Intuitive Surgical (ISRG) shares ended Friday on a high note, extending their recent rebound after the company lifted its 2026 growth forecast and signaled robust demand for its da Vinci surgical systems. The stock closed at $482.22 on April 24, up from $451.29 just a few days earlier, according to LSEG data.
Strong First-Quarter Results
The company reported a 23% increase in first-quarter revenue to $2.77 billion, with adjusted earnings rising to $2.50 per share from $1.81 in the same period last year. Intuitive placed 431 da Vinci systems during the quarter, including 232 of the latest da Vinci 5 model, bringing the global installed base to 11,395 units as of March 31—a 12% year-over-year increase.
CEO Dave Rosa highlighted "expanded adoption of our da Vinci, Ion, and digital platforms" in the company's earnings statement. On the conference call, Rosa noted that total procedures rose 17%, with da Vinci procedures up 16% to 847,000 and Ion procedures surging 39% to 43,000. Ion is Intuitive's robotic system for lung biopsies and other airway procedures.
Upgraded Outlook
Intuitive raised its 2026 global da Vinci procedure growth forecast to a range of 13.5% to 15.5%, up from the previous 13% to 15% range. The new guidance slightly exceeded the 15% analysts had anticipated, according to Bloomberg data. CFO Jamie Samath attributed the improved outlook to "the differentiating value of da Vinci 5" and new product launches, while noting that gross margins remain sensitive to tariffs, pricing, product mix, and trade-in volumes.
Challenges and Competition
Despite the upbeat results, the company faces several headwinds. U.S. bariatric procedures declined approximately 10% in the first quarter, while growth in China and Japan slowed compared to the overall company pace. Competition is also intensifying, with Intuitive naming Johnson & Johnson and Medtronic as key rivals that have launched or announced plans for robotic-assisted surgery systems. The company also cited local competitors in China, where tender activity and pricing pressure have dampened demand.
Tariffs are another concern. Intuitive reported that tariffs and related trade actions added roughly $28 million to its first-quarter cost of revenue, and warned that any changes in tariff rates could materially impact results.
Analyst Sentiment
William Blair analyst Brandon Vasquez noted in a client memo that despite sluggish bariatric volumes and muted Asian demand, Intuitive continues to exceed expectations. He maintained his outperform rating on the stock. Investors are currently focused on the company's core narrative: rising procedure volumes, increasing da Vinci 5 installations, and a higher growth forecast. The key question remains whether this momentum can overcome hospital budget constraints, competitive pressures in China, and a valuation that leaves little room for error.
