Why Intuitive Surgical Stock Was Pulling Back Today

Core Insights - Intuitive Surgical's stock experienced a decline despite a strong fourth-quarter earnings report, attributed to its high valuation and slightly below-estimate guidance for 2025 [1][5] Financial Performance - The company reported a 25% increase in overall revenue, reaching $2.41 billion, surpassing the consensus estimate of $2.24 billion [3] - Adjusted earnings per share rose from $1.60 to $2.21, exceeding expectations of $1.79 [4] - Da Vinci procedures increased by 18%, with 493 surgical systems sold, up from 415 a year ago, bringing the installed base to 9,902, a 15% increase [3][4] Growth Drivers - Growth was balanced between instruments and accessories and surgical systems, with the new Ion Endoluminal System experiencing a 70% increase in procedure volume [4] Guidance and Market Reaction - The 2025 guidance indicated a slowdown in growth, projecting procedure growth of 13% to 16%, below Wall Street's consensus of 16% and the 17% growth seen in 2024 [5] - The stock's decline was influenced by concerns over narrowing margins and increased operating expenses, despite the potential for conservative guidance [6] Valuation Considerations - Intuitive Surgical's price-to-earnings ratio is around 80, indicating a premium valuation, which may challenge growth in the short term but suggests long-term potential [6]