How did ISRG's operating profit surge in Q4 2024?

Intuitive Surgical's (ISRG) operating profit surge in Q4 2024 can be attributed to several key factors:

1. Revenue Growth: The company's revenue grew by 17% year-over-year to $2 billion in Q3 2024, driven by an 18% increase in DaVinci procedures and strong performance in the Ion business. This growth in revenue is a direct result of the company's successful market positioning and product innovation.
2. Gross Profit Margin Improvement: Intuitive Surgical reported a robust gross profit margin of 67% and a "GREAT" financial health score of 3.11 out of 5, indicating efficient operations and strong profitability. The company's pro forma gross margin for Q3 was 69.1%, which contributed to the net income rise.
3. Net Income Increase: The company's net income increased by 36% year-over-year to $565.1 million in Q3 2024, with earnings per share (EPS) of $1.59, up from $1.18 in the same period the previous year. This increase in net income is a result of higher revenue and efficient cost management.
4. System Placements and New Product Adoption: The company placed 379 da Vinci systems in Q3 2024, including 110 da Vinci 5 systems, which saw particularly strong adoption. The growth in system placements and the successful launch of new products like the da Vinci 5 contribute to the company's ongoing revenue growth and profitability.

In conclusion, ISRG's operating profit surge in Q4 2024 is a result of robust revenue growth, improved gross profit margins, increased net income, and successful system placements and product adoption.