Intuitive Surgical, a US-based designer, manufacturer and marketer of robotic-assisted surgical systems, issued string financial report for the second quarter of 2016. Revenues increased 14.3% y-o-y to $670.1 mn, driven by higher procedural volume and growth across all segments, and surpassed consensus estimate of $643 mn. Worldwide da Vinci procedure volumes grew approximately 16% to 176,000. Procedures in the US rose 13%, while that outside the US increased about 25%. The company shipped 130 da Vinci Surgical Systems compared with 118 in the year-ago quarter. Adjusted operating margin expanded 610 basis points to 38%, and adjusted earnings per share jumped 28.3% to $4.86 beating analysts’ average projection by 65 cents. The company ended Q2 with cash, cash equivalents and investments of $4.2 bn compared with $3.8 bn as of Mar 31.Intuitive Surgical raised its full-year outlook for procedure growth. The company now expects procedures using da Vinci robots to increase 14-15% in 2016, helped also by a favorable outlook for prostate and gynecological surgeries. The previous forecast implied 12-14% growth. Intuitive Surgical also anticipates a 12-15% y-o-y increase in operating expenses in 2016, as it continues to invest in robotic assisted surgery.I believe that growing adoption of Intuitive Surgical’s da Vinci system among physicians for general surgery, oncology, urology and gynecology procedures will remain a key growth catalyst going forward. Moreover, increasing procedural volumes outside the US also present significant growth opportunity for the company.I expect Intuitive Surgical’s shares to continue growth, with medium-term target at $750.