Up 800% the Past Decade, Can the Momentum Continue for This Hot Stock?

Core Viewpoint - Intuitive Surgical has shown significant stock performance, increasing approximately 800% over the past decade, with a recent stock jump of about 45% this year following strong earnings results [1] Financial Performance - For Q3, Intuitive Surgical reported revenue of $2.04 billion, a 17$1.84, up 26%, surpassing analyst expectations [2] - The company's adjusted gross margins improved by 30 basis points to 69.1%, aided by effective expense management [2] - Revenue from instruments and accessories rose by 18% to $1.26 billion, correlating with an 18% increase in procedure volumes for da Vinci Systems [2] Product and Market Expansion - The company shipped 379 da Vinci surgical systems in the quarter, raising the total installed base to 9,539 systems, a 15% year-over-year increase [3] - The new da Vinci 5 system had 110 units shipped during a soft launch phase, with strong early interest noted [3][5] - The Ion system's installed base grew by 50% year-over-year, with international placements expanding in China and Europe [3] Future Outlook - Intuitive Surgical raised its full-year procedure growth guidance to a range of 16% to 17%, reflecting ongoing demand despite some market pressures [4] - The da Vinci 5 system is expected to drive growth, with a 30% higher average selling price compared to its predecessor, although initial gross margins may be lower [6][7] Valuation Considerations - The stock is currently trading at a forward price-to-earnings (P/E) ratio of 66, which is considered high relative to historical ranges [7][8] - The company's business model, which relies heavily on the sale of single-use tools, supports revenue growth as the installed base expands [8]