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1. Company Snapshot

1.a. Company Description

Intuitive Surgical, Inc.develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally.The company offers the da Vinci Surgical System to enable complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung.


It also provides a suite of stapling, energy, and core instrumentation for its surgical systems; progressive learning pathways to support the use of its technology; a complement of services to its customers, including support, installation, repair, and maintenance; and integrated digital capabilities providing unified and connected offerings, streamlining performance for hospitals with program-enhancing insights.The company was incorporated in 1995 and is headquartered in Sunnyvale, California.

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1.b. Last Insights on ISRG

Intuitive Surgical's recent performance was driven by strong Q3 results, with earnings of $2.4 per share beating estimates, and revenue of $2.51 billion, up 23% year-over-year. The company's robust procedure growth and da Vinci 5 adoption have contributed to its momentum. Additionally, its upward-revised full-year guidance indicates ongoing growth in the robotic surgery market. Analysts view potential headwinds as "largely noise," easing bear market concerns. The company's Q3 results have sparked investor enthusiasm, fueled by rising demand for robotic-assisted surgical systems.

1.c. Company Highlights

2. Intuitive Surgical's Q3 2025 Earnings: A Strong Performance

Intuitive Surgical reported a robust Q3 2025, with revenue growing 23% to $2.5 billion, driven by the successful launch of da Vinci V and increased adoption of ION and SP platforms. The company's pro forma earnings per share (EPS) was $2.40, beating analyst estimates of $1.99. Operating margin was 39%, and GAAP net income was $704 million or $1.95 per share. The strong financial performance was underpinned by a 20% growth in procedures, with da Vinci procedures up 19% and ION procedures up 52%. The installed base of da Vinci systems increased 13% to almost 10,800 systems.

Publication Date: Oct -22

📋 Highlights
  • Revenue Growth:: Q3 revenue surged 23% to $2.5 billion, driven by da Vinci V (240 placements) and ION/SP platforms (ION placements up 30% to 950 systems).
  • Procedure Volume Expansion:: Total procedures rose 20%, with da Vinci up 19% and ION surging 52%, reaching 38,000 procedures by quarter-end.
  • Capital Deployment:: Placed 427 da Vinci systems (including 240 da Vinci V) and 50 ION systems, with domestic capital transactions rising sharply from 38 to 141 year-over-year.
  • Profitability Metrics:: Pro forma operating margin held at 39%, EPS grew 30% to $2.40, and GAAP net income increased to $704 million ($1.95/share), up from $565 million ($1.60/share) prior.
  • Cash and Strategic Priorities:: Ended Q3 with $8.4 billion in cash (after repurchasing $1.9 billion in shares), with 2025 guidance projecting 17-17.5% da Vinci procedure growth and 67-67.5% pro forma gross margin.

Procedure Growth Drivers

The company cited strong growth in after-hours surgery and acute care, as well as a subset of benign general surgery procedures, as key drivers of procedure growth. The introduction of da Vinci V has supported increased utilization within existing accounts, with 67,000 da Vinci V procedures done in Q3, up from 50,000 in Q2. The company is also seeing a healthy pipeline in Europe and Japan, where da Vinci V was recently launched.

Margin and Cash Flow

The company's pro forma gross profit margin was within the guided range of 67-67.5% of revenue. The implied gross margin in Q4 at the midpoint of the guidance range is slightly below 67%. Intuitive Surgical ended the quarter with $8.4 billion in cash and investments, down from $9.5 billion last quarter, after using $1.9 billion to repurchase approximately 4 million shares.

Valuation and Outlook

With a P/E Ratio of 63.62 and an EV/EBITDA of 49.85, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 14.8%. The company's focus on increasing adoption of focused procedures, building industrial scale, and driving progress in product quality and manufacturing optimization is expected to drive future growth. Going direct in Italy, Spain, and Portugal is expected to be slightly accretive to pro forma EPS.

Challenges and Opportunities

The company is navigating challenges in the bariatric market, with domestic bariatric procedures declining at high single digits. However, procedure growth in ambulatory surgery centers (ASCs) is strong, and the company expects to focus on this area. The company is also investing in cardio, where it sees an opportunity to apply its capabilities in precision motion control and integration of imaging to improve patient outcomes.

3. NewsRoom

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Medtronic Scores FDA Win As Hugo Surgical Robot Enters 230,000 Urology Procedure Market

Dec -04

Source: feeds.benzinga.com

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Margins Face Tariff Pressure: Is ISRG's Profitability at Risk?

