Intuitive Surgical stock, an S&P 500 component, dropped Wednesday after the robotic surgery titan's financial chief suggested the impact of tariffs could be steeper in 2026.
During the Wells Fargo Healthcare Conference, Chief Financial Officer Jamie Samath described the tariffs situation in the U.S. as "dynamic." President Donald Trump has laid out a series of tariffs this year in an effort to force manufacturing back to American soil. In the second quarter, Intuitive guided to a 100 basis-point impact from tariffs this year.
"So the 100 basis-point guidance for the year is just as it continues to climb over the rest of the year as a function of how tariffs roll through inventory into COGS," he said. "At the Q2 conditions, then, you'd expect the tariff impact to be higher in 2026."
In response, Intuitive Surgical stock toppled 6% to 440.18 on the stock market today.
Samath noted the company has a number of options to handle tariffs, including leveraging its own manufacturing footprint and suppliers. In the case that tariffs prove to be "durable and significant," Intuitive Surgical can also hike its prices, he said.
"That wouldn't be our first move and we'd look for ways to do that that are aligned with the value our customers receive," Samath said.
Intuitive Surgical Stock: New Launch Underway
The news comes as Intuitive Surgical works to launch its most advanced robotic surgery system, da Vinci 5. Shares remain under pressure this year, having slipped below their 50-day and 200-day lines in July, according to IBD MarketSurge charts.
Intuitive Surgical stock is consolidating with a buy point at 616. But the move below its key moving averages makes a breakout more difficult. Shares also have a low IBD Digital Relative Strength Rating of 15. This means Intuitive stock ranks in the lowest fifth of all stocks in terms of 12-month performance.
A representative of the company didn't immediately return a request for comment.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
