The newly launched da Vinci 5, the company’s most advanced robotic surgery platform, is a significant growth driver, with 180 units placed in the US during the quarter.
This represents over 45% of the 395 total da Vinci surgical systems placed in 2Q 2025 and more than doubles the 70 placements from the same period a year ago, underscoring its rapid adoption.
This robust growth should continue, given the recent regulatory clearances for the da Vinci 5 in Europe and Japan.
Alongside continued contributions from the specialised da Vinci SP and diagnostic Ion systems, propelled Intuitive Surgical’s (NASDAQ: ISRG) revenue to US$2.44 billion, a 21% increase year-on-year (YOY).
This translated into a 23% (YOY) rise in non-GAAP earnings per share (EPS) to US$2.19.
Intuitive Surgical’s impressive financial performance for Q2 2025 highlights the strong momentum across its product portfolio.
Crucially, the increasing placement and utilisation of these systems lead to a sustained rise in surgical and diagnostic procedures.
This, in turn, drives the company’s highly profitable recurring revenue stream, generated from the sales of specialised instruments and accessories consumed with each procedure, which accounted for a substantial 85% of Intuitive’s total revenue this quarter.
Staying vested
Market’s reaction thus far to this set of results is muted despite its earnings beat.
It might be concerned about the potentially lower profit margin as management projected that tariffs to impact this year’s revenue by 1%.
To me, that’s a non-issue as Intuitive will still lock in a robust performance even if the impact comes true. Additionally, with clear growth drivers for the next few years, I am expecting a much larger top and bottom lines in three to five years time.
Valuation wise, it remains high with its current PE ratio of 75x, and a forward ratio of 65x. But Intuitive has always traded at a premium.
As illustrated in the above chart, its average PE over the past three and five years are about the current level. Even the twenty-year PE average is just slightly less than 65x.
Hence, I am comfortable to hold on to my current stake, and might add to my position if opportunity arises.
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