INTUITIVE SURGICAL INC (ISRG)

Intuitive Surgical Inc. makes robotic systems for surgery. These systems help doctors perform operations with more precision, control, and flexibility. Their most famous product is the da Vinci Surgical System, which allows surgeons to use robotic arms to perform minimally invasive surgery, meaning smaller cuts and faster recovery times for patients.

Instead of having to make large incisions like in traditional surgery, surgeons can make smaller ones, and the robotic system gives them a better view and more control over the procedure. The technology is used for various types of surgeries, including in areas like urology, gynecology, and general surgery.

Chart

Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• System Sales: Intuitive Surgical sells its robotic surgical systems, such as the da Vinci Surgical System, to hospitals and surgical centers. These systems are expensive, with costs ranging from $1 million to $2 million per unit.

• Instruments and Accessories: Intuitive Surgical also makes money from the disposable instruments and accessories used in surgeries with the da Vinci systems. These include items like surgical tools, cameras, and drapes. Hospitals need to replace these tools frequently, so they are a significant ongoing revenue source.

• Service and Maintenance: After selling the systems, Intuitive Surgical earns revenue by providing ongoing maintenance, training, and support services. Hospitals typically pay for annual service contracts to keep the systems in working condition.

• Software and Upgrades: The company generates revenue from selling software updates and enhancements for its robotic systems. As technology evolves, hospitals may purchase newer versions or additional software features.

Good Time to Buy?

At the time of writing, ISRG is down 21% since it’s January 2025 52 Week High of 616/share.

FYI

If You Invested In ISRG…