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Intuitive Surgical Crushes Q2 Expectations, So Why No Rally?
MarketBeat· 2025-07-23 14:12
Core Insights - Intuitive Surgical reported solid Q2 financial results, with a notable growth in sales and earnings, but shares did not rise significantly due to a conservative outlook on future growth [1][2][8] Financial Performance - Q2 sales reached $2.44 billion, a growth of over 21% year-over-year, surpassing Wall Street estimates by approximately $90 million [3] - Adjusted net income per diluted share was $2.19, reflecting a 23% increase, exceeding analyst expectations of $1.92 [3] Key Metrics and Guidance - Da Vinci procedure growth remained strong at 17%, consistent with Q1 and the full year 2024 [2] - The company raised its 2025 full-year guidance, increasing da Vinci procedure growth expectations by 25 basis points to a midpoint of 16.25% [4] - Adjusted gross margin forecast was boosted by 75 basis points to 66.5%, attributed to a reduced estimated tariff impact [4] Product Performance - Intuitive placed 180 da Vinci 5 systems in Q2, marking a 157% increase from the previous year, indicating strong interest in the new product [5] - The da Vinci SP system saw an 88% increase in procedure growth, while the Ion lung biopsy robot experienced a 52% growth [11] International Market Challenges - International system placements fell to 179 from 192 a year ago, impacted by budgetary pressures in Japan, China, and Europe [6] Long-Term Outlook - The robotics-assisted surgery market remains under-penetrated, providing a long-term growth opportunity for Intuitive Surgical, especially internationally [9] - A new factory opened in Bulgaria aims to meet future international demand [9] Analyst Ratings and Price Targets - Current price target for Intuitive Surgical is $593.09, indicating a potential upside of 16% based on analyst ratings [12] - Analysts may raise price targets following the positive earnings results, suggesting increased near-term upside potential [13]
ISRG Stock Gains on Q2 Earnings & Sales Beat, Gross Margin Contracts
ZACKS· 2025-07-23 13:36
Core Insights - Intuitive Surgical (ISRG) reported strong second-quarter 2025 results, with adjusted earnings per share (EPS) of $2.19, exceeding estimates by 14.1% and showing a 23% year-over-year improvement [1][11] - Revenue reached $2.44 billion, reflecting a 21% increase year over year, driven by higher installed systems and increased da Vinci procedure volume [2][9] Revenue Details - Total revenues of $2.44 billion surpassed the Zacks Consensus Estimate by 3.9% [2] - Revenue growth was consistent at constant currency, indicating strong operational performance [2] Segmental Performance - **Instruments & Accessories**: Revenue of $1.47 billion, up 18.5% year over year, driven by a 17% increase in da Vinci procedure volume and significant growth in Ion and SP platform procedures [3] - **Systems**: Revenue of $574.7 million, up 28.2% year over year, supported by increased system placements and higher average selling prices, with 395 da Vinci systems shipped [4] - **Services**: Revenue of $391.2 million, reflecting a 23.3% increase from the previous year [5] Margins and Expenses - Adjusted gross profit was $1.66 billion, a 17.8% year-over-year increase, with a gross margin of 67.9%, down 200 basis points from the prior year [6] - Selling, general and administrative expenses rose to $561.2 million, up 6.8% year over year, while research and development expenses increased to $313.3 million, up 11.9% [6] Operating Performance - Adjusted operating income totaled $946.6 million, a 25.5% year-over-year increase, with an operating margin of 38.8%, up 130 basis points from the previous year [7] Financial Position - The company ended the quarter with cash, cash equivalents, and investments totaling $9.53 billion, an increase from $9.1 billion in the previous quarter [8] - Total assets increased to $20.16 billion from $19.22 billion a year ago [10] Market Outlook - ISRG raised its 2025 procedure growth guidance to 15.5-17% and updated gross margin guidance to 66-67% [15] - The da Vinci 5 system saw broad launch with 180 placements, contributing to a total installed base of 689 [12] - Global da Vinci procedures increased by 17% year over year, with notable growth in both domestic and international markets [13]
175亿!增长21.4%!直觉医疗最新季报
思宇MedTech· 2025-07-23 03:01
