Sunnyvale’s Intuitive Surgical Lifts Outlook as Robotic-Surgery Demand Surges -( $ISRG $SPY )

By John F. Heerdink, Jr.

Intuitive Surgical (NASDAQ: ISRG) delivered a striking third quarter, sending its shares surging 17% on Wednesday and underscoring both the company’s operational strength and the accelerating global embrace of robotic-assisted healthcare. The Sunnyvale, California-based leader in minimally invasive surgery reported quarterly revenue of $2.51 billion, up 23% year over year, while adjusted earnings per share rose to $2.40—far exceeding analysts’ consensus of $1.99.

Robust

The robust results were driven by a 20% surge in procedure volume across its flagship da Vinci and Ion platforms, with da Vinci procedures alone climbing 19% and Ion usage soaring more than 50%. The company installed 427 da Vinci systems in the quarter, almost 100 more than the same period a year earlier, fueled by pent-up hospital demand and a wave of upgrades to the da Vinci 5, launched earlier this year.

The Chief

Chief Executive Dave Rosa credited “healthy, sustained procedure demand” on the earnings call, citing broad adoption of robotic-assisted surgery across urology, gynecology, and thoracic practices. The company also highlighted expanding placements in international markets, particularly Asia and Europe, as global hospitals recalibrate post-pandemic surgical capacity.

Guidance Growth

Amid macroeconomic uncertainty and widening trade tensions weighing on the broader market, Intuitive Surgical’s upbeat results stood out. Management raised its 2025 growth guidance once again, now projecting a 17% to 17.5% increase in da Vinci procedures and a gross margin between 67% and 67.5%, supported by easing tariff costs and tighter cost control. Analysts at William Blair called the company “in the driver’s seat of its market,” noting its clear long-term advantage in a field with rising competitive entrants but high barriers to scale.

Free Cash

Free cash flow reached $736 million for the quarter, with the company repurchasing 4 million shares worth $1.9 billion—a sign of management’s confidence in continued growth. Investors responded in kind: shares climbed above $525 in extended trading, their strongest performance of the year.

The Sum…

The broader medtech sector remains under pressure from supply-chain disruptions and competition, yet Intuitive’s results suggest that demand for robotic-assisted surgery is not only resilient but expanding. With hospitals increasingly prioritizing efficiency and precision in surgery, and the da Vinci 5 platform rapidly displacing older models, Intuitive remains well-positioned for sustainable growth through 2026 and beyond.