Intuitive Surgical’s Third Quarter Sees Double-Digit Growth in Procedures and System Installations
Double-Digit Growth in Procedures and Revenue Underlines Robust Demand
Intuitive Surgical (NASDAQ: ISRG) posted its third quarter 2025 results, revealing broad-based strength driven by surging procedure volumes, strong system placements, and continued adoption of its flagship da Vinci and Ion platforms. The numbers stand out: total procedures climbed 20% versus last year’s quarter, and total revenue rose 23% to $2.51 billion, with both metrics comfortably outpacing historical averages for the sector.
Strong Performance Across All Segments: Data Table Shows Revenue and Growth
Drilling down, each revenue stream showed solid momentum, particularly instruments and accessories, which rely on recurring usage:
| Segment | Q3 2025 Revenue ($M) | Q3 2024 Revenue ($M) | YoY Growth |
|---|---|---|---|
| Instruments & Accessories | 1,518.8 | 1,264.2 | +20% |
| Systems | 590.4 | 445.0 | +33% |
| Services | 395.9 | 328.9 | +20% |
| Total Revenue | 2,505.1 | 2,038.1 | +23% |
System Placements and Installed Base Set New Records
The number of da Vinci surgical systems placed grew from 379 in Q3 2024 to 427 this quarter. Notably, the latest-generation da Vinci 5 made up over half these placements, doubling to 240. The installed base for da Vinci now sits at 10,763, up 13%, while Ion systems expanded even faster, up 30% to 954 globally. This growth feeds directly into higher recurring revenue from disposable instruments and services.
Margins Hold Firm Despite Tariff Pressures
Profitability continued to climb, with GAAP income from operations up to $759.7 million and non-GAAP operating income reaching $975.9 million for the quarter. The company still faces potential margin headwinds, with guidance for 2025 pointing to a non-GAAP gross margin between 67% and 67.5% (down from 69.1% last year) due to higher tariffs and input costs.
Shareholder Returns Remain Robust Amid Continued Investment
Intuitive returned significant capital to shareholders, repurchasing $1.92 billion of its stock in Q3 alone. Despite this, its cash and investment position remains strong at $8.43 billion, ensuring flexibility for further innovation and growth initiatives.
Financial Highlights Table: Key Q3 Figures at a Glance
| Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Revenue ($B) | 2.51 | 2.04 | +23% |
| GAAP Net Income ($M) | 704.4 | 565.1 | +25% |
| Non-GAAP Net Income ($M) | 867.2 | 669.1 | +30% |
| EPS (Diluted, $) | 1.95 (GAAP) 2.40 (Non-GAAP) |
1.56 (GAAP) 1.84 (Non-GAAP) |
+25% / +30% |
| Operating Margin (GAAP) | 30.3% | 28.4% | +1.9 pts |
2025 Outlook: Continued Growth with Some Margin Pressure
The company projects worldwide da Vinci procedure growth between 17% and 17.5% for 2025. Operating expense growth is expected to land between 11% and 13%. While margins will be affected by ongoing tariff costs, robust demand and continued system placements are expected to drive healthy top-line expansion.
Bottom Line: Innovation and Adoption Fuel Strength, but Margin Watch Is Warranted
Intuitive’s Q3 2025 results make a compelling case for its leadership in robotic surgery, with widespread system adoption, strong recurring revenue, and disciplined capital allocation. Investors should keep an eye on margin dynamics as input costs and tariffs fluctuate, but the installed base momentum and global procedural adoption remain strong tailwinds for future growth.
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