The surgical robotics company Intuitive Surgical released its second-quarter financial results after the close on Thursday, with both revenue and profit exceeding market expectations. However, the company maintained its full-year outlook for procedure growth, disappointing investors who had anticipated an upward revision. This led to a share price drop of over 11% in after-hours trading.
The financial report shows second-quarter revenue increased by 19% year-over-year to $2.89 billion, surpassing the market expectation of $2.82 billion. Adjusted earnings per share were $2.80, significantly higher than the expected $2.50 and marking a 28% increase from $2.19 in the same period last year. Combined global procedure volumes for the da Vinci and Ion platforms grew by 16%, with da Vinci procedures up 15% and Ion procedures surging 36%.
The company installed a total of 468 da Vinci Surgical Systems during the quarter, up from 395 in the prior-year period. Of these, 246 were the next-generation da Vinci 5 systems. As of the end of the quarter, the global installed base of da Vinci systems reached 11,710, representing a 12% increase year-over-year.
Despite the strong performance, the company maintained its full-year 2026 outlook for da Vinci procedure growth in the range of 13.5% to 15.5%, expecting the annual growth rate to be near the midpoint of this range. This guidance implies a significant deceleration from the 17.7% growth seen in 2025 and would represent the slowest pace of growth since 2020. Analysts noted that investor expectations had been elevated, and the lack of an upward revision to the outlook disappointed the market.
Slowing growth in the U.S. market is a key concern. Second-quarter da Vinci procedure volume in the United States grew by 12%, which was below the company's expectations at the start of the year, primarily due to impacts on deferrable procedures. The company indicated that some patients are postponing care due to changes in insurance coverage and premiums. Analysts pointed out that the U.S. procedure growth rate was the lowest in three years, reigniting market discussions about the impact of healthcare policy.
Increasing competition is another factor worrying investors. Competitors like Medtronic are seeking to expand the indications for its Hugo surgical system in the U.S., and Johnson & Johnson is also making strategic moves. Affected by these concerns, shares of Intuitive Surgical have fallen approximately 30% year-to-date, with its valuation continuing to contract.
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