By Mackenzie Tatananni
Intuitive Surgical posted quarterly earnings and revenue that handily beat Wall Street's projections. But the maker of surgical robots still faces concerns its robots are being used in fewer procedures.
The maker of surgical robots posted first-quarter adjusted earnings of $2.50 a share, outstripping calls for $2.12 a share. Revenue grew by 23% to $2.77 billion, topping the $2.62 billion forecast.
For the full year, Intuitive is targeting an adjusted gross profit margin within a range of 67.5% and 68.5%. This compares with a prior range of 67% to 68% provided in January.
The company also projects adjusted operating expense growth of 11% to 14% in 2026, versus previous calls for 11% to 15% growth. The company posted 12% growth in 2025.
Shares fell in after-hours trading following the report but reversed course and rose 2.1% in the premarket session Wednesday.
Intuitive Surgical has been the dominant player in soft-tissue surgical instruments for nearly three decades. However, it is facing more competition from players like Medtronic and even Johnson & Johnson, which is developing its own surgical robot slated for regulatory approval by the end of the year. J&J stated that it views Intuitive as its primary competitor in the space.
In the latest quarter, Intuitive recorded 17% worldwide procedure growth across both of its da Vinci and Ion systems. By product, da Vinci procedures grew by roughly 16%, while Ion procedures by 39%.
The da Vinci robot, Intuitive's flagship product, is designed for minimally invasive surgery. Ion is tailored for procedures in the lung, typically to sample suspicious nodules or legions as part of a cancer diagnosis.
Intuitive sees worldwide da Vinci procedure growth of roughly 13.5% to 15.5% for the full year, up from an earlier range of 13% to 15%. The updated range falls below the 18% growth recorded in 2025.
The company didn't expound upon its updated outlook in much detail on the earnings call. Management has previously identified competition in China and capital challenges in Japan as two headwinds.
CEO David Ross told analysts that first-quarter procedure growth "improved sequentially, but remained below historical levels" following fewer system placements in 2025.
Wall Street has praised Intuitive's competitive moat with surgical robots despite its lackluster stock performance. Intuitive shares are down 20% in 2026, owing to a combination of factors including valuation concerns, fears over slowing procedure growth, and intensifying scrutiny from the Food and Drug Administration.
That's a deeper loss than the iShares Medical Device electronic-traded fund, which counts Intuitive as its second-largest holding at just under 16% by weight. The ETF has fallen 15% this year against a 3.2% gain for the S&P 500.
Intuitive received its first Sell rating last June when Deutsche Bank downgraded the shares from Hold. The analyst said at the time that remanufactured surgical instruments could impact the company's top line in coming years. Privately held Restore Robotics has the legal clearance to refurbish used da Vinci surgical robotic instruments, which it then sells back to hospitals at a discount.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 22, 2026 07:27 ET (11:27 GMT)
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