ISRG Bets on SP Platform to Capture Rising ASC Procedure Volume

Intuitive Surgical’s ISRG da Vinci 5 has emerged as the flagship for complex inpatient procedures, but the company’s SP platform may quietly be carving its niche as the ambulatory surgical center (“ASC”) solution. With outpatient care expanding rapidly across the United States, Intuitive Surgical’s dual-platform strategy may prove decisive in capturing volume growth across hospital and ASC settings.

In second-quarter 2025, SP procedures surged 88% year over year, with utilization growing 30%. Korea and Japan led adoption, demonstrating the platform’s ability to support high-efficiency, high-throughput programs. SP’s streamlined architecture offers a strong fit for ASCs, where compact footprint, fast turnover and cost efficiency matter more than the breadth of indications.

Intuitive Surgical has also begun rolling out SP-enabling tools, such as its stapler and new colorectal indications, aligning with the types of surgeries that are increasingly being performed in outpatient environments.

The economic logic is clear. Hospitals upgrading to da Vinci 5 often cascade older Xi or X systems into ASCs, but SP can deliver a purpose-built option for centers looking to maximize efficiency without the capital burden of a full da Vinci 5. This dynamic positions SP as a complementary rather than competitive platform, while Xi and da Vinci 5 continue to dominate inpatient surgical suites.

As payors and providers push procedures to lower-cost outpatient settings, Intuitive Surgical’s ability to adapt its portfolio will be crucial. SP’s accelerating growth and rising utilization signal that it may evolve into the company’s ambulatory workhorse.

If Intuitive Surgical successfully scales indications and drives down SP costs, the platform may anchor ASC adoption in the years ahead, giving ISRG a two-pronged advantage — da Vinci 5 for hospitals and SP for outpatient centers.

Other Companies With Products for ASC

STERIS STE is leveraging its broad infection prevention and perioperative portfolio to capture growth from the migration of procedures into ASCs. Management emphasized that ASCs require “utility-like” capital — sterile processing systems, surgical infrastructure and consumables — making STERIS a critical partner.

The company’s chemistries, low-temperature sterilization and recurring service contracts align with ASC demand for reliable, scalable and cost-efficient solutions. In addition, training and compliance programs address the staffing and skill gaps common in outpatient facilities. By combining capital, consumables and services, STERIS is positioning itself as an indispensable enabler of ASC growth.

CONMED CNMD is sharpening its focus on ASCs through products designed for efficiency, compliance and high-volume outpatient procedures. Its Buffalo Filter line, including the new PlumeSafe PX5, directly addresses state-mandated smoke evacuation requirements in smaller ORs. AirSeal supports laparoscopic and robotic cases with lower-pressure insufflation that reduces pain and shortens recovery, which are the key ASC priorities.

Meanwhile, BioBrace implants and the Foot & Ankle portfolio capture growing sports medicine and orthopedic procedures shifting to outpatient settings. Together, these platforms position CNMD as a differentiated supplier aligned with ASC economics and surgical trends.

ISRG’s Price Performance, Valuation & Estimates

Shares of Intuitive Surgical have lost 15.5% in the year-to-date period compared with the industry’s decline of 8.7%.

From a valuation standpoint, ISRG trades at a forward price-to-earnings ratio of 49.26, above the industry average. But, it is still lower than its five-year median of 71.63. The company has a Value Score of D.

The Zacks Consensus Estimate for Intuitive Surgical’s 2025 earnings implies an 11.3% rise from the year-ago period’s reported level.

The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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