Summary
Intuitive Surgical Inc (ISRG, Financial), a leader in minimally invasive care and robotic-assisted surgery, announced its financial results for the first quarter of 2025 on April 22, 2025. The company reported a 19% increase in revenue, reaching $2.25 billion, driven by a 17% growth in worldwide da Vinci procedures and a significant increase in da Vinci system placements. The company's net income also saw a substantial rise, with GAAP net income reaching $698 million, or $1.92 per diluted share.
Positive Highlights
- Worldwide da Vinci procedures grew by approximately 17% compared to Q1 2024.
- 367 da Vinci surgical systems were placed, up from 313 in Q1 2024, including 147 da Vinci 5 systems.
- Revenue increased by 19% to $2.25 billion, with instruments and accessories revenue up by 18%.
- GAAP net income rose to $698 million, or $1.92 per diluted share, from $545 million, or $1.51 per diluted share, in Q1 2024.
- Cash, cash equivalents, and investments increased to $9.10 billion.
Negative Highlights
- Non-GAAP gross profit margin is expected to decrease to a range of 65% to 66.5% in 2025, down from 69.1% in 2024.
- Operating expense growth is projected to increase to 10% to 14% in 2025, compared to 10% in 2024.
Financial Analyst Perspective
Intuitive Surgical's Q1 2025 results demonstrate strong operational performance, with significant growth in both revenue and net income. The increase in da Vinci system placements and procedure volumes indicates robust demand for the company's products. However, the anticipated decrease in gross profit margin and increase in operating expenses could impact profitability in the coming quarters. Investors should monitor how the company manages these cost pressures while continuing to drive revenue growth.
Market Research Analyst Perspective
Intuitive Surgical's continued expansion in the robotic-assisted surgery market is evident from its Q1 2025 performance. The company's focus on innovation, as seen with the increased adoption of the da Vinci 5 systems, positions it well for future growth. However, the impact of tariffs and potential changes in healthcare spending could pose challenges. The company's ability to navigate these external factors will be crucial in maintaining its market leadership.
FAQ
Q: What was the revenue for Q1 2025?
A: The revenue for Q1 2025 was $2.25 billion, a 19% increase from Q1 2024.
Q: How many da Vinci systems were placed in Q1 2025?
A: 367 da Vinci surgical systems were placed in Q1 2025, including 147 da Vinci 5 systems.
Q: What is the expected procedure growth for 2025?
A: The company expects worldwide da Vinci procedure growth of approximately 15% to 17% in 2025.
Q: What is the projected non-GAAP gross profit margin for 2025?
A: The non-GAAP gross profit margin is expected to be within a range of 65% to 66.5% of revenue in 2025.
Read the original press release here.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
