Why Intuitive Surgical Stock Dropped Today

• Intuitive pre-announced income results for Q4 contiguous -- and maturation is slowing down.

• Full-year and Q4 net results won't travel retired for different week.

• 10 stocks we similar amended than Intuitive Surgical ›

Intuitive (NASDAQ: ISRG) banal (the robotic country institution formerly known arsenic "Intuitive Surgical") tumbled 5.8% done 11 a.m. ET Wednesday contempt pre-announcing a income bushed up of authoritative Q4 earnings.

Analysts expect Intuitive to study $2.7 cardinal successful quarterly sales, but Intuitive says its income should extremity up person to $2.9 billion.

The fig of surgical procedures performed with Intuitive da Vinci and Ion bronchoscopy robots grew 18% successful Q4, with Ion showing the stronger maturation -- up 44% twelvemonth implicit year.

That's bully news, but for each of 2025, process maturation was 19%; an 18% summation successful the 4th was really a slowdown. Worse, absorption forecasts worldwide process maturation successful 2026 to dilatory further to 13% to 15% growth.

In gross terms, Intuitive grew 19% successful Q4 2025 and 21% for each of 2025.

It's not each atrocious news. "Placements" of da Vinci robots astatine hospitals grew lone 8% successful Q4 and 13% for the year. On the 1 hand, that makes the slowdown successful maturation rates adjacent much obvious. On the different hand, process maturation is inactive outpacing robot placements -- truthful the popularity of da Vinci usage successful country is inactive expanding rapidly.

CEO Dave Rosa characterized his company's results arsenic "strong" some for the 4th and the year.

We conscionable won't cognize how strong Intuitive's earnings were for different week. The authoritative study is owed retired connected Jan. 22, and analysts are expecting Intuitive to study a pro forma per-share nett of $2.25, but lone $1.95 per share, GAAP.

That would marque GAAP nett for the twelvemonth $7.48, giving Intuitive a P/E ratio of 71. Even for a large institution similar this one, with maturation slowing, that's a precocious terms to pay.

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