da Vinci surgical system placements increased to 367 units from 313 YoY, including 147 da Vinci 5 systems. This indicates strong demand for the new system and continued expansion of the installed base.

lon system placements decreased to 49 units from 70 YoY, and the company notes a shift in focus from increasing capacity to increasing utilization of existing systems. This suggests a maturing market for the lon system and a strategic pivot towards maximizing returns on existing investments.

The company anticipates a significant increase in its cost of revenues for the second half of 2025 due to recently announced global tariffs. This could negatively impact future profitability and competitiveness, particularly in China.

The installed base of da Vinci surgical systems increased by 15% YoY to 10,189 systems. This demonstrates successful execution in expanding the company's footprint and driving recurring revenue.

Utilization of da Vinci surgical systems increased by 2% YoY, indicating successful efforts to drive more procedures per system. This enhances the value proposition for hospitals and supports future system placements.

The company continues to experience isolated stresses to supply and is actively engaged in activities to mitigate the impact of any supply chain risks and disruptions on operations. This highlights the ongoing challenges in managing a complex global supply chain.

The company anticipates a significant increase in its cost of revenues for the second half of 2025 due to recently announced global tariffs. This could negatively impact future profitability and competitiveness, particularly in China.

The company acknowledges that its future results of operations and liquidity could be materially adversely affected by uncertainties surrounding macroeconomic and geopolitical factors, including tariffs, supply chain challenges, inflationary pressures, and elevated interest rates.

The company notes that some hospitals continue to experience challenges with staffing and cost pressures, which could negatively impact the number of da Vinci procedures performed or surgical systems placed. This highlights the vulnerability to external economic factors affecting healthcare providers.

The company acknowledges that system demand in China has been adversely impacted by increasing robotic-assisted surgical system competition from domestic companies. This indicates a growing threat to Intuitive's market share in a key growth region.

The company faces competition from companies offering products for open or MIS surgeries, companies providing other therapeutic approaches for target clinical conditions, and companies developing diagnostic solutions that could serve as alternatives to current or planned Intuitive offerings. This underscores the need for continuous innovation and differentiation.

Gross profit margin decreased due to higher costs associated with the da Vinci 5 surgical system, incremental fixed overhead costs, and higher scrap, partially offset by lower excess and obsolete inventory charges. This suggests that the company is still optimizing its manufacturing processes for the new system.

The company expects capital investments to range between $650 million and $750 million in 2025, primarily for facilities-related investments. This reflects a commitment to scaling operations to meet future demand.

The launch of the da Vinci 5 system contributed to a 25% increase in systems revenue. This demonstrates the company's ability to innovate and introduce new products that drive demand.

The da Vinci 5 system incorporates advanced digital experiences, including integration with the My Intuitive app, SimNow, Case Insights, and Intuitive Hub. This highlights the company's commitment to leveraging technology to enhance the surgical experience.

The company did not make any stock repurchases during the three months ended March 31, 2025, and 2024. This may indicate a shift in capital allocation priorities, potentially towards R&D or other investments.

The company expects capital investments to range between $650 million and $750 million in 2025, the majority of which will be facilities-related investments. This shows a focus on scaling operations to meet growing demand.

System demand in China has been adversely impacted by increasing robotic-assisted surgical system competition from domestic companies and a broader central government focus on systematic governance. This highlights the challenges of navigating the evolving regulatory landscape in China.

Doctor strikes that began in the first quarter of 2024 continued in South Korea, although a recovery in procedure volumes was observed in the first quarter of 2025. This underscores the potential impact of labor disputes on healthcare delivery.