Strong Revenue and Procedure Development
In Q1 2025, Intuitive Surgical achieved a revenue of $2.25 billion, representing a growth of 19% compared to the previous year. The number of procedures performed increased by 17%, highlighting the sustained demand for minimally invasive robotic surgeries. Notably, the rapid adoption of the new da Vinci 5 system is highlighted: out of the total 367 systems installed in this quarter, 147 were of the latest generation – a significant jump from just eight units in the same quarter last year. This signals a strong market acceptance for the technological improvements of the new system.
Margin Pressure from Trade Tariffs
Despite these positive operational developments, trade tariffs are noticeably affecting the profit margins of Intuitive Surgical in 2025. These additional costs negatively impact profitability, although the company still reported an improvement in both GAAP net income and non-GAAP results. Management has openly communicated this challenge and is continuing to plan for growth in procedures for the full year.
Importance for Investors
This presents both opportunities and risks for investors:
- Growth Potential: The strong demand for robotic surgical systems as well as the rapid introduction of the da Vinci 5 offers significant potential for further revenue growth.
- Risks: Margin pressure from trade tariffs could temporarily erode profits and lead to increased volatility in the stock. Indeed, the stock has suffered losses of about -29% over the last three months, despite a recent day increase of over +9%.
Overall, Intuitive Surgical remains an innovative market leader with a robust business model, but its future prospects are also influenced by external factors such as trade policy.