Core Viewpoint - Intuitive Surgical reported strong financial results for Q1 2025, with significant revenue growth driven by increased da Vinci procedure volume and system placements, indicating robust demand for its robotic-assisted surgical technologies [4][10]. Financial Performance - Q1 2025 revenue reached $2.25 billion, a 19% increase from $1.89 billion in Q1 2024, attributed to higher da Vinci procedure volume and system placements [4][10]. - Instruments and accessories revenue grew by 18% to $1.37 billion, driven by a 17% increase in da Vinci procedure volume and a 58% increase in Ion procedure volume [5]. - Systems revenue was $523 million, up from $418 million in Q1 2024, with 367 da Vinci surgical systems placed, including 147 da Vinci 5 systems [6][10]. - GAAP income from operations increased to $578 million from $469 million in Q1 2024, while non-GAAP income from operations rose to $768 million from $630 million [7]. - GAAP net income attributable to Intuitive Surgical was $698 million, or $1.92 per diluted share, compared to $545 million, or $1.51 per diluted share, in Q1 2024 [8][10]. - Non-GAAP net income attributable to Intuitive was $662 million, or $1.81 per diluted share, compared to $541 million, or $1.50 per diluted share, in Q1 2024 [9]. Operational Highlights - Worldwide da Vinci procedures grew approximately 17% compared to Q1 2024, with the installed base of da Vinci surgical systems increasing to 10,189, a 15% rise from 8,887 [10]. - The company ended Q1 2025 with $9.10 billion in cash, cash equivalents, and investments, reflecting a $269 million increase during the quarter [11]. Future Outlook - For 2025, the company anticipates worldwide da Vinci procedure growth of approximately 15% to 17% and expects non-GAAP gross profit margin to be between 65% and 66.5% of revenue, down from 69.1% in 2024 [18]. - Non-GAAP operating expense growth is projected to be between 10% and 14% in 2025, compared to 10% in 2024 [18].

Revenue and Growth - First quarter 2025 revenue was $2.25 billion, an increase of 19% compared to $1.89 billion in the first quarter of 2024[5] - Instruments and accessories revenue increased by 18% to $1.37 billion, driven by approximately 17% growth in da Vinci procedure volume and approximately 58% growth in Ion procedure volume[6] - The company expects worldwide da Vinci procedure growth of approximately 15% to 17% in 2025, compared to 17% in 2024[19] - Total revenue for the three months ended March 31, 2025, was $2,253.4 million, a decrease of 6.6% from $2,413.5 million in the previous quarter and an increase of 19.2% from $1,890.6 million in the same quarter last year[28] Surgical Systems and Procedures - The company placed 367 da Vinci surgical systems in Q1 2025, compared to 313 in Q1 2024, including 147 da Vinci 5 systems[7] - The installed base of da Vinci surgical systems grew to 10,189 systems as of March 31, 2025, an increase of 15% compared to 8,887 systems as of March 31, 2024[11] Income and Profitability - GAAP net income attributable to Intuitive Surgical, Inc. was $698 million, or $1.92 per diluted share, compared to $545 million, or $1.51 per diluted share, in Q1 2024[9] - Non-GAAP net income attributable to Intuitive Surgical, Inc. was $662 million, or $1.81 per diluted share, compared to $541 million, or $1.50 per diluted share, in Q1 2024[10] - Net income attributable to Intuitive Surgical, Inc. for Q1 2025 was $698.4 million, compared to $685.7 million in Q4 2024 and $544.9 million in Q1 2024, reflecting a year-over-year increase of 28.2%[28] - Diluted net income per share attributable to Intuitive Surgical, Inc. was $1.92 for Q1 2025, compared to $1.88 in Q4 2024 and $1.51 in Q1 2024, representing a year-over-year increase of 27.1%[31] Cash and Assets - The company ended Q1 2025 with $9.10 billion in cash, cash equivalents, and investments, an increase of $269 million during the quarter[12] - Cash, cash equivalents, and investments increased to $9,101.2 million as of March 31, 2025, up from $8,832.4 million at the end of 2024[30] - Total assets rose to $19,220.4 million as of March 31, 2025, compared to $18,743.2 million at the end of the previous quarter[30] - Total liabilities decreased to $2,012.7 million from $2,213.6 million quarter-over-quarter[30] Expenses - Non-GAAP gross profit margin is expected to be within a range of 65% and 66.5% of revenue in 2025, compared to 69.1% in 2024[19] - Non-GAAP operating expense growth is projected to be 10% to 14% in 2025, compared to 10% in 2024[19] - The company reported a significant increase in research and development expenses, totaling $316.2 million for Q1 2025, compared to $294.7 million in Q4 2024 and $284.5 million in Q1 2024[28] - The company continues to face significant recurring expenses related to share-based compensation, which amounted to $36.2 million in Q1 2025[31]

