Intuitive Surgical Stock Falls After Q4 Guidance Update
Intuitive Surgical shares fell after the company raised fourth-quarter revenue guidance but signaled slowing procedure growth, prompting investors to reassess growth momentum despite strong system placements.
Investors are recalibrating expectations after updated guidance pointed to solid results but slower growth ahead.
Shares of Intuitive Surgical (ISRG) moved sharply lower after the company released preliminary fourth-quarter results and updated guidance ahead of its healthcare conference presentation.
Key Points
- Intuitive Surgical raised fourth-quarter revenue guidance to about $2.87 billion.
- Procedure growth remained strong but showed signs of deceleration.
- The stock declined as investors focused on a slower growth outlook for 2026.
What Changed in Intuitive Surgical’s Q4 Update?
The company lifted its fourth-quarter revenue forecast to approximately $2.87 billion, representing about 19% year-over-year growth and exceeding prior expectations. Full-year 2025 revenue was reported at roughly $10.06 billion, up 21% from the prior year.
Despite the revenue beat, the updated figures showed a slowdown in growth compared with recent quarters. Fourth-quarter worldwide procedure growth was approximately 18%, down from growth rates above 20% earlier in the year.
Why Is Procedure Growth Slowing?
Procedure growth remains healthy but is no longer accelerating. Management indicated that worldwide procedures using da Vinci and Ion systems increased about 18% in the quarter, compared with 19% growth for all of 2025.
Ion procedure growth reached 44% year over year, which, while still robust, marked a deceleration from the prior quarter. The company also forecast da Vinci procedure growth of approximately 13% to 15% in 2026, below what investors had been anticipating.
How Are System Placements Trending?
System placements showed notable strength. Intuitive Surgical placed 532 da Vinci systems in the fourth quarter, including 303 da Vinci 5 systems, compared with 427 total systems and 240 da Vinci 5 systems in the previous quarter.
For the full year, system placements rose to 1,721 units, reflecting continued hospital adoption. These placements expand the installed base, which supports recurring revenue from instruments and accessories over time.
What It Means for Investors
The market reaction highlights how investors weigh growth rates as much as absolute results. Even with higher revenue and strong placements, slowing procedure growth can influence sentiment when expectations are elevated.
The company’s business model relies on a growing installed base to generate recurring revenue. While that dynamic remains intact, near-term price action reflects concern about the pace of growth rather than current performance.
Investors are also looking ahead to the full earnings release scheduled later this month, which may provide additional clarity on margins, expenses, and demand trends.
Conclusion
Intuitive Surgical’s stock decline underscores the market’s sensitivity to growth trajectories. Strong revenue and system placements were overshadowed by signs of slowing procedure growth, shifting investor focus to what comes next rather than what was already achieved.
FAQs
Why did Intuitive Surgical stock fall today?
The stock fell because updated guidance pointed to slowing procedure growth despite higher-than-expected revenue.
Did Intuitive Surgical beat revenue expectations?
Yes, preliminary fourth-quarter revenue of about $2.87 billion exceeded prior expectations.
What happened to procedure growth in Q4?
Procedure growth was approximately 18%, which represents a slowdown from earlier quarters.
What is Intuitive Surgical forecasting for 2026 growth?
The company expects da Vinci procedure growth of about 13% to 15% in 2026.
This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.
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