10-QPeriod: Q2 FY2025

INTUITIVE SURGICAL INC Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 23, 2025For Securities:ISRG

Summary

Intuitive Surgical, Inc. (ISRG) reported strong financial performance for the quarter and first half of 2025, demonstrating robust revenue growth across its key segments. Total revenue increased by 21% year-over-year to $2.44 billion for the three months ended June 30, 2025. This growth was driven by a significant uptick in da Vinci procedure volume (up 17%), higher systems revenue (up 28%), and increased instruments and accessories revenue (up 18%), signaling continued adoption and utilization of their robotic-assisted surgical systems. The company also saw a substantial increase in Ion endoluminal system procedures, up 52% year-over-year, highlighting the growing adoption of their diagnostic platform. Despite increased costs related to the launch of the da Vinci 5 system, tariffs, and expanded manufacturing capacity, gross profit margin remained solid at 66.3%. Operating income saw a healthy increase of 31% to $743 million. The company ended the period with a strong cash position of $3.4 billion and significant investments, underscoring its financial health and capacity for future growth and strategic initiatives.

Financial Highlights

46 data points
Beta

Revenue

$2.44B

66.3% Gross Margin

Net Income

$658.40M

27.0% Net Margin

EPS (Diluted)

$1.81

Total Assets

$20.16B

Cash & Equivalents

$3.40B

Free Cash Flow

$715.40M

Financial Statements
Beta
Revenue$2.44B
Cost of Revenue$822.10M
Gross Profit$1.62B
R&D Expenses$313.30M
SG&A Expenses$561.20M
Operating Expenses$874.50M
Operating Income$743.40M
Net Income$658.40M
EPS (Basic)$1.84
EPS (Diluted)$1.81
Shares Outstanding (Basic)358.50M
Shares Outstanding (Diluted)364.10M

Key Highlights

  • 1Total revenue for Q2 2025 grew 21% year-over-year to $2.44 billion.
  • 2Da Vinci procedure volume increased by 17% year-over-year in Q2 2025.
  • 3Systems revenue saw a substantial increase of 28% year-over-year in Q2 2025, driven by higher da Vinci system placements and the new da Vinci 5 system.
  • 4Ion procedures surged by 52% year-over-year in Q2 2025, indicating strong growth in their endoluminal system.
  • 5Operating income increased by 31% year-over-year to $743 million in Q2 2025.
  • 6The company ended the quarter with a healthy cash and investment balance of $9.53 billion.
  • 7Gross profit margin was 66.3% for Q2 2025, reflecting strong operational execution despite cost pressures.

Frequently Asked Questions

Revenue growth was primarily driven by a 17% increase in da Vinci procedure volume, a 28% increase in systems revenue (boosted by higher da Vinci system placements and the new da Vinci 5 system), and an 18% increase in instruments and accessories revenue. The strong growth in da Vinci procedures reflects continued adoption and utilization of the company's robotic-assisted surgical systems.

While the company experienced higher costs related to the phased launch of the da Vinci 5 surgical system, new tariffs, and increased fixed overhead from expanded manufacturing capacity, they maintained a solid gross profit margin of 66.3% in Q2 2025. This indicates effective cost management and pricing strategies to offset these pressures.

The company placed 395 da Vinci surgical systems in Q2 2025, an increase from the prior year, driven by customer demand for capacity and the new da Vinci 5 system. Future demand is expected to be influenced by factors such as supply chain risks, macroeconomic and geopolitical conditions, the trade environment, inflationary pressures, hospital staffing shortages, evolving system utilization, and competitive dynamics.

The Ion endoluminal system showed significant growth, with procedures increasing by 52% year-over-year in Q2 2025. While system placements in the U.S. are shifting towards utilization rather than capacity expansion as market penetration increases, the overall growth trajectory for Ion remains strong, driven by its adoption as a diagnostic platform.