Summary
Intuitive Surgical Inc. (ISRG) reported strong revenue growth for the third quarter and first nine months of fiscal year 2025, with total revenue increasing by 23% and 21%, respectively, year-over-year. This growth was driven by robust performance across all segments, including a significant increase in instruments and accessories revenue (20% and 19%) and systems revenue (33% and 29%). The company also saw substantial growth in da Vinci procedures (19% and 18% for the quarter and nine months, respectively) and Ion procedures (52% and 54%). The company continues to expand its installed base, with da Vinci systems increasing by 13% year-over-year and Ion systems by 30%. Profitability also saw a significant boost, with operating income up 32% year-over-year for the quarter. Despite the strong top-line and bottom-line performance, investors should note a slight decline in gross profit margin as a percentage of revenue for both product and service segments, primarily attributed to the impact of tariffs and increased costs related to the phased launch of the new da Vinci 5 system. The company also repurchased a significant amount of its common stock, totaling $1.92 billion in the third quarter. Management remains optimistic about future growth, driven by expanding procedure adoption, new product introductions, and international market penetration, though they acknowledge ongoing macroeconomic and geopolitical risks.
Financial Highlights
46 data points| Revenue | $2.51B |
| Cost of Revenue | $842.70M |
| Gross Profit | $1.66B |
| R&D Expenses | $329.40M |
| SG&A Expenses | $573.30M |
| Operating Expenses | $902.70M |
| Operating Income | $759.70M |
| Net Income | $704.40M |
| EPS (Basic) | $1.98 |
| EPS (Diluted) | $1.95 |
| Shares Outstanding (Basic) | 356.60M |
| Shares Outstanding (Diluted) | 361.80M |
Key Highlights
- 1Total revenue for Q3 2025 grew 23% year-over-year to $2.51 billion, and for the first nine months grew 21% to $7.20 billion.
- 2Da Vinci procedures increased by 19% year-over-year in Q3 2025, reaching approximately 797,000.
- 3Systems revenue saw a substantial increase of 33% in Q3 2025, driven by higher da Vinci system placements, including 240 da Vinci 5 systems.
- 4Instruments and accessories revenue grew 20% in Q3 2025, reflecting increased procedure volume.
- 5Operating income increased by 32% year-over-year in Q3 2025 to $760 million.
- 6The company repurchased $1.92 billion of its common stock in Q3 2025.
- 7Gross profit margin slightly decreased to 66.4% in Q3 2025 from 67.4% in Q3 2024, mainly due to tariffs and launch costs for the da Vinci 5 system.