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ISRG Q2 revenues rose 21% to $2.44B, with EPS up 23% and 395 da Vinci systems placed globally.
ISRG saw 17% procedure growth and 30%+ utilization gains in SP and Ion platforms, lifting service revenue.
ISRG raised 2025 procedure outlook, but tariffs and lower-margin mix trimmed gross margin by 200 bps.
Intuitive Surgical (ISRG - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.19, which beat the Zacks Consensus Estimate of $1.92 by 14.1%. The bottom line improved 23% year over year.
GAAP EPS in the quarter was $1.81, up 24% from the year-ago quarter’s level.
Revenue Details
This Zacks Rank #2 (Buy) company reported revenues of $2.44 billion, up 21% year over year reportedly as well as at constant currency (cc). A higher number of installed systems and growth in the da Vinci procedure volume contributed to the improvement. The top line beat the Zacks Consensus Estimate by 3.9%.
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise
Revenues from this segment totaled $1.47 billion, indicating a year-over-year improvement of 18.5%. This can be attributed to the da Vinci procedure’s 17% volume growth. The sales growth also reflects approximately 52% growth in Ion procedures and 88% for the SP platform. The top-line improvement was also aided by higher system utilization, partially offset by a lower mix of bariatric procedures and a higher mix of cholecystectomy procedures.
Systems
This segment’s revenues totaled $574.7 million, up 28.2% year over year. The robust growth was driven by a higher system placement and a rise in average selling price. Intuitive Surgical shipped 395 da Vinci Surgical Systems compared with 341 in the prior-year quarter. The company placed 216 systems in the United States and 179 in international markets. During the second quarter, ISRG placed 180 of its latest da Vinci 5 systems compared with 147 during the first quarter of 2025.
Services
Revenues from this segment amounted to $391.2 million, up 23.3% from the year-ago quarter’s level.
Margins
Adjusted gross profit was $1.66 billion, up 17.8% year over year. As a percentage of revenues, the gross margin was 67.9%, down approximately 200 bps from the prior-year quarter’s figure.
Selling, general and administrative expenses totaled $561.2 million, up 6.8% year over year.
Research and development expenses totaled $313.3 million, up 11.9% on a year-over-year basis.
Adjusted operating income totaled $946.6 million, up 25.5% year over year. As a percentage of revenues, the operating margin was 38.8%, up approximately 130 bps from the prior-year quarter’s figure.
Financial Position
Intuitive Surgical exited the second quarter with cash, cash equivalents and investments of $9.53 billion compared with $9.1 billion in the previous quarter.
Total assets increased to $20.16 billion from $19.22 billion a year ago.
Wrapping Up
ISRG ended the second quarter on a strong note, with earnings and revenues beating their respective estimates. Following this robust quarterly performance, the stock was up 0.3% during after-hours trading on July 22.
Shares of Intuitive Surgical have lost 2.1% so far this year compared with the industry’s 12.4% decline. The S&P 500 Index has increased 6.8% during the same time frame.
Image Source: Zacks Investment Research
The da Vinci 5 (dV5) system entered broad launch in the United States with 180 placements, bringing its total installed base to 689. The company also received regulatory approvals for dV5 in Europe and Japan, with measured rollouts planned. Utilization of dV5 surpassed the legacy Xi platform, and early clinical evidence supported the value of new features like force feedback and Case Insights. Trade-ins rose significantly, indicating early momentum in the upgrade cycle.
Global da Vinci procedures rose 17% year over year, led by 14% growth in the United States and 23% outside. Strength was seen in benign general surgeries domestically and across non-urology procedures internationally, especially in India, Korea and distributor markets. Utilization improved across all platforms, with 2% growth in multiport, 30% in SP and 8% in Ion.
System placements totaled 395, with U.S. demand strong but international markets pressured by budget constraints. Gross margin declined due to higher costs and tariffs (60bps drag in the second quarter). Operating margin remained strong due to favorable purchase mix and cost leverage. Tariff headwinds are expected to affect full-year margins by nearly 100bps.
Medicaid-related policy uncertainty poses a potential risk, but ISRG’s relatively lower exposure and strong value proposition may mitigate the impact. The company raised its 2025 procedure growth guidance to 15.5-17% (from 15-17%) and updated gross margin guidance to 66-67%. Focus remains on expanding dV5, growing Ion and SP adoption, and advancing its digital ecosystem to drive long-term value.
Other Stocks to Consider
Some other top-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation (BSX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2025 adjusted earnings per share (EPS) is currently pegged at 72 cents. The consensus estimate for revenues is pegged at $4.89 billion. BSX currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 13.2%. BSX’s earnings yield of 2.8% compares favorably with the industry’s 1.1%.
Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03 and the same for revenues is pinned at $60.67 billion.
Cardinal Health has an estimated long-term growth rate of 10.9%. CAH’s earnings yield of 5.7% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.
