INTUITIVE SURGICAL, INC.

Red flags

• International revenue represented 32% of 2025 revenue, leaving the company exposed to tariffs, foreign regulation, currency movements, and geopolitical disruption.
• The company reported fewer system placements in China than anticipated in 2025, with the shortfall attributed to anti-corruption scrutiny, competitive dynamics, and industrial-policy measures; the ongoing impact remains uncertain.
• Approximately $2.53 billion of purchase commitments and contractual obligations were outstanding at December 31, 2025, with $2.37 billion due within one year; about one-third were facilities-related.
• A significant majority of instruments and accessories sold by the company are manufactured in Mexico, creating direct exposure to potential U.S. tariffs and cross-border supply-chain disruption.
• The company faces multiple product-liability lawsuits alleging injuries or deaths following procedures using da Vinci systems, including claims involving alleged product defects and inadequate training.