Why Is Intuitive Surgical Stock Up 80%?

Core Viewpoint - Intuitive Surgical has experienced significant revenue growth and stock performance, but its current valuation may suggest a wait-and-see approach for investors [3][6]. Financial Performance - Intuitive Surgical's revenue increased by 74% from $4.4 billion in 2020 to$7.6 billion in the last twelve months [4][5]. - The company's operating profit margin improved to 25.8% from 24.1% in 2020 [6]. - The stock price rose over 80% from around $270 in early January 2021 to nearly$500 now, compared to a 50% increase in the S&P 500 during the same period [1]. Stock Returns - ISRG stock had returns of 32% in 2021, fell by 26% in 2022, and rose by 27% in 2023, underperforming the S&P 500 in 2022 [2]. Market Position - The installed base of Intuitive Surgical's systems rose by 54% from 5,989 units in 2020 to 9,203 units now, contributing to revenue growth [5]. - The revenue segments for 2023 are: da Vinci Surgical Systems (24%), Instruments & Accessories (60%), and Services (16%) [5]. Future Outlook - The Instruments & Accessories segment is expected to grow from 60% of total sales now to 63% in the next three years, driven by increased procedures and installed base [5][6]. - The launch of the da Vinci 5 platform in the U.S. is anticipated to bolster overall sales growth [6].