TLDR
- ISRG fell over 10% to $360.50 on Friday, its worst single-day drop since April 2022
- Q2 EPS came in at $2.80 vs. $2.50 estimate; revenue hit $2.89B vs. $2.82B expected
- U.S. da Vinci procedure growth slowed to 12%, below the 13% Wall Street expected
- Management held full-year guidance steady, projecting growth near the midpoint of 13.5%–15.5%
- Johnson & Johnson’s rival Ottova robot is targeting regulatory clearance by year-end
Intuitive Surgical beat Wall Street on both earnings and revenue in Q2, and the stock still got punished. ISRG dropped more than 10% to $360.50 on Friday — its steepest single-day fall since April 2022 and its lowest close since January 2024, per Dow Jones Market Data.
Intuitive Surgical, Inc., ISRG
The earnings numbers themselves were solid. Adjusted EPS came in at $2.80, clearing the $2.50 analyst estimate. Revenue reached $2.89 billion, topping the $2.82 billion forecast.
So why the selloff? The market zeroed in on one thing: slowing procedure growth.
INTUITIVE SURGICAL $ISRG Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $2.89B (Est. $2.82B) 🟡; +19% YoY
🔹 Adj. EPS: $2.80 (Est. $2.51) 🟢; +28% YoY
🔹 Adj. Operating Income: $1.22B; +28% YoY
🔸 Q2 EPS included an $0.08 benefit from refunds of tariffs paid in prior periods.FY26… pic.twitter.com/cXyMJzhbin
— Wall St Engine (@wallstengine) July 16, 2026
U.S. da Vinci procedure volume grew 12% in Q2, missing the 13% Wall Street had penciled in and stepping down from the 14% growth posted in Q1. Globally, da Vinci procedures rose 15% year over year.
Management pointed to patients pushing back elective surgeries because of rising insurance costs and some choosing weight-loss drugs like Ozempic over going under the knife. Medically necessary procedures, they said, held up well.
Despite the beat, Intuitive kept its full-year forecast unchanged — projecting worldwide da Vinci procedure growth near the midpoint of its 13.5% to 15.5% range. Investors had expected an upgrade after management raised guidance last quarter.
The company also lifted its 2026 adjusted gross profit margin outlook to 68%–69% of revenue, up from the prior range of 67.5%–68.5%.
What RBC Is Saying
RBC Capital Markets analyst Shagun Singh pushed back on the market’s reaction. She reiterated an Outperform rating on ISRG with a price target of $575 — trimmed slightly from $600 — calling the Q2 result a “clean beat.”
Singh described the U.S. procedure slowdown as “transient rather than a structural shift in end-market demand,” adding that deferred cases are expected to return. She noted that demand outside the U.S. accelerated to 20% year-over-year growth, with strength across Europe, Asia, and other regions.
“We remain buyers,” Singh said.
J&J Enters the Ring
The earnings report also landed against a backdrop of growing competition. Johnson & Johnson is preparing to launch its own surgical robot, the Ottova, designed for soft-tissue procedures in the upper abdomen.
J&J is targeting regulatory clearance by the end of 2026. The move puts direct pressure on Intuitive’s dominant market position, though the company currently has no approved rival at scale.
HCA Healthcare flagged softer surgical procedure demand and a rise in uninsured patients earlier in the week, adding broader context to the sector. Pandemic-era ACA subsidies have now expired, pushing more Americans to drop coverage — a headwind Intuitive’s management acknowledged.
Intuitive’s updated gross margin guidance of 68%–69% for 2026 was the latest figure provided by the company.
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