Intuitive Surgical, Inc. (ISRG) is on the verge of announcing its second-quarter earnings for 2025, scheduled for April 22. Analysts anticipate that the company will report sales of approximately $2.35 billion and earnings per share (EPS) of $1.92. Over the last month, EPS estimates for the company remained steady at $7.84 and $9.05 for 2025 and 2026, respectively. Intuitive Surgical expects that the number of da Vinci procedures performed globally will increase by about 15-17% in 2025, which should positively impact the company’s upcoming earnings results.
ISRG’s competitors, such as Thermo Fisher Scientific (TMO) and Medtronic (MDT), are also preparing to release their quarterly earnings in the coming weeks. In the most recent quarter, Intuitive Surgical achieved a notable earnings surprise of 5.85%, marking four consecutive quarters of earnings beats with an average surprise of 14.64%.
However, the current data suggests that an earnings surprise for ISRG this quarter is uncertain. The company holds an Earnings ESP of 0.00% and a Zacks Rank of #2 (Buy), which may affect the likelihood of exceeding earnings expectations this time.
Factors contributing to strong performance in the Instruments & Accessories segment are expected, particularly due to substantial growth in da Vinci procedures. Increases in U.S. general surgery and cancer procedures outside the U.S. have bolstered procedure volumes. However, a reduction in bariatric procedures within the United States may counter some of these gains.
Notably, procedure growth has improved in China relative to previous quarters, driven primarily by urologic procedures. While tariffs may challenge sales in the region, rising adoption rates in Japan and India are seen as additional positive contributors to sales strength.
Moreover, sales for the Systems segment are projected to be robust, primarily due to the acceptance of the newly launched da Vinci 5 system, with 147 units placed in the first quarter alone. Continued growth in this area is anticipated, alongside improvements in service offerings with ISRG’s digital products.
Despite certain headwinds, such as tariff-related issues and depreciating margins due to new systems and facility costs, Intuitive Surgical’s positive trajectory concerning da Vinci procedure growth and market expansion remains evident. The company’s shares have decreased slightly (0.7%) this year, underperforming the industry yet holding relatively stable within the broader market context.
As Intuitive Surgical prepares for its earnings call, investors may find it prudent to assess the implications of these results and potential strategies moving forward, especially considering expanding operations and the continued demand for innovative surgical solutions. This optimism is tempered with a cautious note regarding high valuations—key for prospective investors to weigh against the promising fundamentals of the company.