Group 1 - Intuitive Surgical Inc (ISRG) is set to report its first-quarter earnings, with Wall Street expecting earnings per share of $1.72 and revenue of $2.19 billion [1] - The stock has experienced a 28.54% increase over the past year but has faced recent pressure, down 9.5% year to date and 8.77% over the past month [1] - Current stock price is $476.71, which is significantly below all major simple moving averages (SMA) including the 20-day SMA at $489.41 and the 50-day SMA at $523.70 [2][3] Group 2 - The Moving Average Convergence Divergence (MACD) is at a negative 10.71, and the Relative Strength Index (RSI) is at 44.18, indicating weak momentum and potential for further decline [3] - Analysts maintain a consensus rating of Buy for ISRG, with an average price target of $504.31, suggesting a potential upside of 32.02% based on recent bullish calls [5] - The stock was trading at $475.11 at the time of publication, indicating a need for a significant catalyst to reverse the current downtrend [5]

Core Viewpoint - Intuitive Surgical, Inc. (ISRG) is expected to report first-quarter 2025 earnings on April 22, with sales estimated at $2.18 billion and earnings per share at $1.71, reflecting stable earnings estimates for 2025 and 2026 [1][2] Earnings and Estimates - The company has shown a consistent earnings surprise, with a 24.86% surprise in the last quarter and an average surprise of 14.97% over the past four quarters [2] - Current estimates indicate an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), suggesting uncertainty regarding an earnings beat this time [3] Segment Performance - The Instruments & Accessories segment is anticipated to report strong results due to robust da Vinci procedure growth, particularly in U.S. general surgery and cancer procedures in international markets [4] - The launch of the da Vinci 5 systems is expected to contribute positively to system placements, with 174 systems placed in the U.S. during the fourth quarter, marking a nearly 60% sequential growth [5][9] - The Services segment is likely to reflect strong adoption of digital products, while margins may improve due to cost reductions and lower freight rates, despite increased depreciation expenses [11] Market Trends - General surgery procedures have driven growth in the U.S., while cancer procedures have benefited international markets, a trend expected to continue [7] - China's recovery post-COVID is likely to boost sales, although tariff-related challenges may impact performance [8] - The Systems segment is expected to show strong adoption of the da Vinci 5, although placements in China may face pressure due to delayed tenders [10] Valuation and Performance - ISRG shares have declined 7.5% year-to-date, outperforming the industry decline of 12.6% and the S&P 500's decline of 10.6% [13] - The company is trading at a forward P/E of 57.48X, significantly higher than the industry average of 26.59X, indicating a premium valuation despite a decrease from a five-year high [16] Investment Outlook - Despite high valuation, ISRG is expected to maintain strong performance driven by growth in da Vinci procedure volume and system placements [19] - The launch of new systems in Europe and the U.S. is likely to support growth, although challenges in bariatric procedures and trade tensions may offset some gains [20][21] - Investors are advised to monitor the stock for potential entry points amid tariff uncertainties and high valuation concerns [24][25]

