Analysts Raise ISRG Price Target Amid Da Vinci 5 Launch

Intuitive Surgical, Inc. (NASDAQ:ISRG) reported Q2 revenue of $2.44 billion, exceeding consensus projections by 4%, with 21% growth. Despite missing da Vinci systems placements estimates by 4%, adjusted earnings per share increased by 23% to $2.19. Bernstein SocGen Group maintained its Outperform rating and increased its price target from $675 to $685 on the back of the company's da Vinci 5 global launch.

Intuitive Surgical, Inc. (NASDAQ: ISRG) delivered robust financial results for the second quarter of 2025, with revenue reaching $2.44 billion, marking a 21% year-over-year growth and surpassing consensus projections by 4%. The company's adjusted earnings per share (EPS) increased by 23% to $2.19, despite a slight decline in gross margins to 67.9%. Bernstein SocGen Group maintained its Outperform rating and increased its price target from $675 to $685, driven by the company's da Vinci 5 global launch [1].

The quarterly performance highlights include significant growth in procedures and system placements. Intuitive placed 395 da Vinci systems, contributing to a 14% year-over-year growth in its installed base. Procedure volume grew by 17% compared to Q2 2024, further cementing its dominance in the robotic surgery market. The company's global footprint expanded, with an installed base of 10,488 systems as of June 30, 2025, led by the United States with 6,087 systems [1].

A key driver of Intuitive's growth was the successful launch of its next-generation da Vinci 5 platform. The platform has been adopted by 2,500 surgeons across 40 different procedures, with encouraging early adoption metrics. The platform's Force Feedback feature has been particularly well-received, providing tactile sensation during procedures and enhancing surgical precision [1].

Intuitive's strategic growth initiatives, including its focus on recurring revenue and digital capabilities, continue to drive its success. Recurring revenue accounted for 84% of total revenue in 2024, contributing to consistent growth. Procedure growth remains strong, particularly in international markets and U.S. general surgery, with 31% and 19% year-over-year growth, respectively [1].

Looking ahead, Intuitive forecasts da Vinci procedure growth of 15.5-17% for 2025, with operating expenses expected to grow by 10-14%. The company remains committed to its "Quintuple Aim" framework, focusing on better outcomes, patient experience, care team experience, lower total cost of care, and advancing health equity. Despite challenges in certain markets and increasing competition, Intuitive's strong financial performance and strategic expansion position it well for continued growth [1].

References:
[1] https://ca.investing.com/news/company-news/intuitive-surgical-q2-2025-slides-21-revenue-growth-fueled-by-da-vinci-5-adoption-93CH-4161747