01—Abstract
Summary
Summary of the 10-K filed February 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Intuitive Surgical Inc. (ISRG) reported robust growth in its 2025 fiscal year, with total revenue increasing by 21% to $10.1 billiona.
This growth was driven by a significant increase in da Vinci procedures (up 18%b) and Ion procedures (up 51%), indicating strong adoption of the company's minimally invasive robotic surgical systems and diagnostic platforms. The company saw substantial growth in both systems revenue (+26%) and instruments and accessories revenue (+19%), reflecting increased unit placements for its da Vinci surgical systems, particularly the new da Vinci 5 model. The installed base of da Vinci systems grew by 12% to over 11,100 units, while the Ion system installed base increased by 24%.
Despite strong revenue growth, the gross profit margin for products decreased slightly to 66.0% from 67.5% in the prior year, attributed to factors including new tariffs, higher costs associated with the da Vinci 5, and increased depreciation, though partially offset by lower excess inventory charges. Looking ahead, ISRG continues to invest heavily in research and development to drive innovation, while also navigating macroeconomic challenges such as tariffs, inflation, and supply chain constraints. The company's financial position remains strong, with over $9 billionc in cash, cash equivalents, and investments, providing ample resources to fund future growth and strategic initiatives.
02—Key points
Key Highlights
- Total revenue increased 21% year-over-year to $10.1 billion in FY2025.
- da Vinci procedure volume grew 18% to approximately 3.15 million procedures, with Ion procedures up 51% to approximately 144,100.
- Systems revenue increased 26% to $2.47 billion, and instruments and accessories revenue grew 19% to $6.02 billion.
- 1,721 da Vinci surgical systems were placed in FY2025, a 13% increase, including 870 da Vinci 5 systems.
- The da Vinci installed base grew 12% to over 11,100 systems.
- Product gross profit margin decreased to 66.0% in FY2025 from 67.5% in FY2024, influenced by tariffs and da Vinci 5 costs.
- The company ended FY2025 with $9.03 billion in cash, cash equivalents, and investments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Intuitive Surgical kept $0.28.
- Revenue$10.06B100.0%
- Cost of revenue−$3.42B34.0%
- Gross profit$6.64B66.0%
- Operating costs−$3.70B36.7%
- Operating income$2.95B29.3%
- Interest, other & tax−$89.5M0.9%
- Net income$2.86B28.4%
Where FY2025 revenue went
$10.06B- Cost of revenue: $3.42B, 34% of revenue
- Net income: $2.86B, 28% of revenue
- SG&A: $2.38B, 24% of revenue
- R&D: $1.31B, 13% of revenue
- Interest, other & tax: $89.5M, 0.9% of revenue
Kept 28% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 3, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $10.06B$8.35B | +20.5% |
| Cost of Revenue | $3.42B$2.72B | +25.9% |
| Gross Profit | $6.64B$5.63B | +17.9% |
| R&D Expenses | $1.31B$1.15B | +14.5% |
| SG&A Expenses | $2.38B$2.14B | +11.4% |
| Operating Expenses | $3.70B$3.29B | +12.5% |
| Operating Income | $2.95B$2.35B | +25.4% |
| Net Income | $2.86B$2.32B | +23.0% |
| EPS (Basic) | $8.00$6.54 | +22.3% |
| EPS (Diluted) | $7.87$6.42 | +22.6% |
| Shares Outstanding (Basic) | 356.90M355.20M | +0.5% |
| Shares Outstanding (Diluted) | 362.70M362.00M | +0.2% |
05—Questions
Frequently Asked Questions
What is the primary driver of Intuitive Surgical's revenue growth?
Intuitive Surgical's revenue growth is primarily driven by the increasing volume of da Vinci procedures performed globally, which in turn increases demand for instruments and accessories. The placement of new da Vinci surgical systems and the expansion of the Ion endoluminal system installed base also contribute significantly to revenue growth.
How did the introduction of the da Vinci 5 surgical system impact sales?
The introduction of the da Vinci 5 surgical system in 2024 positively impacted sales, with 870 units placed in FY2025 compared to 362 in FY2024. This contributed to the 26% increase in systems revenue and likely influenced the higher average selling price (ASP) for systems in FY2025.
What are the key risks facing Intuitive Surgical, as highlighted in the filing?
Key risks include intense competition from existing open surgery, conventional MIS, and other robotic system manufacturers; reliance on sole and single-sourced suppliers; manufacturing problems or delays; potential product defects leading to recalls; significant legal proceedings and litigation; adverse impacts from changes in healthcare legislation and policy; and macroeconomic conditions such as tariffs, inflation, and supply chain disruptions. The company also faces risks related to the adoption of AI technologies and data privacy regulations.
What is the company's strategy for managing tariffs and supply chain challenges?
The company is actively engaged in mitigating the impact of supply chain risks and disruptions. While tariffs have increased the cost of revenues, the company manufactures a significant majority of its instruments and accessories in Mexico which qualifies for USMCA benefits, thus avoiding certain tariffs. They are also vertically integrating key technologies and investing in manufacturing capacity to enhance supply chain resilience.
06—Continue