Intuitive Surgical Reports Strong Q3 Results, Driven by Robust da Vinci Procedure Growth

Intuitive Surgical, the leading manufacturer of robotic surgical systems, has reported impressive third-quarter results, surpassing analysts' expectations and driving a significant surge in its stock price. The company's performance was primarily fueled by accelerated adoption of its da Vinci robotic surgical system and a notable increase in procedure volumes.

Financial Performance and Market Response

Intuitive Surgical's third-quarter revenue reached $2.51 billion, marking a 23% increase year over year and exceeding analyst forecasts by $10 million. The company's net income rose to $704 million, representing a 25% increase compared to the same period last year. Adjusted earnings per share of $2.40 outperformed the analyst consensus of $1.99.

The market responded positively to these results, with Intuitive Surgical's shares climbing nearly 15% to $531.71 on the New York Stock Exchange following the announcement.

da Vinci System Adoption and Procedure Growth

The cornerstone of Intuitive Surgical's success this quarter was the strong performance of its flagship da Vinci robotic surgical system. Key highlights include:

• A 20% year-over-year increase in total procedures worldwide, up from 17% in the second quarter
• 427 da Vinci system placements, compared to 379 in Q3 2024
• 240 placements of the new da Vinci 5 system, more than doubling from 110 in Q3 2024

CEO Dave Rosa emphasized the healthy demand for procedures, which has been a significant driver of the company's growth. The accelerating adoption of the new da Vinci 5 robot, which saw its first full quarter of broad availability in the U.S., has contributed to the overall procedure growth. This latest iteration is designed for greater efficiency and ease of use, factors that are likely contributing to its rapid uptake.

Diversification and Future Outlook

While the da Vinci system remains Intuitive Surgical's primary revenue generator, the company is seeing promising growth in other areas. Notably, procedures using the Ion lung biopsy system grew by approximately 52% year over year.

Based on the strong performance, Intuitive Surgical has revised its full-year 2025 outlook, now expecting da Vinci procedures to increase by 17% to 17.5%, up from the previous forecast of 15.5% to 17%.

Despite concerns about potential headwinds such as weaker hospital capital equipment purchases and competition from remanufactured surgical instrument suppliers, the company's robust third-quarter performance has helped rebuild investor confidence, according to RBC Capital Markets analyst Shagun Singh.