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Further Reading from MarketBeat.com
Intuitive Surgical Just Proved the Growth Engine Still Runs
Written by Leo Miller. Article Published: 1/23/2026.

Summary
- Intuitive Surgical’s Q4 2025 results beat on both revenue and EPS, reinforcing confidence in its robotics‑assisted surgery leadership despite a deceleration in procedure growth.
- Guidance for 2026 shows steady procedural demand and gross margins, with investment in R&D and new platforms (Ion, da Vinci SP) supporting long‑term growth prospects.
- Tariff headwinds and a high valuation present near‑term risks, but investor resilience and market trust underpin sustained growth expectations.
Robotic-assisted surgery stalwart Intuitive Surgical (NASDAQ: ISRG) stunned investors with its Q3 2025 earnings report in October 2025. Shares jumped nearly 14%, marking the healthcare stock’s largest single-day post-earnings gain in recent memory.
On Jan. 22, the company reported Q4 2025 results. While the release didn’t generate as much fanfare as the earlier report, the market reacted positively: the stock rose about 1.4% in after-hours trading. Despite a lofty valuation, Intuitive retains a constructive long-term outlook and appears capable of sustaining its growth engine.
Intuitive Beats on Revenue and EPS By a Solid Margin
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In Q4, Intuitive posted revenue of $2.87 billion, up 19% year-over-year — well above estimates of $2.72 billion (13% growth). Adjusted earnings per share came in at $2.53, just over 14% higher than a year ago, topping analysts’ forecast of $2.25 (less than 2% expected).
Growth in da Vinci procedures is a key performance indicator for the company. More procedures drive purchases of disposable instruments — a recurring-revenue source that typically comprises the majority of Intuitive’s sales.
Procedure growth came in at 17%, in line with the company’s historical range over the past two years but slightly down from last quarter’s 19%, which had been a standout. For the full year, da Vinci procedures increased by 18%.
Intuitive Provides Solid Guidance, But Growth May Decelerate
For 2026, the company expects da Vinci procedure growth of 14% at the midpoint. Intuitive does not provide an explicit revenue-growth target, but revenue typically trends with procedure growth. It projects gross margin of 67%–68% for 2026, roughly in line with 2025’s 67.7%.
The company also expects operating expenses to rise slightly faster in 2026 than in 2025, which could compress operating margins if revenue growth slows. Management says the faster expense growth would be driven by early-stage research and development investments.
Although potentially dilutive in the near term, those investments support the stock’s long-term outlook. Sustaining growth depends on developing new devices and expanding approvals for current platforms. The Ion and da Vinci SP platforms illustrate Intuitive’s ability to find new growth drivers — procedures for these devices rose 78% and 51%, respectively, during the quarter.
Markets Look Past Intuitive’s Tariff Guidance, Mitigating a Key Headwind
Investors appear unbothered by the company’s tariff guidance. Intuitive expects tariffs to reduce gross margin by about 1.2 percentage points in 2026, versus roughly a 65-basis-point impact in 2025. The stock’s resilience despite the larger expected hit — a headwind that pressured shares during much of 2025 — suggests investors now better understand Intuitive’s tariff exposure, lowering uncertainty and boosting confidence in its outlook.
Intuitive Surgical isn’t cheap, trading at a forward price-to-earnings (P/E) ratio near 56. But as the established leader in robotic-assisted surgery, it has built trust across the healthcare ecosystem. That should help as it pursues new markets, giving it an advantage over aspiring competitors and making sustained growth plausible. Nevertheless, the company must keep innovating to sustain growth rates that justify its valuation and drive further gains in the stock.
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