Movement Alert|Intuitive Surgical Falls 10.08% in Regular Trading, Q2 Earnings Beat but Full-Year Guidance Unchanged Triggers Selloff

Market Focus07-17 21:38

On July 17, Intuitive Surgical fell 10.08% in regular trading, trading at $358.23/share, with turnover of $538 million. The stock plunged after the company reported strong Q2 results but declined to raise its full-year procedure growth outlook, disappointing investors who had expected an upward revision.

Intuitive Surgical reported Q2 adjusted earnings of $2.80 per diluted share, beating the analyst consensus of $2.50 by 12%, while revenue came in at $2.89 billion versus the $2.83 billion estimate. Global da Vinci and Ion platform procedure volumes grew 16% combined, with da Vinci procedures up 15% and Ion procedures up 36%. Despite the strong quarter, the company maintained its full-year da Vinci procedure growth guidance of 13.5% to 15.5%, expecting growth near the midpoint, implying a deceleration in the second half.

Management also warned that U.S. healthcare policy changes could affect patient treatment timing, and noted that the China market remains challenging due to intensifying domestic robotics competition and policy-driven pricing pressure. The stock has now declined approximately 30% year-to-date, with the current price trading at a significant discount to its three-year historical P/E multiple.

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