Intuitive Surgical Inc (NASDAQ:ISRG) stock fell 2.56% (As on July 23, 11:15:29 AM UTC-4, Source: Google Finance) after the company posted a second-quarter earnings beat, but investors reacted to weaker-than-anticipated gross margin guidance for the remainder of the fiscal year. The latest quarter saw the placement of 395 da Vinci surgical systems, up from 341 a year ago, including 180 of the new da Vinci 5 model. The global installed base reached 10,488 units, a 14% increase, while da Vinci procedure volumes grew approximately 17% year-over-year. Intuitive’s instruments and accessories sales generated $1.47 billion in revenue, rising 18% and accounting for the majority of total sales. System revenue also grew to $575 million, supported by a mix of direct sales and operating lease arrangements. The company exited the quarter with $9.53 billion in cash and investments, up $431 million, fueled primarily by operating cash flow. Second quarter 2025 non-GAAP net income attributable to Intuitive was $798 million compared with $641 million in the second quarter of 2024.

Meanwhile, in July 2025, the Company obtained European certification in accordance with the EU MDR for its da Vinci 5 surgical system for adult and pediatric use in minimally invasive endoscopic procedures across abdominopelvic and thoracoscopic surgical procedures, including urologic, gynecologic, and general laparoscopic procedures, excluding the use of force feedback. In June 2025, the Company obtained regulatory clearance in Japan for the da Vinci 5 surgical system for use in all surgical specialties and procedures indicated for da Vinci Xi, except for cardiac indications.

ISRG in the second quarter of FY25 has reported the adjusted earnings per share of $2.19, beating the analysts’ estimates for the adjusted earnings per share of $1.93. The company had reported the adjusted revenue growth of 21 percent to $2.44 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $2.35 billion.

Despite these strong top- and bottom-line results, the company issued a revised non-GAAP gross margin forecast of 66% to 67% for 2025, compared with 69.1% in 2024. Management attributed the compression in part to an estimated 1% revenue impact from international tariffs, along with higher depreciation expense from recent infrastructure investments.

Looking forward, the company guided for da Vinci procedure growth of 15.5% to 17% in 2025, slightly down from 17% in 2024. Operating expense growth is expected to rise to up to 14%, as Intuitive balances scaling its innovation pipeline with ongoing macroeconomic pressures.