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]

Core Insights - Intuitive Surgical (ISRG) reported strong first-quarter 2025 results, with adjusted earnings per share (EPS) of $1.81, exceeding estimates by 5.9% and showing a year-over-year improvement of 20.7% [1] - Revenue for the quarter reached $2.25 billion, reflecting a 19.2% year-over-year increase and surpassing estimates by 3.3% [2] Revenue Details - The revenue growth was driven by an increase in installed systems and a rise in da Vinci procedure volume [2] - Revenue from the Instruments & Accessories segment was $1.37 billion, up 18% year over year, supported by a 17% increase in da Vinci procedure volume [3] - The Systems segment generated $523 million in revenue, a 25% increase year over year, due to higher system placements and average selling prices [4] - Service revenues amounted to $363 million, reflecting a 15.8% increase from the previous year [5] Margins and Expenses - Adjusted gross profit was $1.5 billion, a 17% year-over-year increase, with a gross margin of 66.4%, down 120 basis points from the prior year [6] - Selling, general, and administrative expenses rose to $563.4 million, up 14.6% year over year, while research and development expenses increased to $316.2 million, up 11.1% [6] Financial Position - The company ended the quarter with cash, cash equivalents, and investments totaling $9.1 billion, an increase from $8.83 billion in the previous quarter [8] - Total assets rose to $19.22 billion from $18.74 billion a year ago [8] Future Outlook - Intuitive Surgical expects gross margin to face a 170 basis points headwind in 2025 due to newly implemented global tariffs, particularly affecting components imported from China [11] - The company has lowered its pro forma gross margin guidance for the year to 65-66.5% from 67-68% [12] - Continued growth in da Vinci procedures and the launch of the da Vinci 5 system are anticipated to drive future revenues, although challenges in certain markets may slow adoption [14][16]