During the fourth quarter, Intuitive Surgical ISRG placed 493 systems, up 19% from 415 in the year-ago period. Total system placements were record-high in the past year. This includes 284 systems placed in the United States (up 75 systems year over year) and 209 systems outside the country (up slightly from 206 a year ago).
Product-wise, placements comprised 174 of the latest da Vinci 5 systems, 69 Ion systems (57% Y/Y growth) and 30 SP systems (94% Y/Y growth). These figures demonstrate robust year-over-year growth across the product portfolio, driven by strong demand in the United States and expanding international markets, despite challenges in regions like China and Japan.
The robust system placements drove System segment’s sales by 36.5% to $655 million. ISRG’s da Vinci 5 has shown strong uptake since its launch in March 2024 with total 362 placements. The higher system placements will also benefit the company as it will likely lead to higher procedures, driving Instruments & Accessories (I&A) segment’s sales.
Revenues from I&A segment totaled $1.41 billion during the fourth quarter, indicating a year-over-year improvement of 23.7%. This can be attributed to the da Vinci procedure’s 18% volume growth. The sales growth also reflects approximately 70% growth for Ion procedures and 81% for the SP platform.
A continuation of strong system placements in 2025 will not only drive System sales but also boost procedure growth, thereby driving ISRG’s recurring revenue stream from I&A sales. The company’s focus on opening new manufacturing facilities for da Vinci 5 and Ion systems in 2025 buoys well as ISRG expands the availability of its systems in international markets.
Year to date, ISRG’s shares have surged 29.4% compared with the Zacks Medical - Instruments industry’s gain of 6.5% and the broader Zacks Medical sector’s decline of 7.9%. The S&P 500 Index has returned 12.4% in the same period. The uptrend is primarily driven by strong demand for its robotic surgery procedures.
Meanwhile, ISRG’s shares are trading above the 50-day and the 200-day moving average, indicating a bullish trend.
ISRG Stock Trades Above 50-Day Average
Image Source: Zacks Investment Research
ISRG’s Growth Powered by Robotic Platforms and Digital Solutions
Intuitive Surgical has solidified its leadership in robotic-assisted surgery through its flagship Da Vinci Multiport System, Da Vinci SP and the Ion Robotic Platform. These systems, supported by advanced digital tools and analytical solutions, are key drivers of the company’s sustained growth and market expansion.
The Da Vinci Multiport System, ISRG’s cornerstone, dominates the robotic surgery landscape with a global installed base of more than 10,500 units. Its robust 17% compound annual growth rate (CAGR) over five years underscores its critical role in healthcare innovation, treating more than 16 million patients. The recent launch of the fifth-generation Da Vinci 5 has introduced enhanced force feedback and reduced surgeon exertion while improving surgical control. With seamless digital integrations, this system not only delivers superior patient outcomes but also differentiates ISRG’s offerings in a competitive market. Regulatory approvals in key regions are expected to further expand its adoption globally.
Meanwhile, the Da Vinci SP system is carving its niche in multi-specialty surgeries, with a robust 55% CAGR in procedures over five years. Despite limited U.S. adoption due to narrower indications, international markets, including South Korea and Japan, have embraced the system. Recent regulatory clearances in Taiwan and ongoing efforts in the United States for colorectal applications are set to broaden its scope, driving further adoption.
The Ion Robotic Platform, designed for minimally invasive lung biopsies, has emerged as one of ISRG’s fastest-growing segments. Boasting an impressive 205% five-year CAGR in procedures, Ion leverages AI-driven, personalized digital lung models to achieve unparalleled precision in complex anatomical regions. While its installed base is currently concentrated in the United States, international expansion into markets such as China, Germany and Italy is yielding promising results. The platform’s focus on addressing unmet needs in respiratory care positions it for sustained growth, particularly as it seeks approvals for new indications.
