Intuitive said Tuesday that U.S. procedure growth using the company’s da Vinci robotic system slowed to 10% in the third quarter.
The growth rate is the slowest Intuitive has reported since the COVID-19 pandemic, Wells Fargo analyst Larry Biegelsen said on Intuitive’s quarterly conference call.
Asked by Biegelsen if the trend represents a “temporary lull,” Intuitive CEO David Rosa divided the U.S. market into two opportunities. There is an “addressable opportunity right in front of us that we're going after on a daily basis” and a longer-term chance to establish da Vinci in more indications, Rosa said.
“The U.S. procedure opportunity is significant, particularly in benign general surgery,” the CEO said. “When I’m talking to customers, in order for them to adopt robotics across the benign general surgery areas, as well as other benign indications, they really want to see how it compares to the alternatives, where laparoscopy is well entrenched ... and against open surgeries sometimes.”
Intuitive customers are developing clinical and economic dashboards comparing robotic surgery to other techniques, Rosa said. Robotics is comparing favorably to other techniques, Rosa noted, adding to the CEO’s belief that the foundations for durable U.S. procedure growth are in place.
The robotic surgery leader is adjusting its pricing to support use in more indications. Intuitive expects da Vinci instrument and accessory revenue to fall by 3% to 5% per procedure once the changes are fully implemented.
The price cuts are “a deliberate choice to broaden adoption in high-volume benign procedures,” Intuitive CFO Jamie Samath said on the earnings call. Intuitive has concentrated the changes in procedures where cost may be a barrier to adoption.
“Those procedures, particularly outside the U.S. and in ambulatory settings, are where we see the largest opportunity to serve incremental patients,” the CFO said. “We believe broader adoption creates more long-term value than near-term revenue per procedure.”
Intuitive narrowed its near-term expectations, resetting the expected da Vinci procedure growth rate for 2026 at 14% to 15%. In July, the company forecast full-year da Vinci procedure growth of 13.5% to 15.5%.