Core Viewpoint - Intuitive Surgical reported strong financial results for Q2 2025, with revenue of $2.44 billion, a 21.4% year-over-year increase, driven by the growth of surgical volumes and the accelerated adoption of the da Vinci 5 system, despite a subsequent decline in stock price due to concerns over cost structure and gross margin adjustments [1][3][4]. Revenue and Profit Performance - Total revenue for Q2 2025 reached $2.44 billion, up from $2.01 billion in Q2 2024, marking a 21.4% increase; GAAP net profit was $658 million (EPS of $1.81), a 25% increase year-over-year; non-GAAP adjusted net profit was $798 million, with an EPS of $2.19, exceeding analyst expectations by $0.26 [3][4]. Growth Drivers - The primary drivers of revenue improvement include the continuous growth in global surgical volumes and the increased installation of higher-end systems like the da Vinci 5 [4][5]. Da Vinci 5 System Performance - The da Vinci 5 system saw significant growth, with 395 new installations in Q2 2025, including 180 units of the da Vinci 5, compared to 70 units in the same period of 2024; the system has received regulatory approvals in the US, EU, and Japan for various minimally invasive procedures [6][7]. Market Expansion and Strategy - Intuitive Surgical is pursuing a strategy of direct market expansion, transitioning from distributors to direct operations, having integrated agents in Spain, Portugal, and Brazil in Q2 2025, enhancing brand control and training resource efficiency [11]. Surgical Volume Growth - Global surgical volumes using the da Vinci system grew by 17% year-over-year in Q2 2025, with an expected annual growth rate of 15.5%-17% for 2025, driven by the normalization of inpatient surgical demand in markets like the US, South Korea, India, and the UK [8][11]. Structural Advantages and Platform Ecosystem - Intuitive Surgical has established a robust growth moat through a platform ecosystem that integrates systems, consumables, and data, enhancing digital capabilities and deepening relationships with hospitals and physicians; the company continues to innovate with new indications and regional acquisitions [13][15].
Intuitive Surgical (ISRG) Reports Q2 Earnings: What Key Metrics Have to Say
ZACKS· 2025-07-22 23:01
Core Insights - Intuitive Surgical, Inc. reported $2.44 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 21.4% and an EPS of $2.19 compared to $1.78 a year ago, exceeding Zacks Consensus Estimate of $2.35 billion by +3.93% [1] - The company delivered an EPS surprise of +14.06%, with the consensus EPS estimate being $1.92 [1] Financial Performance Metrics - The installed base of the Da Vinci Surgical System reached 10,488, surpassing the four-analyst average estimate of 10,427 [4] - Revenue from products (instruments, accessories, and systems) was $2.05 billion, exceeding the $1.96 billion average estimate based on seven analysts, representing a +21% year-over-year change [4] - Revenue from services was $391.2 million, compared to the estimated $368.86 million, reflecting a +23.3% change year-over-year [4] - Revenue from systems was $574.7 million, exceeding the estimated $516.21 million, with a +28.2% year-over-year change [4] - Revenue from instruments and accessories was $1.47 billion, slightly above the estimated $1.44 billion, representing an +18.5% year-over-year change [4] Stock Performance - Shares of Intuitive Surgical have returned +0.2% over the past month, while the Zacks S&P 500 composite has changed by +5.9% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance against the broader market in the near term [3]
Intuitive Surgical, Inc. (ISRG) Q2 Earnings and Revenues Top Estimates
ZACKS· 2025-07-22 22:15
Core Insights - Intuitive Surgical, Inc. (ISRG) reported quarterly earnings of $2.19 per share, exceeding the Zacks Consensus Estimate of $1.92 per share, and showing an increase from $1.78 per share a year ago, resulting in an earnings surprise of +14.06% [1][2] - The company generated revenues of $2.44 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.93%, and up from $2.01 billion year-over-year [2] - Intuitive Surgical has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.96 on revenues of $2.39 billion, and for the current fiscal year, it is $7.84 on revenues of $9.65 billion [7] - The estimate revisions trend for Intuitive Surgical was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Market Performance - Intuitive Surgical shares have underperformed the market, losing about 1.1% since the beginning of the year, while the S&P 500 has gained 7.2% [3] - The outlook for the industry, particularly the Medical - Instruments sector, is currently in the bottom 35% of Zacks industries, which may impact stock performance [8]
Intuitive (ISRG) Q2 2025 Earnings Transcript
The Motley Fool· 2025-07-22 21:51
