Should You Hold Intuitive Surgical (ISRG)?

Core Insights - The Alger Spectra Fund's third-quarter 2025 investor letter highlights strong performance in U.S. equity markets, with the S&P 500 Index rising 8.12% due to improving economic conditions, solid corporate earnings, and expectations for monetary easing [1] - The Fund's Class A shares outperformed the Russell 3000 Growth Index during the same period [1] Company Performance - Intuitive Surgical, Inc. (NASDAQ:ISRG) reported a one-month return of 32.04% and a 52-week gain of 7.29%, closing at $576.20 per share with a market capitalization of $204.261 billion on November 10, 2025 [2] - The company's revenue grew 23% to $2.5 billion in the third quarter of 2025 [4] Business Model and Market Position - Intuitive Surgical develops advanced surgical systems that facilitate less invasive procedures, supported by instruments, services, and training [3] - The company benefits from a strong business model, deep clinical expertise, and a large installed base, which encourages ongoing adoption of its systems [3] Market Sentiment and Challenges - Despite its strong market position, Intuitive Surgical's shares faced pressure due to moderated procedure growth trends and cautious spending by hospitals amid macroeconomic uncertainties [3] - Concerns regarding competitive dynamics and the timing of new system placements also weighed on investor sentiment [3]