So, how's the robot surgery business doing? Pretty well, it turns out. Intuitive Surgical Inc. (ISRG) just reported its first-quarter 2026 numbers, and investors liked what they saw—the stock was up in premarket trading Wednesday.
The company, which makes those Da Vinci robotic systems you might have heard about, posted a double beat. Revenue came in at $2.77 billion, topping the $2.62 billion analysts were expecting. Adjusted earnings per share were $2.50, comfortably above the consensus estimate of $2.10. That's the kind of start to the year that gets a stock moving.
What's Driving the Growth?
On the conference call, management pointed to strong adoption of its newer systems—the Da Vinci 5, the SP, and the Ion. Procedure growth was solid in the U.S. and Europe, though they noted some weaker performance in Asia.
Because of that momentum, the company is feeling confident enough to nudge its forecast higher. For all of 2026, Intuitive now expects Da Vinci procedure growth in the range of 13.5% to 15.5%. That's up from the prior outlook of 13% to 15%. The growth is expected to be led by U.S. general surgery and by non-urology procedures internationally.
But it's not all smooth sailing. The company's outlook also factors in a bunch of potential pressures. That includes changes to U.S. insurance subsidies, macroeconomic constraints in Europe, tender dynamics in China, the capital environment in Japan, and the ongoing adoption trends for obesity drugs (which can impact certain surgical volumes). So, they're optimistic, but with eyes wide open.
On the margin front, the picture improved a bit. The company now sees its adjusted gross margin landing between 67.5% and 68.5%, better than before. That reflects a lower impact from tariffs, though it's partially offset by higher costs in areas like freight and semiconductor memory.
Management also highlighted continued investment in digital tools and artificial intelligence to make surgeries better and more efficient. And they're pushing forward with international expansion, including through acquisitions of distributors in Europe, while acknowledging competitive and regulatory pressures in some markets.
What Are the Analysts Saying?
The stock carries a consensus Buy rating, with an average price target of $608.57. Recent analyst moves show a mix of maintained optimism and slight adjustments:
- BTIG: Maintained a Buy rating and a $574.00 price target on April 22.
- Truist Securities: Maintained a Buy rating but lowered its price target to $580.00 on April 15.
- Mizuho: Maintained a Neutral rating and lowered its price target to $525.00 on April 13.
An analyst from William Blair noted that the company's growth drivers remain solid. They pointed to adoption of the Da Vinci 5 system, a 31% growth in emergent procedures, and strong momentum outside the U.S. However, they also flagged some headwinds: softness in parts of Asia (specifically China and Japan), slightly lower U.S. system placements, an expected 10% decline in bariatric procedures, and some international stocking effects.
In short, the story here is one of robust core growth, a slightly brighter forecast, and a stock that's reacting positively—even as the company navigates a complex global landscape. Intuitive Surgical shares were up 2.13% at $460.88 in premarket trading Wednesday.
