"There is no force on earth more powerful than an idea whose time has come." Victor Hugo
Bots in the News:
Spurred by stronger than expected earnings and a lower than anticipated CPI number both the broad market and the Bot Index surged to new highs. The Bots gained almost 4 ½% while the broader market reacted with a 3.65% jump. Virtually all the components of the Bot Index rose, some very significantly, however only Teledyne produced weakness for its holders. Teledyne posted quarterly revenue of $1.54 billion and adjusted earnings per share of $5.57, exceeding Wall Street's estimates. The 6.7% year-on-year revenue growth and solid profit were positive signs for the company. However, investors focused on the future, and the company's weaker-than-expected earnings per share guidance for the upcoming quarter raised concerns about its near-term profitability. While Teledyne did slightly raise its full-year adjusted EPS forecast, this was not enough to offset the negative outlook for the immediate future, leading to a sell-off in the shares. Following the announcement and subsequent stock slide, the Wall Street firm Needham increased its price target for the stock from $585 to $615. The stock closed at $532.09 on Friday.
Three Bot Index holdings recorded double digit gains with the strongest coming from Intuitive Surgical following its superior earnings report. The stock surged 22.50%, leading the Motley Fool to pen, “Last quarter, Intuitive Surgical placed 427 surgical systems, up from 379 in the third quarter of 2024 and 395 in the second quarter of 2025. This acceleration led to $2.5 billion in quarterly revenue, up 23% year over year and representing an acceleration of 21% revenue growth in the second quarter. Profit margins look strong, with EBIT margin (earnings before interest and taxes) expanding to 29% over the last 12 months and consistently growing since the beginning of 2023.” The company also announced it had repurchased 4 million shares. The company has not had a spectacular year as more competition has been entering the robotic surgical space, and the shares are up only by 4.70% YTD even with the recent jump.
Another company whose 2025 fortunes have been disappointing, also was among the big producers during the week. Novanta Inc. gained 21.87% following a surprise ‘Buy’ recommendation by William Blair & Co. The company, like ISRG, has not been a member of the ’leaderboard’ in 2025 trading. The stock is down 5.21% for the year.
The nation’s defense industry is basking in the glow of an increased emphasis on modernization and advanced weaponry. This led Jim Cramer to pronounce on last week’s show that Raytheon Technologies is “The perfect time for RTX. The firm reported third quarter of 2025 adjusted earnings per share of $1.70, beating expectations of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
Four of the six Asian components of the Bot Index gained in excess of 6%, perhaps in response to change in leadership of Japan.
Member: American Economic Association, Society of Professional Journalists, United States Press Association. Institute of Chartered Financial Analysts, Robotic Industries Association (now A3 Automation), Member IEEE.
The Bot Brief is a weekly newsletter designed for economists, investment specialists, journalists, and academicians. It receives no remuneration from any company that may from time to time be featured in the brief and its commentaries, analysis, opinions, and research represent the subjective view of Balcones Investment Research, LLC. Due to the complex and rapidly changing nature of the subject matter, the company makes no assurances as to the absolute accuracy of materials presented.
