SystemsNarrow moat

Intuitive Surgical (ISRG) — moat facet

The robots, half of them now leased rather than sold, which turns a capital sale into a meter.

Systems are the da Vinci and Ion robots, and the line is smaller and more recurring than it looks. It had revenue of $2,473.7 million in 2025, from $1,966.0 million in 2024 and $1,679.7 million in 2023 1, a quarter of the company 2. Intuitive placed 1,721 da Vinci systems in 2025 against 1,526 a year earlier, 870 of them the new da Vinci 5 against 362 3.

Da Vinci placements under operating leases659 (48%)2023776 (51%)2024872 (51%)2025Intuitive Surgical Form 10-K FY2025; share of total da Vinci placements
Half the robots are now rented, which moves revenue from the year of placement to the years of use.

Half of them were not sold. Of the 2025 placements, 872 were under operating leases, 51% of the total, against 659 and 48% in 2023; 496 of those leases were usage-based, where the hospital pays per procedure 4. Operating lease revenue, which is recorded in this line and counted as recurring, was $874.3 million in 2025, from $654.2 million and $500.5 million 5. A leased robot brings less revenue in the year it is placed and more over its life.

The line grew 26% in 2025 6, faster than instruments, because da Vinci 5 carries a higher price and because the lease base keeps growing. Part of the history since 2023 is a replacement cycle, with older systems traded in for the new platform.

The line's margin is not disclosed separately from instruments; product gross margin was 66.3% in 2025 7. It fell that year partly on higher costs associated with da Vinci 5 8, which is the cost of launching the new system.

The latest quarter continued the pattern. Systems revenue was $685.0 million in the June 2026 quarter against $574.7 million 9, reflecting a higher lease installed base, higher average selling prices and more placements 10. Intuitive placed 468 da Vinci systems, 246 of them da Vinci 5 11.

The outlook depends on hospital capital budgets, which the leases partly insulate. The figure to watch is placements under usage-based leases: rising while outright sales fall would mean hospitals are pushing the utilisation risk back onto Intuitive, which it can afford with no borrowings and about $8.6 billion of cash and investments 12, but which lowers the line's revenue in the year of placement.

Moat trajectory: Widening

Systems revenue rose to $685.0M in the June 2026 quarter from $574.7M, on leases, prices and placements.

The number that tests this moat
Reported
Systems revenue, first half
$1,335.7M in H1 2026, +22% on $1,097.4M

Includes lease revenue; a fall with placements holding would mean more usage-based leases and less up-front revenue.

Source: Intuitive Surgical Form 10-Q, Q2 2026 ↗
References
  1. ReportedIt had revenue of $2,473.7 million in 2025, from $1,966.0 million in 2024 and $1,679.7 million in 2023 , a quarter of the company .
    Intuitive Surgical Form 10-K FY2025 - revenue by line 2023-2025 (instruments and accessories, systems, service), recurring revenue and operating lease revenue, product and service gross margins, placements and leases, procedures and installed base, and the drivers of each — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcIt had revenue of $2,473.7 million in 2025, from $1,966.0 million in 2024 and $1,679.7 million in 2023 , a quarter of the company .
    Moat Explorer calculation from Intuitive Surgical's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue and growth rates — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedIntuitive placed 1,721 da Vinci systems in 2025 against 1,526 a year earlier, 870 of them the new da Vinci 5 against 362 .
    Intuitive Surgical Form 10-K FY2025 - revenue by line 2023-2025 (instruments and accessories, systems, service), recurring revenue and operating lease revenue, product and service gross margins, placements and leases, procedures and installed base, and the drivers of each — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedOf the 2025 placements, 872 were under operating leases, 51% of the total, against 659 and 48% in 2023; 496 of those leases were usage-based, where the hospital pays per procedure .
    Intuitive Surgical Form 10-K FY2025 - revenue by line 2023-2025 (instruments and accessories, systems, service), recurring revenue and operating lease revenue, product and service gross margins, placements and leases, procedures and installed base, and the drivers of each — FY2023-FY2025 · publ. February 2026 · source ↗
  5. ReportedOperating lease revenue, which is recorded in this line and counted as recurring, was $874.3 million in 2025, from $654.2 million and $500.5 million .
    Intuitive Surgical Form 10-K FY2025 - revenue by line 2023-2025 (instruments and accessories, systems, service), recurring revenue and operating lease revenue, product and service gross margins, placements and leases, procedures and installed base, and the drivers of each — FY2023-FY2025 · publ. February 2026 · source ↗
  6. ReportedThe line grew 26% in 2025 , faster than instruments, because da Vinci 5 carries a higher price and because the lease base keeps growing.
    Intuitive Surgical Form 10-K FY2025 - revenue by line 2023-2025 (instruments and accessories, systems, service), recurring revenue and operating lease revenue, product and service gross margins, placements and leases, procedures and installed base, and the drivers of each — FY2023-FY2025 · publ. February 2026 · source ↗
  7. ReportedThe line's margin is not disclosed separately from instruments; product gross margin was 66.3% in 2025 .
    Intuitive Surgical Form 10-K FY2025 - revenue by line 2023-2025 (instruments and accessories, systems, service), recurring revenue and operating lease revenue, product and service gross margins, placements and leases, procedures and installed base, and the drivers of each — FY2023-FY2025 · publ. February 2026 · source ↗
  8. ReportedIt fell that year partly on higher costs associated with da Vinci 5 , which is the cost of launching the new system.
    Intuitive Surgical Form 10-K FY2025 - revenue by line 2023-2025 (instruments and accessories, systems, service), recurring revenue and operating lease revenue, product and service gross margins, placements and leases, procedures and installed base, and the drivers of each — FY2023-FY2025 · publ. February 2026 · source ↗
  9. ReportedSystems revenue was $685.0 million in the June 2026 quarter against $574.7 million , reflecting a higher lease installed base, higher average selling prices and more placements .
    Intuitive Surgical Form 10-Q, quarter ended 30 June 2026 - revenue by line and region for Q2 and H1 2026, product and service gross margins, installed base — Q2 2026 · publ. July 2026 · source ↗
  10. ReportedSystems revenue was $685.0 million in the June 2026 quarter against $574.7 million , reflecting a higher lease installed base, higher average selling prices and more placements .
    Intuitive Surgical Q2 2026 results release (8-K exhibit 99.1) - procedure growth, drivers of instrument and systems revenue, placements, 2026 procedure growth guidance, cash and investments of $8.63 billion — Q2 2026 · publ. 21 July 2026 · source ↗
  11. ReportedIntuitive placed 468 da Vinci systems, 246 of them da Vinci 5 .
    Intuitive Surgical Q2 2026 results release (8-K exhibit 99.1) - procedure growth, drivers of instrument and systems revenue, placements, 2026 procedure growth guidance, cash and investments of $8.63 billion — Q2 2026 · publ. 21 July 2026 · source ↗
  12. ReportedThe figure to watch is placements under usage-based leases: rising while outright sales fall would mean hospitals are pushing the utilisation risk back onto Intuitive, which it can afford with no borrowings and about $8.6 billion of cash and investments , but which lowers the line's revenue in the year of placement.
    Intuitive Surgical Q2 2026 results release (8-K exhibit 99.1) - procedure growth, drivers of instrument and systems revenue, placements, 2026 procedure growth guidance, cash and investments of $8.63 billion — Q2 2026 · publ. 21 July 2026 · source ↗
Sources
Generated September 23, 2026