Total Revenue (Q1 2024 vs Q1 2023)

11% increase (from $1.70B to $1.89B) " " "

Driven by 18% growth in instruments & accessories revenue and an 11% rise in service revenue, powered by 16% higher da Vinci procedure volume and 90% higher Ion procedures compared to Q1 2023. " " "

Total Revenue (Q1 2025 vs Q1 2024)

19% increase (from $1.89B to $2.25B) " " "

Fueled by a 17% increase in da Vinci procedure volume (732,000 vs. 627,000) and a 58% rise in Ion procedures, along with 18% higher instruments revenue and 25% higher systems revenue resulting from increased da Vinci system placements (367 vs. 313 systems). " " "

Net Income (Q1 2024 vs Q1 2023)

Not explicitly stated in percentage; GAAP net income benefited overall " " "

Improvement driven by higher revenue, notably an 11% increase, and operational improvements with GAAP income from operations up 21% (from $388M to $469M), as well as significant excess tax benefits rising from $23M to $111M, partially offsetting a slight increase in share‐based compensation. " " "

Net Income (Q1 2025 vs Q1 2024)

28% increase (GAAP net income from $545M to $698M) " " "

Benefitted from robust revenue growth (19% increase), operational efficiencies due to higher da Vinci system placements—including a surge in placements of the newer da Vinci 5 systems—and improved interest income, while tax benefits increased from $111M to $145M despite a 13% rise in operating expenses. " " "

Procedure Volumes (Aggregated)

Q1 2024: 16% (da Vinci) & 90% (Ion) increase; Q1 2025: 17% (da Vinci) & 58% (Ion) " " " " "

Demonstrates strong product adoption with consistently rising procedure volumes; the sustained growth in da Vinci procedures and the robust expansion of Ion procedures—especially marked in Q1 2024 and sustained in Q1 2025—drive both product and service revenue increases and reflect the company's ability to penetrate key markets. " " " " "

Installed Base (da Vinci systems)

Q1 2024: 14% increase (to 8,887 systems); Q1 2025: 15% increase (to 10,189 systems) " " " " " "

Reflects ongoing customer validation of robotic-assisted surgery; the healthy year-over-year growth in the installed base supports recurring revenue streams and underpins further system placements, reinforcing market leadership and operational scalability. " " " " " "

Procedure Growth

FY 2025

15% to 17% " "

15.5% to 17% "

raised

Gross Profit Margin

FY 2025

65% to 66.5% " "

66% to 67% "

raised

Operating Expense Growth

FY 2025

10% to 14% " "

10% to 14% "

no change

Stock Compensation Expense

FY 2025

$770 million to $790 million " "

$770 million to $790 million "

no change

Other Income

FY 2025

$370 million to $400 million " "

$370 million to $390 million "

lowered

Capital Expenditures

FY 2025

$650 million to $750 million " "

$650 million to $725 million "

lowered

Income Tax Rate

FY 2025

22% to 23% " "

22% to 23% "

no change

Procedure Growth and System Efficiency

Previous periods consistently highlighted robust growth in da Vinci procedures (≈17–18% growth), strong growth on Ion and SP procedures, and steady improvements in system utilization across Q1 2025 " " " " and Q4 2024 " " " , and also detailed daily adjustments in Q3 2024. " "

Q2 2025 emphasized continued strong procedure growth for da Vinci (17% in key regions), impressive growth for SP (88% YoY) and Ion (52%), as well as further efficiency gains and potential improvements in throughput. " " " "

The narrative remains consistently positive, with robust procedure growth and steady system efficiency improvements across periods. Q2 2025 builds on this by reinforcing a stable growth trajectory and further operational efficiency. " "

Accelerating Upgrade Cycle

Earlier calls (Q1 2025 " , Q4 2024 " " , and Q3 2024 " ) discussed trade‐ins and a progressive upgrade cycle for the da Vinci 5 system, emphasizing a multi‐year process driven by new features and customer evaluation.

Q2 2025 discussed the broad launch of the da Vinci V in the U.S. and a progressive trade‐in process, anticipating gradual adoption globally and emphasizing evaluation of clinical, efficiency, and financial benefits before full transition. " "

The focus remains on an accelerating upgrade cycle, but there is an evolution from the da Vinci 5 to the introduction of the da Vinci V, reflecting an expanded product upgrade narrative while remaining cautious about timing. " "

Technological Innovation

Innovation was consistently covered across Q1 2025 " " , Q4 2024 " " " " and Q3 2024 " " " " " , with discussions around force feedback, digital enhancements, and new indications driving improved outcomes and operational tools.

