US Stock Market Move | Q2 financial report sparks concerns about demand for medical technology. Intuitive Surgical, Inc. (ISRG.US) plunges more than 11% in early trading.

On Friday, Intuitive Surgical, Inc. (ISRG.US) plunged more than 11% in early trading, hitting a new low for the year, and is currently trading at $357.13. On the news front, Intuitive Surgical, Inc. announced its second-quarter financial results after the market closed on Thursday, with both revenue and profits exceeding expectations. However, the company maintained its full-year surgical volume growth outlook unchanged, while warning that changes in US health insurance policies could affect patients' timing for medical treatment, causing concerns in the market about demand for medical technology. The financial report showed that second-quarter revenue increased by 19% year-on-year to $2.89 billion, higher than analysts' expectations of $2.82 billion; adjusted earnings per share were $2.80, well above the expected $2.51. The total surgical volume for the da Vinci and Ion platforms globally increased by 16%, with da Vinci surgeries up 15% and Ion surgeries up 36%. However, concerns were raised due to the slowdown in growth in the US market. Da Vinci surgical volume in the US grew by 12% in the second quarter, lower than the company's initial expectations for the year, mainly in the category of postponed surgeries. CEO Dave Rosa stated during the earnings call that some customers have provided feedback that changes in patient insurance coverage and premiums may affect their choices for medical treatment and timing. The company believes that the expiration of ACA subsidies had a "mild negative impact" on the growth of da Vinci surgical volume in the US in the second quarter. The company maintains its outlook for a 13.5% to 15.5% growth in da Vinci surgical volume for the full year of 2026, expecting growth to be closer to the midpoint of the range. This guidance implies that growth in the second half of the year will slow down. Increased competition is also a concern, as Medtronic Plc is seeking to expand the indications for its Hugo surgical system, and Stryker Corporation launched the Mako Siasun Robot & Automation system for total knee replacement surgery earlier this week.