Intuitive Surgical Q3 Results Ease Bear Market Concerns, Analyst Views 'Headwinds As Largely Noise'

Core Insights - Intuitive Surgical reported third-quarter revenue of $2.51 billion, a 23% year-over-year increase, surpassing analyst expectations of $2.40 billion [1] - The company achieved adjusted earnings of $2.40 per share, exceeding analyst estimates of $1.98 [2] - The growth in revenue was attributed to an increase in procedure volume, higher placements of da Vinci systems, and a larger installed base of systems [2] Revenue and Earnings Performance - Worldwide da Vinci procedures grew by approximately 20% year-over-year [3] - The company placed 427 da Vinci surgical systems in the quarter, compared to 379 in the same quarter last year [3] - The installed base of da Vinci surgical systems reached 10,763, reflecting a 13% year-over-year growth, while the Ion endoluminal system installed base grew by 30% to 954 systems [4] Market Sentiment and Analyst Commentary - The strong quarterly results alleviated some bearish concerns regarding capital expenditure budgets and margin pressures [4] - Analysts view the minor headwinds as largely inconsequential, affirming Intuitive Surgical's position in the market transitioning to robotics [5] - The stock is currently trading at 47 times the expected earnings per share for 2026, with an Outperform rating maintained by analysts [5] Future Guidance - Intuitive Surgical anticipates a 17% to 17.5% increase in worldwide da Vinci procedures for the full year 2025, up from previous guidance of 15.5% to 17% [6] - The expected gross profit margin for 2025 is projected to be between 67% and 67.5% of revenue, down from 69.1% in 2024 [6] - The company introduced new software capabilities for its da Vinci 5 surgical system aimed at enhancing surgeon performance and hospital efficiency [6] Stock Performance - Intuitive Surgical's stock price increased by 14.62%, reaching $530.21 at the time of publication [7]