The Sunnyvale, California company reported adjusted EPS of $3, topping a $2.6 estimate. Shares fell 11% in postmarket trading. The slowdown has kept alive worries about rising competition and tighter hospital spending.
In the third quarter, da Vinci procedure volumes increased by roughly 14% compared with the same period a year earlier, the slowest expansion in four years.
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Management narrowed its procedure growth outlook for this year to 14% to 15%, down from a prior ceiling of 15.5%. Competition is heating up as Johnson & Johnson and Medtronic roll out their own robotic systems, and Stryker invests $400 million in soft-tissue robotics firm CMR Surgical.
Adjustments to Affordable Care Act subsidies have weighed on U.S. procedure growth, and broader uptake of GLP-1 drugs has cooled demand for bariatric surgery. Across medtech this year, changes to the Affordable Care Act and Medicaid programs have stoked worries about slower procedures as coverage declines, while device recalls, cyber attacks, and a thin slate of launches have hit sentiment. Looking ahead, the sector's outlook improves next year, with expectations for the strongest growth heading into 2027 in more than two years.
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