Intuitive Surgical Exceeds Quarterly Estimates Due to High Demand for Surgical Robots

• Da Vinci procedure volume grew 18% year-over-year in Q4, with the company projecting 13-15% growth in 2026 compared to 18% growth in 2025
• Q4 revenue reached $2.87 billion versus analyst estimates of $2.75 billion, with adjusted earnings of $2.53 per share
• Company expects 2026 gross profit margin of 67-68% of revenue, including an estimated 1.2% impact from tariffs, with over 80% of instruments produced at its Mexico facility

Intuitive Surgical Beats Q4 Estimates on Strong Robot Demand

Intuitive Surgical exceeded Wall Street expectations for fourth-quarter profit and revenue, driven by robust demand for its da Vinci surgical robot systems used in minimally invasive procedures.

Key Financial Results:

• Q4 revenue: $2.87 billion versus analyst estimates of $2.75 billion
• Adjusted earnings: $2.53 per share (estimate not provided)
• Q4 2025 gross profit margin: 67.6%

Operational Performance:

The company reported 18% year-over-year growth in global da Vinci procedure volumes during the quarter. Growth has been fueled by hospitals addressing backlogs of deferred procedures and expanding minimally invasive care access. The da Vinci system is utilized across multiple specialties, including bariatric surgery and treatments for digestive, bladder, and cardiac conditions.

2026 Outlook:

Intuitive projects da Vinci-assisted procedure growth of 13-15% for 2026, a deceleration from 2025's 18% growth rate. The company forecasts gross profit margins between 67-68% of revenue, factoring in an estimated 1.2% revenue impact from tariffs (±10 basis points).

Geographic and Manufacturing Footprint:

Over 80% of instruments and accessories are manufactured at Intuitive's Mexico facility, with additional operations in China and other international markets.

Market Implications:

The strong quarterly performance demonstrates sustained healthcare sector recovery and adoption of robotic surgical technology. However, the moderated growth forecast and tariff concerns signal potential headwinds. The company's significant Mexico manufacturing presence may provide some insulation from broader trade policy impacts, though tariff exposure remains a factor for 2026 profitability.