How Investors Are Reacting To Intuitive Surgical (ISRG) Strong Q3 Results and da Vinci System Expansion

• Intuitive Surgical reported strong third-quarter results, with revenue reaching US$2.51 billion and adjusted EPS surpassing analyst estimates, alongside a 20% increase in global procedure volume and 240 new da Vinci 5 system placements.
• An interesting aspect is that recurring revenue from servicing and supplies continues to drive operational resilience, even as high-margin instrument and accessory sales grow in tandem with the expanding installed base.
• We'll explore how the robust procedural and installed base growth highlighted in these results could influence Intuitive Surgical's investment narrative.

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Intuitive Surgical Investment Narrative Recap

To be a shareholder in Intuitive Surgical, you need to believe in the company’s long-term ability to drive growth through innovation in robotic-assisted surgery, expanding its global installed base and recurring revenue. While the Q3 results reinforce the company’s momentum, with a sharp increase in procedures and da Vinci 5 placements, this does little to lessen the near-term risk of margin pressure from rising tariffs and global trade uncertainty, which remains a key factor to monitor in upcoming quarters.

Among recent developments, the FDA clearance for advancements on the Ion Endoluminal System stands out, complementing growth in procedures and expanding recurring revenue streams. These new product approvals can provide additional tailwinds, though the most immediate catalysts still relate to system placement growth and recurring consumable sales, as seen in the recent earnings.

Yet, in contrast to the robust procedure and revenue numbers, investors should still be aware that persistent tariff headwinds could...

Read the full narrative on Intuitive Surgical (it's free!)

Intuitive Surgical's narrative projects $13.4 billion revenue and $3.7 billion earnings by 2028. This requires 13.5% yearly revenue growth and a $1.1 billion earnings increase from $2.6 billion currently.

Uncover how Intuitive Surgical's forecasts yield a $592.96 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Fifteen individual fair value estimates from the Simply Wall St Community range from US$325.55 to US$592.96, showing opinions both well below and above recent pricing. While many focus on growth in procedures and system placements, the risk of ongoing tariff pressures looms, underlining why your expectations for profitability can differ so widely, see how others view the company’s outlook and share your perspective.

Explore 15 other fair value estimates on Intuitive Surgical - why the stock might be worth as much as $592.96!

Build Your Own Intuitive Surgical Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Intuitive Surgical research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Intuitive Surgical research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Intuitive Surgical's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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