Core Viewpoint - Intuitive Surgical's stock has declined approximately 20% over the past three months, primarily due to management's comments regarding tariff and international market pressures, despite the underlying strength of the core business [1][2][4]. Company Performance - In Q2, Intuitive Surgical reported a revenue increase of 21% to $2.44 billion, with worldwide da Vinci procedures rising about 17% [9]. - The company placed 395 da Vinci surgical systems during the quarter, contributing to an installed base of 10,488 units [9]. - Non-GAAP earnings per share (EPS) increased to $2.19 from $1.78 a year ago, indicating strong financial performance [9]. Management Insights - Management highlighted that demand in Japan was previously boosted by COVID-related funds, and several international markets are now facing budget constraints [4]. - Pricing pressure in China and rising domestic competition were also noted as potential challenges that could affect demand and system orders [4]. - To address tighter budgets, the company plans to increase reliance on leasing in international markets, where leasing currently accounts for only 30% to 40% of placements [5]. Market Conditions - Tariffs have been identified as a concern, with management estimating a gross-margin headwind of approximately 1 percentage point from tariffs in 2025, with potential for a higher impact next year [6][7]. - Despite the recent stock pullback, the company is viewed as having a resilient growth trajectory, supported by procedure growth and an expanding installed base [8][11]. Investment Considerations - The valuation of Intuitive Surgical remains premium, trading near 50 times an annualized run-rate of Q2 non-GAAP EPS, which is considered reasonable for a market leader with strong growth [12]. - The investment case is supported by procedure growth, an expanding installed base, and the rollout of higher-value platforms, which are critical for sustaining growth [11]. - Management's conservative approach and consistent risk highlighting have built credibility, suggesting that current market conditions may present a buying opportunity for long-term investors [13].

SUNNYVALE, Calif., April 22, 2025 (GLOBE NEWSWIRE) -- Intuitive (the "Company") (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended March 31, 2025. Q1 Financial Summary Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. The non- GAAP* ...

A nearly 13% decline spanning 13 trading sessions for the Nasdaq Composite marks an ideal opportunity for investors to pounce on amazing deals.In a roughly three-week span, Wall Street has reminded investors that stocks can, indeed, go down just as easily as they can power higher.Although the benchmark S&P 500 endured its ninth-largest single-session drop on Monday, March 10, the the growth stock-fueled Nasdaq Composite (^IXIC 1.22%) has headlined this pullback. The Nasdaq lost 728 points on Monday, which r ...