Procedure growth, strong system placements, and consistent service revenue expansion support earnings performance for Intuitive Surgical in Q2 2025

Overview

Intuitive Surgical delivered a strong second-quarter performance, supported by double-digit procedure growth, higher da Vinci system placements, and robust expansion of its global installed base. The company continues to focus on broadening clinical adoption, growing utilization, and maintaining disciplined investment in innovation and global infrastructure.

Q2 2025 vs. Q2 2024:

• Revenue reached $2.44bn (+21% YoY), driven by growth in procedures, systems placements, and service agreements across the installed base.
  • Instruments and Accessories revenue grew to $1.47bn (+18% YoY), driven by higher procedure volumes and greater use of advanced energy instruments.
  • Systems revenue rose to $575m (+28% YoY), supported by 395 system placements during the quarter, including 180 da Vinci 5 units compared to 70 in Q2 2024. Leasing activity remained elevated, with 193 systems placed under operating leases, of which 124 were on usage-based agreements.
  • Services revenue increased to $391m (+23% YoY), reflecting growth in the installed base, which surpassed 10,400 systems under active service contracts.
• GAAP net income was $658m (compared to $527m in Q2 2024), reflecting operating leverage and higher system volumes. Non-GAAP net income totaled $798m (up from $641m in the prior-year period).
• GAAP EPS was $1.81 (compared to $1.46 last year), while non-GAAP EPS increased to $2.19 (up from $1.78), supported by gross margin expansion and operating efficiency.
• Gross margin on a GAAP basis was 66.3%, with non-GAAP gross margin at 67.9%, slightly lower than Q2 2024 due to tariff-related pressures.
• Income from operations (GAAP) was $743m (up from $567m), while non-GAAP operating income was $947m, reflecting top-line growth and cost discipline.
• Cash and investments totaled $9.53bn, increasing by $431m during the quarter, primarily from strong operating cash flow.

Intuitive reaffirmed its full-year 2025 outlook, reflecting continued clinical adoption and system demand, along with near-term cost headwinds related to tariffs and operating investments. The company expects procedure growth between 15.5% and 17%, consistent with robust global demand. Non-GAAP gross margin is projected between 66% and 67%, with tariff-related costs expected to pressure margins by approximately 100 basis points. Operating expense growth is forecast between 10% and 14% for the year, as Intuitive continues to invest in R&D, global support, and infrastructure.

ISRG stock is currently trading below both its 50-day and 200-day moving averages, signaling a bearish technical setup in the short to medium term. The crossover of the 50-day SMA beneath the 200-day SMA (a “death cross”) suggests continued downside pressure. The RSI (14) is at 33.00, approaching oversold territory, which could indicate a potential short-term bounce or consolidation if buying interest emerges. Overall, the stock is under pressure and would need to reclaim the $530 level to regain technical strength. Until then, sentiment remains cautious.

Author: Andreea-Roxana Danci