Key Takeaways ISRG procedures rose 17% in Q2, led by general surgery and a rebound in China.Gross margin fell 200bps to 67.9% due to FX, logistics, and da Vinci 5 ramp-up effects.ISRG held FY25 margin guidance as digital tools, automation, and I&A growth offset headwinds.Intuitive Surgical (ISRG) delivered a solid second-quarter 2025 performance, with procedure volumes up 17% year over year, maintaining double-digit growth across key U.S. and international markets. The performance was led by continued stren ...

Group 1: Palantir Technologies - Palantir Technologies stock has advanced 435% in the past year, bringing its market value to $300 billion as of June 7 [1] Group 2: Shopify - Shopify develops e-commerce software and services, holding over 12% of online retail sales in the U.S. and 6% in Western Europe, making it the second-largest e-commerce company behind Amazon [3] - Forrester Research recognized Shopify as a technology leader in wholesale commerce solutions, which is four times larger and growing faster than retail commerce [4] - Shopify reported a 27% revenue increase to $2.3 billion in Q1, with non-GAAP net income rising 25% to $0.25 per diluted share, and a 10-basis-point increase in take rate [5] - Shopify's current market value is $145 billion, with a potential to exceed $300 billion if its stock price increases by 107% over the next three years, implying annual returns of 27.4% [6] - Wall Street expects adjusted earnings to increase by 23% annually through 2026, making the current valuation of 90 times earnings appear expensive, though Shopify has historically beaten consensus estimates by an average of 11% [7][8] Group 3: Intuitive Surgical - Intuitive Surgical is a leader in robotic-assisted surgery, known for its da Vinci systems, which enhance precision in minimally invasive procedures [9] - The company reported a 19% revenue increase to $2.2 billion in Q1, with non-GAAP net income rising 21% to $1.81 per diluted share [10] - An important catalyst for Intuitive Surgical is the upcoming launch of the da Vinci 5 system, featuring significantly enhanced computing power and innovations like force feedback [11] - Proposed tariffs are expected to reduce gross margin by 1.7 percentage points, but there is potential for improvement if trade deals are negotiated [12] - Wall Street anticipates adjusted earnings growth of 10% annually through 2026, with a current valuation of 73 times earnings, though Intuitive Surgical has beaten consensus estimates by an average of 14% [13]

Core Insights - Palantir Technologies is currently valued at $269 billion, but analysts believe Intuitive Surgical and ServiceNow could surpass this valuation by 2026 [1] Intuitive Surgical - Intuitive Surgical is a leader in robotics-assisted surgery, known for its da Vinci systems, which enhance precision in minimally invasive procedures across five surgical areas [3][7] - The company operates on a razor-and-blade business model, where surgical systems are the razors and consumable tools are the blades, creating a steady revenue stream [4] - In Q1, Intuitive Surgical reported a 19% revenue increase to $2.2 billion, driven by growth in da Vinci procedures and system placements, with non-GAAP earnings rising 21% to $1.50 per diluted share [5] - Morgan Stanley analyst Patrick Wood set a bull-case target price of $850 per share for Intuitive Surgical, indicating a 64% upside from its current price of $517, leading to a potential market value of $304 billion [6] - Recent FDA approvals allow da Vinci systems to perform more colorectal surgeries, suggesting a larger total addressable market and potential for faster growth [8] - Wall Street anticipates adjusted earnings growth of 10% annually through 2026, but Intuitive Surgical has historically beaten estimates by an average of 14% [9] - If earnings grow at 28% annually through Q3 2026, the market value could reach $270 billion without changes in the P/E ratio, though current shares trade at 68 times earnings, indicating a high valuation [10] ServiceNow - ServiceNow specializes in workflow management software, particularly in IT service management and AI for IT operations, and introduced generative AI features in 2023 [11] - The company reported an 18% revenue increase to $3 billion in Q1, with non-GAAP net income also rising 18% to $4.04 per diluted share, attributed to its strong position in enterprise-grade AI [12] - Wall Street expects ServiceNow's adjusted earnings to grow at 19% annually through 2026, with the company beating consensus estimates by an average of 7% over the last six quarters [12] - If this trend continues, trailing-12-month earnings could reach $20.10 per share, leading to a potential share price of $1,325, implying a 39% upside from the current price [12] - In this scenario, ServiceNow's market value could reach $275 billion by Q3 2026, surpassing Palantir's current valuation, although the current valuation is considered expensive for the expected growth rate [13]

Core Viewpoint - Intuitive Surgical reported strong quarterly earnings with a double beat on both revenue and earnings per share, but mixed guidance due to tariff uncertainties affecting future growth prospects [3][4][5]. Financial Performance - The company achieved earnings per share (EPS) of $1.81, exceeding estimates by $0.10 and reflecting a 20% year-over-year increase [3]. - Revenue for the quarter was $2.25 billion, surpassing estimates by 3.27% and showing a 19% year-over-year growth [3]. Guidance and Growth Expectations - Intuitive Surgical anticipates a procedure volume growth of 15% to 17%, an increase from the previous guidance of 13% to 16% [4]. - Despite the positive growth outlook, the company faces challenges from tariffs, which could offset this growth [5]. Tariff Impact - The company manufactures 98% of its Da Vinci systems in the U.S., but 70% of endoscopes and 80% of instruments and accessories are sourced from Europe and Mexico, respectively [6]. - Intuitive Surgical expects a non-GAAP gross margin of 65% to 66.5%, a decline of about 5% year-over-year, factoring in an estimated revenue impact of 1.7% due to tariffs [7]. Stock Performance and Analyst Ratings - The current stock price is $508.13, with a 12-month price target of $598.95, indicating a potential upside of 17.87% [8]. - The stock is trading at a forward P/E ratio of 75.8, which is considered expensive compared to the broader market but aligns with its five-year average [8]. - Analysts suggest a cautious approach, recommending waiting for the stock to break above the 50-day simple moving average before taking a long position [10]. Tariff Outlook - The company faces potential tariffs of 125% and 145% for imports and exports to China, 10% for European components, and 25% for certain products from Mexico [12].