Core Insights - The company reported total revenue of $2.44 billion in Q2 2025, a 21% year-over-year increase, driven by strong growth in systems revenue and procedure volumes [5][39][46] - Pro forma gross margin decreased to 67.9% from 70% in Q2 2024, attributed to higher facility costs and a greater mix of lower-margin products [7][42] - Da Vinci procedures grew by 17%, with notable increases in ION and SP procedures, which grew by 52% and 88% respectively [5][26][31] Financial Performance - Pro forma operating margin reached 39%, and pro forma earnings per share rose 23% to $2.19 [7][46] - The installed base of da Vinci systems increased by 14% to nearly 10,500, with 395 systems placed in Q2 2025, marking a 16% increase from the previous year [6][31][36] - Cash and investments at quarter-end totaled $9.5 billion, up from $9.1 billion in the prior quarter [10][47] Market Dynamics - The company acknowledged ongoing financial pressures in international markets, particularly in Japan, China, and Europe, affecting capital performance [3][37] - Tariff impacts for 2025 are estimated to be around 100 basis points, with potential for significant incremental effects on cost of sales [4][43] - Uncertainty regarding Medicaid coverage in the US could create financial challenges for hospitals, potentially affecting capital budgets [4][32] Product Developments - The da Vinci five platform is in broad launch in the US and has received regional clearances in Europe and Japan, with early adopter interest noted [11][19] - New product clearances include the Vessel Sealer Curved and a procedure clearance for tracheobronchoplasty [9][23] - Digital initiatives, including force feedback and case insights features, are expected to enhance surgical outcomes and efficiency [10][54] Guidance and Outlook - The company revised its 2025 da Vinci procedure growth outlook to 15.5%-17% and raised the pro forma gross margin projection to 66%-67% [8][55] - Operating expense growth guidance remains at 10%-14% for 2025, reflecting investments in new facilities and R&D [8][57] - Capital expenditures are estimated to be between $650 million and $725 million, primarily for facility construction [8][58]
Intuitive(ISRG) - 2025 Q2 - Earnings Call Transcript
2025-07-22 21:32
Financial Data and Key Metrics Changes - Revenue for the quarter was $2,440 million, representing a 21% growth year over year [27] - Pro forma operating margin was 39%, and pro forma earnings per share increased by 23% to $2.19 [20][36] - Pro forma net income for the second quarter was $798 million compared to $641 million last year [36] Business Line Data and Key Metrics Changes - da Vinci procedure growth was 17%, with a notable increase in benign general surgery in the US [9][21] - SP procedures grew 88%, driven by strong growth in Korea and Europe [29] - ION procedures increased by 52%, with approximately 35,000 procedures performed in the quarter [30] Market Data and Key Metrics Changes - In the US, da Vinci procedures grew 14%, while outside the US, they grew 23%, with strong contributions from India and Korea [22][23] - Capital placements in the US increased by 45%, while placements in Japan decreased by 26 systems year over year [63] - Total systems placed in the quarter were 395, a 16% increase from the previous year [24] Company Strategy and Development Direction - The company is focused on the full launch of da Vinci V and increasing adoption of focused procedures through training and market access efforts [18] - There is a commitment to innovation and expanding the digital ecosystem to enhance clinician training and patient care [12][17] - The company aims to improve operational efficiency and product quality while navigating macroeconomic challenges [8][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro challenges in international markets but expressed confidence in the company's operational and financial positioning [19] - The updated financial guidance for 2025 includes a forecast for da Vinci procedure growth of 15-17% [44] - Management highlighted the importance of adapting to changes in Medicaid coverage and its potential impact on hospital capital budgets [22][62] Other Important Information - The company opened a new manufacturing facility in Bulgaria to support its growth strategy [34] - The average selling price for systems increased to $1,500,000, reflecting a higher mix of da Vinci V systems [28] - The company repurchased 350,000 shares at an average price of $518 per share during the quarter [37] Q&A Session Summary Question: Margin sustainability and drivers - Management noted strong revenue growth and a favorable purchase mix contributed to the margin upside, but cautioned against characterizing it as the new normal [50][51] Question: Reprocessing and extending useful life of instruments - Management emphasized the importance of high-quality instruments and ongoing innovation to maintain competitive advantage [54][55] Question: Capital spending and Medicaid coverage impacts - Management acknowledged potential challenges from Medicaid coverage loss but highlighted opportunities to demonstrate the value of da Vinci systems [62] Question: System placements outside the US - Management indicated a measured rollout for da Vinci V in Europe and Japan, with expectations for increased trade-ins as customers upgrade [88][90] Question: Future opportunities in outpatient environments - Management expressed optimism about expanding robotic surgery into outpatient settings and ASCs, leveraging existing technology [94] Question: Future features and capabilities of da Vinci V - Management confirmed ongoing enhancements to the da Vinci V platform, with expectations for improved outcomes and efficiency [96][99]
