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Introduction & Market Context
Intuitive Surgical (NASDAQ:ISRG) delivered strong results in its Q2 2025 investor presentation, showcasing continued momentum in its robotic surgery business. The medical device leader reported significant growth in procedures, system placements, and revenue, driven largely by the successful launch of its next-generation da Vinci 5 platform.
Despite the positive earnings report, Intuitive’s stock showed mixed reactions, closing down 1.09% at $477.08 on August 14, though it saw a modest uptick of 0.36% to $478.80 in premarket trading on August 15. The company maintains a robust market position with a comprehensive ecosystem of surgical systems, instruments, and services.
Quarterly Performance Highlights
Intuitive Surgical reported impressive financial results for Q2 2025, with revenue reaching $2.44 billion, representing 21% year-over-year growth. The company posted earnings per share of $2.19, up 23% from the previous year, though gross margins declined slightly to 67.9% from 70% in the comparable period.
As shown in the following quarterly results summary:
The company placed 395 da Vinci systems in the quarter, contributing to a 14% year-over-year growth in the installed base. Procedure volume continued its strong trajectory with 17% growth compared to Q2 2024, reinforcing Intuitive’s dominant position in the robotic surgery market.
Intuitive’s global footprint expanded significantly, with its installed base reaching 10,488 systems worldwide as of June 30, 2025. The United States remains the company’s largest market with 6,087 systems, followed by Europe with 2,006, Asia with 1,854, and the rest of the world with 541 systems.
Da Vinci 5 Launch Success
A major highlight of Intuitive’s presentation was the successful launch of its next-generation da Vinci 5 platform. The company reported encouraging early adoption metrics from the phase 1 launch, with 362 system placements in 2024 and over 32,000 procedures performed. The platform has already been used for 40 different procedure types by more than 2,500 surgeons.
The following slide illustrates the impressive early adoption of the da Vinci 5 system:
Customer feedback on the da Vinci 5 has been overwhelmingly positive, with surgeons highlighting several key innovations. The most significant advancement appears to be the Force Feedback feature, which provides tactile sensation during procedures.
Dr. Sam Bagchi, Chief Clinical Officer at CHRISTUS Health, noted: "I think the tissue tension and the ability to feel that instead of having to look for visual cues is a massive transformational improvement for robotic surgery."
Other praised features include increased efficiency, improved vision, enhanced ergonomics, and Case Insights, which provides data-driven surgical insights. Dr. Michael Stifelman, a urologic surgeon at Hackensack Meridian Health, emphasized the educational value: "[Case Insights] is going to transform our value to the way we teach the next generation of surgeons and allow those surgeons to be much better, much more quickly than we were."
The following slide captures the key features and benefits of the da Vinci 5 system according to customer feedback:
Strategic Growth Initiatives
Intuitive Surgical’s presentation highlighted several strategic initiatives driving its continued growth. The company reported impressive key metrics for 2024, including over 2.68 million procedures performed on da Vinci systems and 1,790+ system placements globally.
The company’s comprehensive metrics are illustrated in this slide:
A significant aspect of Intuitive’s business model is its focus on recurring revenue, which accounted for 84% of total revenue in 2024. This includes instruments and accessories used in procedures, service contracts, and operational leases. The company’s revenue has shown consistent growth, increasing from approximately $3.1 billion in 2017 to over $7 billion in 2024, representing a compound annual growth rate of around 12%.
The revenue breakdown and growth trend are shown in the following chart:
Procedure growth remains a key driver of Intuitive’s business, with particularly strong performance in international markets and U.S. general surgery. The company reported 31% year-over-year growth in non-urology procedures outside the United States and 19% growth in U.S. general surgery procedures.
Forward-Looking Statements
Looking ahead, Intuitive Surgical outlined several priorities for 2025, including the full launch of the da Vinci 5 system with regional clearances, increased adoption for focus procedures, continued progress on building industrial scale, and digital excellence with the launch of tools in key markets.
The company forecasts da Vinci procedure growth of 15.5-17% for 2025, according to the earnings call. Operating expenses are expected to grow by 10-14%, with a pro forma gross margin guidance of 66-67%, reflecting a slight decline from current levels.
Intuitive continues to invest in research and development, focusing on expanding its ecosystem and enhancing its digital capabilities. The company’s "Quintuple Aim" framework guides its development efforts, focusing on better outcomes, better patient experience, better care team experience, lower total cost of care, and advancing health equity.
Despite challenges in certain markets like Japan and China and increasing competition in the robotic surgery space, Intuitive Surgical appears well-positioned to maintain its leadership position through innovation and strategic expansion. The successful launch of the da Vinci 5 platform and strong recurring revenue model provide a solid foundation for continued growth in the coming years.
Full presentation:
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