01—Abstract
Summary
Summary of the 10-Q filed October 22, 2025. Cited figures are marked; the original filing is the authoritative source.
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%a 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%b 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%c 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 billiond 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.
02—Key points
Key Highlights
- Total 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.
- Da Vinci procedures increased by 19% year-over-year in Q3 2025, reaching approximately 797,000.
- Systems revenue saw a substantial increase of 33% in Q3 2025, driven by higher da Vinci system placements, including 240 da Vinci 5 systems.
- Instruments and accessories revenue grew 20% in Q3 2025, reflecting increased procedure volume.
- Operating income increased by 32% year-over-year in Q3 2025 to $760 million.
- The company repurchased $1.92 billion of its common stock in Q3 2025.
- Gross 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Intuitive Surgical kept $0.28.
- Revenue$2.51B100.0%
- Cost of revenue−$842.7M33.6%
- Gross profit$1.66B66.4%
- Operating costs−$902.7M36.0%
- Operating income$759.7M30.3%
- Interest, other & tax−$55.3M2.2%
- Net income$704.4M28.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 22, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.51B$2.04B | +22.9% |
| Cost of Revenue | $842.70M$664.20M | +26.9% |
| Gross Profit | $1.66B$1.37B | +21.0% |
| R&D Expenses | $329.40M$286.00M | +15.2% |
| SG&A Expenses | $573.30M$510.60M | +12.3% |
| Operating Expenses | $902.70M$796.60M | +13.3% |
| Operating Income | $759.70M$577.30M | +31.6% |
| Net Income | $704.40M$565.10M | +24.7% |
| EPS (Basic) | $1.98$1.59 | +24.5% |
| EPS (Diluted) | $1.95$1.56 | +25.0% |
| Shares Outstanding (Basic) | 356.60M355.80M | +0.2% |
| Shares Outstanding (Diluted) | 361.80M362.70M | −0.2% |
05—Questions
Frequently Asked Questions
What is the overall financial performance of Intuitive Surgical in Q3 2025?
Intuitive Surgical reported strong financial performance in Q3 2025, with total revenue increasing by 23% year-over-year to $2.51 billion. This growth was driven by a 19% increase in da Vinci procedures and a substantial 33% rise in systems revenue, largely due to increased placements of the new da Vinci 5 system. Operating income also saw a significant 32% increase, indicating improved profitability.
What factors are impacting the company's gross profit margin?
The company's gross profit margin slightly declined in Q3 2025 compared to the prior year. This was primarily attributed to the impact of tariffs, increased costs associated with the phased launch of the da Vinci 5 surgical system, and higher incremental fixed costs, including depreciation. These factors affected both product and service gross profit margins.
What is the company's strategy regarding share repurchases and capital allocation?
Intuitive Surgical actively repurchased shares in Q3 2025, spending $1.92 billion to buy back 4.0 million shares. The company has an authorized remaining amount of approximately $1.9 billion under its repurchase program. The company expects to fund its capital expenditures, which are estimated between $625 million and $675 million for 2025, primarily through cash generated from operations.
How is the company's installed base and procedure volume performing?
The installed base of da Vinci surgical systems grew by 13% year-over-year to approximately 10,763 as of September 30, 2025. Correspondingly, da Vinci procedures increased by 19% in Q3 2025. The Ion system also showed strong growth, with procedures up 52% and an installed base increase of 30%.
06—Continue