Intuitive Surgical Inc (NASDAQ:ISRG) stock rose 4.34% (As on April 23, 11:22:48 AM UTC-4, Source: Google Finance) after the company said that U.S. tariffs will increasingly weigh on its business for the rest of the year, disrupting operations in China and potentially eroding its competitive edge in contract talks with hospitals. Intuitive suggested that an increase in costs for its robotic systems could impede its ability to “win future tenders”. The surgical robot maker is considering operational changes to counter tariff impacts on sales and demand but foresees no substantial benefits this year. The company’s current outlook takes into account tariffs that are in effect or have been announced, but if additional tariffs are implemented, there could be “material” impact on the company’s 2025 results. The company operates in several international markets, notably Mexico and China. Over 90% of the instruments and accessories for its da Vinci Surgical Systems are produced at its facility in Mexico.

Moreover, first quarter 2025 instruments and accessories revenue increased by 18% to $1.37 billion, compared with $1.16 billion in the first quarter of 2024. Worldwide da Vinci procedures grew approximately 17% compared with the first quarter of 2024. The Company placed 367 da Vinci surgical systems, compared with 313 in the first quarter of 2024. The Company grew its da Vinci surgical system installed base to 10,189 systems as of March 31, 2025, an increase of 15% compared with 8,887 as of March 31, 2024. First quarter 2025 non-GAAP net income attributable to Intuitive was $662 million compared with $541 million, in the first quarter of 2024. First quarter 2025 systems revenue was $523 million, compared with $418 million in the first quarter of 2024. The Company ended the first quarter of 2025 with $9.10 billion in cash, cash equivalents, and investments, an increase of $269 million during the quarter.

ISRG in the first quarter of FY25 has reported the adjusted earnings per share of $1.81, beating the analysts’ estimates for the adjusted earnings per share of $1.71, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 19 percent to $2.25 billion in the first quarter of FY25, beating the analysts’ estimates for revenue by 3.27%.

Intuitive now projects its adjusted gross profit margin to be between 65% and 66.5% of revenue in 2025, which is lower than last year’s 69.1%. This range includes an estimated impact from tariffs of 1.7% of revenue, plus or minus 30 basis points.