From Zacks Investment Research: 2025-06-11 11:36:00

Intuitive Surgical (ISRG) reported first-quarter revenue of $2.25 billion, driven by growth in da Vinci and Ion procedures. Despite the strong top-line growth, ISRG revised its full-year gross margin forecast downward to 65-66.5% due to tariff-driven cost increases on imported components, impacting margins. The company maintains a strong financial position with $9 billion in cash, supporting long-term innovation plans. However, concerns remain about the impact of tariffs on the company’s cost structure and margin resilience. Peers like Medtronic and Zimmer Biomet are also facing tariff pressures but have strategies in place to mitigate the impact. ISRG’s stock has gained 1.5% YTD, trading at a forward P/S ratio of 18.43 with a Value Score of D. The Zacks Consensus Estimate for ISRG’s 2025 earnings suggests a 6.8% rise from the previous year. The stock currently holds a Zacks Rank #3 (Hold).



Read more at Zacks Investment Research: ISRG Margin Outlook Dips on Tariffs, Demand Signals Stay Strong – June 11, 2025