Group 1: Investment Opportunities - Nvidia Corp (NVDA) is trading at 20x forward earnings, below its historical trough of 23-25x, making it an attractive long-term investment opportunity [2][3] - Meta Platforms Inc (META) has seen a 28% decline in stock price but continues to achieve 20% revenue growth and 40% operating margins, highlighting its strong business fundamentals [4] - Intuitive Surgical Inc (ISRG) holds a 30% market share in robotic surgeries and has significant growth potential, with only 2.4 million of 200 million global procedures performed last year [5] - Boeing Co (BA) is expected to benefit from China's aging fleet needing upgrades, indicating a stable demand despite recent operational challenges [6] - Bank of America Corp (BAC) has lagged its peers by 10 percentage points this year but shows promise with recent fee growth and management's confidence in net interest income guidance [6][7] Group 2: Market Trends and Insights - The current market environment is characterized by volatility, prompting a focus on durable companies with long-term growth potential [7] - The emphasis is on quality investments, suggesting that patient investors will benefit from following strategic signals rather than reacting to market noise [7]

Core Insights - The studies published by Intuitive demonstrate that robotic-assisted surgery (RAS) enhances access to minimally invasive care, particularly in underserved areas, leading to improved patient outcomes [1][2][3] Group 1: Study Findings - The first study identifies regions lacking access to high-quality minimally invasive surgery (MIS) due to factors like training availability and hospital infrastructure [3][4] - The second study evaluates the impact of RAS on MIS rates across 408 U.S. hospitals from 2016 to 2022, focusing on 153 hospitals that adopted RAS for common surgeries [5][6] - Hospitals that implemented RAS saw an increase in MIS rates from 60.5% to 65.8%, compared to a smaller increase from 56.1% to 57.0% in non-RAS hospitals [7] Group 2: Barriers and Solutions - Surgeon characteristics accounted for nearly two-thirds of the variation in MIS use, while patient sociodemographic factors contributed nearly 30% [6][8] - RAS offers a shorter learning curve for surgeons, potentially improving MIS adoption and access [6][8] - Telementoring and remote surgical support can extend the reach of experienced surgeons into underserved areas [6] Group 3: Broader Impact - The introduction of RAS has contributed to overall growth in MIS, rather than merely shifting procedures from traditional laparoscopy [8][9] - More than 16 million patients have benefited from minimally invasive care using Intuitive technologies, leading to shorter recovery times and reduced postoperative complications [9]

Core Viewpoint - Intuitive Surgical, Inc. (ISRG) is expected to report a quarterly earnings per share (EPS) of $1.71, reflecting a 14% increase year-over-year, with revenues projected at $2.18 billion, a 15.4% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been adjusted upward by 0.2% over the past 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts forecast 'Revenue- Product (Instruments and accessories and Systems)' to be $1.55 billion, a decrease of 1.7% from the prior-year quarter [5]. - 'Revenue- Services' is expected to reach $356.83 million, reflecting a 13.8% increase year-over-year [5]. - 'Revenue- Systems' is projected at $481.95 million, indicating a 15.2% increase from the previous year [5]. - 'Revenue- Instruments and accessories' is estimated to be $1.33 billion, showing a year-over-year change of 14.6% [6]. System Units and Installed Base - The total system units placed for the entire company is expected to be 349, up from 313 in the previous year [6]. - The 'Da Vinci Surgical System Installed Base' is projected to reach 10,194, compared to 8,887 a year ago [6]. - Total system units placed outside of the United States is estimated at 175, up from 165 [7]. - Total system units placed in the United States is forecasted at 181, compared to 148 last year [7]. Profit and Cost Estimates - Gross profit from services is expected to be $236.25 million, an increase from $222.70 million reported in the same quarter last year [7]. - The cost of revenue for services is projected to reach $113.02 million, compared to $90.80 million in the same quarter of the previous year [8]. Stock Performance - Intuitive Surgical shares have increased by 0.9% over the past month, contrasting with a -4.2% change in the Zacks S&P 500 composite [9].

