ISRG: Solid Numbers, Tariff Concerns

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Here’s our initial take on Intuitive Surgical‘s (ISRG) financial report.

Key Metrics

Metric Q2 2024 Q2 2025 Change vs. Expectations
Revenue $2.01 billion $2.44 billion 20% Beat
Adjusted EPS $1.78 $2.19 23% Beat
Da Vinci systems placed 341 395 16% n/a
Da Vinci total installed systems 9,203 10,488 14% n/a

Intuitive Momentum Remains Strong

In the latest quarter, Intuitive Surgical, a trailblazer in robotic surgery, exceeded expectations with a 20% increase in revenue and a 23% rise in earnings per share. The company’s devices continue to be highly sought-after, and there’s consistent high usage once they are set up, leading to this positive performance.

In the recent quarter, the company added 395 of its da Vinci systems to its inventory, marking a 16% increase compared to the same period last year. Additionally, the high-end da Vinci 5 models saw a significant rise, with the number nearly doubling to 180. By the end of the quarter, Intuitive Surgical’s total installed base stood at 10,488 systems, representing a growth from 9,203 units a year ago.

Globally, there was a 17% increase in procedures, which is promising news for businesses specializing in both the sale of new systems and disposable equipment used during each surgery on an individual basis.

In the second quarter of 2025, the company concluded with a cash reserve of approximately $9.53 billion, an increase of around $431 million compared to the previous quarter. This growth was primarily fueled by cash generated through their business operations.

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Immediate Market Reaction

Despite a robust performance in the recent quarter, there remains uncertainty regarding how tariff changes might affect the company over the coming periods. The company’s stock saw a dip of approximately 4% during post-market trading, preceding its scheduled meeting with investors.

What to Watch

It is unlikely that the 17% increase in procedures observed so far will continue throughout the second half of the year. The company anticipates a total procedure growth of approximately 15.5% to 17% for the full year, which is slightly lower than the 17% seen in both the current quarter and all of last year.

For the upcoming year, it’s anticipated that operating costs will rise by a range of 10% to 14%, which is slightly higher than the 10% increase projected for 2024. This elevated expectation takes into account the company’s estimates of the negative effects from tariffs that are currently in force, and assumes these tariffs will continue to be enforced.

The business is consistently pioneering advancements, as demonstrated during the recent quarter when they showcased telesurgery by having doctors in Georgia and France collaborate using a dual-console da Vinci 5 system, simulating a procedure. Such groundbreaking developments not only expand the reach of these systems to more patients but also uncover fresh opportunities for market expansion.

As we move forward, an intuitive approach to growth is crucial, yet the short-term impact of rising tariffs may persist, casting uncertainty over the coming months.

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2025-07-23 16:34