Intuitive Surgical's stock has fallen over 30% this year, yet the company continues to grow its installed base of surgical robots and recurring revenue from instruments and services. The da Vinci system fleet expanded 12% in Q2 2026, with recurring revenue now making up 85% of total revenue and gross margins improving. The new da Vinci 5 platform is in early adoption with significant upgrades planned, supporting long-term growth. With a strong balance sheet and free cash flow growth, the company remains a leader in surgical robotics despite tariff risks and some procedural growth slowdown. Investors see it as a durable compounder with a wide moat and a hardware refresh cycle that could drive value over decades.
