Shares of Intuitive Surgical (ISRG +14.16%) were skyrocketing 16% higher as of 11 a.m. ET on Wednesday. The big jump came after the robotic surgical systems pioneer announced its third-quarter results following the market close on Tuesday.
Intuitive Surgical reported Q3 revenue of $2.51 billion, up 23% year over year. Analysts expected revenue of $2.4 billion. The company posted adjusted earnings of $867 million, or $2.40 per diluted share, compared to adjusted earnings of $669 million, or $1.84 per diluted share, in the prior-year period. The consensus Wall Street estimate was for adjusted earnings per share of $1.98.
NASDAQ: ISRG
Key Data Points
More than just an earnings beat
The good news wasn't limited to Q3. Intuitive Surgical now projects that procedure volumes for its flagship da Vinci surgical robots will increase between 17% and 17.5% in full-year 2025. That's up from the company's previous forecast of procedure growth between 15.5% and 17%.
Image source: Intuitive Surgical.
Wall Street responded positively to Intuitive Surgical's Q3 update, too. Truist Securities raised its 12-month price target on the stock to $620 from $525. RBC Capital increased its price target on Intuitive from $615 to $625. Both targets reflect an upside potential of more than 16%.
Is Intuitive Surgical stock a buy?
Intuitive Surgical isn't cheap, with its forward price-to-earnings ratio hovering around 48. However, the company continues to enjoy strong growth prospects with rising adoption of its robotic surgical systems and aging demographics throughout much of the world. Intuitive's impressive Q3 update underscores how dominant the company is in the surgical robot market. I think this medtech stock is a buy.
