�ԹϺ�����

Intuitive Surgical reported a strong Q1 but cautioned that future tariffs could have an “adverse impact” on its 2025 financial results.

The US company, the market leader in robotic surgical systems, has already lowered its full-year profit margin forecast because of the estimated impact from tariffs. Intuitive predicts a margin within a range of 65% and 66.5% of revenue in 2025, compared to 69.1% in 2024.

Intuitive joins a long list of medical device and pharma companies weighing up their 2025 prospects in the wake of blanket tariffs implemented by US President Donald Trump. US drugmaker Johnson & Johnson (J&J), for example, projected a in 2025.

Tariff talk was a recurring theme in Intuitive’s Q1 earnings call, with one of the main points relating to US-China trade channels. Chief financial officer Jamie Samath stated that whilst Intuitive has a strong US manufacturing presence, it does rely on some imported components from China. These products, which are used in the assembly of its Da Vinci line, will be subject to a US tariff of 145%. The company also exports some components for domestic Da Vinci production in China, now expected to incur Chinese tariffs of 125%.

Around 80% of Intuitive’s instruments and accessories are made in Mexico, the majority of which – Samath said – meet US-Mexico-Canada Agreement requirements. Only a small portion of these will incur 25% tariffs when they reach US shores.

“We estimate this is a 4.5-percentage-point headwind to earnings per share, which we think is in line with expectations and leave room for improvement if Intuitive executes on mitigation efforts,” William Blair analyst Brandon Vazquez said in a research note.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Meanwhile, Samath said the company hopes to see the tariffs stabilise but added: “Given that tariff costs are capitalised into inventory and then recognised in cost of sales as products are sold, we would expect the impact of tariffs to increase each quarter over the remainder of the year.”

Vazquez’s analysis concurred, with the analyst saying: “We note that tariff headwinds will worsen each quarter tariffs remain in place so there could be some lasting effects in 2026 (as for most other companies), depending on how tariffs evolve.”

Intuitive’s CEO Gary Guthart affirmed that the company does not plan to execute reflexive changes in pricing – significant cost increases of medical devices have been a pertinent concern in the industry. Production costs and rebalancing of product flows within its existing manufacturing and supply chain footprint will be a priority for Intuitive, though the caveat was added that this will happen “when policies begin to stabilise.”

Strong Q1 amid Da Vinci 5 installations

The tariff-centric Q1 earnings call occurred against a backdrop of an otherwise positive quarter for Intuitive. The company’s revenue surged 19% compared to the same period in 2024, reaching $2.25bn.  Growth in Da Vinci procedure volume, higher Da Vinci system placements, and an increase in the installed base of systems fuelled the revenue hike.

“First-quarter sales and earnings per share were 3% and 4% ahead of consensus, respectively,” Vazquez commented, adding that Q1 shows strong underlying trends for sustained growth. William Blair has maintained its Outperform rating on Intuitive stock.

Shares in the company opened 4.2% higher at market open on 23 April following the results, reflecting investor optimism about Intuitive’s growth prospects despite tariff headwinds.

Investors were perhaps looking at Intuitive’s ramp up of installations for its Da Vinci 5 robot, the most technologically advanced system in its portfolio. Investors have previously pointed to its wider rollout as a major growth factor for market share in 2025. Indeed, Da Vinci 5 placements already made up 57% of total US placements in Q1, reflecting “continued uptake in demand and positions Intuitive well,” Vazquez said.

Intuitive has the largest share of the global robotic surgery market, according to analysis by GlobalData. The market was estimated to be worth $2.9bn in 2024 and is forecast to reach $9.2bn by 2034.

Declining rates of bariatric procedures due to the popularity of weight loss drugs could impact the market going forward, however. Intuitive executives mentioned this headwind when detailing its 2025 outlook in the call, a continuation of a theme previously discussed at the JP Morgan conference in January.

Navigate the shifting tariff landscape with real-time data and market-leading analysis.

Request a free demo for GlobalData’s Strategic Intelligence .

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Sign up