Wells Fargo reduced its price target on Procept BioRobotics Corp (NASDAQ:PRCT) to $34 from $51 while reiterating its Overweight rating, citing disappointing fourth-quarter results and softer guidance for 2026.
The medical technology company reported fourth-quarter revenue of $76 million, representing 12% year-over-year growth but falling well short of the Street’s $94 million expectation. The shortfall was attributed to the company ending quarter-end handpiece discounting, customer inventory reductions, and disruption within its commercial organization.
Following the results, the stock has traded close to its 52-week low of $26.23, recently changing hands at $27.84. Analysts have reacted cautiously, with three firms lowering earnings forecasts for upcoming periods amid rising concerns about near-term execution.
U.S. revenue totaled $67 million, up 10% from a year earlier but below the Street estimate of $84 million. Domestic system revenue reached $28 million, flat year-over-year and slightly under Wells Fargo’s $29 million forecast, although placements of 65 systems aligned with market expectations.
Revenue from U.S. handpieces and related products came in at $34 million, marking a 16% annual increase but missing the Street’s $50 million estimate. Gross margin was 60.6%, trailing Wells Fargo’s 63.0% projection due to weaker sales volumes and a one-time field action that had an approximately $1.5 million impact.
Despite the quarterly disappointment, Procept has delivered strong growth over a longer horizon, with revenue expanding roughly 50% over the past twelve months. The company also maintains a strong balance sheet, including a current ratio of 8.44 and cash holdings exceeding total debt.
Management is currently navigating adjustments to customer handpiece inventory practices alongside changes to its commercial structure. Wells Fargo said investor focus will now shift toward the company’s upcoming investor day, where management is expected to outline the rationale behind guidance that is weighted toward stronger performance in the second half of the year.
In separate developments, Procept BioRobotics recently reported fourth-quarter 2025 earnings per share of -$0.53, missing expectations of -$0.32, while revenue of $76.1 million also came in below the anticipated $93.77 million. Meanwhile, BofA Securities downgraded the stock from Neutral to Underperform and cut its price target to $20 from $38, pointing to concerns about slowing utilization growth and the company’s ability to meet market expectations.
These updates highlight the operational and financial challenges currently facing the company as investors reassess its near-term outlook.