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% [15][23][25] - Total procedure growth was 20%, up from 18% in the first half of 2025 [15][19] - Pro forma net income for Q3 was $867 million, compared to $669 million last year, with pro forma earnings per share at $2.40 [25][26] Business Line Data and Key Metrics Changes - Da Vinci procedures increased by 19%, with the installed base of Da Vinci systems growing by 13% to almost 10,800 systems [15][16] - Ion procedures grew by 52%, with the installed base up by 30% to approximately 950 systems [16][19] - SP procedures saw a significant increase of 91%, driven by growth in Korea and early progress in other international markets [17][18] Market Data and Key Metrics Changes - In the U.S., total procedures for Da Vinci and Ion increased by 18%, with Da Vinci procedures growing by 16% and Ion procedures by 48% [16][17] - Outside the U.S., total procedures grew by 25%, with Da Vinci procedures increasing by 24% and Ion procedures quadrupling from a small base [16][17] - Average system utilization in OUS markets grew by 8% in Q3, reflecting strong multi-specialty procedure growth in various countries [18] Company Strategy and Development Direction - The company aims to focus on the full launch of Da Vinci 5, increasing adoption of focused procedures, and driving progress in product quality and manufacturing optimization [13][14] - Plans to offer refurbished Xi systems as part of a broader portfolio to expand access in certain geographies [7][14] - The company is committed to enhancing digital tools and integrating advanced imaging and AI capabilities into its platforms [56][75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the adoption of Da Vinci 5, noting that it is designed to be easier to learn and use, supporting higher efficiencies [39][40] - The company updated its 2025 Da Vinci procedure growth guidance to a range of 17% to 17.5% [32] - Management acknowledged challenges in the bariatric market and competitive pressures in China, indicating ongoing monitoring of these areas [70][71] Other Important Information - The company received FDA 510(k) clearance for software updates for Da Vinci 5, enhancing surgeon awareness and decision-making [10][12] - The installed base of Da Vinci 5 systems reached 929, with strong demand for upgrades driving placements [19][20] - The company ended the quarter with $8.4 billion in cash and investments, down from $9.5 billion, primarily due to share repurchases [26] Q&A Session Summary Question: Trends driving procedure volume growth - Management noted strong growth in benign general surgery and acute care, with Da Vinci 5 adoption supporting utilization [36][38] Question: Refurbished Xi systems and market potential - Management highlighted the importance of refurbished Xi systems for cost-sensitive customers and noted early sales of 20 units [41][45] Question: Utilization of redeployed Xi systems - Management explained that consistent user interfaces allow surgeons to transition between Da Vinci 5 and Xi systems without retraining, enhancing flexibility [49][50] Question: Impact of Intuitive Hub on Da Vinci uptake - Management discussed the digital foundation of Da Vinci 5 and the role of Intuitive Hub in collecting and analyzing surgical data [72][75] Question: Constraints in ambulatory surgery centers - Management indicated that capital costs are a greater constraint than sterilization challenges, with a focus on lowering total treatment costs [78][81]