Intuitive Surgical Beats Q2 Estimates, But Margins Disappoint on Tariff and Cost Pressures

Intuitive Surgical (NASDAQ:ISRG) posted strong second-quarter results, beating Wall Street expectations on both revenue and earnings. The maker of da Vinci robotic surgical systems reported adjusted earnings of $2.19 per share, topping the $1.93 consensus and improving from $1.78 a year earlier. Revenue jumped 21% year-over-year to $2.44 billion, surpassing the $2.35 billion estimate.

Despite solid topline growth, the company lowered its 2025 non-GAAP gross margin forecast to 66%–67%, down from 69.1% in 2024. Management cited a 1% revenue drag from international tariffs and higher depreciation tied to recent infrastructure investments.

Looking ahead, Intuitive guided for da Vinci procedure growth of 15.5% to 17% this year, slightly lower than 2024’s 17% pace. Operating expenses are expected to rise up to 14% as the company continues to invest in innovation amid broader macroeconomic pressures.