ISRG Q2 Deep Dive: New Platform Drives Procedure Growth Amid Global Expansion

Medical technology company Intuitive Surgical (NASDAQ:ISRG) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 21.4% year on year to $2.44 billion. Its non-GAAP profit of $2.19 per share was 14.2% above analysts’ consensus estimates.

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StockStory’s Take

Intuitive Surgical’s second quarter results were marked by strong procedure growth and robust capital equipment placements, which together helped the company exceed Wall Street’s top- and bottom-line expectations. Management attributed the quarter’s momentum to continued adoption of the da Vinci 5 robotic surgical system, particularly in the United States, as well as solid execution in expanding its installed base across key international markets. CEO Dave Rosa highlighted that “benign general surgery led U.S. procedure growth with a strong contribution from after-hours procedures, while international growth was led by non-urology procedures.”

Looking forward, Intuitive Surgical’s growth trajectory centers on broadening the rollout of its da Vinci 5 platform, expanding into new international markets, and driving adoption of advanced features such as force feedback technology and digital collaboration tools. Management emphasized measured launches in Europe and Japan and ongoing investments in R&D and manufacturing scale. CFO Jamie Samath noted, “We are planning for a measured rollout [of da Vinci 5] and there’s work to do there… building training pathways and posturing capabilities.” The company is also preparing for continued macroeconomic and policy-related challenges in some markets.

Key Insights from Management’s Remarks

Management credited strong adoption of new platforms and expansion of procedure types for driving quarterly results, while also addressing evolving competitive and policy environments.

• Da Vinci 5 rollout progress: The da Vinci 5 platform moved into broad launch in the United States and received clearances for measured launches in Europe and Japan. Management cited positive customer feedback and a growing installed base, with more than 100,000 procedures performed to date on the new system.

• Procedure growth diversity: U.S. procedure growth was led by benign general surgery, bolstered by increased after-hours surgeries, while international growth accelerated in non-urology procedures. India and Korea were noted as standout markets due to expanding installed bases and adoption across new specialties.

• Advanced technology integration: The quarter saw the first clinical adoption of force feedback instruments and AI-enabled case insights, which management believes can improve surgical outcomes and help shorten learning curves for new robotic surgeons.

• Expansion of SP and Ion platforms: The SP (single port) system achieved significant procedure growth, particularly in Korea, and received regulatory clearances for new indications. The Ion platform expanded into Australia and Korea, with utilization continuing to rise in both new and existing markets.

• Manufacturing and supply chain investments: Intuitive opened a new manufacturing facility in Bulgaria and is ramping up capacity in Germany and Mexico to support long-term growth and mitigate tariff and supply chain risks.

Drivers of Future Performance

Intuitive Surgical’s outlook emphasizes continued platform adoption, new clinical features, and global expansion, while acknowledging regulatory and economic headwinds.

• Measured international expansion: Management is prioritizing a careful rollout of da Vinci 5 in Europe and Japan, focusing on building training infrastructure and post-approval support. The company anticipates that adoption will be gradual as hospitals assess the system’s higher price and value proposition.

• Product innovation pipeline: The ongoing integration of advanced features—such as force feedback, digital collaboration tools, and new energy instruments—aims to strengthen the clinical and economic case for robotic surgery, supporting higher utilization and potential pricing power.

• External risks: Persistent policy uncertainty, government budget pressures in key international markets, and evolving trade tariffs are expected to impact capital spending and product margins. Management is monitoring these factors closely and adjusting manufacturing and leasing strategies accordingly.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will closely track (1) adoption rates and clinical feedback from the broader da Vinci 5 rollout in the United States, Europe, and Japan, (2) utilization trends and feature adoption for SP and Ion platforms in new markets, and (3) the impact of evolving tariff and policy environments on margins and capital placements. Additional attention will be paid to ongoing product innovation and manufacturing scale-up efforts.

Intuitive Surgical currently trades at $490.97, down from $511.63 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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