ISRG Q3 Deep Dive: Da Vinci V Rollout and Platform Expansion Drive Growth

Medical technology company Intuitive Surgical (NASDAQ:ISRG) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 22.9% year on year to $2.51 billion. Its non-GAAP profit of $2.40 per share was 20.7% above analysts’ consensus estimates.

Is now the time to buy ISRG? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Intuitive Surgical's third quarter results were met with a strongly positive market reaction, as management credited robust demand for the da Vinci V system and expanded international placements as primary growth drivers. CEO David J. Rosa highlighted that widespread adoption of da Vinci V, along with higher procedure volumes in both U.S. and international markets, contributed to improved utilization rates across all platforms. Additionally, elevated interest in system upgrades and first placements in new geographies supported overall momentum.

Looking ahead, management emphasized continued investments in next-generation technology and digital tools to maintain growth. Rosa pointed to ongoing launches and regulatory submissions for new procedures, such as nipple-sparing mastectomy, and the introduction of advanced features like force feedback and AI-enabled workflow enhancements. CFO Jamie E. Samath noted that future performance will also be shaped by efforts to expand direct operations in key European markets and the pursuit of new clearances for single-port and ION platforms.

Key Insights from Management’s Remarks

Management attributed the quarter's outperformance to strong da Vinci V adoption, increased procedure volumes, and the initial success of refurbished system placements.

• Da Vinci V accelerates adoption: The broad launch of da Vinci V led to increased upgrade activity, with hospitals standardizing on the new platform and reporting higher utilization, especially due to features like force sensing and enhanced surgeon autonomy.
• International expansion gains traction: Early placements of da Vinci V in Japan and Europe were met with positive feedback, and management highlighted strong procedure growth in India, Korea, and Brazil, despite ongoing capital constraints in China and the UK.
• Refurbished XI systems open new markets: The trade-in cycle for da Vinci V is fueling the redeployment of refurbished XI systems, providing a cost-effective entry point for more cost-sensitive hospitals and expanding access to robotic surgery in both U.S. and international settings.
• Platform diversification supports growth: The ION and single-port (SP) platforms saw significant procedure growth, with ION benefiting from new AI-enabled navigation features and SP driven by expanded indications and regulatory clearances. Management sees these platforms as incremental contributors to overall growth.
• Digital and AI initiatives show early promise: The rollout of digital tools, such as Intuitive Hub for video data and AI-based analytics, is beginning to provide actionable insights for surgeons and care teams. Management expects ongoing software updates and data integration to further enhance surgical outcomes and efficiency.

Drivers of Future Performance

Intuitive Surgical expects future growth to be fueled by new product launches, broader international adoption, and continued investment in digital and AI technologies.

• Expansion of da Vinci V footprint: Management is focused on securing additional clearances and driving further adoption of da Vinci V in both developed and emerging markets. The company anticipates ongoing upgrade activity and increased procedure volumes as hospitals standardize on the new system.
• Growth in adjacent platforms and procedures: The ION and SP platforms are set to benefit from new regulatory approvals, expanded indications, and AI-enabled workflow enhancements. Management believes that further clinical evidence supporting these platforms will drive incremental adoption.
• Operational scaling and direct market entry: Intuitive Surgical is preparing to transition to direct operations in Italy, Spain, and Portugal, which is expected to enhance profitability by capturing distributor margins. However, management also noted that macroeconomic headwinds, reimbursement challenges, and continued pressure in China could affect growth rates.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) the pace of da Vinci V upgrades and international placements, (2) new regulatory clearances and the impact of expanded procedure indications for SP and ION platforms, and (3) operational execution as the company transitions to direct sales in select European markets. The rollout of digital and AI features and the uptake of refurbished XI systems will also serve as key indicators of sustained growth.

Intuitive Surgical currently trades at $548, up from $462.72 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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