Investors sold ISRG after Q2 results topped estimates but full-year guidance signaled decelerating procedure growth.
Intuitive Surgical (NASDAQ: ISRG) reported Q2 revenue of $2.9 billion, up 19% year-over-year, and adjusted net income of $1 billion, or $2.80 per share, exceeding Wall Street’s $2.50 estimate. Worldwide procedures rose 16%, with da Vinci and Ion platforms seeing 15% and 36% growth, respectively.
Despite the strong quarter, management’s guidance for the second half of 2026 projected da Vinci procedure growth at the midpoint of its 13.5%-15.5% range, unchanged from prior forecasts. The lack of upward revision prompted analysts to cut price targets, weighing on the stock.
Shares fell as investors focused on the slower growth outlook rather than the beat in earnings and revenue, reflecting concerns over the company’s expansion pace.