NEW YORK, July 17, 2026, 06:06 EDT
- Shares were seen down 11.3% at $357 ahead of Friday’s cash open.
- Company figures suggest second-half da Vinci growth of approximately 13.8% at the midpoint of its guidance.
Intuitive Surgical was poised to lose roughly $16.3 billion in market capitalization, based on its premarket price of $357. The Nasdaq cash market had not yet opened.
The decline focused on growth expectations rather than the quarter’s results. Revenue and adjusted earnings surpassed analyst estimates. However, the steady procedure outlook suggested reduced growth in the second half.
Company data estimates second-half da Vinci growth at 13.8% at the midpoint of guidance, with the range suggesting approximately 11.9% to 15.7%. Growth in the first half was around 15.2%.
The projection assumes 3.153 million procedures for 2025. Intuitive reported 1.737 million procedures in the first half of this year. That midpoint indicates around 1.873 million procedures remain for the second half.
Revenue for the second quarter increased by 19% to $2.89 billion, while adjusted earnings came in at $2.80 per share. Analysts had forecast $2.82 billion in revenue and $2.50 per share in adjusted earnings.
Tariff refunds contributed eight cents per share. Without these, adjusted profit still beat expectations. However, the forecast remained the key factor for the response.
Global da Vinci procedures increased by 15%. Growth in the U.S. eased to 12%, down from 14% in the previous quarter, while procedure growth outside the U.S. rose to 20%.
Intuitive installed 468 da Vinci systems, with 246 of them being da Vinci 5 models. The total installed base increased by 12% to 11,710 systems. Recurring revenue accounted for 85% of sales.
Chief Executive Dave Rosa said, “We are pleased with company performance this quarter,” highlighting robust results in da Vinci, Ion and digital tools. Intuitive Surgical
Intuitive’s valuation premium has narrowed following the results, though the premium still exists.
| Company | Price basis | Trailing P/E |
|---|---|---|
| Intuitive Surgical NASDAQ:ISRG | $357.00 premarket | 43.4x |
| Stryker NYSE:SYK | $331.20 previous close | 38.3x |
| Medtronic NYSE:MDT | $83.56 previous close | 23.3x |
Initial estimate based on trailing earnings of $8.23 per share. Peer data reflect the most recent regular-market figures.
At $357, Intuitive’s estimated trailing multiple is roughly 43.4 times, which is 13% higher than Stryker’s and 86% greater than Medtronic’s. The companies have different business mixes.
As of Thursday’s close, Intuitive shares had fallen 1.1% since July 10. The indicated premarket price would widen that decline to 12.2%.
Hospital operator HCA Healthcare NYSE:HCA issued an early warning. Preliminary data for the second quarter indicated a 2.3% decline in inpatient surgeries, while outpatient surgeries dropped by 3.4%. These results are not directly comparable to Intuitive’s global procedure totals.
HCA’s earnings call on July 24 will serve as the next gauge for the sector. The company has committed to providing further commentary on its second-quarter results. Investors are expected to focus on payer mix and surgical volumes.
Friday’s movement could be heightened by broader market action. Nasdaq 100 futures slipped 2.1% in premarket trading.
Risks: Softer U.S. procedure trends could be short-lived. International growth remained solid, and recurring revenue increased by 19%. Tariffs, uninsured procedure volumes, and hospital budget constraints continue to pose downside risks.
The new price faces a test in Friday’s cash session, raising the question of whether a valuation at 43 times earnings is justified by a growth trajectory in the mid-teens.
Related articles: NASDAQ:ISRG
