With a market cap of $205.2 billion, Intuitive Surgical, Inc. (ISRG) is a prominent technology and medical device company that is widely regarded as the global leader in robotic-assisted, minimally invasive surgery. Its headquarters are in Sunnyvale, California, and its flagship offerings include the da Vinci Surgical System and the Ion endoluminal system, supported by a comprehensive portfolio of instruments, accessories, services, and digital solutions. The med-tech titan is expected to announce its fi ...

Key Takeaways CAH is seeing momentum from cost discipline, pricing actions and improving volumes across its segments.MDT is benefiting from cardiac ablation growth, raised guidance and pipeline advances.ISRG and EW stand to gain from the rising adoption of robotic surgery and minimally invasive heart procedures.The MedTech industry has shown resilience and steady growth through 2025 while navigating lingering supply-chain issues, regulatory complexities and the pace of technological change. Notably, the Dow ...

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) stock is considered a solid investment due to high margins and cash generation capabilities at a discounted price [2] - The stock has increased by 11% this year, while its Price-to-Sales (P/S) ratio is 11% lower compared to the previous year [3] Company Performance - In Q3 2025, global procedure volume rose by 20%, driven by strong adoption of da Vinci and Ion platforms, with 240 new placements of the da Vinci 5 system [4] - The installed base of da Vinci systems is nearing 10,800, leading to steady demand for high-margin instruments and accessories, which also grew by 20% [4] - Despite tariff pressures on gross margins, management's focus on operational optimization and cash generation has provided resilience, raising full-year procedure growth guidance to 17-17.5% [4] Financial Metrics - ISRG maintains a high Price-to-Earnings (P/E) ratio as investors anticipate long-term growth, operating under a razor–razorblade model that ensures recurring revenue from instrument sales [5] - Recent profitability metrics include an operating cash flow margin of 30.8% and an operating margin of 29.3% over the last twelve months [9] - Revenue growth for ISRG was 22.2% over the last twelve months and 16.3% on average over the last three years [9] Valuation - ISRG stock is currently available at a P/S multiple of 21.5, representing an 11% discount compared to one year ago [9] - The company is characterized by a market capitalization greater than $10 billion and high cash flow margins [10]

Valued at a market cap of $196 billion, Intuitive Surgical, Inc. (ISRG) is a global leader in robotic-assisted surgery and the maker of the da Vinci Surgical System, one of the most widely used robotic platforms in minimally invasive procedures. The California-based company provides surgical robots, instruments, accessories, and training to hospitals and surgeons worldwide. This health tech titan has struggled to keep up with the broader market over the past 52 weeks. Shares of Intuitive Surgical have ral ...

Core Insights - Baron Health Care Fund reported a 5.39% increase in the third quarter of 2025, slightly outperforming the Russell 3000 Health Care Index which gained 5.05% and underperforming the broader Russell 3000 Index which rose by 8.18% [1] Fund Performance - The fund's performance was primarily impacted by solid stock selection, which was offset by negative effects from active sub-industry allocations and cash holdings during a rising market [1] Key Holdings - Intuitive Surgical, Inc. (NASDAQ:ISRG) was highlighted as a significant stock in the fund's portfolio, with a one-month return of 23.42% and a 52-week gain of 5.64% [2] - As of November 3, 2025, Intuitive Surgical's stock closed at $544.21 per share, with a market capitalization of $192.92 billion [2] Company Analysis - Intuitive Surgical manufactures the da Vinci Surgical System, which is used for minimally invasive surgical procedures. However, the stock faced performance challenges due to investor concerns about financial pressures on hospital customers following Medicaid cuts and potential issues with third-party reprocessed instruments [3] - Despite these concerns, there is a belief in a long runway for growth as the adoption of Intuitive's robotic systems is expected to expand across a wider range of surgical procedures [3] Revenue Growth - In the third quarter of 2025, Intuitive Surgical's revenue grew by 23% to $2.5 billion, indicating strong financial performance [4] - The company is not among the top 30 most popular stocks among hedge funds, with 107 hedge fund portfolios holding its shares at the end of the second quarter, a slight increase from 106 in the previous quarter [4]

