Intuitive Surgical reported strong Q1 results, expecting growth in procedure volume but decrease in gross margin.
From Nasdaq: 2025-04-25 00:03:00
Intuitive Surgical (ISRG) reported a strong Q1 performance with revenues reaching $2.25 billion and adjusted earnings per share of $1.81, exceeding estimates. The company saw a 17% increase in procedure volume and placed 367 da Vinci systems. ISRG anticipates 15-17% growth in procedure volume for 2025, but expects a decrease in gross margin.
Following a strong Q1 report, ISRG stock saw gains but has shown significant volatility in annual returns compared to the S&P 500. The Trefis High Quality Portfolio, with 30 stocks, has outperformed the S&P 500 over the last four years with less volatility. ISRG’s stock price reflects a trailing P/E ratio of 67, consistent with its historical valuations.
Despite potential macroeconomic uncertainties, Intuitive Surgical’s valuation is estimated to be $558 per share with around 10% upside. ISRG has historically commanded high valuation multiples due to limited competition in the robotic surgery market. Strong growth in da Vinci procedure volumes could further expand its premium valuation. Peer comparisons can provide valuable insights into ISRG’s performance against its industry counterparts.
Read more at Nasdaq: What’s Next For Intuitive Surgical Stock After An Upbeat Q1?