Beyond hardware, ISRG’s Digital Tools and Analytical Solutions play a pivotal role in enhancing surgical precision and efficiency. Platforms like the My Intuitive app and da Vinci virtual reality simulators provide surgeons with critical post-operative data and training resources. These tools optimize procedural outcomes and surgeon performance by integrating analytics into surgical workflows, strengthening ISRG’s value proposition.
ISRG estimates its 2025 full-year procedure growth to be between 13% and 16% on the back of anticipated recovery in China, an improved CapEx environment in Europe and potential moderation in bariatric procedure declines. The lower end of the range accounts for ongoing challenges in these areas???. The company’s gross and operating margins in 2025 are likely to be lower compared to 2024 due to higher depreciation expenses from new facilities, a stronger U.S. dollar, the growth of newer platforms currently carrying lower margins???, higher R&D investments and increased legal costs.
The Zacks Consensus Estimate for 2025 earnings is currently pegged at $7.87 per share, indicating a 7.2% year-over-year improvement. The estimate improved 0.3% over the past 30 days. The consensus mark for sales is pinned at $9.53 billion, indicating growth of 14.1% year over year.
Improving Estimates Over 60 Days
Image Source: Zacks Investment Research
Long-Term Growth Prospects: Innovation and Global Expansion
ISRG’s long-term growth strategy is underpinned by consistent innovation and an aggressive international expansion plan. The company’s development of next-generation robotic systems, such as Da Vinci 5 and Ion, and its extensive R&D investments in digital tools and analytics showcase its commitment to technological leadership. ISRG has earmarked $650 million to $800 million for capital expenditure in 2025, primarily focusing on facility construction for manufacturing expansions.
Furthermore, ISRG’s new Peachtree Corners manufacturing facility and the upcoming broad launch of Da Vinci 5 in 2025 reinforce the company’s preparations for sustained demand growth. By focusing on global regulatory approvals and tailoring its product offerings to different markets, ISRG is positioning itself to deepen its presence in regions such as Asia and Europe, where robotic surgery is gaining acceptance across multiple specialties.
Competitive Challenges and Market Headwinds
Although ISRG has a strong product portfolio with significant opportunities, the company faces huge competition from large and well-established companies, such as Johnson & Johnson JNJ and Medtronic MDT, which are also focused on developing robotically controlled products. These companies have strong balance sheets and commercial networks to support the development and launch of new products. This can significantly affect ISRG’s growth prospects.
Intuitive Surgicalalso faces increasing competition from international robotic surgery companies, particularly in China, where local firms are introducing competitive systems and gaining market share alongside pricing pressures. New entrants, especially those gaining regulatory clearances in various global markets, are influencing the market dynamics. This increasing competition is expected to lengthen selling cycles, as customers weigh more alternatives.
In Europe, healthcare capital spending remained constrained by government budget pressures, notably in the UK and Germany, while financial pressures in Japan are leading to delays in capital investments. Meanwhile, slowing growth in bariatric procedures due to the growing use of GLP-1 medications will continue to hurt procedure volume in 2025.
Wrapping Up
Intuitive Surgical’s impressive growth trajectory underscores its commitment to advancing robotic-assisted surgery through innovation, digital integration and global expansion. The Da Vinci multiport system, Ion, and SP systems, supported by a suite of digital tools, enable ISRG to offer comprehensive solutions for hospitals worldwide. Short-term growth is expected to remain strong, although headwinds in certain regions may dampen its expansion efforts. In the long run, ISRG’s strategic investments in next-generation products and new manufacturing capabilities place it on solid footing to sustain market leadership in a competitive and rapidly evolving industry.
ISRG’s YTD Performance
Image Source: Zacks Investment Research
However, ISRG currently carries a Zacks Rank #3 (Hold). The style scores don’t look quite promising. The company has a Value score of D and a Growth score of C. As such, we believe that investors may put the stock on watchlist now and wait for price to reach an attractive valuation. Current shareholders should continue to hold their position. They may gain from further upside.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Johnson & Johnson (JNJ): Free Stock Analysis Report
Medtronic PLC (MDT): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report