Intuitive Surgical (NASDAQ: ISRG) is a medical device company that develops and sells robotic-assisted surgical and bronchoscopy systems, primarily the da Vinci surgical system and the Ion endoluminal system. Revenue comes from three interlocking streams: capital equipment sales or leases of the systems themselves, recurring instruments and accessories consumed per procedure, and annual service contracts on installed systems. The da Vinci system sells for between $0.7 million and $3.1 million per unit depending on model and geography (per the 10-K filed 2026-02-03), while instruments and accessories generate between $900 and $3,700 per procedure and service contracts run between $95,000 and $225,000 annually. As of December 31, 2025, a material portion of da Vinci placements occur under operating leases, with 51% of FY2025 placements under leasing arrangements. Customers are hospitals, individual surgical facilities, and integrated delivery networks. The recurring consumables and service revenue tied to an installed base creates high switching costs once a system is embedded in a hospital's surgical workflow.

Revenue model

Three-part model: (1) upfront capital revenue from system sales or sales-type leases, plus fixed-payment and usage-based operating lease arrangements; (2) recurring instruments and accessories revenue of $900 to $3,700 per procedure depending on procedure type and complexity (FY2025, per 10-K filed 2026-02-03); (3) annual service contracts at $95,000 to $225,000 per system, typically entered at time of sale or lease and historically renewed at end of initial contract periods.

Products and services

Da Vinci surgical system for robotic-assisted minimally invasive surgery, priced between $0.7 million and $3.1 million per unit (inclusive of one year of service) depending on model, configuration, and geography. Ion endoluminal system for robotic-assisted bronchoscopy, sold and leased under a business model consistent with the da Vinci model. Single-use instruments and accessories with limited useful lives that require replacement per procedure. Annual service contracts covering system maintenance and support. Training programs including role-specific pathways for surgeons, residents, OR care teams, and hospital executives, delivered through Intuitive training centers and online platforms.

Customers and end markets

Primary customers are hospitals, surgical facilities, and integrated delivery networks (IDN groups). Key surgical end markets include general surgery and gynecology, among others. U.S. general surgery procedures totaled approximately 1,250 thousand in FY2025 (up 18% year-over-year) and gynecology procedures are also disclosed in the filing. Capital purchases represent major equipment decisions for hospital customers, with lengthy sales cycles affected by budgeting cycles, capital spending prioritization, and macroeconomic factors.

Value-chain role

Vertically integrated designer, manufacturer, and direct seller of robotic surgical platforms and associated consumables. Maintains a direct capital sales team for system placements and a clinical sales team for ongoing procedural support at hospital accounts. Uses distributors for sales and service in select international markets. Operates proprietary training centers and delivers training directly to surgeons, physicians, OR staff, and hospital administrators.

Geographic exposure

U.S. and international markets. Distributors used for a portion of international sales and service. Specific country or regional revenue splits are not detailed in the provided filing excerpts.

Source: SEC 10-K, filed 2026-02-03

Industry: Orthopedic, Prosthetic & Surgical Appliances & Supplies Peers: Abbott Laboratories Baxter International Inc Becton Dickinson and Co Boston Scientific Corp Edwards Lifesciences Corp Dexcom Inc IDEXX Laboratories Inc Resmed Inc Stryker Corp