What’s Happening With ISRG Stock?

Core Insights - Intuitive Surgical stock (NASDAQ: ISRG) saw a 17% increase in extended trading on October 21, 2025, after exceeding investor expectations with Q3 results and raising full-year guidance, indicating strong momentum in the robotic surgery market [2][4][11] Financial Performance - Q3 revenue reached $2.51 billion, a 23% increase from $2.04 billion in Q3 2024, while non-GAAP earnings per share were $2.40, surpassing analyst forecasts of $1.99 and reflecting a 30% rise from $1.84 year-over-year [4][11] - Global procedures using da Vinci and Ion systems increased by approximately 20% year-over-year, with da Vinci procedures rising by 19% and Ion procedures surging by 52% [5] Growth Drivers - Management has raised full-year guidance for da Vinci procedure growth to 17-17.5%, exceeding analyst expectations of 16.4%, driven by strong procedure volume [5][11] Valuation Analysis - ISRG stock trades at about 71 times its trailing twelve months earnings, lower than the four-year average of 75 times, suggesting reasonable valuation despite the recent surge [6] - The current Price-to-Sales (P/S) multiple of 18 represents a 23% discount compared to the previous year [8] Competitive Advantage - The company maintains high margins and pricing power, generating consistent profits and cash flows, which reduces risk and allows for continuous capital reinvestment [7][11] - The accelerating adoption of the da Vinci 5 system and growing traction for the Ion platform positions ISRG favorably in the transition toward minimally invasive procedures [11]