Financial Data and Key Metrics Changes - In Q3 2025, revenue grew 23% to $2.5 billion, with pro forma operating margin at 39% and pro forma earnings per share increasing by 30% [14][24][25] - Total procedure growth was 20%, with Da Vinci procedures increasing by 19% and Ion procedures by 52% [14][15][18] - Pro forma gross margin for the quarter was 68%, down from 69.1% in Q3 of the previous year [23][24] Business Line Data and Key Metrics Changes - Da Vinci system placements totaled 427, including 240 Da Vinci 5 systems, reflecting strong domestic demand for upgrades [5][14][19] - Ion platform procedures grew 52%, with the installed base increasing by 30% to approximately 950 systems [15][18] - Average system utilization for Da Vinci multiport platforms grew by 4%, while Ion utilization increased by 14% [5][15] Market Data and Key Metrics Changes - In the U.S., total procedures increased by 18%, with Da Vinci procedures growing by 16% and Ion procedures by 48% [15][16] - Internationally, total procedures grew by 25%, driven by strong results in India, Canada, Korea, Taiwan, and Brazil [16][17] - Da Vinci procedure growth in OUS markets included strong results in benign general surgery, colorectal, and hysterectomy procedures [17] Company Strategy and Development Direction - The company aims to focus on the full launch of Da Vinci 5, increasing adoption of focused procedures, and enhancing product quality and manufacturing optimization [12][31] - Plans to offer refurbished Xi systems to expand access in certain geographies and sites of care [6][40] - The company is committed to leveraging digital tools and AI to enhance surgical outcomes and operational efficiency [9][72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in procedure volumes and the positive impact of Da Vinci 5 on utilization rates [4][37] - The company is navigating challenges in markets like Japan and China, where government budget constraints and competition are significant [20][67] - Updated guidance for 2025 includes an increase in expected Da Vinci procedure growth to a range of 17% to 17.5% [31] Other Important Information - The company ended the quarter with $8.4 billion in cash and investments, down from $9.5 billion, primarily due to share repurchases [26] - The company received FDA clearance for significant software updates for Da Vinci 5, enhancing its capabilities [9][11] Q&A Session Summary Question: What trends are driving the 20% procedure volume growth? - Management noted strong growth in benign general surgery and elective procedures, with Da Vinci 5 adoption contributing significantly [34][35] Question: How is the refurbished Xi strategy progressing? - The company has sold 20 refurbished Xi systems and sees potential for growth in cost-sensitive markets [40][42] Question: What is the outlook for bariatric procedures and the China market? - Bariatric procedures continue to decline, and the company is navigating a competitive environment in China with price pressures [66][67] Question: How is the Intuitive Hub contributing to Da Vinci uptake? - The Intuitive Hub is integral to collecting data and enhancing surgical insights, which is expected to improve outcomes [68][72]