Investing.com -- Intuitive Surgical on Tuesday reported first-quarter earnings that beat Wall Street expectations, but its forecast for lower margins in 2025 sent shares down 7% in extended trading.
The maker of the da Vinci (EPA:SGEF) robotic surgery system posted adjusted earnings per share of $1.81 for the quarter, exceeding the average analyst estimate of $1.74.
Revenue rose to $2.25 billion, ahead of expectations of $2.19 billion.
For 2025, the company projected worldwide da Vinci procedure growth of 15% to 17%, compared to 17% in 2024.
It expects non-GAAP gross profit margin to narrow to between 65% and 66.5% of revenue, down from 69.1% last year.
The outlook includes a tariff impact of approximately 1.7% of revenue, plus or minus 30 basis points.
Non-GAAP operating expenses are expected to increase by 10% to 14% in 2025, in line with 2024 growth of 10%.