Why Intuitive Surgical Stock Zoomed 23% Higher This Week

Core Insights - Intuitive Surgical's shares surged 23% following the release of Q3 earnings, which exceeded investor expectations, with a revenue growth of 23% year over year [1][10] - The company has been actively repurchasing shares, indicating management's confidence in the stock's valuation [5] - Intuitive Surgical is guiding for a 17% growth in Da Vinci surgery procedures for 2025, reflecting the ongoing expansion of robotic surgeries globally [6] Financial Performance - In Q3, Intuitive Surgical placed 427 surgical systems, an increase from 379 in Q3 2024 and 395 in Q2 2025, contributing to quarterly revenue of $2.5 billion [4] - The EBIT margin has expanded to 29% over the last 12 months, showing consistent growth since early 2023 [4] Market Position - Intuitive Surgical has dominated the robotic surgery market, with a cumulative revenue growth of 300% over the last decade, and is expected to maintain a double-digit annual growth rate [8] - The current price-to-earnings ratio (P/E) stands at 73, which is significantly higher than the S&P 500 average, suggesting that the stock may be overvalued at present [9]