Dec -04

Source: zacks.com

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3 Growth Beasts That Have Beaten the Market in 8 of the Past 10 Years

Dec -04

Source: fool.com

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Intuitive Surgical: Da Vinci Delivers, Double-Digit EPS Growth, Golden Cross

Dec -02

Source: seekingalpha.com

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Here's Why Intuitive Surgical, Inc. (ISRG) Fell More Than Broader Market

Dec -01

Source:

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Is Intuitive Surgical's Dominance Safe? 10 Years of Healthcare Upside

Nov -29

Source: fool.com

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Can Intuitive Surgical Still Be A Good Buy?

Nov -26

Source: forbes.com

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From Hospitals to ASCs: Will Refurbished Xi Systems Broaden ISRG's Reach?

Nov -26

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Surgical & Medical Equipment

Expected Growth: 14.0%

Intuitive Surgical's 14.0% growth in Surgical & Medical Equipment is driven by increasing adoption of robotic-assisted surgeries, expanding applications in minimally invasive procedures, and growing demand for innovative healthcare technologies. The company's market leadership, strong product portfolio, and rising procedural volumes also contribute to its growth momentum.

7. Detailed Products

dVSSM (Digital Video Surgical System)

The da Vinci Surgical System is a robotic surgical system that enables surgeons to perform complex procedures with enhanced precision, flexibility, and control. The system consists of a surgeon console, a patient-side cart with robotic arms, and a high-definition 3D vision system.

Ion Endoluminal System

The Ion Endoluminal System is a robotic-assisted platform for minimally invasive biopsies and interventions within the lungs. The system enables precise navigation and sampling of lung tissue, improving diagnostic accuracy and reducing complications.

Senia Technology

Senia Technology is an advanced imaging and sensing platform that provides high-definition visualization and real-time data analytics. The platform enhances the capabilities of the da Vinci Surgical System, enabling surgeons to perform procedures with greater precision and accuracy.

Intuitive INSIGHT (Intuitive Surgical Insights)

Intuitive INSIGHT is a data analytics and insights platform that provides surgeons and hospitals with real-time data and insights on surgical procedures. The platform enables healthcare professionals to track performance, identify areas for improvement, and optimize patient care.

8. Intuitive Surgical, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Intuitive Surgical, Inc.'s da Vinci Surgical System is a unique and patented product, making it difficult for substitutes to replicate its functionality. The company's strong brand reputation and extensive training programs also create a high barrier for substitutes.

Bargaining Power Of Customers

While customers, primarily hospitals and healthcare systems, have some bargaining power due to the high cost of the da Vinci Surgical System, Intuitive Surgical, Inc.'s strong product offering and customer support limit their negotiating power.

Bargaining Power Of Suppliers

Intuitive Surgical, Inc. has a diverse supplier base and is not heavily reliant on any single supplier. The company also has a strong procurement process in place, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The high barriers to entry in the surgical robotics market, including significant R&D investment, regulatory hurdles, and the need for extensive clinical trials, make it difficult for new entrants to compete with Intuitive Surgical, Inc.

Intensity Of Rivalry

While there are a few competitors in the surgical robotics market, such as Medtronic and Johnson & Johnson, Intuitive Surgical, Inc. has a strong market position and a loyal customer base, which limits the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.00%
Debt Cost 4.28%
Equity Weight 100.00%
Equity Cost 12.36%
WACC 12.36%
Leverage 0.00%

11. Quality Control: Intuitive Surgical, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
HCA Healthcare

A-Score: 5.9/10

Value: 6.5

Growth: 7.2

Quality: 5.0

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
ResMed

A-Score: 5.9/10

Value: 2.0

Growth: 8.1

Quality: 8.7

Yield: 1.0

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Becton Dickinson

A-Score: 4.1/10

Value: 3.2

Growth: 3.8

Quality: 5.1

Yield: 3.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Intuitive Surgical

A-Score: 4.1/10

Value: 0.0

Growth: 6.8

Quality: 7.8

Yield: 0.0

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
West Pharma

A-Score: 3.8/10

Value: 0.9

Growth: 6.2

Quality: 7.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Centene

A-Score: 3.6/10

Value: 9.3

Growth: 5.7

Quality: 3.3

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

575.34$

Current Price

575.34$

Potential

-0.00%

Expected Cash-Flows