Intuitive Surgical sees FY25 capital expenditures $650M-$725M

Sees FY25 tax rate 22%-23%. Says capital placements were strong in the U.S., while macro challenges in Japan, China, and Europe continued. Says product margins and operating expenses were slightly favorable to expectations. Says Intuitive’s relative penetration is lower for patients covered by Medicaid as compared to all other types of coverage. Says Medicaid patients tend to be a younger demographic as compared to the overall population. Says saw 83 trade-in transactions in Q2, up from 21 a year ago. Says while there are a number of customers expressing interest in upgrading to da Vinci five, expects trade ins to occur over multiple years. Says average selling price for systems was $1.5M compared to $1.44M last year. Says Q2 results also reflected an impact of approximately 60 basis points from tariffs. Says clearly the trade environment continues to be dynamic. Says currently estimating the impact of tariffs for the year to be approximately 100 basis points plus or minus 20 basis points lower than the estimate provided on last quarter’s earnings call primarily reflecting the reduction of bilateral tariff rates relating to U. S.-China trade. Says assumes imports from China to U.S. bear a tariff rate of 30%. Says expects the impact of tariffs to increase each quarter this year as tariff expense rolls through inventory into cost of sales. Says given the uncertainty surrounding what tariff rates will ultimately be enacted, it is possible future tariff rates could have a significant incremental impact on cost of sales. Comments and guidance taken from Q2 earnings conference call.