Intuitive Surgical (ISRG) Fell Despite Reporting Strong Results

RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets recorded strong gains in the third quarter, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51%. The fund also surged in the quarter and returned 4.73%. Market leadership was narrow in the quarter, with a few mega-cap tech and consumer companies thriving on strong AI innovation. Information Technology, Consumer Discretionary, and Communication Services led sector performance, while Energy and Utilities lagged. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, RiverPark Large Growth Fund highlighted stocks such as Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures and markets products that help physicians and healthcare providers improve the quality of and access to minimally invasive care. The one-month return of Intuitive Surgical, Inc. (NASDAQ:ISRG) was 3.75%, and its shares gained 0.91% of their value over the last 52 weeks. On November 17, 2025, Intuitive Surgical, Inc. (NASDAQ:ISRG) stock closed at $546.77 per share, with a market capitalization of $196.004 billion.

RiverPark Large Growth Fund stated the following regarding Intuitive Surgical, Inc. (NASDAQ:ISRG) in its third quarter 2025 investor letter:

"Intuitive Surgical, Inc. (NASDAQ:ISRG): ISRG shares lagged despite reporting another quarter of double-digit revenue and earnings growth. While procedure volumes remained strong, hospital capital-equipment spending was uneven, leading management to temper near-term guidance. The stock’s decline reflected short-term concerns about budget timing rather than fundamentals, as utilization trends and installed-base growth remain healthy.

We continue to view Intuitive Surgical as the clear leader in robotic-assisted surgery with substantial long-term growth potential. The company’s da Vinci and Ion platforms, combined with a high-margin recurring consumables business, position it to benefit from the global shift toward minimally invasive procedures."

Intuitive Surgical, Inc. (NASDAQ:ISRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 107 hedge fund portfolios held Intuitive Surgical, Inc. (NASDAQ:ISRG) at the end of the second quarter, up from 106 in the previous quarter. In the third quarter of 2025, Intuitive Surgical, Inc.’s (NASDAQ:ISRG) revenue grew 23% to $2.5 billion. While we acknowledge the potential of Intuitive Surgical, Inc. (NASDAQ:ISRG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Intuitive Surgical, Inc. (NASDAQ:ISRG) and shared the list of most fantastic stocks every investor should pay attention to. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.