3 Robotics Stocks Powering the Future of Automation

The future of automation is promising with significant advancements in robotics. Against this backdrop, investors have an opportunity to invest in stable robotics stocks, Stryker Corporation (SYK), Fanuc Corporation (FANUY), and UiPath Inc. (PATH), which are at the forefront of driving automation forward.

Once seen only in science fiction, automated robots are no longer the things of the future. Each passing day draws us closer to the mass deployment of robots in various industries, including industrial manufacturing, pharmaceuticals, as well as surgeries, and rehabilitation solutions.

All this has been possible through a modern process known as Robotic process automation (RPA), which has made it easier to build, deploy, and manage software robots that emulate human actions interacting with digital systems and software. RPA offers organizations more flexibility and more profits, along with employee satisfaction, engagement, and productivity.

With news of AI-based humanoid robots entering the workforce soon, enterprises are gearing up to accept these changes, both on a financial and ethical plane. Humanoid robots like Agility, Tesla Optimus, and Boston Dynamics' Atlas are being brain-driven by the prospects of AI and are expected to be commercially available within two years.

Looking ahead, as per a report published by Precedence Research, the global robotics technology market is forecasted to reach $372.59 billion by 2034, growing at an impressive CAGR of 14.7%.

Now, let us dive deep into the fundamentals of three robotics stocks, starting with #3.

Stock #3: Stryker Corporation (SYK)

SYK is a medical technology company operating through segments: MedSurg and Neurotechnology; and Orthopaedics. Its offerings include surgical equipment, surgical navigation systems, endoscopic and communications systems, clinical communication, and artificial intelligence-assisted virtual care platform technology.

On February 19, 2025, SYK announced the acquisition of Inari Medical, Inc. (NARI), a company that provides solutions for venous thromboembolism (VTE) clot removal without the use of thrombolytic drugs. The acquisition is expected to strengthen SYK’s interventional endovascular portfolio of offerings.

On January 28, 2025, SYK announced a definitive agreement to sell its U.S. spinal implants business to Viscogliosi Brothers, LLC, a family-owned investment firm specializing in the neuro-musculoskeletal space. The sale will result in the creation of a newly formed company called VB Spine, LLC, under the Viscogliosi Brothers.

To meet the demands of its customers, the transaction could help SYK achieve faster growth and deliver greater value for all stakeholders.

For the fiscal 2024 fourth quarter that ended December 31, 2024, SYK’s net sales increased 10.7% year-over-year to $6.44 billion. Its adjusted operating income rose 18.6% from the year-ago value to $1.88 billion.

Additionally, the company’s adjusted net earnings and adjusted EPS grew 16.6% and 15.9% from the prior year’s quarter to $1.55 billion and $4.01, respectively.

Analysts expect SYK’s revenue and EPS for the fiscal 2025 first quarter (ending in March) to increase 8.3% and 9.6% year-over-year to $5.68 billion and $2.74, respectively. Also, the company surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is impressive.

SYK’s stock has surged 10.9% over the past six months and 15.8% over the past nine months, closing the last trading session at $382.78.

SYK’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

SYK has a B grade for Stability and Sentiment. Within the Medical - Devices & Equipment industry, it is ranked #41 out of 131 stocks.

Click here to access SYK’s Value, Quality, Momentum, and Growth ratings.

Stock #2: Fanuc Corporation (FANUY)

Headquartered in Yamanashi, Japan, FANUY provides factory automation products. The company’s offerings include CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines.

Last year, FANUY announced the completion of construction of its West Campus in Auburn Hills, Michigan, as a new base in the United States. Representing a $110 million investment and approximately 270,000 square meters of land, the new campus offers customized automation systems and includes warehouse space for over 6,000 robots and spare parts for quick delivery.

The expansion would strengthen the company's vision of supporting and advancing industrial automation in North America.

For the fiscal 2025 third quarter that ended December 31, 2024, FANUY’s net sales came in at ¥585.01 billion ($3.92 billion). Its operating income rose 3.2% from the year-ago value to ¥110.50 billion ($739.92 million).

Moreover, net income attributable to owners of parent and net income per share grew 4.5% and 5.7% from the prior year’s quarter to ¥102.78 billion ($688.28 million) and ¥109.39, respectively.

Street expects FANUY’s revenue for the fiscal 2025 fourth quarter (ending in March) to increase 5.8% year-over-year to $1.35 billion. Its EPS for the period is expected to come in at $0.03. Moreover, the company has surpassed the consensus revenue estimates in three of four trailing quarters.

Looking forward, FANUY’s revenue for the fiscal 2026 first quarter (ending in June 2025) is expected to rise 5.1% year-over-year to $1.33 billion. Meanwhile, its EPS is forecasted to reach $0.02.

Shares of FANUY have surged 10.3% over the past three months, closing the last trading session at $14.70.

FANUY’s fundamentals are mirrored in its POWR Ratings. The company has a B grade for Stability, Quality, Momentum, and Sentiment.

Within the A-rated Industrial - Machinery industry, FANUY is ranked #43 out of 78 stocks.

To access FANUY’s Value and Growth ratings, click here.

Stock #1: UiPath Inc. (PATH)

PATH provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions. The company offers software to build, manage, run, engage, measure, and govern automation embedded with its AI, ML, and NLP capabilities.

On October 23, 2024, PATH announced a transformation of operations for Omega Healthcare Investors, Inc. (OHI) through AI-powered automation. The collaboration allows Omega to utilize the full power of automation, AI, and generative AI to deliver better outcomes for its customers. This could enhance PATH's position in the AI-driven healthcare market.

On October 22, 2024, PATH announced the integration of Anthropic's large language model, Claude 3.5 Sonnet, to deliver new AI features in three key products, UiPath Autopilot, Clipboard AI, and a medical record summarization solution.

Offering efficient usage and streamlining automation, these new releases could aid the company in user growth and strengthen its position as a top-of-the-line choice for AI-driven automation.

For the fiscal 2025 third quarter that ended October 31, 2024, PATH’s total revenue increased 8.8% year-over-year to $354.65 million. Its non-GAAP operating income rose 13.8% from the year-ago value to $49.72 million. The company’s non-GAAP net income and non-GAAP net income per share amounted to $59.81 million and $0.11, respectively.

The consensus revenue estimate of $425.34 million for the fiscal 2025 fourth quarter, which ended in January, reflects a year-over-year increase of 5%. Its EPS is estimated to come in at $0.19. The company has surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is noteworthy.

PATH’s stock has surged 9.6% over the past six months to close the last trading session at $13.43.

PATH’s POWR Ratings reflect its robust fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.

PATH has a B grade for Growth and Quality. Within the A-rated Software - SAAS industry, PATH is ranked #9 out of 18 stocks.

In addition to the POWR Rating highlighted above, you can check PATH’s ratings for Value, Sentiment, Stability, and Momentum here.

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SYK shares were unchanged in premarket trading Monday. Year-to-date, SYK has gained 6.31%, versus a 2.36% rise in the benchmark S&P 500 index during the same period.

Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.

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