Key Takeaways ISRG posted 20% worldwide procedure growth in Q3, led by da Vinci gains and rapid Ion expansion.ISRG saw utilization rise as 240 da Vinci 5 systems were placed, lifting the global installed base.ISRG generates 85% of revenues from recurring sales, driven by da Vinci 5 features and upgrades.Intuitive Surgical (ISRG) stock has delivered a strong recent run, rising 32.4% over the past three months and currently trading at $592.85, just 3.8% below its all-time high of $616 reached in February 2025 ...

Core Insights - Intuitive Surgical's (ISRG) third-quarter results show a 20% year-over-year increase in combined da Vinci and Ion procedures, raising questions about the sustainability of this growth rate [2][6] Company Performance - da Vinci procedures grew by 19%, while Ion volumes surged by 52%, with growth observed across various surgical fields including general surgery, gynecology, and international markets [3] - The introduction of da Vinci 5 has led to higher utilization rates compared to previous Xi systems, with U.S. utilization turning positive after being flat earlier in the year [3] - Management noted that some elective procedures may have been advanced due to uncertainties around Medicare funding, although this has not been confirmed by third-party data [4] - Bariatric procedures are declining at high single-digit rates due to the adoption of GLP-1 therapies, highlighting that not all surgical demand is immune to therapeutic changes [5] Market Dynamics - International growth was slightly aided by holiday timing shifts, contributing approximately one percentage point to growth [4] - Hospital budget constraints, particularly outside the U.S., and macro health policy changes could impact future capital and utilization momentum [5] Valuation and Estimates - ISRG's shares have increased by 8.1% over the past six months, compared to a 14.8% rise in the industry [12] - The company trades at a forward price-to-earnings ratio of 60.4, which is above the industry average but below its five-year median of 71.52 [13] - The Zacks Consensus Estimate for ISRG's 2025 earnings suggests a 17.9% increase from the previous year [15]

Core Insights - Intuitive Surgical (ISRG) is experiencing a decline in U.S. bariatric surgery volumes, attributed to the rapid adoption of GLP-1 weight-loss drugs, with six consecutive quarters of high single-digit declines [1][10] - Bariatric procedures now account for less than 3% of U.S. da Vinci procedures, and the decline shows no signs of stabilization [2][10] - Despite the challenges in bariatric surgery, Intuitive Surgical is seeing growth in other areas, particularly benign general surgery, which includes procedures like cholecystectomy and hernia repair [3][10] Bariatric Surgery Impact - The ongoing decline in bariatric surgery volumes is linked to mixed patient behaviors regarding GLP-1 therapies, with some patients discontinuing due to costs or side effects [2] - Surgeons report uncertainty in predicting when bariatric procedure volumes may stabilize, indicating a challenging environment for the company [2] Growth in Other Areas - Intuitive Surgical is offsetting the decline in bariatric procedures with strong growth in benign general surgery, which is supported by the adoption of the da Vinci 5 platform that enhances efficiency and utilization rates [3][4] - International markets are also contributing positively, with general surgery and other procedures growing between 26% to 39% year-over-year outside the U.S. [5] Competitive Landscape - Other medical-device companies, such as Medtronic and Teleflex, are similarly affected by the rise of GLP-1 drugs impacting bariatric procedures, but they view this as a near-term challenge rather than a complete replacement of surgical options [7][10] - Medtronic is focusing on faster-growing segments to mitigate the impact of declining bariatric volumes, with significant growth in cardiac ablation and other areas [9] Financial Performance - Intuitive Surgical's shares have increased by 6.5% year-to-date, outperforming the industry average of 2% [13] - The company has a forward price-to-earnings ratio of 58.42, which is above the industry average but lower than its five-year median of 71.54 [14] - The Zacks Consensus Estimate indicates a projected earnings growth of 17.3% for 2025 compared to the previous year [15]

We came across a bullish thesis on Intuitive Surgical, Inc. on Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we will summarize the bulls’ thesis on ISRG. Intuitive Surgical, Inc.'s share was trading at $573.48 as of November 28th. ISRG’s trailing and forward P/E were 75.86 and 60.24 respectively according to Yahoo Finance. Is Intuitive Surgical’s (ISRG) Valuation Limiting Further Upside After Earnings? Master Video/Shutterstock.com Intuitive Surgical has established itsel ...

