Intuitive(US:ISRG) The Motley Fool·2025-10-06 08:20Core Insights - Intuitive Surgical (ISRG) has shown significant stock performance, increasing over 700% in the past decade due to its leadership in the robotic surgery market [1] - The company’s flagship product, the Da Vinci surgical robot, has an install base of over 10,400 systems, marking a 14% increase year-over-year [2] - Despite recent stock declines of 13% due to tariff concerns, the long-term growth potential remains strong [2][8] Company Overview - Intuitive Surgical manufactures the Da Vinci robot, offering four different systems tailored to hospital needs, including the advanced Da Vinci 5, which features 150 design innovations and 10,000 times the computing power of earlier models [4] - The Da Vinci system is widely used in various surgical procedures, establishing itself as the market leader [5] Market Potential - The global surgical robots market is projected to grow at a compound annual growth rate of 17%, reaching over $38 billion by 2034 [5] - Intuitive Surgical is expected to maintain its market dominance due to a strong competitive moat, including surgeon familiarity with the Da Vinci system and the significant investment required for hospitals to purchase the robots [6] Financial Performance - In the latest quarter, global Da Vinci procedures increased by 17%, revenue rose by 21% to $2.4 billion, and net income on a GAAP basis grew by 25% [7] - The company’s gross margin was 69% last year, with a projected margin of 66% to 67% this year, indicating solid profitability despite tariff impacts [8] Revenue Streams - Intuitive Surgical generates a significant portion of its revenue from the sale of instruments and maintenance services, providing a recurring revenue model that enhances overall financial stability [9] Valuation - Currently, Intuitive Surgical trades at 55 times forward earnings estimates, down from over 72 times earlier this year, reflecting a premium valuation justified by its strong market position and growth potential [10]