“The high end of the range assumes China procedure growth improves relative to 2024, the CapEx environment improves in key OUS markets and bariatric procedure declines moderate.”

In context

“echnology and case insights may bring to minimally invasive surgery. We continue to expect clinical evidence to build over the coming quarters and years. I will now turn to our updated financial guidance for 2025, starting with da Vinci procedures. On our last call, we forecast full year 2025 da Vinci procedure growth within a range of 15% and 17%. We are updating our 2025 da Vinci procedure growth guidance to be within a range of 15.5% and 17%. Consistent with last quarter, the low end of the range assumes growth in China is impacted by trade, environmental and competitive dynamics. Governments in key OUS markets continue to constrain hospital CapEx budgets, which limits the expansion of capacity in the field and bariatric procedures continue to decline at rates similar to recent trends. The high end of the range assumes China procedure growth improves relative to 2024, the CapEx environment improves in key OUS markets and bariatric procedure declines moderate. The high end of the range also assumes that da Vinci procedures are not impacted by the current trade environment. Turning to gross profit. On our last call, we forecast pro forma gross profit margin in 2025 to be within a range of 65% and 66.5% of revenue, which reflected significant incremental depreciation as we bring on new facilities, the combination from growth in newer -- contribution from growth in newer products and the expected impact of tariffs. As Jamie described earlier, we currently expect the recently implemented tariffs globally to increase our 2025 cost of sales by approximately 1% of revenue, plus or minus 20 basis points. As a result, we are updating our estimate for pro forma gross margin to be within a range of 66% and 67% of revenue. In regards to operating expenses,”