Intuitive Surgical’s first quarter results drew a positive market response, as the company delivered solid sales and non-GAAP profitability above Wall Street’s expectations. Management attributed the strong performance to accelerating adoption of its da Vinci 5 platform, broader utilization of robotic-assisted procedures in the United States, and robust international procedural growth—particularly in markets like India, Korea, and the U.K. CEO Gary Guthart highlighted that “physicians using our products [were] at the high end of our expectations,” with notable expansion in both general and after-hours surgeries. The quarter also saw continued momentum for the Ion and single-port systems, reflecting the company’s ongoing focus on minimally invasive care.
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Intuitive Surgical (ISRG) Q1 CY2025 Highlights:
- Revenue: $2.25 billion vs analyst estimates of $2.19 billion (19.2% year-on-year growth, 3.1% beat)
- Adjusted EPS: $1.81 vs analyst estimates of $1.73 (4.4% beat)
- Operating Margin: 25.7%, in line with the same quarter last year
- Market Capitalization: $186 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Intuitive Surgical’s Q1 Earnings Call
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Travis Steed (Bank of America Securities) asked about the breakdown and cadence of tariff impacts. CFO Jamie Samath explained that roughly half of the impact is tied to U.S.-China trade, with the effect increasing in later quarters, and that mitigation strategies would depend on how policies evolve.
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Larry Biegelsen (Wells Fargo) pressed for details on mitigating tariffs and the timeline for operational changes. Samath stated that the company is prioritizing stability before acting and that any supply chain adjustments will be considered carefully to avoid disruption.
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Robbie Marcus (JPMorgan) questioned the rationale behind raising the procedure growth forecast early in the year. Samath said day-adjusted Q1 procedure growth provided strong momentum, while CEO Gary Guthart added that customers view the platform as part of the solution to care delivery.
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Rick Wise (Stifel) asked about sustainability of international procedure growth and after-hours surgery expansion. President David Rosa highlighted growth in early-stage markets, increased engagement with key opinion leaders, and investments in after-hours and cardiac surgery programs.
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Adam Maeder (Piper Sandler) inquired about adoption and clinical validation of force feedback technology. Management outlined ongoing studies, supply constraints, and plans for broader clinical validation as manufacturing ramps up.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be watching (1) the pace and breadth of da Vinci 5 feature rollouts and regulatory clearances, (2) the impact and management response to rising tariff-related costs and trade policy shifts, and (3) continued growth in international procedures despite capital budget constraints. Progress on manufacturing expansion and clinical validation of digital and force feedback tools will also be closely tracked.
Intuitive Surgical currently trades at $516, up from $478.74 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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