Shares of PROCEPT BioRobotics Corp. (PRCT) took a nosedive, hitting a fresh 52-week low. The culprit? A fourth-quarter earnings report that missed the mark and a revised sales outlook that left investors wanting more.

Here’s the basic math that spooked the market. For the fourth quarter of 2025, PROCEPT reported total revenue of $76.4 million. That’s a 12% increase from the prior year, which sounds okay until you realize analysts were expecting $94.14 million. The company also reported a loss of 53 cents per share, wider than the consensus loss estimate of 32 cents. Gross margin slipped to 61% from 64% a year ago, pressured by lower-than-expected U.S. consumables revenue and a one-time expense.

So, what happened? According to CEO Larry Wood, the company is in the middle of a strategic pivot. "To sharpen our focus on delivering durable procedure growth, we realigned our commercial organization, established a dedicated launch team to reduce activation variability, and implemented a more disciplined handpiece pricing strategy," Wood said. He added that the company successfully reduced field inventory levels and eliminated end-of-quarter purchasing incentives. These moves, he explained, "led to a fourth quarter revenue shortfall but improved handpiece average selling price by approximately 5%."

In simpler terms, they decided to stop pushing so much inventory out the door with discounts to hit quarterly numbers. Instead, they’re focusing on selling at better prices, even if it means selling fewer units in the short term. Wood noted that procedure volume actually hit a record high of about 12,200 in Q4, and they sold 65 new robotic systems.

The bigger issue for investors, however, is the guidance. Looking ahead, Wood said the company now expects handpiece unit sales to align more closely with actual procedure volumes. Historically, handpiece sales exceeded procedures by 8% to 16%, partly due to that inventory build. Going forward, that gap is closing.

This change in philosophy directly impacts the financial forecast. For the first quarter of 2026, PROCEPT expects sales between $79 million and $82 million. The consensus on the Street was looking for $92.65 million. More importantly, the company lowered its full fiscal 2026 sales guidance. Previously, it expected $410 million to $430 million in revenue. Now, it sees $390 million to $410 million.

Wood framed this as a trade-off: lower projected handpiece volume is "meaningfully offset by higher handpiece prices of $3,500 per unit." He also cited "the short-term disruption associated with the sales force realignment" as a factor. The company still expects robust U.S. procedure growth of 39% to 48% for the year.

Not everyone on Wall Street is hitting the panic button. Analysts at William Blair pointed out that after the steep drop, the stock is trading at roughly 2x its updated 2026 sales estimate. That puts it near the low end of its small- and mid-cap medtech peer group. The firm believes this valuation overlooks the company's "still underpenetrated total addressable market (TAM), potential expansion into prostate cancer... and leadership under a CEO with a track record."

"We acknowledge the noise around the model and commercial execution can make this a difficult recommendation, but we are buyers of the stock on weakness and maintain our Outperform rating," analyst Brandon Vazquez wrote.

From a technical standpoint, the chart looks rough. The stock is trading 21.88% below its 20-day simple moving average and 32.5% below its 100-day average, which is a clear sign of short-term weakness. Its Relative Strength Index (RSI) sits at 44.45, which is considered neutral—neither oversold nor overbought. Analysts watching the tape note key resistance at $26.00 and key support at $21.00.

In premarket trading Thursday, PROCEPT BioRobotics shares were down 26.33% at $20.51, solidly in that new 52-week low territory.

The story here isn't just about a miss; it's about a company trying to change how it does business. PROCEPT is betting that better pricing and tighter inventory management will pay off in the long run, even if it causes some quarterly pain. The market, for now, is deeply skeptical that the trade is worth it. Investors are left to decide if this is a temporary stumble during a necessary transition or a sign of deeper problems.