Intuitive Surgical Is Getting Punished For No Good Reason

Intuitive Surgical remains a buy despite a nearly 30% stock decline and post-earnings volatility. Adoption metrics are resilient, with strong system placements and installed base growth offsetting softer U.S. procedure growth. Profitability improved: Q2 non-GAAP gross margin expanded to 70%, operating margin to 42.1%, and EPS beat by $0.30. Forward P/E contracted to 36.7; guidance for procedure growth, margins, and expenses remains solid, supporting a favorable risk/reward.

After initiating Intuitive Surgical, Inc. (ISRG) at a buy rating last fall, this year I have reiterated my bullishness twice. In my most recent update back in April, I found robust adoption metrics, margin