Why Intuitive Surgical Stock Surged Higher Today

Core Insights - Intuitive Surgical's preliminary fourth-quarter earnings significantly exceeded analysts' expectations, leading to a 6% increase in share price [1] - The company reported a surprising 25% revenue growth for Q4, surpassing the expected 14% growth [2] - This 25% growth is the fastest since 2021 and well above the company's average annualized growth rate of 15% over the last decade [3] Revenue Growth - The launch of the da Vinci 5 system in 2024 contributed to a 36% increase in systems revenue, which includes surgical robots installed [3] - The growth in systems revenue is expected to lead to higher recurring revenue in the future due to the company's razor-and-blade business model [4] Recurring Revenue Model - Approximately 83% of Intuitive Surgical's total sales come from recurring revenue, supported by an installed base of around 10,000 da Vinci systems [5] - The company's dominant market share in the robot-assisted surgery industry provides a significant competitive advantage, justifying its high valuation [5]