NEW YORK, July 16, 2026, 17:23 EDT
- Shares dropped over 10% in after-hours trading even though quarterly results topped expectations.
- Intuitive Surgical reported adjusted EPS of $2.80 and a 19% increase in revenue to $2.89 billion.
- Preliminary calculation: Midpoint guidance suggests approximately 13.8% procedure growth for the second half, compared to 15.3% in the first half.
Shares of Intuitive Surgical dropped over 10% in after-hours trading on Thursday. The surgical-robot manufacturer surpassed expectations but maintained its 2026 procedure guidance.
The distinction is significant as procedures account for the bulk of Intuitive’s recurring revenue. Instruments, service, and operating leases made up 85% of revenue for the quarter.
The decline signals a recalibration of future growth prospects rather than a shortfall in the latest quarter. Early estimates indicate second-half da Vinci procedure growth of roughly 13.8%, compared with 15.3% in the first half.
U.S. regular trading ended, but after-hours activity continued. Shares settled at $402.33 at the close, gaining 3.4%.
| Metric | Q2 result | Comparison | Investor read |
|---|---|---|---|
| Adjusted EPS | $2.80 | $2.50-$2.51 forecast | Beats forecasts by about 12%; figure is $2.72 without the tariff refund. |
| Revenue | $2.892 billion | $2.82-$2.83 billion forecast | Tops estimates by 2%-3%. |
| Da Vinci procedures | 889,000; up 15% | 13.5%-15.5% annual guide | Midpoint guides to roughly 13.8% growth in the second half. |
| Recurring revenue | $2.469 billion; up 19% | 85% of total revenue | The revenue stream tied to procedures stayed solid. |
| Installed base | 11,710 systems; up 12% | Procedures increased 15% | Utilization gauge up around 2.7%. |
Intuitive lifted its yearly procedure outlook by 0.5 percentage points in April. On Thursday, it kept the range at 13.5%-15.5%, aiming for the midpoint.
The midpoint represents a 14.5% annual growth rate, a slowdown from 18% in 2025. This pace would result in approximately 3.61 million da Vinci procedures being performed this year.
Following 1.737 million procedures in the first half, Intuitive requires approximately 1.873 million in the second half—an increase of 13.8% compared to the same period last year.
Revenue exceeded overall procedure growth by three percentage points, driven by increased leasing revenue as well as higher placements and installed-system numbers.
Adjusted earnings per share received a $0.08 boost from a tariff refund. Excluding this, the figure stands at approximately $2.72—about 8% higher than consensus estimates.
Chief Executive Dave Rosa said Intuitive was “pleased with company performance this quarter,” highlighting robust results from da Vinci, Ion, and its digital offerings. Intuitive Surgical
The da Vinci installed base rose by 12%, as procedures saw a 15% increase. The difference in these growth rates suggests an approximate 2.7% gain in utilization.
Intuitive Surgical’s da Vinci 5 installations increased by 37% to reach 246 units, accounting for roughly 53% of total da Vinci system placements.
Leasing gained significance, with operating leases accounting for 54% of placements, up from 49% a year prior. Lease revenue increased by 22% to $261.8 million.
Worries about volume had already been high in the medical technology sector. HCA Healthcare NYSE:HCA said initial figures showed a 2.3% drop in inpatient surgeries and a 3.4% decrease in outpatient surgeries.
Despite a soft hospital report, Intuitive posted solid 15% global procedure growth. However, its steady guidance curbed hopes for a fresh upturn.
Risks: Growth could be hindered by hospital budget constraints, insurance losses, tariffs and emerging robotic rivals. Intuitive cautioned that further tariffs might have a significant impact on its 2026 performance.
The upcoming test is third-quarter utilization, with investors looking for growth close to the projected 13.8% rate or signs that management is still being overly cautious.
