Core Insights - Intuitive Surgical stock (NASDAQ: ISRG) saw a 17% increase in extended trading on October 21, 2025, after exceeding investor expectations with Q3 results and raising full-year guidance, indicating strong momentum in the robotic surgery market [2][4][11] Financial Performance - Q3 revenue reached $2.51 billion, a 23% increase from $2.04 billion in Q3 2024, while non-GAAP earnings per share were $2.40, surpassing analyst forecasts of $1.99 and reflecting a 30% rise from $1.84 year-over-year [4][11] - Global procedures using da Vinci and Ion systems increased by approximately 20% year-over-year, with da Vinci procedures rising by 19% and Ion procedures surging by 52% [5] Growth Drivers - Management has raised full-year guidance for da Vinci procedure growth to 17-17.5%, exceeding analyst expectations of 16.4%, driven by strong procedure volume [5][11] Valuation Analysis - ISRG stock trades at about 71 times its trailing twelve months earnings, lower than the four-year average of 75 times, suggesting reasonable valuation despite the recent surge [6] - The current Price-to-Sales (P/S) multiple of 18 represents a 23% discount compared to the previous year [8] Competitive Advantage - The company maintains high margins and pricing power, generating consistent profits and cash flows, which reduces risk and allows for continuous capital reinvestment [7][11] - The accelerating adoption of the da Vinci 5 system and growing traction for the Ion platform positions ISRG favorably in the transition toward minimally invasive procedures [11]

Core Insights - The company reported a third-quarter revenue of $2.51 billion, a 23% increase from $2.04 billion in the same quarter of 2024 [1] - GAAP net income was $704 million, with diluted earnings per share of $1.95, compared to $565 million and $1.56 in the previous year [1] - Non-GAAP net income reached $867 million, with diluted earnings per share of $2.40, up from $669 million and $1.84 year-over-year [1] Revenue Growth Drivers - Revenue growth was primarily driven by an increase in surgical volume, deployment of the da Vinci surgical systems, and expansion of device installations [1] - The company deployed 427 da Vinci systems in the quarter, up from 379 units in the same period last year; Ion systems deployment was 50 units, down from 58 units [1] - Surgical volume increased approximately 20% year-over-year, with da Vinci system surgeries growing about 19% and Ion system surgeries increasing by approximately 52% [1] Financial Position and Future Outlook - As of the end of the third quarter of 2025, the company had cash, cash equivalents, and investments totaling $8.43 billion, a decrease of $1.1 billion from the beginning of the quarter [2] - The decrease was mainly due to cash used for common stock repurchases and capital expenditures, partially offset by cash from operating activities [2] - The company repurchased 4 million shares for $1.92 billion [2] - For 2025, the company expects a global surgical volume growth rate of approximately 17% to 17.5%, with a non-GAAP gross margin projected between 67% and 67.5% [2] - Non-GAAP operating expense growth is anticipated to be between 11% and 13% for 2025 [2]

Investment Rating - The report assigns a "Hold" rating for the company with a target price of $526.85, indicating a potential upside of 7.1% from the current price of $492.06 [3][4]. Core Insights - The company experienced a strong revenue growth of 25.2% year-over-year in Q4, contributing to an annual revenue of $8.35 billion, which is a 17.2% increase compared to the previous year [1]. - The growth was driven by an increase in surgical procedures, particularly in the U.S. and several international markets, with a 17% increase in da Vinci surgeries, totaling 2.68 million procedures [1]. - The company is in the process of expanding its product offerings, particularly with the upcoming full launch of the DV5 surgical robot system, which is expected to be widely available by mid-2025 [2]. Financial Performance - For the fiscal year 2024, the company reported a net profit of $2.34 billion, reflecting a 28.6% increase, with a net profit margin of 28.0% [1]. - The non-GAAP gross margin improved by 1.0 percentage points to 69.1% due to increased production capacity and sales volume [1]. - The company anticipates a surgical growth rate of 13%-16% for 2025, with gross margins expected to remain between 67%-68% [3]. Future Outlook - The company plans to open new manufacturing facilities for the DV5 and Ion systems in California, as well as endoscope manufacturing plants in Germany and Bulgaria [2]. - The anticipated acquisition of businesses in Italy, Spain, and Portugal is expected to positively impact profits once completed in the first half of 2026 [2]. - Capital expenditures are projected to be between $650 million and $800 million, with other income expected to rise to $370 million to $400 million [3].