By Nate Wolf
Shares of Intuitive Surgical barely moved Friday after the surgical robotics maker reported better-than-expected quarterly earnings.
The company posted adjusted earnings of $2.53 a share for the fourth quarter, surpassing analysts' consensus estimate of $2.27, according to FactSet. Revenue totaled $2.87 billion, up 19% from the prior year and ahead of Wall Street's call for $2.76 billion.
Growth in both new placements of the Intuitive Surgical's da Vinci surgical systems and total procedures drove the strong quarter. Worldwide procedures grew approximately 18% from last year, the company reported.
Intuitive Surgical shares were down up than 0.4% to $527.90 on Friday, having swung between a gain and loss throughout the morning. The stock was down 7.2% in 2026 as of Thursday's close.
The company expects da Vinci procedure growth to decelerate to between 13% and 15% in 2026. Management reaffirmed that range after giving a preliminary forecast earlier this month. Adjusted gross profit margin is expected to remain between 67% and 68% after factoring in a slight hit from tariffs. That margin was 67.6% in 2025.
Intuitive Surgical has been the dominant player in soft-tissue surgical instruments for more than 25 years. That position has made the threat of growing competition from players like Medtronic and Johnson & Johnson and re-manufacturer Restore Robotics a sticking point for some investors.
History remains on Intuitive Surgical's side, analysts at Mizuho Securities say. Restore Robotics doesn't yet have regulatory approval to refurbish Intuitive's Surgical's da Vinci 5 systems, which should comprise a growing share of procedures in the coming years, the firm pointed out.
"Ultimately, we believe the impact from remanufactured/alternative instruments is too early to tell, but da Vinci has proven to be resilient in past cycles," analyst Mizuho's Anthony Petrone wrote in a research note.
Mizuho reiterated a Neutral rating and a $575 price target on Intuitive Surgical stock.
Intuitive Surgical itself also has room to grow and expand its addressable market after receiving Food and Drug Administration approval for several cardiac procedures this month.
"Given the complexity of minimally invasive cardiac surgery, we are planning a measured rollout to support training, education, and adoption, " CEO David J. Rosa said on a conference call. "We believe deeply that patients requiring cardiac surgery can benefit from a minimally invasive approach with da Vinci."
Intuitive Surgical is still in the early innings of its cardiac offerings, analysts at Truist Securities said, but this segment could further differentiate the company from would-be rivals. Truist reiterated a Buy rating and a $650 price target for the stock.
Write to Nate Wolf at nate.wolf@barrons.com
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(END) Dow Jones Newswires
January 23, 2026 11:07 ET (16:07 GMT)
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