Intuitive Surgical Inc (NASDAQ:ISRG, XETRA:IUI1) reported stronger-than-expected quarterly results, supported by continued adoption of its robotic-assisted surgical platforms and solid procedural growth across key markets, according to UBS analysts.
Shares of Intuitive traded up 8% following the release of the report.
In the first quarter of fiscal 2026, the company generated revenue of $2.77 billion, an increase of 23% year over year and approximately 5.5% above consensus expectations.
Earnings per share came in at $2.50, up 38% year over year and roughly 16.7% ahead of Street forecasts. The performance was underpinned by higher-than-anticipated procedure volumes and stronger system placements.
Global procedure volumes rose 17% year over year, exceeding consensus estimates of 14.6%. Growth was driven in part by continued uptake of da Vinci Surgical System procedures, alongside rapid expansion of the Ion endoluminal system, which recorded approximately 39% growth.
The UBS analysts noted that utilization trends appeared healthy across installed systems, with management pointing to improving efficiency gains as newer systems are adopted.
System placements also came in ahead of expectations. Intuitive Surgical installed 431 new systems during the quarter, compared with consensus expectations of 419. Of these, 232 were the next-generation da Vinci 5 surgical system, surpassing estimates of roughly 205 units and reflecting strong early demand as the system continues its commercial ramp. Leasing activity also expanded, with operating lease arrangements accounting for a notable portion of installed base growth.
Management raised its full-year 2026 global procedure growth outlook to 13.5% to 15.5%, slightly above the prior range of 13% to 15%.
UBS sees the revised guidance as conservative relative to historical execution, citing increasing utilization trends and broader adoption of newer platforms as potential drivers of upside.
International performance remained a contributor to growth, with procedures outside the United States rising 19%, particularly in general surgery and gynecology applications. However, management highlighted ongoing policy-related challenges in China and Japan. At the same time, the analysts pointed to potential support from upcoming reimbursement and incentive changes in Japan that could influence procedure volumes later in the year.
On the cost side, the company reduced its 2026 operating expense growth outlook to 11% to 14%, down from prior expectations.
UBS noted that while this provides some margin support, broader macroeconomic factors, including input costs and potential tariff-related variability, could still influence margin trends.