Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 72

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 72
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 2024. In the U.S., where we estimate that penetration of lung biopsy is approaching the halfway point, our customers’ focus has begun to shift from increasing capacity to increasing utilization of their existing systems. As of September 30, 2025, we had an Ion system installed base of approximately 954 systems, compared to an installed base of approximately 736 systems as of September 30, 2024.

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The following table summarizes our Ion system placements and systems installed at customers under leasing arrangements:

Nine Months Ended September 30,20252024Ion System Placements under Leasing ArrangementsFixed-payment operating lease arrangements38 61 Usage-based operating lease arrangements42 54 Total Ion system placements under operating lease arrangements80 115 % of Total Ion system placements52%57%Sales-type lease arrangements10 2 Total Ion system placements under leasing arrangements90 117 Ion System Installed Base under Operating Leasing ArrangementsFixed-payment operating lease arrangements123 117 Usage-based operating lease arrangements239 179 Total Ion system installed base under operating leasing arrangements362 296 

Service Revenue

Service revenue increased by 20% to $396 million for the three months ended September 30, 2025, compared to $329 million for the three months ended September 30, 2024. The increase in service revenue was primarily driven by a larger installed base of systems producing service revenue and favorable product mix, including from da Vinci 5 system placements.

Service revenue increased by 20% to $1.15 billion for the nine months ended September 30, 2025, compared to $0.96 billion for the nine months ended September 30, 2024. The increase in service revenue was primarily driven by a larger installed base of systems producing service revenue and favorable product mix, including from da Vinci 5 system placements.

Gross Profit

Product

Product gross profit for the three months ended September 30, 2025, increased by 22% to $1.41 billion, representing 66.8% of product revenue, compared to $1.15 billion, representing 67.5% of product revenue, for the three months ended September 30, 2024. The lower product gross profit margin for the three months ended September 30, 2025, was primarily driven by the impact of tariffs.

Product gross profit for the nine months ended September 30, 2025, increased by 20% to $3.99 billion,