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Will ISRG's dV5 Lend Momentum to Top Line During Q3 Earnings?
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Key Takeaways
ISRG placed 180 da Vinci 5 systems in Q2, lifting its installed base to nearly 700 units.
ISRG's Q3 top line is likely to have been boosted by dV5's premium pricing that pushed ASP to $1.5 million.
dV5 rollout in Europe and Japan may fuel further growth for ISRG, though margin pressure could persist.
Intuitive Surgical’s (ISRG - Free Report) second-quarter results underscored the early traction of its latest robotic platform, the da Vinci 5 (dV5). With 180 placements in the second quarter alone, the installed base has now reached nearly 700 systems, signaling robust demand as hospitals upgrade from earlier Xi models. The company’s move into a broad U.S. launch has accelerated trade-ins — 83 in the second quarter versus 21 a year ago — highlighting customers’ growing preference for the new platform.
The dV5 carries a higher average selling price (ASP), lifting the overall system ASP to $1.5 million compared with $1.44 million last year. This premium pricing, coupled with early evidence of efficiency gains, has been a key selling point. In some cases, hospitals reported surgical time reductions of more than 20%, potentially allowing surgeons to add an extra case per day. Clinical features such as force feedback and case insights are beginning to demonstrate improved outcomes, reinforcing the platform’s economic value proposition for hospitals navigating tight budgets.
Looking ahead to the third-quarter results, momentum is likely to have gained further as ISRG expands dV5 beyond the United States. The platform received regulatory clearances in Europe and Japan earlier this year, with the potential start of phased international rollouts during the third quarter. Early adopters in these markets might have driven incremental system placements, while U.S. hospitals must have continued to swap older systems.
Going forward, dV5’s accelerating adoption could continue to weigh on gross margins, given higher service requirements and a less favorable product mix. Management has already flagged margin pressure from the platform’s rollout, alongside tariffs, and these factors are likely to persist in the near term. Moreover, supply constraints for force feedback instruments are expected to extend into early 2026, delaying the full benefit of recurring revenue gains.
Investors must focus on whether premium pricing, proven efficiency gains, and growing clinical validation can outpace the challenges. If adoption trends hold, dV5 may remain a key driver of Intuitive Surgical’s top-line trajectory, with the potential to reshape both revenue mix and long-term growth profile.
Likely Q3 Performance of Robotic-Surgery Peers
Stryker’s (SYK - Free Report) second-quarter 2025 results showed strong momentum, with organic sales up 10.2% and earnings per share (EPS) growth of 11.4%. A key driver remains Mako, which achieved record installations in the second quarter, surpassing 2 million procedures globally. New applications in hip revision and spine are receiving positive feedback, while Mako 4 expands capabilities in shoulder and knee procedures.
With hospitals continuing to invest in robotics and utilization rates climbing, Stryker’s Mako is positioned to support third-quarter performance, particularly in U.S. hips and knees. Despite tariff headwinds, robust adoption of Mako and a strong order book suggest that Stryker might have delivered above-market orthopedic growth in the third quarter.
Zimmer Biomet (ZBH - Free Report) posted a 7% reported revenue rise in second-quarter 2025, with EPS of $2.07 exceeding estimates. Growth was underpinned by U.S. hip and knee demand and improving adoption of the ROSA robotic platform, which is gaining traction across procedures. Management expressed high confidence in a second-half acceleration, supported by easier comps, a strong July, and continued penetration of Persona knees and Oxford partial knees.
Zimmer Biomet’s ROSA platform is expected to have been a key contributor to the third-quarter performance, driving competitive conversions and ASC momentum. Coupled with new product launches, Zimmer Biomet’s focus on innovation and operational execution is likely to have supported steady top-line growth during the third quarter.
ISRG’s Price Performance, Valuation and Estimates
Shares of ISRG have lost 16.3% in the year-to-date period compared with the industry’s decline of 10.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 48.69, above the industry average. But, it is still lower than its five-year median of 71.62. ISRG carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Intuitive Surgical’s third-quarter 2025 earnings implies an 8.2% rise from the year-ago period’s level.