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ISRG Stock Gains on Q2 Earnings & Sales Beat, Gross Margin Contracts
Key Takeaways
Intuitive Surgical (ISRG - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $2.19, which beat the Zacks Consensus Estimate of $1.92 by 14.1%. The bottom line improved 23% year over year.
GAAP EPS in the quarter was $1.81, up 24% from the year-ago quarter’s level.
Revenue Details
This Zacks Rank #2 (Buy) company reported revenues of $2.44 billion, up 21% year over year reportedly as well as at constant currency (cc). A higher number of installed systems and growth in the da Vinci procedure volume contributed to the improvement. The top line beat the Zacks Consensus Estimate by 3.9%.
Intuitive Surgical, Inc. Price, Consensus and EPS Surprise
Intuitive Surgical, Inc. price-consensus-eps-surprise-chart | Intuitive Surgical, Inc. Quote
Segmental Details
Instruments & Accessories
Revenues from this segment totaled $1.47 billion, indicating a year-over-year improvement of 18.5%. This can be attributed to the da Vinci procedure’s 17% volume growth. The sales growth also reflects approximately 52% growth in Ion procedures and 88% for the SP platform. The top-line improvement was also aided by higher system utilization, partially offset by a lower mix of bariatric procedures and a higher mix of cholecystectomy procedures.
Systems
This segment’s revenues totaled $574.7 million, up 28.2% year over year. The robust growth was driven by a higher system placement and a rise in average selling price. Intuitive Surgical shipped 395 da Vinci Surgical Systems compared with 341 in the prior-year quarter. The company placed 216 systems in the United States and 179 in international markets. During the second quarter, ISRG placed 180 of its latest da Vinci 5 systems compared with 147 during the first quarter of 2025.
Services
Revenues from this segment amounted to $391.2 million, up 23.3% from the year-ago quarter’s level.
Margins
Adjusted gross profit was $1.66 billion, up 17.8% year over year. As a percentage of revenues, the gross margin was 67.9%, down approximately 200 bps from the prior-year quarter’s figure.
Selling, general and administrative expenses totaled $561.2 million, up 6.8% year over year.
Research and development expenses totaled $313.3 million, up 11.9% on a year-over-year basis.
Adjusted operating income totaled $946.6 million, up 25.5% year over year. As a percentage of revenues, the operating margin was 38.8%, up approximately 130 bps from the prior-year quarter’s figure.
Financial Position
Intuitive Surgical exited the second quarter with cash, cash equivalents and investments of $9.53 billion compared with $9.1 billion in the previous quarter.
Total assets increased to $20.16 billion from $19.22 billion a year ago.
Wrapping Up
ISRG ended the second quarter on a strong note, with earnings and revenues beating their respective estimates. Following this robust quarterly performance, the stock was up 0.3% during after-hours trading on July 22.
Shares of Intuitive Surgical have lost 2.1% so far this year compared with the industry’s 12.4% decline. The S&P 500 Index has increased 6.8% during the same time frame.
Image Source: Zacks Investment Research
The da Vinci 5 (dV5) system entered broad launch in the United States with 180 placements, bringing its total installed base to 689. The company also received regulatory approvals for dV5 in Europe and Japan, with measured rollouts planned. Utilization of dV5 surpassed the legacy Xi platform, and early clinical evidence supported the value of new features like force feedback and Case Insights. Trade-ins rose significantly, indicating early momentum in the upgrade cycle.
Global da Vinci procedures rose 17% year over year, led by 14% growth in the United States and 23% outside. Strength was seen in benign general surgeries domestically and across non-urology procedures internationally, especially in India, Korea and distributor markets. Utilization improved across all platforms, with 2% growth in multiport, 30% in SP and 8% in Ion.
System placements totaled 395, with U.S. demand strong but international markets pressured by budget constraints. Gross margin declined due to higher costs and tariffs (60bps drag in the second quarter). Operating margin remained strong due to favorable purchase mix and cost leverage. Tariff headwinds are expected to affect full-year margins by nearly 100bps.
Medicaid-related policy uncertainty poses a potential risk, but ISRG’s relatively lower exposure and strong value proposition may mitigate the impact. The company raised its 2025 procedure growth guidance to 15.5-17% (from 15-17%) and updated gross margin guidance to 66-67%. Focus remains on expanding dV5, growing Ion and SP adoption, and advancing its digital ecosystem to drive long-term value.
Other Stocks to Consider
Some other top-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation (BSX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2025 adjusted earnings per share (EPS) is currently pegged at 72 cents. The consensus estimate for revenues is pegged at $4.89 billion. BSX currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 13.2%. BSX’s earnings yield of 2.8% compares favorably with the industry’s 1.1%.
Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03 and the same for revenues is pinned at $60.67 billion.
Cardinal Health has an estimated long-term growth rate of 10.9%. CAH’s earnings yield of 5.7% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.