36×strictest: cash alone against what's due

Working capital$6.9Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+23.0%the freshest read on whether the business is still growing

Current ratio, recent quarters5.1× → 4.6×

Deeper floors

Tangible book value$16.7Bequity stripped of goodwill & intangibles

Net current asset value$6.3BGraham's net-net: current assets less all liabilities

Debt incl. operating leases$171M$171M of it operating leases

Deferred revenue$664Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $17.3B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$4.8B · 28%
Buybacks$8.0B · 46%
Retained (debt / cash)$4.5B · 26%

Returned to owners$8.0B
55% of the owner earnings the business produced over the span, $0 as dividends and $8.0B as buybacks.
Average price paid for buybacks$116.75
Across the years where the filing reports a share count, 23M shares were bought for $2.7B, about $116.75 each. Year to year the price paid ranged from $70.83 (2016) to $671.50 (2020); its heaviest year, 2017, paid $103.84 ($2.3B).
Net change in share count1.7%
The diluted count rose from 354M to 360M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained13%
Of the earnings it kept rather than paid out ($6.9B over the span), annual owner earnings (first three years vs last three) grew $913M, so each retained $1 added about 0.13 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$8.1M	$17.5M	$1.7B
2022	$10.3M	$1.6M	$1.2B
2023	$12.4M	$22.7M	$1.4B
2024	$18.2M	$42.6M	$2.0B
2025	$21.0M	$26.4M	$2.5B
2025	$18.1M	$23.8M	$2.5B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership0.6%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$788M
The slice of the business handed to employees in shares this year, 8% of revenue, equal to 27% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Intuitive Surgical Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 4 tests turned up something to look into; the other 2 came back clean.

Look hereIs it less profitable than it was?22.8% vs 33.5%
The owner-earnings margin averaged 33.5% early in the record and 22.8% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid receivables and inventory outpace sales?23% → 33% of sales
Receivables and inventory grew from $613M to $3.5B while revenue grew 291%: working capital is climbing faster than sales (23% of revenue then, 33% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Did the share count rise anyway?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Inventory, Acquisitions as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
BSXBoston Scientific Corporation	$20.1B	69%	14.2%	5%	12%
KLACKLA Corporation	$12.2B	60%	37.2%	38%	30%
ISRGIntuitive Surgical Inc.	$10.1B	68%	30.0%	16%	29%
ZBHZimmer Biomet Holdings Inc.	$8.2B	71%	11.7%	4%	18%
EWEdwards Lifesciences Corporation	$6.1B	76%	25.7%	22%	23%
RMDResMed Inc.	$5.1B	57%	27.1%	17%	19%
DXCMDexCom Inc.	$4.7B	65%	12.1%	10%	17%
ALGNAlign Technology	$4.0B	72%	19.9%	23%	22%
Group median	—	69%	22.8%	16%	21%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Intuitive Surgical Inc. has delivered.

Today’s price $

Through the cycle, Intuitive Surgical Inc. earns about $2.9B on its 28.8% median owner-earnings margin. This year’s 24.7% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($2.9B) Net of stock comp (−$813M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+11%/yr

Owner-earnings growth · ’16→’25+7%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $2.8B on 354M shares outstanding, per the 10-Q cover, as of 2026-04-15; net cash $8.0B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ISRG against another business →

The owners of ISRG: the meeting and the votes →

Cite: Owner Scorecard, "Intuitive Surgical Inc. (ISRG), the owner's record," https://ownerscorecard.com/c/ISRG, data as of 2026-07-09.

Manual order: ← IRWD its page in the Manual ISSC →

Industry order: ← IRTC the Medical Devices & Equipment chapter ITGR →