ISRG's Ion Platform Sees Uptick in Utilization, Eyes Efficiency

Intuitive Surgical’s ISRG Ion platform continues to build momentum, posting a robust 52% year-over-year improvement in procedures (to approximately 35,000) for second-quarter 2025. However, the real story lies beneath the headline growth — system utilization for Ion increased 8% year over year, a critical metric that underscores the company’s sharpened focus on workflow optimization and operational efficiency.

While system placements dipped to 54 units from 74 a year ago, management remains committed to scaling Ion’s usage within its existing installed base. The emphasis is now on enhancing procedural workflows, streamlining clinical adoption and optimizing product costs — all aimed at accelerating Ion's path to profitability.

Intuitive Surgical’s near-term priorities for Ion include bolstering utilization growth in the United States, while strategically expanding into international markets, notably with first commercial procedures completed in Australia and Korea. As competition intensifies in the robotic-assisted bronchoscopy space, Ion’s growing procedural throughput offers a key competitive edge.

Higher utilization not only improves return on investment for hospitals but also enhances recurring revenue streams through instrument and accessory sales. Moreover, as ISRG navigates macroeconomic challenges and tariff pressures, workflow efficiency gains and product cost optimizations in Ion could serve as vital levers to protect margins.

Given the growing demand for minimally invasive lung biopsy solutions, Ion's capacity to improve procedural throughput and drive operational excellence will be pivotal. The platform’s 8% utilization growth may seem incremental, but in a high-mix capital equipment business, such gains could compound significantly over time, enhancing both customer stickiness and long-term value proposition.

Investors should closely watch how workflow enhancements translate into higher adoption rates, especially as Intuitive Surgical scales Ion across new geographies and care settings.

Competitive Snapshot

Stryker’s SYK Mako platform continues to gain traction, with management highlighting strong global utilization growth alongside record installations in second-quarter 2025. As hospitals maximize their existing Mako systems, the surge in procedure volumes is driving higher recurring revenues through consumables and software services.

This utilization-driven growth is increasingly important as Stryker navigates tariff pressures and cost headwinds. With expanded applications like hip revision, spine, and soon shoulder procedures, Mako’s procedural throughput is poised to accelerate further, enhancing the platform's long-term revenue visibility and margin resilience. Mako is quietly becoming Stryker’s high-value recurring revenue engine.

Zimmer Biomet’s ZBH ROSA robotics platform saw ongoing adoption in knee procedures, but results were more muted. While ROSA volume-based placements contributed to a mix shift versus outright sales, ROSA was mentioned as central to ZBH’s robotic strategy in 2025.

The company emphasized the growing uptake of cementless knee and hip implants, including the Oxford Partial Cementless Knee, which complements robotic workflows. Though specific ROSA installation figures weren’t disclosed, the system remains integral to ZBH’s ASC and digitization strategy. Management cited increased commercial focus and expanded surgical capabilities as key growth drivers, but acknowledged tariffs and ongoing pressure on operating margins as near-term headwinds.

ISRG’s Price Performance, Valuation and Estimates

Shares of ISRG have lost 7.4% in the year-to-date period compared with the industry’s decline of 10.7%.

From a valuation standpoint, Intuitive Surgical trades at a forward price-to-earnings ratio of 55.05, above the industry average. But, it is still lower than its five-year median of 72.26. ISRG carries a Value Score of D.

The Zacks Consensus Estimate for Intuitive Surgical’s 2025 earnings implies an 11.3% rise from the year-ago period’s level.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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