Intuitive Surgical (ISRG), the parent company of the da Vinci surgical robot, disclosed in its latest quarterly report that the global number of da Vinci procedures in the second quarter slowed in growth. Combined with pressure on gross margin from supply-chain and R&D costs, institutional investors quickly began reassessing its high price-to-earnings multiple (P/E) and lowering its valuation.



Shares plunged nearly 12.8% during the session, dragging down the medical device and high-growth technology segments.
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ISRG-14.16%
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GasDetective
· 3h ago
The slowdown in growth is expected, but the market reaction is a bit overblown.
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ConvertibleArb
· 4h ago
The technical barriers of the Da Vinci robot are indeed high, but the valuation is also high. Once its growth rate falls short of expectations, the valuation gets hit hard—so this pullback may well be an opportunity, but it depends on whether the subsequent surgical volume can rebound.
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RetailSpokesperson
· 4h ago
This drop is a bit scary, but think about how much it rose before—pullbacks are also healthy. The key is to see whether the growth rate in next quarter’s procedure volume can stay stable.
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PFPSurgeon
· 4h ago
As competition in the surgical robotics sector grows increasingly fierce, Medtronic and Johnson & Johnson are also laying out their plans. ISRG’s monopolistic position is beginning to loosen, and with rising R&D costs, gross margins are under pressure—so it’s also normal to see some institutions pulling out. However, in the long run, the da Vinci’s position in minimally invasive surgery is still very difficult to replace.
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MacroElk
· 4h ago
A high price-to-earnings ratio is a double-edged sword: it feels great when prices rise, and it’s brutal when they fall.
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