Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 7 Sept 2026
ISRG· Healthcare
Intuitive Surgical
Intuitive Surgical's strong sector-leading margins are offset by a high valuation that demands future growth.
Buffett fit
Partial fit
Owner
63
Durability
68
Management
79
Price
0
Score updated 29 Oct 2026 · analysis from 7 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning 100% of Intuitive Surgical would mean capitalizing on its high-margin business model and strong sector position.
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Intuitive Surgical's durability is supported by its sector-leading and a 5-year EPS CAGR of 29.18%.
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Management has maintained a stable share count with a CAGR of 0.06% and a yield of 0.71%.
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The current yield of 2.01% is well below the 8-10% threshold for a no-brainer entry.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 1 of 29.3% is top-quintile in the healthcare sector.
- 2Net margin of 28.4% is significantly above the sector's top-quintile cutoff of 12.8%.
- 3 of 13.4% is top-quintile within the healthcare sector.
- 4Debt-free balance sheet with a net debt/EBITDA of -0.93.
Concerns
7- 1 ratio of 42.8 suggests high expectations for future growth.
- 2 yield of 2.01% is below the desired 8-10% range.
- 3 of 66.0% is below the sector's top-quintile cutoff of 77.9%.
- 4At least one year of losses in the past five years raises durability concerns.
Price history
$444+23.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Intuitive Surgical generates revenue through its da Vinci Surgical System, which facilitates minimally invasive surgeries. The company also offers the Ion endoluminal system for diagnostic procedures. With a of 66.0%, the business benefits from high-margin product sales and from instruments and accessories. The of 29.3% underscores efficient cost management, making it a profitable enterprise.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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