ISRG: Solid Numbers, Tariff Concerns

Key Points

• Intuitive Surgical posted a strong quarter, topping expectations on 20%-plus revenue and earnings growth.

• The company’s latest-generation systems are continuing to gain traction.

• Intuitive sounded a cautious outlook about the quarters ahead due to tariff uncertainty.

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Here's our initial take on Intuitive Surgical's (NASDAQ: ISRG) financial report.

Key Metrics

Intuitive Momentum Remains Strong

Robotic surgery pioneer Intuitive Surgical posted another solid quarterly beat, growing revenue by 20% and earnings per share by 23% in the most recent quarter. The company continues to see strong demand for its machines and strong usage once they are installed, driving a beat.

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The company placed 395 of its da Vinci systems in the quarter, up 16% from a year ago, and the number of high-end da Vinci 5 systems more than doubled to 180. At the end of the quarter, Intuitive had an installed base of 10,488 systems, up from 9,203 a year ago.

Worldwide procedures grew by 17%, a good sign for a company that sells not just the new systems but disposable equipment needed on a per-surgery basis.

The company ended the second quarter of 2025 with $9.53 billion in cash, up $431 million during the quarter, driven by cash generated from operations.

Immediate Market Reaction

Though the quarter was strong, there are some questions about how tariffs would impact the company in the quarters ahead. Intuitive share prices were down about 4% in after-market trading following the release but ahead of the company's call with investors.

What to Watch

Intuitive does not expect that 17% procedure growth to sustain into the second half. For the full year, the company forecasts procedure growth of about 15.5% to 17%, compared to 17% in the quarter and all of last year.

Operating expenses are also expected to climb by 10% to 14% for the year, compared to 10% in 2024. Intuitive said the updated expectation "reflects the company's estimates of the adverse impact from tariffs that are currently in effect as of the time of this press release and assumes such tariffs remain in place."

The company continues to push the envelope, during the quarter conducting a telesurgery demonstration in which doctors in Georgia and France operated a dual-console da Vinci 5 system to simulate a procedure. Those sorts of innovations promise to both allow more patients to benefit from the systems and open up new potential markets for the company.

Intuitive remains on the path for growth, but near-term tariff headwinds are likely to continue to cloud the picture in the quarters to come.

Helpful Resources

• Full earnings report
• Investor relations page
• Additional coverage

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool has a disclosure policy.