Intuitive Surgical, known for its da Vinci robotic surgery systems, recently reported strong fourth-quarter earnings that exceeded market expectations. The company achieved a 25% year-over-year revenue increase, reaching $2.41 billion, with an adjusted profit of $2.21 per share. This growth was driven by an 18% rise in procedures performed using the da Vinci system and the installation of 493 new units during the quarter.

Despite these robust results, the company’s stock declined, closing at $584.05, down 8.1%. The dip was attributed to the company's 2025 gross margin forecast, which is expected to be between 67% and 68%, below the 69% achieved in 2024. Factors affecting this outlook include a shift in revenue sources toward newer platforms, such as the da Vinci 5, SP, and Ion systems, as well as challenges related to exchange rates.

Looking ahead, Intuitive Surgical anticipates a 13% to 16% growth in da Vinci-assisted procedures for 2025, slightly below the 17% growth recorded in 2024. Analysts remain optimistic about the company's long-term potential, citing the growing demand for robotic surgery. The stock holds a "Moderate Buy" rating, with an average price target of $613.10, indicating potential upside from its current trading price.