Core Viewpoint - The Nasdaq Composite index has experienced significant volatility, recently entering a bear market but showing signs of recovery, presenting potential buying opportunities for long-term investors in select stocks [2][3]. Group 1: Alphabet - Alphabet's share price is down approximately 25% from its all-time high earlier this year, creating a favorable buying opportunity for long-term investors [4]. - The company has a price-to-earnings-to-growth (PEG) ratio of 1.04, indicating reasonable valuation based on five-year earnings growth projections [4]. - Google Cloud is the fastest-growing major cloud services provider, and the rollout of its Gemini large language model has positioned it competitively against OpenAI's ChatGPT [5]. - Google Search has integrated generative AI features, leading to increased search usage and user satisfaction, which is expected to drive robust growth [6]. - Future revenue growth is anticipated from Alphabet's Waymo self-driving car technology unit [6]. Group 2: Intuitive Surgical - Intuitive Surgical's share price is down about 6% from the beginning of the year, but it remains a strong long-term investment [7]. - The company has over 10,670 robotic surgical systems installed globally, with nearly 2.7 million procedures performed last year, showcasing its market leadership [8]. - A significant 84% of Intuitive Surgical's total revenue in 2024 is expected to come from recurring sources, up from 71% in 2017, indicating strong cash flow [9]. - The company estimates that there are 8 million procedures annually that it can target, which is nearly three times its current procedure volume, with additional potential in 22 million procedures under development [10]. Group 3: Vertex Pharmaceuticals - Vertex Pharmaceuticals has achieved a 17.5% gain so far in 2025, indicating strong momentum [12]. - The company holds a virtual monopoly in treating cystic fibrosis, bolstered by the FDA approval of Alyftrek, which offers more convenient dosing and potentially higher profitability [13]. - Vertex's new drug Journavx, approved in January, is the first new class of pain medication in over 20 years, expected to be commercially successful due to its non-addictive properties [14]. - The company is also advancing the rollout of Casgevy, a gene-editing therapy for sickle cell disease, and has a promising pipeline with four late-stage programs, including one aimed at curing severe type 1 diabetes [15].

Company Overview - Intuitive Surgical, Inc. (ISRG) shares increased by 14.3% to close at $522.95, following a relief rally in global markets due to a 90-day pause on tariff hikes by the United States [1] - The stock had previously experienced a 7.3% loss over the past four weeks [1] Earnings Expectations - The upcoming quarterly earnings for Intuitive Surgical are expected to be $1.71 per share, reflecting a year-over-year increase of 14% [2] - Revenue projections stand at $2.18 billion, which is a 15.4% increase compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for Intuitive Surgical has been revised slightly higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [3] - Monitoring the stock is advised to see if the recent price jump can lead to sustained strength [3] Industry Context - Intuitive Surgical is part of the Zacks Medical - Instruments industry, which includes other companies like Steris (STE) [3] - Steris has a consensus EPS estimate of $2.58 for its upcoming report, unchanged over the past month, representing a 7.1% increase from the previous year [4]

Core Insights - Intuitive has received FDA clearance for its SP SureForm 45 stapler, which is designed for use with the da Vinci SP surgical system in thoracic, colorectal, and urology procedures [1][6] - The SP SureForm 45 stapler features SmartFire technology that optimizes tissue compression in real-time, enhancing staple line integrity and minimizing tissue damage [2] - The use of the SureForm 45 stapler in single-port robotic surgery allows surgeons greater control and can reduce operating time [3] Product Features - The da Vinci SP system enables robotic-assisted surgeries with advanced technology that promotes faster patient recovery and less postoperative pain [4] - Surgeons can control up to three wristed instruments and a high-definition 3D camera through a single access point, reducing the risk of external instrument collisions [5] - The da Vinci SP surgical system is approved for various procedures in multiple countries, including the U.S., where it is cleared for urology, transoral otolaryngology, colorectal, and thoracic procedures [6] Company Overview - Intuitive is a leader in minimally invasive care and robotic surgery, with a portfolio that includes the da Vinci surgical system and the Ion endoluminal system [8] - The da Vinci surgical systems are designed to assist surgeons in performing minimally invasive surgeries with high-definition 3D vision and specialized instrumentation [9]