Intuitive Surgical (ISRG) investor relations material

Executive summary

• Q2 2025 revenue rose 21% year-over-year to $2.44 billion, driven by 17% da Vinci and 52% Ion procedure growth, and strong system placements, especially for the da Vinci 5 system.

• Installed base reached 10,488 da Vinci systems (up 14%) and 905 Ion systems (up 33%) as of June 30, 2025.

• Leadership transition completed as Gary Goodhart became Executive Chair and David Rosa assumed CEO role.

• Continued innovation with broad launch of da Vinci 5, new product clearances, and expansion of digital and telecollaboration tools.

• Achieved European certification and Japanese regulatory clearance for da Vinci 5 system.

Financial highlights

• Q2 2025 revenue reached $2.44 billion, up 21% year-over-year; systems revenue up 28% to $575M, recurring revenue up 21%.

• Pro forma operating margin reached 39%; pro forma EPS increased 23% to $2.19.

• GAAP net income was $658 million ($1.81 per diluted share); non-GAAP net income was $798 million ($2.19 per share).

• Ended Q2 2025 with $9.53 billion in cash and investments, after $181 million in share repurchases and $155 million in capex.

• Instruments and accessories revenue increased 18% to $1.47 billion.

Outlook and guidance

• 2025 worldwide da Vinci procedure growth guidance updated to 15.5–17%.

• Non-GAAP gross margin projected at 66–67% of revenue for 2025, reflecting tariff impacts and new facility depreciation.

• Operating expense growth expected at 10–14%; capex guidance set at $650–$725 million.

• 2025 pro forma tax rate estimated at 22–23%.

• Anticipates higher cost of revenues in H2 2025 due to new tariffs and supply chain inflation.