Intuitive Surgical's Q4 Revenue Surge, EPS Beat, Shares Dip

Intuitive Surgical (ISRG) reported a robust fourth quarter, with revenue of $2.41 billion, surpassing analysts' estimates and marking a 25% year-over-year increase. The medical device giant also beat earnings per share (EPS) estimates, reporting $2.21 per share compared to the expected $1.77. Despite the strong financial performance, shares fell in after-hours trading, likely due to investors taking profits following a recent rally.



The company's growth was driven by a 18% increase in da Vinci procedures, a 15% increase in the installed base of systems, and a higher mix of leased systems. Intuitive Surgical placed 493 da Vinci surgical systems in the quarter, including 174 da Vinci 5 systems, which contributed to the strong revenue growth. The company also benefited from a higher system average selling price (ASP) and a higher purchase mix of systems.



Intuitive Surgical's strong performance was reflected in its financial results. Fourth quarter 2024 revenue of $2.41 billion increased 25% compared to $1.93 billion in the fourth quarter of 2023. Fourth quarter 2024 GAAP net income attributable to Intuitive Surgical, Inc. was $686 million, or $1.88 per diluted share, compared to $606 million, or $1.69 per diluted share, in the fourth quarter of 2023. Fourth quarter 2024 non-GAAP net income attributable to Intuitive Surgical was $805 million, or $2.21 per diluted share, compared to $574 million, or $1.60 per diluted share, in the fourth quarter of 2023.

Intuitive Surgical's growth prospects remain strong, with the company expecting da Vinci procedures to grow 13% to 16% in 2025. The company also expects its adjusted gross profit margin to fall between 1 to 2 percentage points, but this does not account for potential new tariffs, which could have a "material" impact on its financial performance.

In conclusion, Intuitive Surgical's strong Q4 revenue and EPS beat reflect the company's continued growth and market leadership in minimally invasive surgery. Despite the after-hours share dip, the company's long-term prospects remain positive, driven by its innovative products, expanding market reach, and strategic acquisitions.