Core Insights - Intuitive Surgical is the global leader in the robotic surgery market, primarily known for its da Vinci surgical system, which has significantly contributed to the company's revenue growth and stock performance [1][3][9] Revenue Generation - The da Vinci systems, priced over 5 billion annually from the sales of instruments and accessories used in robotic procedures [2][6][8] - In addition to instruments and accessories, Intuitive also earns 8.3 billion, with 76% derived from recurring sources [8] Competitive Advantage - Intuitive's long-standing presence in the market since its founding in 1995 provides it with a competitive advantage, as surgeons are familiar with the da Vinci system, making them less likely to switch to new platforms [3][4] - The company's strong earnings growth has been resilient over time, with only minor declines during periods like the early pandemic when surgeries were postponed [5] Investment Potential - The combination of a solid competitive moat and a recurring revenue model positions Intuitive as a stable investment with growth potential, despite its current high valuation at 74 times forward earnings estimates [9]
Intuitive Surgical is Known for Selling $1 Million Surgical Robots. But Here's How it Actually Makes Most of its Revenue.