Image: Shutterstock
Will ISRG's dV5 Lend Momentum to Top Line During Q3 Earnings?
Key Takeaways
Intuitive Surgical’s (ISRG - Free Report) second-quarter results underscored the early traction of its latest robotic platform, the da Vinci 5 (dV5). With 180 placements in the second quarter alone, the installed base has now reached nearly 700 systems, signaling robust demand as hospitals upgrade from earlier Xi models. The company’s move into a broad U.S. launch has accelerated trade-ins — 83 in the second quarter versus 21 a year ago — highlighting customers’ growing preference for the new platform.
The dV5 carries a higher average selling price (ASP), lifting the overall system ASP to $1.5 million compared with $1.44 million last year. This premium pricing, coupled with early evidence of efficiency gains, has been a key selling point. In some cases, hospitals reported surgical time reductions of more than 20%, potentially allowing surgeons to add an extra case per day. Clinical features such as force feedback and case insights are beginning to demonstrate improved outcomes, reinforcing the platform’s economic value proposition for hospitals navigating tight budgets.
Looking ahead to the third-quarter results, momentum is likely to have gained further as ISRG expands dV5 beyond the United States. The platform received regulatory clearances in Europe and Japan earlier this year, with the potential start of phased international rollouts during the third quarter. Early adopters in these markets might have driven incremental system placements, while U.S. hospitals must have continued to swap older systems.
Going forward, dV5’s accelerating adoption could continue to weigh on gross margins, given higher service requirements and a less favorable product mix. Management has already flagged margin pressure from the platform’s rollout, alongside tariffs, and these factors are likely to persist in the near term. Moreover, supply constraints for force feedback instruments are expected to extend into early 2026, delaying the full benefit of recurring revenue gains.
Investors must focus on whether premium pricing, proven efficiency gains, and growing clinical validation can outpace the challenges. If adoption trends hold, dV5 may remain a key driver of Intuitive Surgical’s top-line trajectory, with the potential to reshape both revenue mix and long-term growth profile.
Likely Q3 Performance of Robotic-Surgery Peers
Stryker’s (SYK - Free Report) second-quarter 2025 results showed strong momentum, with organic sales up 10.2% and earnings per share (EPS) growth of 11.4%. A key driver remains Mako, which achieved record installations in the second quarter, surpassing 2 million procedures globally. New applications in hip revision and spine are receiving positive feedback, while Mako 4 expands capabilities in shoulder and knee procedures.
With hospitals continuing to invest in robotics and utilization rates climbing, Stryker’s Mako is positioned to support third-quarter performance, particularly in U.S. hips and knees. Despite tariff headwinds, robust adoption of Mako and a strong order book suggest that Stryker might have delivered above-market orthopedic growth in the third quarter.
Zimmer Biomet (ZBH - Free Report) posted a 7% reported revenue rise in second-quarter 2025, with EPS of $2.07 exceeding estimates. Growth was underpinned by U.S. hip and knee demand and improving adoption of the ROSA robotic platform, which is gaining traction across procedures. Management expressed high confidence in a second-half acceleration, supported by easier comps, a strong July, and continued penetration of Persona knees and Oxford partial knees.
Zimmer Biomet’s ROSA platform is expected to have been a key contributor to the third-quarter performance, driving competitive conversions and ASC momentum. Coupled with new product launches, Zimmer Biomet’s focus on innovation and operational execution is likely to have supported steady top-line growth during the third quarter.
ISRG’s Price Performance, Valuation and Estimates
Shares of ISRG have lost 16.3% in the year-to-date period compared with the industry’s decline of 10.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 48.69, above the industry average. But, it is still lower than its five-year median of 71.62. ISRG carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Intuitive Surgical’s third-quarter 2025 earnings implies an 8.2% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.