Intuitive Surgical’s stock decline reflects investor concerns over rising competition, though its recurring revenue remains strong at 75% of total sales.
Intuitive Surgical (ISRG) has fallen 33% in 2026, trimming its market value to $135 billion amid growing competition from Chinese rivals and potential AI-driven disruptors. The stock’s decline contrasts with its 17% annual gains over the past decade, pressuring valuations.
The company’s forward P/E ratio now stands at 35, down from a five-year average of nearly 54. Despite the drop, Intuitive Surgical maintains a global installed base of over 12,000 robotic surgery systems, generating recurring revenue from instruments and servicing.
Analysts note the lower valuation may attract long-term investors, though future growth hinges on navigating competitive threats and sustaining its market dominance.