Intuitive Surgical's stock experienced a sharp 8.04% decline in after-hours trading, reversing gains from the regular session where it had risen amid a broader medical device sector rally.

The downturn followed the release of the company's second-quarter results, which showed both revenue and adjusted earnings per share exceeding analyst expectations. Revenue rose 19% year-over-year to $2.89 billion, beating estimates, while adjusted EPS came in at $2.80, surpassing the consensus forecast of $2.50.

Despite the earnings beat, investors focused on the company's maintained full-year guidance and concerns over tariff impacts. Intuitive Surgical reiterated its expectation for worldwide da Vinci procedure growth of approximately 13.5% to 15.5% for 2026, anticipating results near the midpoint of that range. Furthermore, the company's gross profit margin outlook for the year includes an estimated negative impact from tariffs of 1.0% of revenue, contributing to the negative after-hours sentiment. The company also noted that the environment in China remains challenging with increased domestic robotic competition and policy-driven pricing pressure.