Intuitive Surgical NASDAQ:ISRG fell 11.41% after reporting second-quarter revenue of $2.89 billion, up 19%, and non-GAAP earnings of $2.80 a share, up from $2.19 a year earlier. Both beat Wall Street estimates of $2.51 on revenue of $2.82 billion. Worldwide procedures grew about 16%, and the company placed 468 da Vinci systems, including 246 of its newest da Vinci 5, up from 180 a year ago. The maker of the da Vinci robotic-surgery platform grew its installed base 12% to 11,710 systems.
Non-GAAP EPS included an $0.08 benefit from refunds of tariffs paid in prior periods, without which underlying earnings were closer to $2.72. Gross margin reached 70.0% in the quarter, but the company guided full-year non-GAAP gross margin to 68.0% to 69.0%, a range that bakes in an estimated one percentage point of tariff drag.
For the year, Intuitive held its forecast for da Vinci procedure growth of 13.5% to 15.5%, pointing to the midpoint, a step down from the 16% posted this quarter. Intuitive remains debt-free, ending the quarter with $8.63 billion in cash and investments, up $0.65 billion, after repurchasing $0.38 billion of stock. The stock has fallen over 30% year to date and touched a 52-week low.