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

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

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 Trading Down 11.3%

NASDAQ:ISRG traded down $45.49 during trading hours on Friday, reaching $356.84. 3,511,632 shares of the company were exchanged, compared to its average volume of 2,237,928. The stock’s 50-day moving average is $417.37 and its 200-day moving average is $468.74. The firm has a market cap of $126.38 billion, a PE ratio of 43.28, a price-to-earnings-growth ratio of 3.16 and a beta of 1.46. Intuitive Surgical has a twelve month low of $353.17 and a twelve month high of $603.88.

Intuitive Surgical News Summary

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 Activity

In related news, EVP Gary Loeb sold 400 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $424.14, for a total transaction of $169,656.00. Following the completion of the transaction, the executive vice president owned 5,720 shares in the company, valued at $2,426,080.80. This represents a 6.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy L. Ladd sold 119 shares of the firm’s stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $463.50, for a total transaction of $55,156.50. Following the completion of the transaction, the director directly owned 120 shares in the company, valued at $55,620. This represents a 49.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 7,169 shares of company stock worth $3,059,135 over the last 90 days. 0.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Intuitive Surgical

Several large investors have recently bought and sold shares of ISRG. Mcguire Capital Advisors Inc. acquired a new position in shares of Intuitive Surgical during the fourth quarter valued at approximately $62,000. Compound Planning Inc. boosted its stake in shares of Intuitive Surgical by 38.0% in the fourth quarter. Compound Planning Inc. now owns 6,426 shares of the medical equipment provider’s stock worth $3,639,000 after acquiring an additional 1,769 shares during the last quarter. Axxcess Wealth Management LLC boosted its stake in shares of Intuitive Surgical by 17.0% in the fourth quarter. Axxcess Wealth Management LLC now owns 9,252 shares of the medical equipment provider’s stock worth $5,240,000 after acquiring an additional 1,341 shares during the last quarter. Birchwood Financial Partners Inc. purchased a new stake in shares of Intuitive Surgical during the fourth quarter worth approximately $42,000. Finally, Strive Financial Group LLC purchased a new stake in shares of Intuitive Surgical during the fourth quarter worth approximately $40,000. 83.64% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on ISRG shares. Sanford C. Bernstein dropped their price objective on shares of Intuitive Surgical from $750.00 to $685.00 and set an “outperform” rating on the stock in a research note on Friday. Wall Street Zen upgraded shares of Intuitive Surgical from a “hold” rating to a “buy” rating in a research note on Saturday, June 13th. Leerink Partners lowered their price target on shares of Intuitive Surgical from $573.00 to $454.00 and set an “outperform” rating on the stock in a report on Friday. JPMorgan Chase & Co. dropped their price target on shares of Intuitive Surgical from $625.00 to $550.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 22nd. Finally, Bank of America cut their price objective on shares of Intuitive Surgical from $520.00 to $515.00 in a report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $530.92.

Intuitive Surgical Company Profile

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.