Core Insights - Intuitive Surgical (ISRG) reported strong third-quarter results with 23% revenue growth and 30% earnings growth, but faced margin pressure due to tariffs and cost mix issues [1][9] - Management has revised its gross-margin outlook for 2025 to 67–67.5%, citing better cost reductions and a smaller tariff impact [2][9] - The company is implementing cost-reduction initiatives and expanding direct distribution in Europe to help stabilize margins [3][4][9] Financial Performance - ISRG's gross margin decreased by 90 basis points year-over-year to 68%, primarily due to tariffs, unfavorable cost mix, and higher facility expenses [1][9] - The fourth-quarter gross margin is expected to dip slightly below 67%, raising concerns about ongoing profitability pressures [2] - The Zacks Consensus Estimate for ISRG's 2025 earnings suggests a 17.3% increase compared to the previous year [11] Competitive Landscape - Medtronic (MDT) and Stryker (SYK) are also experiencing tariff-related profitability pressures, with MDT expecting nearly $185 million in tariff costs for fiscal 2026 [6][7] - MDT's gross margin faced a 20-bp drag from tariffs, while SYK noted a nearly $200 million full-year impact from tariffs despite operational improvements [6][7] Valuation Metrics - ISRG shares have increased by 9.2% year-to-date, outperforming the industry average of 4.2% [8] - The company trades at a forward price-to-earnings ratio of 60.09, which is above the industry average but lower than its five-year median of 71.54 [10]

Core Insights - The next era of medical technology leadership will be defined by financial performance and significant investments in robotics, intelligent systems, and digital ecosystems [1] Group 1: Company Performance - Intuitive Surgical (ISRG) remains the leader in soft-tissue robotic surgery, driven by the adoption of the da Vinci 5 platform and growth from the Ion robotic-assisted bronchoscopy system [2][9] - Medtronic (MDT) is experiencing a resurgence through innovation and scale, with a strong pipeline including the PFA ablation franchise and the Hugo soft-tissue robotics system [2][9] - Year-to-date stock performance shows ISRG shares up 7.6% and MDT shares up 26.7% [4] Group 2: Intuitive Surgical (ISRG) Highlights - ISRG reported a 23% revenue growth, 20% total procedure growth, and 30% EPS expansion in Q3 2025, supported by the da Vinci 5 system [5] - The installed base of da Vinci systems reached nearly 10,800, with significant growth in system utilization across various platforms [6] - International placements of da Vinci 5 in Japan and Europe indicate strong global demand, with enhanced software capabilities improving clinical value [7][11] Group 3: Medtronic (MDT) Highlights - MDT's Q2 fiscal 2026 sales showed 6.6% reported growth and 5.5% organic revenue growth, with a balanced performance across regions [13] - The PFA franchise grew 71%, significantly outpacing the market, and the installed base of Affera mapping systems doubled [14][15] - New product launches, including Symplicity for renal denervation and Altaviva for urinary incontinence, are gaining traction [16][17] Group 4: Competitive Landscape - ISRG focuses on deepening its robotics ecosystem and enhancing surgical precision, while MDT links robotics with various clinical domains, creating multiple growth catalysts [24][27] - Both companies are positioned in a competitive landscape, with ISRG leading in surgical robotics scale and MDT expanding its pipeline [27] - Valuation comparison shows ISRG trading at a forward P/E of 59.4 and MDT at 17.08, indicating ISRG's higher valuation despite strong growth prospects [23][28]

