Live: Intuitive Surgical (ISRG) Q3 Earnings Coverage
Key Points
-
Intuitive Surgical’ s da Vinci 5 rollout enters its first full quarter of global commercialization, with early data showing 20% procedure efficiency gains.
-
Management guidance implies steady 15% to 17% procedure growth despite capital spending headwinds.
Live Updates
Conference Call Is Next
Intuitive Surgical earnings conference call will kick off at 4:30 pm ET.
What Changed This Quarter
-
Procedure growth re-accelerated to 20 %, led by da Vinci 5 efficiency gains and Ion adoption.
-
System placements jumped 13 % YoY, with da Vinci 5 accounting for > 50 % of new installs.
-
Margins held near 67 % non-GAAP, outperforming tariff expectations.
-
$1.9 B share buyback shows confidence in cash-flow visibility.
-
Guidance tightened slightly — more clarity on tariff impact but no change to growth trajectory.
-
International mix solidifying with broad adoption in Asia and Europe.
Key Operating Highlights
The stock is now down -6% after hours. Here are the operating metrics from the quarter:
| KPI | Actual Q3 2025 | YoY Change | Why Investors Care |
|---|---|---|---|
| Total Revenue | $2.51 B | +23 % | Accelerating from +18 % Q2 trend — confirming sustainable demand. |
| Instruments & Accessories Revenue | $1.52 B | +20 % | Proxy for utilization — continued strength in procedure volume. |
| Systems Revenue | $590 M | +33 % | Driven by 427 placements (240 da Vinci 5 vs 110 last year). |
| Services Revenue | $396 M | +20 % | Installed base up 13 % to 10,763 systems. |
| Non-GAAP Op Income | $976 M | +29 % | Shows strong flow-through despite tariff hit. |
| Non-GAAP EPS | $2.40 | +30 % | High-quality beat — includes $0.12 tax benefit. |
| Share Repurchases | $1.92 B (4 M shares)** | — | Balanced capital return amid growth capex. |
Guidance Update (FY 2025)
The stock is now moving upwards of 13.6% after-hours.
| Metric | New Guide | Prior/Street View | Flag |
|---|---|---|---|
| Procedure growth | 17 – 17.5 % | 17 % prior | 📈 Raised |
| Non-GAAP gross margin | 67 – 67.5 % | ~69 % FY 2024 | ⚖️ Flat / Tariff drag ~70 bps |
| Op-expense growth | 11 – 13 % YoY | 10 % FY 2024 | ⚖️ Slightly Higher |
The outlook bakes in the tariff impact while maintaining expansion across installed base and procedures. Margins remain durable even under cost pressure.
Earnings Are In and Stock Is Up Big
| Metric | Actual | Consensus (Pre) | YoY | Result |
|---|---|---|---|---|
| Revenue | $2.51 B | $2.41 B | +23 % | ✅ Beat |
| EPS (Non-GAAP) | $2.40 | $1.99 | +30 % | ✅ Beat |
| GAAP EPS | $1.95 | n/a | +25 % | — |
| Procedures | +20 % YoY | — | Strong | ✅ Beat |
| System Placements | 427 units (240 da Vinci 5) | — | +13 % | ✅ Beat |
ISRG delivered a clean double-beat quarter — revenue +23%, EPS +30% — powered by robust da Vinci 5 adoption and 20% global procedure growth. Management reaffirmed 17–17.5% FY 2025 procedure growth and kept margin guidance stable despite tariff drag. The after-hours jump reflects confidence that da Vinci 5’s commercial rollout is exceeding plan.
Management Commentary
“We’re pleased with our strong results this quarter, underscored by continued growth in customer use and adoption of our Ion and da Vinci platforms, including da Vinci 5. We remain focused on helping our customers achieve the Quintuple Aim.” — Dave Rosa, CEO
The message emphasizes execution and adoption velocity across both robotic platforms. With over 10,700 da Vinci systems in the field and 954 Ion systems (+30%), management is highlighting scale-driven flywheel momentum rather than one-time upside.
Earnings Out Shortly
We expect Intuitive Surgical earnings to drop almost immediately after the closing bell. So we’re just about 5 minutes away from seeing how investors react to Q3 earnings.
As a reminder, this blog will continue updating the moment earnings hit.
How ISRG Performed After Recent Earnings
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q2 2025 | +14.06% | –3.5% | +1.8% | +3.2% |
| Q1 2025 | +4.41% | +1.2% | +2.8% | +4.5% |
| Q4 2024 | +23.73% | +8.7% | +10.4% | +12.2% |
| Q3 2024 | +12.25% | +2.9% | +3.6% | +5.1% |
Intuitive Surgical (Nasdaq: ISRG | ISRG Price Prediction) reports third-quarter earnings after the close today.
The robotic-surgery pioneer heads into results on a remarkable run, four straight quarterly beats, a transformative new platform launch, and accelerating adoption across multiple regions. After last quarter’s 14% EPS surprise, Wall Street expects growth to normalize as da Vinci 5 scales globally and margin tailwinds flatten.
Consensus calls for Q3 EPS of $1.99 on revenue of $2.41 billion, reflecting 8% EPS and 18% sales growth year over year. Share have traded mostly sideways over the past year and down 11% so far in 2025.
What to Expect When ISRG Reports Tonight
| Period | Revenue | EPS (Normalized) | YoY Revenue Growth | YoY EPS Growth |
|---|---|---|---|---|
| Q3 2025 (est.) | $2.41 B | $1.99 | +18.3% | +8.0% |
| Q4 2025 (est.) | $2.67 B | $2.18 | +10.7% | −1.4% |
| FY 2025 (est.) | $9.78 B | $8.16 | +17.0% | +11.2% |
| FY 2026 (est.) | $11.21 B | $9.27 | +14.7% | +13.6% |
Key Areas To Watch Tonight
1. da Vinci 5 Adoption & Upgrade Cycle- Management highlighted early efficiency gains exceeding 20% per procedure and record trade-in activity. Over 100,000 procedures have now been completed on da Vinci 5. Investors will look for commentary on utilization trends and upgrade pacing as European and Japanese launches begin.
2. Force Feedback & AI-Driven Case Insights- Surgeon studies cited in Q2’s call linked Force Feedback metrics to shorter hospital stays and improved outcomes. Supply remains constrained through early 2026, but the technology could become a major differentiator in 2026 to 2027.
3. Margins & Tariff Impact- Non-GAAP gross margin stood at 66.5% last quarter. CFO Jamie Samath warned tariffs could trim 100 bps annually, partly offset by mix benefits and rising utilization.
4. International Growth & Capital Spending Visibility- India and Korea remain bright spots, while Japan, China, and Europe still face constrained hospital budgets. ISRG noted the U.K.’s 10-year NHS plan includes expanded robotic-surgery access.
5. SP and Ion Momentum- SP procedures rose 88% YoY in Q2, and Ion bronchoscopy volumes jumped 52% as Intuitive entered Australia and Korea. Continued system growth here would confirm ISRG’s diversification beyond multi-port platforms.
Joel South covers large-cap stocks, dividend investing, and major market trends, with a focus on earnings analysis, valuation, and turning complex data into actionable insights for investors.
He brings more than 15 years of experience as an investor and financial journalist, including 12 years at The Motley Fool, where he served as an investment analyst, Bureau Chief, and later led the Fool.com investing news desk. He has also co-hosted an investing podcast and appeared across TV and radio discussing market trends.
© 24/7 Wall Street
Top Gaining Stocks
Top Losing Stocks