Intuitive Surgical Inc

Strong Financial Performance: Intuitive Surgical reported a 17% revenue growth to $8.4 billion in 2024, driven by robust adoption of the da Vinci 5 platform, with recurring revenue making up 84%. Gross margin improved by 100 basis points to 69.1%, which led to a 29% increase in net income for the year.

Procedure Growth Forecast: For 2025, the company anticipates da Vinci procedure growth ranging from 13% to 16%. This forecast accounts for ongoing challenges in China and constraints in Europe due to capital budgets, but also considers the potential recovery in China and increased adoption of procedures.

Gross Margin Challenges: Intuitive expects gross profit margins to decline to a range of 67% to 68% in 2025 due to several factors including increased depreciation from new facilities, growing sales of lower-margin products (da Vinci 5, Ion, and SP), and a stronger US dollar impacting international revenues.