Intuitive(ISRG) - 2025 Q2 - Earnings Call Transcript
2025-07-22 21:30
Financial Data and Key Metrics Changes - Revenue for the quarter was $2,440 million, representing a 21% growth over the prior year, with systems revenue increasing by 28% [27][36] - Pro forma operating margin was 39%, and pro forma earnings per share increased by 23% to $2.19 [20][36] - Pro forma net income for the second quarter was $798 million compared to $641 million last year [36] Business Line Data and Key Metrics Changes - da Vinci procedures grew by 17%, with a total procedure growth of 18% when including ION procedures [21][10] - SP procedures grew by 88%, driven by 112% growth in Korea [29] - ION procedures increased by 52%, with approximately 35,000 procedures performed in the quarter [30] Market Data and Key Metrics Changes - In the US, da Vinci procedures grew by 14%, with notable growth in benign general surgery [21] - Outside the US, da Vinci procedures grew by 23%, with strong contributions from India, Korea, and distributor markets [22] - Capital placements in the US increased by 45%, while placements in Japan decreased by 26 systems year over year [64] Company Strategy and Development Direction - The company is focused on the full launch of da Vinci V, regional clearances, and follow-on feature releases [18] - There is an emphasis on increasing adoption for focused procedures through training and commercial activities [18] - The company aims to enhance its digital tools and manufacturing optimization to support long-term growth [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro challenges in certain international markets but expressed confidence in the company's operational and financial positioning [6][19] - The company updated its 2025 da Vinci procedure growth guidance to a range of 15-17% [44] - Management highlighted the potential impacts of fiscal policy on Medicaid recipients and the importance of demonstrating clinical and economic advantages [22] Other Important Information - The company opened a new 187,000 square foot manufacturing facility in Bulgaria to support its portfolio of mature endoscope products [33] - The average selling price for systems was $1,500,000, reflecting an increasing mix of da Vinci V systems [28] Q&A Session Summary Question: Margin performance and sustainability - Management noted strong revenue growth and a favorable purchase mix contributed to the margin upside, but it should not be characterized as the new normal [50][51] Question: Reprocessing and protecting the business - Management emphasized the importance of high-quality instruments and operational support in maintaining customer value amidst competition from remanufactured instruments [54][56] Question: Capital spending and Medicaid impacts - Management acknowledged potential challenges for hospitals due to lower admissions from Medicaid coverage loss but highlighted opportunities for Intuitive to demonstrate value [62][63] Question: System placements outside the US - Management indicated a measured rollout for da Vinci V in Europe and Japan, with expectations for increased trade-ins as customers upgrade [88][89] Question: Future opportunities in robotics - Management expressed interest in expanding robotic utilization in outpatient environments and ASCs, leveraging existing technology [93][94]
Intuitive(ISRG) - 2025 Q2 - Quarterly Results
2025-07-22 20:03
Exhibit 99.1 Contact: Investor Relations (408) 523-2161 INTUITIVE ANNOUNCES SECOND QUARTER EARNINGS SUNNYVALE, CALIF. July 22, 2025 – Intuitive (the "Company") (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended June 30, 2025. Q2 Highlights Q2 Financial Summary Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attribu ...
Intuitive Surgical: If You're Looking For A Dip To Buy, Get It Now (Rating Upgrade)
Seeking Alpha· 2025-07-22 14:00
I shared my first article on Intuitive Surgical, Inc. (NASDAQ: ISRG ) back in 2019. At the time, I argued that the stock's valuation was "exactly where it needed to be". Then, in the coming years, I wrote four articles supporting the idea Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compens ...