Intuitive Surgical Inc (NASDAQ:ISRG), a leader in robotic-assisted surgery, saw its shares jump more than 6% after reporting third-quarter earnings that surpassed analyst expectations. The company's strong performance was driven by increased adoption of its da Vinci surgical systems and growth in procedure volumes.

For the quarter ended September 30, Intuitive Surgical reported adjusted earnings per share of $1.84, beating the analyst consensus of $1.64 by $0.20. Revenue came in at $2.04 billion, exceeding the estimated $2.01 billion and marking a 17% increase from $1.74 billion in the same quarter last year.

The company's da Vinci procedures grew approximately 18% YoY, while system placements increased to 379 units, up from 312 in the third quarter of 2023. Notably, 110 of these placements were the new da Vinci 5 systems. Intuitive's installed base of da Vinci systems reached 9,539, a 15% YoY increase.

Instruments and accessories revenue, a key indicator of surgical activity, rose 18% to $1.26 billion. Systems revenue also saw growth, reaching $445 million compared to $379 million in the prior-year quarter.

Gary Guthart, Intuitive's CEO, commented on the results: "Core measures of our business were healthy this quarter, and we are pleased by customer adoption of da Vinci 5. We remain focused on delivering the goals we share with our customers, centered on improving patient outcomes."

The company's strong financial position was underscored by its cash, cash equivalents, and investments balance of $8.31 billion at the quarter's end, an increase of $628 million during the period.

Jefferies analysts lifted their ISRG estimates and the price target (PT) following the report.

"This was a solid quarter with healthy procedure and capital trends and high DV5 interest," they commented.

The price objective was hiked from $415 to $475, although the firm maintained a Hold rating based on valuation.

Separately, Bernstein analysts noted that while da Vinci 5 remains in limited launch through mid-2025, "the pace of progress is very encouraging."

The investment bank reiterated Intuitive Surgical as its top pick and raised the target price from $525 to $585.

Senad Karaahmetovic contributed to this report.

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