Intuitive Surgical (NASDAQ:ISRG) Posts Earnings Results, Misses Estimates By $0.11 EPS

Intuitive Surgical (NASDAQ:ISRG) posted its earnings results on Thursday. The medical equipment provider reported $2.37 EPS for the quarter, missing analysts’ consensus estimates of $2.48 by ($0.11), Zacks reports. The company had revenue of $2.89 billion during the quarter, compared to the consensus estimate of $2.83 billion. Intuitive Surgical had a return on equity of 15.98% and a net margin of 28.15%.The firm’s revenue was up 18.4% compared to the same quarter last year. During the same period last year, the company posted $1.81 EPS.

Here are the key takeaways from Intuitive Surgical’s conference call:

• Intuitive reported a strong Q2, with revenue up 19% to $2.89 billion, non-GAAP EPS up 28%, and non-GAAP operating margin of 42%. Management said results were helped by robust adoption of da Vinci 5 and SP, along with a $36 million tariff refund benefit.
• Total procedures rose 16%, driven by 15% growth in da Vinci and 36% growth in Ion, while the installed base continued to expand globally. The company exited the quarter with nearly 13,000 systems installed worldwide.
• U.S. da Vinci growth moderated to 12%, and management pointed to possible effects from ACA subsidy changes and more deferrable benign procedures. They also noted bariatric cases were pressured by rising GLP-1 usage.
• Capital demand remained healthy, with 468 da Vinci placements and 55 Ion placements in the quarter, including strong adoption of da Vinci 5 and increased ASC activity. Management also highlighted growing trade-ins and continued interest in XIR in cost-sensitive markets.
• The company left its 2026 da Vinci procedure growth outlook unchanged at 13.5%-15.5% and raised its non-GAAP gross margin guide to 68%-69%. Management also said the extended-use instrument program, da Vinci 5 update cycle, and new GI robotic work are still early and not yet quantified.

Intuitive Surgical Stock Down 11.3%

NASDAQ:ISRG traded down $45.31 during trading hours on Friday, hitting $357.02. 3,260,924 shares of the company traded hands, compared to its average volume of 2,237,928. The firm’s 50-day simple moving average is $417.37 and its 200-day simple moving average is $468.74. Intuitive Surgical has a one year low of $353.17 and a one year high of $603.88. The company has a market cap of $126.44 billion, a PE ratio of 43.34, a PEG ratio of 3.16 and a beta of 1.46.

Analyst Upgrades and Downgrades

ISRG has been the subject of a number of research reports. TD Cowen decreased their target price on shares of Intuitive Surgical from $585.00 to $520.00 and set a “buy” rating for the company in a research report on Monday. Stifel Nicolaus decreased their target price on shares of Intuitive Surgical from $670.00 to $550.00 and set a “buy” rating for the company in a research report on Friday. Royal Bank Of Canada decreased their target price on shares of Intuitive Surgical from $650.00 to $600.00 and set an “outperform” rating for the company in a research report on Monday. Wells Fargo & Company reissued an “overweight” rating and set a $487.00 target price (down from $654.00) on shares of Intuitive Surgical in a research report on Friday. Finally, Leerink Partners decreased their target price on shares of Intuitive Surgical from $573.00 to $454.00 and set an “outperform” rating for the company in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Intuitive Surgical presently has an average rating of “Moderate Buy” and a consensus price target of $530.92.

Key Stories Impacting Intuitive Surgical

Here are the key news stories impacting Intuitive Surgical this week:

• Positive Sentiment: Intuitive Surgical reported stronger-than-expected Q2 results, with revenue and profit topping estimates on continued demand for its da Vinci robotic surgery systems. The company also said worldwide procedures grew solidly, including strong growth in Ion and da Vinci usage. Reuters article
• Positive Sentiment: Several Wall Street firms still kept bullish ratings after trimming price targets, including Stifel, Citi, BTIG, Baird, Leerink, Sanford Bernstein, and Truist, suggesting analysts continue to see upside from current levels despite the pullback. Benzinga analyst target updates
• Neutral Sentiment: Management maintained its 2026 forecast for procedure growth, which signals confidence in the long-term story, but it did not raise guidance enough to fully satisfy investors. Reuters article
• Negative Sentiment: Shares are falling because the company warned that changes to some insurance plans could slow U.S. procedure growth, raising concerns that near-term demand may be weaker than hoped. Reuters article
• Negative Sentiment: Investor sentiment was also dampened by the company’s procedure-growth outlook, which appears to have missed elevated expectations despite the earnings beat, leading to a selloff in the stock. Invezz article

Insider Buying and Selling at Intuitive Surgical

In other news, EVP Gary Loeb sold 400 shares of Intuitive Surgical stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $424.14, for a total transaction of $169,656.00. Following the sale, the executive vice president directly owned 5,720 shares in the company, valued at $2,426,080.80. The trade was a 6.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy L. Ladd sold 500 shares of Intuitive Surgical stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $473.46, for a total value of $236,730.00. Following the sale, the director owned 239 shares in the company, valued at $113,156.94. The trade was a 67.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 7,169 shares of company stock worth $3,059,135. Corporate insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On Intuitive Surgical

Hedge funds have recently made changes to their positions in the business. Riggs Asset Managment Co. Inc. raised its stake in Intuitive Surgical by 84.2% in the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 70 shares of the medical equipment provider’s stock valued at $38,000 after acquiring an additional 32 shares during the period. Strive Financial Group LLC bought a new stake in Intuitive Surgical in the 4th quarter valued at about $40,000. Birchwood Financial Partners Inc. bought a new stake in Intuitive Surgical in the 4th quarter valued at about $42,000. JPL Wealth Management LLC bought a new stake in Intuitive Surgical in the 3rd quarter valued at about $45,000. Finally, IFC & Insurance Marketing Inc. bought a new stake in Intuitive Surgical in the 4th quarter valued at about $45,000. 83.64% of the stock is currently owned by institutional investors.

About Intuitive Surgical

Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon’s hand movements into finer, scaled motions of small instruments inside the patient. Intuitive’s business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.

In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.