Intuitive Surgical Breaks Out After Robotic Surgery Giant Crushes Quarterly Forecasts

Intuitive Surgical (ISRG), the market leader in robotic-assisted surgery, has reported strong preliminary Q4 and full-year 2024 results, surpassing analyst expectations. The company's revenue reached $2.41 billion in Q4, up 25% year-over-year, and $8.35 billion for the full year, marking a 17% increase. This impressive performance can be attributed to several factors:

1. Growing procedure volumes: The number of da Vinci procedures grew by approximately 18% in Q4 and 17% for the full year, reaching approximately 2,683,000 procedures. This growth was driven by a 19% increase in U.S. general surgery procedures and 23% growth in procedures outside the U.S., particularly in cancer surgeries.
2. Accelerating adoption of da Vinci 5 systems: The company placed 174 da Vinci 5 systems in Q4 2024, representing 35% of total placements. The shift towards the latest technology and higher ASPs contributed to the robust 36% growth in systems revenue.
3. Expanding use cases and global market penetration: The accelerating adoption of da Vinci 5 systems and the increasing procedure volumes indicate growing surgeon comfort and institutional adoption of robotic-assisted surgery as a standard of care. The diversification across platforms, including Ion and SP systems, positions Intuitive strongly in the broader minimally invasive surgery market.
4. Absence of COVID-19 disruptions: The statement about patient backlogs being immaterial suggests that the market has normalized, and current growth is driven by organic demand rather than pent-up procedures.

The preliminary Q4 results showcase remarkable performance with $2.41 billion revenue, marking a 25% YoY growth. Key performance indicators are exceptionally strong: procedure growth at 18%, system placements up 19% to 493 units, and instruments revenue increasing 23% to $1.41 billion. The da Vinci 5 system adoption is gaining momentum, with 174 units placed in Q4, representing 35% of total placements. The shift away from leased systems and higher ASPs contributed to the robust 36% growth in systems revenue. The full-year metrics are equally impressive, with total revenue reaching $8.35 billion, up 17% YoY and 2.68 million procedures performed, demonstrating strong market penetration.



The guidance for 2025 procedure growth of 13-16% suggests continued momentum, though at a slightly moderated pace compared to 2024's 17% growth. This conservative outlook likely factors in the high base effect and market maturation in certain segments. The accelerating adoption of da Vinci 5 systems, coupled with the strong market penetration and expanding use cases, solidifies Intuitive Surgical's competitive position in the robotic-assisted surgery market.

In conclusion, Intuitive Surgical's strong Q4 and full-year 2024 results reflect the growing market demand for robotic-assisted surgery, driven by the accelerating adoption of the da Vinci 5 system and expanding use cases. The company's impressive performance, coupled with its strong market penetration and competitive position, makes it an attractive investment opportunity for those seeking exposure to the growing robotic-assisted surgery market.