Shares of Intuitive Surgical (NASDAQ:ISRG) rose 2.4% in premarket trading on Wednesday after the company reported first-quarter results that exceeded expectations on both revenue and earnings, supported by increased use of its robotic surgical systems.
The Sunnyvale-based group, best known for its da Vinci robotic platforms used in minimally invasive procedures, also offers the Ion system for lung biopsies. Both product lines saw strong demand during the quarter.
For Q1 2026, Intuitive posted earnings of $2.50 per share on revenue of $2.77 billion, beating analyst forecasts of $2.12 per share and $2.62 billion, respectively.
Gross margin came in at 67.8%, ahead of expectations of 66.1%, reflecting improved operational performance.
“ISRG delivered solid 1Q rev upside beating on most key metrics alongside big margin upside that drove a significant EPS beat,” analysts at Truist Securities led by Richard Newitter said.
“We see ISRG well-positioned to sustain an elite and above-avg. mid-high-teens+ rev/profit profile,” they added.
Separately, analysts at Jefferies lowered their price target on ISRG to $515 from $560, noting: “We are increasing #’s in 26 & ’27 but see a potential for ISRG growth to moderate in the outer years, and with medtech multiples significantly lower, we decrease our PT to $515.”
Procedure volumes continued to expand globally, with total procedures across da Vinci and Ion rising about 17% year-on-year. Da Vinci procedures increased 16%, while Ion procedures surged 39%.
Intuitive installed 431 da Vinci systems during the quarter, up from 367 a year earlier, bringing its global installed base to 11,395 systems compared with 10,189 at the end of Q4 2025.
The company slightly raised its outlook for full-year 2026 da Vinci procedure growth, now expecting a range of 13.5% to 15.5%, up from its previous forecast of 13% to 15%.
“We are pleased with company performance this quarter, which was marked by expanded adoption of our da Vinci, Ion, and digital platforms,” CEO Dave Rosa said.
During the earnings call, CFO Jamie Samath highlighted rising competition in China’s robotics market, noting that “provincial tenders” are showing “preferences for local suppliers and lower pricing.”
Intuitive also said it now expects its full-year 2026 adjusted gross margin to range between 67.5% and 68.5% of revenue, including an estimated tariff impact of about 1%.