Core Viewpoint - Intuitive Surgical, Inc. has shown strong performance in its recent earnings report, with significant year-over-year growth in earnings and revenue, leading to a positive outlook despite a slight decline in gross margin [3][4][8]. Financial Performance - The company reported Q3 2025 adjusted earnings per share of $2.40, exceeding the Zacks Consensus Estimate of $1.99 by 20.6%, and reflecting a 30.4% year-over-year improvement [3]. - Revenues reached $2.51 billion, marking a 23% increase year-over-year, and surpassing the Zacks Consensus Estimate by 3.9% [4]. - Adjusted gross profit was $1.70 billion, up 21% year-over-year, with a gross margin of 68%, down approximately 110 basis points from the previous year [8]. Segment Performance - Instruments & Accessories segment revenues totaled $1.52 billion, a 20.1% year-over-year increase, driven by a 19% growth in da Vinci procedure volume [5]. - Systems segment revenues reached $590.4 million, up 32.7% year-over-year, attributed to higher system placements and an increase in average selling price [6]. - Services segment revenues amounted to $395.9 million, reflecting a 20.4% increase from the prior year [7]. Cost and Margin Analysis - Selling, general and administrative expenses rose to $573.3 million, a 12.3% increase year-over-year, while research and development expenses increased by 15.2% to $329.4 million [8]. - Adjusted operating income was $975.9 million, up 29.2% year-over-year, with an operating margin of 38.9%, an increase of approximately 190 basis points from the previous year [9]. Financial Position - At the end of Q3, the company had cash, cash equivalents, and investments totaling $8.43 billion, down from $9.53 billion in the previous quarter [11]. Market Sentiment and Outlook - There has been an upward trend in earnings estimates, with a consensus estimate shift of 5.03% in the past month [12]. - Intuitive Surgical holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [14].

Financial Data and Key Metrics Changes - The company reported a third consecutive quarter of results that met or exceeded expectations, driven by the Scripps Sports strategy and strong sales execution [4] - Local media division revenue decreased by 27% due to the absence of political advertising revenue compared to the prior year, while core advertising revenue increased by nearly 2% [6] - The company reported a loss of $0.55 per share, which included various costs that increased the loss by a total of $0.15 per share [10] - Net leverage improved to 4.6 times at the end of Q3, down from 6 times in Q2 of the previous year [12] Business Line Data and Key Metrics Changes - Local media segment profit was nearly $53 million compared to $161 million in Q3 of the previous year [6] - Scripps Networks revenue was approximately flat at $201 million year-over-year, with connected TV revenue up 41% [7][8] - Scripps Networks' segment profit was $53 million, with a segment margin of 27% [9] Market Data and Key Metrics Changes - The company expects local media division revenue to decline by about 30% in Q4, while core revenue is anticipated to increase by about 10% [6] - Scripps Networks' revenue is expected to decrease in the low double-digit range for Q4 due to various factors, including a lack of political revenue and lower upfront advertising [9] Company Strategy and Development Direction - The company is focused on optimizing its portfolio through station swaps and sales, with recent transactions yielding strong valuations [4][22] - The Scripps Sports strategy has been a significant driver of revenue growth, particularly in women's sports and partnerships with various leagues [14][16] - The company is pursuing aggressive distribution on streaming services, projecting connected TV revenue to exceed $120 million in 2025 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategies, highlighting strong performance in sports and connected TV revenue streams [13] - The upcoming midterm elections are expected to yield record spending across the advertising ecosystem, positioning the company well for future growth [22] - Management acknowledged challenges in the advertising environment but remains optimistic about the potential for recovery as economic uncertainties are resolved [72] Other Important Information - The company has been actively managing expenses, resulting in improved margins and a focus on fiscal discipline [20] - The Scripps Transformation Office is leveraging technology and AI to enhance operational efficiency and drive growth [20] Q&A Session Summary Question: What is the outlook for further asset sales? - Management indicated there are still significant opportunities for optimizing the portfolio through buying, selling, and swapping stations [26] Question: Can you elaborate on the impact of the government shutdown on revenue? - Management noted that the government shutdown has affected demand and buying from networks, particularly in the Medicare Advantage space [68] Question: How is the advertising environment compared to six months ago? - Management observed some strength in local advertising but noted challenges in the national ad marketplace, particularly in direct response pricing and pharmaceuticals [55][72] Question: What is the company's strategy regarding AI and cost efficiency? - Management expects to provide more information on the impact of technology and AI on operational efficiency in the upcoming year [78]

