Intuitive Surgical NASDAQ:ISRG shares fell about 9% early Friday after the robotic surgery company reported second-quarter results that topped Wall Street expectations but left its full-year procedure growth outlook unchanged.
Intuitive Surgical reported second-quarter revenue and earnings above analysts' estimates, supported by continued demand for its da Vinci robotic surgical systems. Despite the stronger quarterly performance, the company reaffirmed its fiscal 2026 forecast for da Vinci procedure growth of 13.5% to 15.5%, adding that results are expected to trend near the midpoint of that range.
Intuitive Surgical also said it expects a non-GAAP gross margin of 68% to 69% for the year. The outlook incorporates an estimated 1% revenue impact from tariffs, while operating expenses are projected to increase 11% to 13% in fiscal 2026 as the company continues investing in its business.
Intuitive Surgical shares declined about 9% as investors weighed the unchanged outlook and the expected impact of tariffs on margins, despite the company's quarterly earnings and revenue exceeding consensus estimates.