Intuitive Surgical (ISRG) will face potential risks to its 2027 procedure momentum from pricing actions on instruments and accessories in the US in H1 and China charge code reductions starting Q4, RBC Capital Markets said in a note emailed Wednesday.
The company reported Q3 adjusted earnings late Tuesday of $3.00 per diluted share, up from $2.40 a year earlier, and above FactSet estimate of $2.65. Revenue for the quarter was $3.05 billion, against the consensus of $2.91 billion. Meanwhile, Intuitive Surgical adjusted its global da Vinci procedure growth target range for 2026 and reported a $450 million settlement charge that outweighed its Q3 beat.
Growth in US da Vinci procedures slowed to 10% in Q3, marking the third consecutive period of moderation, RBC analysts said. They noted that the company did not talk about the quarter being a trough in US growth but instead focused on the durable long-term opportunity. The analysts said they consider the ambiguity a near-term overhang until US volumes stabilize.
Intuitive narrowed its procedure guidance to a range of 14% to 15%, but the lack of clearer guidance on its US trajectory will likely remain an overhang, the analysts said.
The analysts said that they will monitor US volume stabilization in Q4 as a key proof point for their projections.
RBC reiterated the company's stock rating at outperform and lowered the price target to $550 per share from $575.
Price: 431.06, Change: -6.94, Percent Change: -1.59
Comments