Is the business good?
How good a business is ISRG?
Intuitive Surgical earns 21% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
21%
Return on invested capital · cost of capital 9.0% · 12 points above what the capital costs: growth creates value
- Operating margin
- 31%
Operating margin · Medical Instruments & Supplies median 5.8% · 12 months to Q2 2026
- Cash conversion
- 1.03×
Cash conversion · 0.77× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 24% |
| FY2021 | 32% |
| FY2022 | 25% |
| FY2023 | 25% |
| FY2024 | 28% |
| FY2025 | 29% |
Details›
- Gross margin12 months to Q2 2026
- 67%
- Operating margin12 months to Q2 2026
- 31%
- Net margin12 months to Q2 2026
- 28%
- Free cash flow margin
- 29%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $11.0B
- Free cash flow, trailing twelve months
- $3.22B
- Net income, trailing twelve months
- $3.14B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 21%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Instruments & Supplies
Ranks #16 of 27 by Smart Score