Intuitive Surgical (NASDAQ:ISRG) reported revenue of $2.51 billion for the third quarter, up 23% year-over-year, beating analyst estimates of $2.40 billion.
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The company reported third-quarter adjusted earnings of $2.40 per share, beating analyst estimates of $1.98.
The higher third-quarter revenue was driven by growth in procedure volume, higher da Vinci system placements and an increase in the installed base of systems.
Worldwide da Vinci procedures grew by approximately 20% year-over-year. Intuitive Surgical said it placed 427 da Vinci surgical systems in the quarter, versus 379 in the prior year's quarter.
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The company's da Vinci surgical system installed base grew to 10,763 systems as of Sept. 30, up 13% year-over-year, and the Ion endoluminal system installed base grew 30% to 954 systems.
William Blair on Wednesday wrote that the stock price jump on solid results helps ease some recent bear concerns, such as capex budgets, remanufacturing concerns and margin headwinds.
Despite minor headwinds — specifically, U.S. procedural pull-forward and international capex weakness — William Blair said third-quarter performance is a powerful affirmation of sustainable growth. This positive outcome is expected to significantly boost investor sentiment.
Analyst Brandon Vazquez wrote, “We continue to view headwinds as largely noise, and Intuitive remains in the driver's seat of a market converting to robotics.”
“We think Intuitive is well-positioned to deliver best-in-class P&L growth. With shares at 47 times 2026 EPS,” he continued. The analyst maintained an Outperform rating.
Guidance
Intuitive Surgical expects full-year 2025 worldwide da Vinci procedures to increase approximately 17% to 17.5%, up from prior guidance for 15.5% to 17% growth.
The company expects gross profit margin to be between 67% and 67.5% of revenue in 2025, compared to 69.1% in 2024.
In September, Intuitive Surgical unveiled the first set of new software capabilities for its da Vinci 5 surgical system to boost surgeon performance and hospital efficiency.
ISRG Price Action: Intuitive Surgical stock is up 14.62% at $530.21 at publication on Wednesday.
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