Intuitive Surgical Reports Q3 Beat, Shares Up 9%

Intuitive Surgical Inc. (NASDAQ:ISRG) is a leader in robotic-assisted surgery, known for its da Vinci Surgical System. The company has seen significant growth, driven by the strong performance of its da Vinci portfolio. In the fourth quarter of 2024, Intuitive Surgical placed a record 493 systems, a 19% increase from the previous year, highlighting the growing demand for its innovative surgical solutions.

The da Vinci 5 system, launched in March 2024, has been a key driver of this growth, with 174 systems placed in the fourth quarter alone. This system, along with the Ion and SP platforms, has contributed to a 36.5% increase in the System segment’s sales, reaching $655 million. The strong market uptake of these systems underscores Intuitive Surgical's robust market position and the increasing adoption of its technology.

Intuitive Surgical's financial performance in the fourth quarter of 2024 was impressive, with revenues reaching $2.4 billion and adjusted earnings per share of $2.21. These figures surpassed market expectations, driven by an 18% year-over-year increase in global da Vinci procedure volume. The company's revenue growth of 25% year-over-year further highlights its strong market presence and the success of its da Vinci systems.

Despite the positive financial results, ISRG's stock experienced a decline. The stock has a high price-to-earnings (P/E) ratio of 90.84 and a price-to-sales ratio of 25.93, indicating that it may be overvalued compared to its earnings and sales. However, the company's strong liquidity position, with a current ratio of 4.30, provides a buffer against potential financial challenges.

For investors seeking diversification, the High-Quality portfolio, which has consistently outperformed the S&P 500, may be worth considering. Intuitive Surgical's strong fourth-quarter results and the increasing adoption of its da Vinci systems position the company well for future growth, despite the challenges it faces in certain international markets.

Medical device leader Intuitive Surgical (NASDAQ:ISRG) delivered better-than-expected fourth-quarter earnings and revenue, driven by strong demand for its Da Vinci surgical robots. Despite the impressive results, shares dropped over 2% in pre-market today as the company revised its 2025 gross profit margin guidance downward.

The company reported adjusted earnings per share of $2.21, significantly surpassing analysts' forecasts of $1.75. Quarterly revenue climbed to $2.41 billion, beating the consensus estimate of $2.2 billion, reflecting robust growth in global procedure volumes.

Looking ahead, Intuitive Surgical projects its non-GAAP gross profit margin to decline to 67%–68% in 2025, compared to 69.1% in 2024. This forecast does not account for potential impacts from new tariffs, which the company cautioned could materially affect results.

The firm also expects global Da Vinci procedures to grow by 13% to 16% in 2025, signaling continued demand for its advanced surgical systems. However, rising costs are set to weigh on profitability, with non-GAAP operating expenses forecasted to increase by 10% to 15% in 2025, up from a 10% rise last year.

While Intuitive Surgical's growth outlook remains strong, the anticipated margin compression has left investors cautious about the company’s ability to maintain its profitability amid rising operational costs and tariff uncertainties.

Intuitive Surgical (NASDAQ:ISRG) saw its shares climb by more than 8% after reporting third-quarter earnings that exceeded analyst projections. The company’s strong results were fueled by the increasing adoption of its da Vinci surgical systems and a notable rise in procedure volumes.

For the quarter, Intuitive Surgical posted adjusted earnings per share of $1.84, beating the Street estimate of $1.64. Revenue reached $2.04 billion, surpassing expectations of $2.01 billion and marking a 17% increase from the $1.74 billion reported during the same period last year.

The company reported an 18% year-over-year increase in da Vinci procedures, while system placements rose to 379 units, up from 312 in Q3 2023. Among these, 110 were the new da Vinci 5 systems, reflecting the growing demand for advanced surgical technology. Intuitive's installed base of da Vinci systems expanded to 9,539 units, a 15% year-over-year growth.

Revenue from instruments and accessories, a key indicator of surgical activity, surged 18% to $1.26 billion. Systems revenue also saw an increase, reaching $445 million compared to $379 million in the prior-year quarter.

Mizuho analysts increased their price target for Intuitive Surgical (NASDAQ:ISRG) to $440 from $390 while maintaining their Neutral rating, ahead of the company’s Q2 earnings, scheduled to be released on Thursday.

The adjustment follows proprietary channel checks for Q2/24, which included interactions with 12 public and private companies, four key opinion leader events, and two in-depth surveys. The analysts cited expectations for the da Vinci 5 system and minimal competitive pressures as reasons for the price target increase.

Intuitive Surgical (NASDAQ:ISRG), renowned for its robotic-assisted surgical technology, reported its fourth-quarter earnings, exceeding analyst expectations.

The company's total revenue for the quarter was $1.93 billion, a 17% increase from the same period last year, surpassing the forecasted $1.89 billion. Its earnings per share (EPS) came in at $1.60, beating the estimated $1.48.

A notable contributor to this year-over-year growth was the Instruments and Accessories segment, which generated $1.14 billion in revenue. This represents a 22% increase from the prior year and matches the expected $1.14 billion.

Intuitive Surgical also showed robust operational performance with its worldwide procedure growth hitting 21%, exceeding the anticipated 19.2%. The company's Da Vinci Surgical System saw its installed base expand to 8,606 units, a 14% annual increase, and slightly above the projection of 8,584 systems.

Adding to the positive sentiment around the stock, Intuitive Surgical announced that it had submitted a 510k application to the FDA for its new da Vinci 5 system, further boosting investor confidence.

Intuitive Surgical (NASDAQ:ISRG) revealed its preliminary results for the fourth quarter, which exceeded the expectations of analysts.

The company announced a preliminary revenue of $1.93 billion, surpassing the anticipated consensus of $1.87 billion. In detail, the revenue from Instruments and Accessories aligned with the forecast at $1.14 billion. However, the revenue from systems notably outperformed predictions, coming in at $480 million against the projected $420.7 million.

Additionally, Intuitive Surgical experienced a significant worldwide procedure growth of around 21%, higher than the expected 18.9%. The company also noted the impact of COVID-19 resurgences in China on their early 2023 procedure volumes. Despite initial challenges, there was a subsequent recovery in procedure volume as infection rates and hospitalizations began to decrease.

Stifel analysts increased their price target for Intuitive Surgical (NASDAQ:ISRG) from $315.00 to $350.00, maintaining a Buy rating. This adjustment follows conversations with two high-volume robotic surgeons specializing in foregut and general surgery procedures.

Firstly, the surgeons conveyed their belief that Intuitive Surgical could potentially launch their next-generation da Vinci system as early as the first half of 2024. They anticipate that many of the upgrades in the next-gen da Vinci system would be software-based, rather than solely hardware improvements.

The surgeons expect the patient cart in the new system to be similar to the current generation's technology. However, they foresee significant visual enhancements in the next-gen model. This includes improvements in Firefly imaging, which could provide better illumination of vessels and tumors, and the integration of CT images for enhanced visual assistance during surgeries.

Additionally, the surgeons highlighted other possible improvements in the next-gen system. These include the introduction of haptic feedback, which would offer tactile feedback to the surgeon, and potentially integrated insufflation capabilities, which could enhance the efficiency and safety of surgical procedures. These advancements, as discussed by the surgeons, underline the potential for significant developments in robotic-assisted surgery, reinforcing the positive outlook for Intuitive Surgical.