-- Intuitive Surgical (ISRG) shares rose early Wednesday as the company lifted the full-year procedure growth outlook of its da Vinci robotic surgery system and reported better-than-expected first-quarter results.
The robotic surgical systems firm now anticipates worldwide da Vinci procedure growth of between 13.5% and 15.5% for 2026, compared with its previous projections for a gain of 13% to 15%, Dan Connally, head of investor relations, said during a late Tuesday earnings call, according to a FactSet transcript. The stock rose 2% in the most recent premarket activity.
"We continue to expect primary growth drivers in 2026 to be generally consistent with those in 2025, including general surgery in the US and procedures outside of urology internationally," Connally said on the call.
Adjusted gross profit margin is now pegged to be in a range of 67.5% to 68.5% of revenue, compared with the prior forecast of 67% and 68%. The latest guidance includes a tariff-related headwind of 1% of revenue, according to the company.
"We think there should be system (revenue) and procedure upside potential relative to our estimates (and guidance) which should translate to meaningful EPS beats," Truist Securities said in a client note. The brokerage has a buy rating on Intuitive Surgical's stock.
The firm posted adjusted earnings of $2.50 a share for the March quarter, up from $1.81 the year before, ahead of the FactSet-polled consensus of $2.12. Revenue rose 23% to $2.77 billion, topping the Street's view of $2.62 billion.
"We are pleased with company performance this quarter, which was marked by expanded adoption of our da Vinci, Ion and digital platforms," Chief Executive Dave Rosa said in the earnings statement.
Revenue in the instruments and accessories segment advanced 23% to $1.69 billion. The increase was mainly driven by a roughly 16% jump in the number of da Vinci procedures, customer buying patterns and a 39% surge in Ion procedure volume, according to the company. Procedures in the US inclined 15% and gained 20% outside the country, Chief Financial Officer Jamie Samath said on the call.
Systems revenue amounted to $650.7 million, up from $522.7 million a year ago. The firm placed 431 da Vinci surgical systems during the quarter, up from 367 last year. Services revenue increased to $433.7 million from $363 million.