Buy the Post-Earnings Surge in Intuitive Surgical (ISRG) Stock?

Core Insights - Intuitive Surgical's stock has surged over 15% following strong Q3 results and positive guidance, reflecting rising demand for robotic-assisted surgical systems [1] Financial Performance - Q3 sales reached $2.5 billion, up from $2.03 billion year-over-year, exceeding estimates of $2.41 billion [2] - Revenue from instruments and accessories grew by 22%, indicating higher procedure volume and increased utilization per system [2] - Earnings per share (EPS) increased by 30% to $2.40, surpassing Q3 EPS expectations of $1.99 by 20% [3][4] Operational Highlights - Intuitive Surgical has exceeded earnings expectations for 11 consecutive quarters, with an average EPS surprise of 16.34% in the last four quarters [3][4] - There was a 20% increase in global surgeries using da Vinci robotic systems, enhancing precision in minimally invasive surgeries [5] - The company placed 427 da Vinci systems in Q3 2025, compared to 379 in the same quarter last year [7] Strategic Outlook - Full-year da Vinci procedure growth expectations have been raised to 17%-17.5% from 15.5%-17% [9] - Pro forma gross margin projections for the full year have been increased to 67%-67.5% from 66%-67% [9] - Total sales are expected to rise by 18% this year and another 12% in fiscal 2026, reaching $11.12 billion [10] Market Position - Intuitive Surgical has expanded its installed base to over 10,000 systems, enhancing recurring revenue from instruments and accessories [12] - The stock currently trades at a premium of 64X forward earnings, with potential for a buy rating if the rally continues [11]