Core Insights - Intuitive Surgical and Boston Scientific reported strong third-quarter results, highlighting their distinct growth strategies in the medtech sector [1][2] Financial Performance - Intuitive Surgical achieved third-quarter revenues of approximately $2.5 billion, reflecting a nearly 20% year-over-year increase, driven primarily by a 19% rise in da Vinci procedures and a 52% surge in Ion lung biopsy procedures [3][7] - Boston Scientific reported over $5 billion in revenues for the third quarter, marking around 15% organic growth, with an adjusted gross margin improvement to about 71% due to high-growth categories like electrophysiology [4][8] Growth Strategies - Intuitive Surgical focuses on deepening its surgical robotics franchise, with the da Vinci 5 system accounting for over half of its system placements, and expanding its Ion and SP platforms [10][16] - Boston Scientific adopts a diversified approach, leveraging multiple franchises such as WATCHMAN and FARAPULSE, and pursuing an active M&A strategy to enhance its product pipeline and market presence [12][17] Market Position and Valuation - Both companies hold a Zacks Rank 2 (Buy), with Boston Scientific viewed as more attractively valued compared to the industry, while Intuitive Surgical's valuation has declined but remains above the industry average [7][23][30] - Year-to-date, Intuitive Surgical shares have risen 4.5%, while Boston Scientific shares have gained 13%, reflecting the latter's stronger performance due to its diversified business model [18] Future Prospects - Intuitive Surgical's future growth will depend on the global adoption of the da Vinci 5 and the effectiveness of its new features, alongside its reliance on recurring revenues from procedures [19] - Boston Scientific's prospects hinge on its ability to scale multiple growth engines, particularly in electrophysiology and the WATCHMAN-ablation procedures, while managing the complexities of numerous product launches [20][22]

Core Insights - Intuitive Surgical (ISRG) reported Q3 2025 adjusted EPS of $2.40, exceeding estimates by 20.6% and showing a year-over-year increase of 30.4% [1][9] - Revenue for the quarter reached $2.51 billion, a 23% increase year over year, driven by higher system placements and da Vinci procedure growth [2][9] - The company experienced a gross margin of 68%, down 110 basis points from the previous year, while the operating margin improved to 39% [6][13] Revenue Details - Total revenues were $2.51 billion, reflecting a 23% year-over-year growth, surpassing the Zacks Consensus Estimate by 3.9% [2][9] - The growth was attributed to an increase in installed systems and da Vinci procedure volume [2] Segmental Performance - **Instruments & Accessories**: Revenue reached $1.52 billion, up 20.1% year over year, driven by a 19% increase in da Vinci procedure volume and significant growth in Ion and SP procedures [3] - **Systems**: Revenue totaled $590.4 million, a 32.7% increase year over year, supported by higher system placements and average selling prices [4] - **Services**: Revenue amounted to $395.9 million, reflecting a 20.4% increase from the previous year [5] Margins and Expenses - Adjusted gross profit was $1.70 billion, a 21% increase year over year, with a gross margin of 68% [6] - Selling, general, and administrative expenses rose to $573.3 million, up 12.3% year over year, while R&D expenses increased to $329.4 million, up 15.2% [6] Financial Position - The company ended the quarter with cash, cash equivalents, and investments totaling $8.43 billion, down from $9.53 billion in the previous quarter [8] Future Outlook - Intuitive Surgical raised its 2025 da Vinci procedure growth guidance to 17–17.5% and gross margin outlook to 67–67.5%, indicating strong operational leverage and cost efficiencies [14]