Intuitive Surgical's 40% Run: Profit Beat and Procedure Growth Drive Success

Intuitive Surgical (ISRG) has been on a remarkable 40% run, driven by strong financial performance and significant growth in robotic-assisted surgery procedures. The company's recent earnings report showcases its continued success in the minimally invasive care sector.

ISRG's third-quarter 2024 results demonstrated impressive growth across key metrics. Worldwide da Vinci procedures grew approximately 18% compared to the third quarter of 2023, while the company's installed base of systems expanded by 15% to 9,539 systems. This growth translated into a 17% increase in revenue, reaching $2.04 billion, and a 24% increase in non-GAAP net income, totaling $669 million.

The growth in da Vinci procedures directly correlates with the increase in the installed base of systems. As more hospitals adopt the da Vinci surgical system, the number of procedures performed using the technology increases, driving revenue growth. This positive feedback loop has been a significant factor in ISRG's success.


The increase in procedure volume has also positively impacted the revenue generated from instruments and accessories. As more procedures are performed, there is a higher demand for disposable instruments and accessories, leading to a 18% increase in revenue in this segment. This growth, coupled with the 73% increase in Ion procedure volume, contributed to the overall revenue increase.

The growth in da Vinci procedures has also had a significant impact on the company's net income and earnings per share. ISRG's non-GAAP net income per diluted share increased by 27% to $1.84, reflecting the strong financial performance driven by the growth in procedures.


ISRG's cash flow and investment decisions have also been positively impacted by the growth in da Vinci procedures. The company ended the third quarter of 2024 with $8.31 billion in cash, cash equivalents, and investments, an increase of $628 million during the quarter. This growth was primarily driven by cash generated from operations, enabling ISRG to invest in research and development, strategic acquisitions, and partnerships.

In conclusion, Intuitive Surgical's 40% run is a testament to the company's success in the robotic-assisted surgery market. The growth in da Vinci procedures, driven by the increasing adoption of the technology, has been a critical factor in ISRG's financial performance. As the company continues to innovate and expand its offerings, it is well-positioned to maintain its strong momentum in the market.