10-QPeriod: Q3 FY2025

INTUITIVE SURGICAL INC Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 22, 2025For Securities:ISRG

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
Beta

Revenue

$2.51B

66.4% Gross Margin

Net Income

$704.40M

28.1% Net Margin

EPS (Diluted)

$1.95

Total Assets

$19.35B

Cash & Equivalents

$2.81B

Free Cash Flow

$841.00M

Financial Statements
Beta
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.

Frequently Asked Questions

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.

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.

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.

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%.