Intuitive Surgical (ISRG) remains the clear technology leader in robotic-assisted surgery. This field keeps expanding as hospitals and surgeons adopt automation and AI-driven tools.
Why I like it:
Strong growth: Revenue hit $8.35B in 2024 (+17% YoY), net income up 29% to $2.3B, and the installed base grew +14% to 10,488 da Vinci systems.
EPS still climbing: TTM EPS around $7.2 (+23% YoY), even with slight dilution from stock-based comp. Cash generation remains excellent.
Deep moat: Years of regulatory approvals, surgeon training, and a global service ecosystem make ISRG the default standard in surgical robotics.
AI tailwind: As robotics and AI converge, expect smarter systems with better vision, automation, and decision support, expanding ISRG’s lead.
Why now: Recent tariff concerns pushed valuation down a bit. Still not cheap, but the pullback looks more like a mid-term pause than a structural issue. For me an opportunity to buy.
