Intuitive Surgical Reports Strong Q2 Performance, Addresses Industry Challenges

Intuitive Surgical, the leader in robotic surgery, has reported robust financial results for the second quarter of 2025, while addressing various industry challenges and market dynamics. The company's performance reflects strong growth in its da Vinci robotic system placements and procedure volumes, despite ongoing macroeconomic pressures in key markets.

Q2 Financial Highlights and Market Performance

Intuitive Surgical posted impressive financial results for the second quarter:

• Revenue reached $2.44 billion, a 21% increase year over year
• Net income rose to $658 million, up 25% compared to Q2 2024
• Da Vinci system placements totaled 395, up from 341 in Q2 2024
• Da Vinci 5 placements surged to 180, compared to 70 in Q2 2024

Dave Rosa, who took over as CEO on July 1, characterized the company's financial performance as strong, despite ongoing challenges in Japan, China, and Europe. The company noted that governments in key markets outside the U.S. continue to constrain hospital budgets for capital equipment purchases.

Da Vinci 5 Rollout and Procedure Growth

Intuitive Surgical's new da Vinci 5 platform, introduced in early 2024, is now launching broadly in the U.S. The company plans to begin limited launches in Europe and Japan as it gains additional regulatory clearances in those markets.

Total da Vinci procedure growth was 17% in the second quarter, matching the rate seen for all of 2024. In response to this strong performance, Intuitive raised the low end of its expected range for 2025 procedure growth, setting the new forecast at about 15.5% to 17%, up from the previous 15% to 17% predicted in the first quarter.

Addressing Industry Challenges

Intuitive Surgical executives addressed several key challenges and concerns during their earnings call:

1. Tariff Impact: CFO Jamie Samath reported that the company now expects the impact of tariffs this year to be about 100 basis points lower than the first-quarter estimate. This assumes a 30% rate on imports from China to the U.S., while imports from all other countries face a 10% tariff rate. Imports from Mexico and Canada complying with the United States-Mexico-Canada Agreement remain exempt from tariffs.

2. Medicaid Coverage: The company acknowledged the potential for some of the approximately 70 million to 80 million Americans with Medicaid insurance to lose coverage, which could impact procedure volumes. However, Samath suggested that robotic surgery could demonstrate economic and clinical advantages in the current U.S. healthcare environment.

3. Third-Party Competition: CEO Rosa addressed competition from third-party suppliers that remanufacture surgical instruments, emphasizing Intuitive's focus on safety and reliability. He stated, "Our strong belief is that high-quality instruments with consistent performance, broad operational support and predictable supply chains provide the greatest value."

As Intuitive Surgical continues to navigate these challenges, the company remains optimistic about its market position and the ongoing adoption of its robotic surgery platforms across global markets.