
What happened
Intuitive Surgical, which makes da Vinci surgical robots, saw the number of surgeries performed with its robots rise 17% year over year in the first quarter of 2026, outpacing the 12% growth in the number of robots operating worldwide. The company also received FDA clearance in late 2025 for its da Vinci Single Port system to be used in inguinal hernia repair, cholecystectomy, and appendectomy procedures.
Why it matters
Unlike Nvidia, which completes a sale when it ships a chip, Intuitive Surgical generates ongoing annuity-like income from services, instruments, and accessories that support its robots—these streams account for around 75% of the company's revenue. Because the human body changes slowly, da Vinci robots will remain useful far longer than AI chips, which may become obsolete in months or years. At a 50× P/E ratio, Intuitive Surgical appears inexpensive relative to its five-year average P/E ratio of nearly 70%.
What to watch
Intuitive Surgical's growth opportunities include expanded use cases for the da Vinci system as regulatory approvals are granted for new procedures, and the potential to incorporate AI into the da Vinci platform. Each new robot placed into service increases the company's parts and services opportunity.
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