Market Overview - The global medical robot market was valued at USD 11.51 billion in 2024 and is projected to reach approximately USD 39.07 billion by 2034, with a CAGR of 13% from 2024 to 2034 [1][34]. Market Drivers - Key drivers of market growth include technological innovation, high adoption of surgical robots, an increase in the number of surgical procedures, and broad health coverage plans for robot-assisted surgeries [1][5]. - The demand for minimally invasive surgeries is rising, leading to improved patient outcomes, reduced recovery times, and lower complication rates [29][30]. Regional Insights - North America dominated the surgical robotics market in 2024 and is expected to maintain its leadership position due to advancements in robotic surgery technologies and strong healthcare infrastructure [5][40]. - Europe is anticipated to experience the fastest growth in the market, driven by increasing investments in healthcare innovation and expanding adoption of robotic systems across hospitals and clinics [5][42]. Market Segmentation - The surgical robots segment led the market in 2024 and is expected to maintain its dominance due to the growing demand for minimally invasive procedures [5][35]. - The pharmacy and hospital automation robots segment is projected to experience the fastest growth, driven by the need for improved operational efficiency and the rising trend of automation in healthcare settings [5][36]. Technological Advancements - The integration of AI and machine learning in medical robotics is enhancing surgical precision, enabling real-time decision-making, and improving patient outcomes [11][32]. - The da Vinci 5 Surgical System, introduced by Intuitive Surgical, represents a significant advancement in robotic-assisted surgery, featuring enhanced haptic technology and AI-driven insights [13][17]. Clinical Impact - The adoption of the da Vinci 5 system has led to a decrease in average patient recovery time by 22% and a reduction in post-surgical complications by 18% compared to traditional methods [21][22]. - Enhanced surgical precision and reduced error margins have been reported, with surgical precision improving from ±2.5 mm to ±1.1 mm after the system's implementation [22][24]. Competitive Landscape - Intuitive Surgical continues to dominate the market, accounting for over 70% of global surgical robotics revenue in 2024, prompting competitors like Medtronic and Stryker to advance their own AI-assisted systems [25][26]. - The market is witnessing a wave of innovation as companies strive to enhance their robotic systems and improve operational efficiency in healthcare settings [25][26]. Future Outlook - The medical robot market is expected to expand globally, with significant investments and developments in regions like Asia and the Middle East, supported by government initiatives and regulatory approvals [11][42]. - The focus on minimally invasive and remote surgeries is likely to drive further advancements in robotic technology, making surgeries safer and more accessible [11][32].

Performance Overview - Baron Health Care Fund increased 5.39% in Q3 2025, outperforming the Russell 3000 Health Care Index's 5.05% but underperforming the Russell 3000 Index's 8.18% [2][3] - Since inception on April 30, 2018, the Fund has achieved an annualized return of 9.30%, compared to 8.68% for the Benchmark and 14.48% for the Index [2][4] Key Contributors - Strong stock selection in biotechnology, particularly from argenx SE and Insmed Incorporated, contributed significantly to the Fund's performance [5] - Argenx's Vyvgart sales exceeded expectations, while Insmed's Brinsupri received U.S. approval, representing a $5 billion-plus opportunity [5][16] - Investments in health care services, particularly RadNet, Inc. and Heartflow, Inc., also added value, with RadNet's shares rising due to strong quarterly results and guidance [6][7][17] Key Detractors - Poor stock selection in health care equipment, particularly from Masimo Corporation and Boston Scientific Corporation, negatively impacted performance [8][9] - Eli Lilly's stock fell due to disappointing Phase 3 trial results for orforglipron, alongside broader regulatory uncertainties affecting the pharmaceutical sector [12][21] - The Fund's underweight position in Johnson & Johnson, which saw a 22.3% increase, also detracted from relative performance [12] Portfolio Structure - The Fund held 46 stocks, with a significant overweight in biotechnology (31.8%) and health care equipment (24.0%), while being underweight in pharmaceuticals (15.2%) [24][28] - The top 10 holdings represented 47.8% of net assets, with Eli Lilly and argenx being the largest positions [26] Recent Activity - The Fund added 16 new positions and exited five, maintaining a focus on attractive valuations in the health care sector [29] - Notable purchases included AbbVie Inc., UnitedHealth Group, and Roivant Sciences, while positions in argenx and Eli Lilly were reduced to manage risk [30][31][37] Market Outlook - The health care sector is expected to offer attractive investment opportunities driven by demographic trends, chronic disease prevalence, and technological advancements [14][40] - Recent agreements, such as Pfizer's MFN pricing deal, are seen as positive for the pharmaceutical sector, with limited financial impact anticipated [38]

Core Thesis - Intuitive Surgical, Inc. (ISRG) is viewed positively due to its strong market position in minimally invasive robotic surgery, characterized by high switching costs and a recurring revenue model from consumables [2][4][5] Company Overview - Intuitive Surgical is a pioneer in robotic surgery, with a business model that creates significant customer stickiness due to the time-consuming and costly training required for surgeons [2] - The company operates on a razor-and-blades model, generating high-margin recurring revenue from consumables used in surgeries, independent of new robot sales [2] Market Performance - Global demand for robotic surgery is robust across various specialties, including urology, gynecology, thoracic, cardiac, and general surgery, supporting sustained growth [3] - Intuitive Surgical has consistently achieved over 20% growth in system sales and nearly 20% growth in consumables revenue, demonstrating strong performance over its two-decade operation [3] Investment Opportunity - Recent share price weakness, trading around $430, is attributed to concerns over potential tariffs and competitive pressures, but this is seen as a temporary headwind [3][4] - The current market conditions present an attractive entry point for long-term investors, given the company's durable competitive advantages and global growth opportunities [4] - The combination of high switching costs, recurring revenue, and a growing market positions Intuitive Surgical as a compelling investment with limited downside and strong earnings growth potential [4] Hedge Fund Interest - As of the end of the second quarter, 107 hedge fund portfolios held ISRG, a slight increase from 106 in the previous quarter, indicating ongoing interest in the stock [6]

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]