Q2 2025 further detailed innovations by emphasizing evidence building for force feedback, enhanced digital features (e.g., telecollaboration, real-time analytics), new instrument clearances such as the vessel sealer, and regulatory progress on new indications. " " " " " " "

There is a consistent focus on innovation. In Q2 2025 the narrative deepens with expanded digital integration and stronger case evidence, continuing a positive sentiment toward technology-led improvements and broader clinical applications. " " "

Margin Sustainability and Gross Margin Compression

Previous calls (Q1 2025 " " " " " , Q4 2024 " " " , and Q3 2024 " " ) repeatedly discussed operating and gross margins, noting pressures from new product mixes and incremental depreciation while aiming for long‐term margin recovery.

In Q2 2025, margins were highlighted with a pro forma gross margin of 67.9% (down from 70% in Q2 2024), with emphasis on higher facility costs (including new depreciation) and tariff impacts affecting product mix margins. " "

The pressure on margins has been a recurring concern, and Q2 2025 continues this trend with similar issues of depreciation and tariff-induced cost pressures. The caution remains consistent while efforts to manage these pressures persist. " "

Supply Chain and Product Availability Constraints

Supply chain challenges were noted previously in Q1 2025 " " " , Q4 2024 " , and Q3 2024 " " " , focusing on managing production flows, dual sourcing, and mitigating impacts on product placements and availability.

Q2 2025 highlighted ongoing constraints—especially for force feedback instruments expected to remain limited—and noted strategic manufacturing expansion (e.g., a new facility in Bulgaria) and a measured international rollout for the da Vinci V. " " " "

Persistent supply chain constraints remain a theme across periods. In Q2 2025, the emphasis is on expanding production capacity and optimizing logistics, showing a steady but proactive approach to mitigating these constraints. " "

Capital Spending Constraints and Global Market Uncertainties (including Medicaid)

Prior discussions in Q1 2025 " " " , Q4 2024 " , and Q3 2024 " consistently mentioned strong U.S. capital spending versus constraints in Europe, Japan, and China, along with uncertainties from government budgets and early Medicaid concerns.

Q2 2025 noted that while the U.S. capital environment remains strong, international markets (Japan, China, Europe) face ongoing budgetary constraints, and policy uncertainties affecting Medicaid may impact U.S. hospital finances. " " "

There is a recurring concern over global capital constraints, with Q2 2025 reaffirming these challenges abroad and acknowledging emerging uncertainties (including Medicaid impacts) in the U.S., reinforcing a cautious sentiment outside of the U.S. markets. " "

Tariff Pressure and Trade Uncertainties

Previous periods (Q1 2025 " " " " and Q4 2024 " " ) detailed significant tariff impacts and a dynamic global trade environment affecting costs, with Q3 2024 not covering this topic.

In Q2 2025, tariffs were expected to add about 1% of revenue in cost, with a dynamic trade environment noted and gradual increases as costs roll through inventory; this reflects a slightly moderated view compared to earlier higher estimates. " "

Concerns over tariffs and trade uncertainties persist. While Q1 2025 referenced higher impacts (around 1.7% in some cases), Q2 2025 shows a marginal improvement in estimates yet continues to emphasize the dynamic and challenging trade environment. " "

Depreciation and Foreign Exchange Impacts on Margins

Earlier calls in Q1 2025 " " , Q4 2024 " " " and Q3 2024 " discussed rising depreciation due to capital investments and noted FX impacts (with a stronger U.S. dollar) as factors contributing to lower margins.

Q2 2025 reiterated the impact of increased depreciation from new facilities (e.g., Bulgaria) leading to a drop in gross margins, while noting that constant currency revenue growth indicates limited near-term FX impact. " "

Consistent with previous mentions, rising depreciation from new investments remains a headwind. FX impacts are acknowledged but remain minimal in Q2 2025, maintaining a cautious outlook on overall margin pressures. " "

Ion Platform Growth and Maturity Concerns

Previously, Q1 2025 " " , Q4 2024 " " " and Q3 2024 " " highlighted strong YoY procedure growth on the Ion platform, with mixed system placements and early-stage international adoption alongside maturing U.S. utilization.

In Q2 2025, Ion procedures grew 52% (to approximately 35,000), although system placements were lower compared to the prior year; the focus remains on increasing U.S. utilization and expanding international presence, with clear near-term priorities set. " "

The growth narrative for Ion remains robust, although the platform shows signs of maturing in the U.S. while still developing internationally. The story continues with strong growth metrics balanced against a gradual shift toward higher utilization. " "

Competitive Pressures in China

Earlier calls in Q1 2025 " , Q4 2024 " " " and Q3 2024 " consistently cited a challenging environment in China due to domestic competition, policy-driven pricing, and market stress affecting installations and procedure growth.

Q2 2025 noted that while procedure growth in China slightly exceeded global averages, the region remains under pressure from a constrained capital environment and ongoing competitive challenges affecting system placements and pricing dynamics. " " "

Competitive pressures in China remain a consistent challenge. The narrative across periods reflects ongoing domestic competition and market constraints, with Q2 2025 continuing to emphasize these issues despite marginal procedural gains. " "