Intuitive Surgical shares fall as procedure growth slows despite Q2 earnings beat

Intuitive Surgical (NASDAQ: ISRG) shares fell about 11% on Friday after the robotic surgery company reported second-quarter results that topped Wall Street expectations but disappointed investors with slower US procedure growth and a cautious full-year outlook.

The company reported second quarter revenue of $2.89 billion, up 19% from a year earlier and above analysts' consensus estimate of $2.82 billion. Adjusted earnings came in at $2.80 per share, exceeding expectations of $2.51.

Despite the earnings beat, investors focused on signs of moderating procedure growth. US procedure growth slowed to 12% in the second quarter from 14% in the first quarter. Management attributed the slowdown to deferred treatments and changes in patient insurance coverage following the expiration of enhanced Affordable Care Act premium subsidies.

For 2026, Intuitive maintained its forecast for worldwide da Vinci procedure growth of 13.5% to 15.5% but said it expects results to be closer to the midpoint of the range. That implied growth of about 14.5% fell short of analysts' expectations of roughly 15.3%.

The company also reaffirmed its outlook for a non-GAAP gross profit margin of 68% to 69% of revenue, including an estimated 1% impact from tariffs, and projected non-GAAP operating expense growth of 11% to 13% for the year.

During Q2, worldwide procedures across the da Vinci and Ion platforms increased about 16% from a year earlier, with da Vinci procedures rising approximately 15% and Ion procedures growing 36%. Intuitive placed 468 da Vinci surgical systems during the quarter, up from 395 a year earlier.