Intuitive Surgical drops on warning of tariff hit to 2025 margin

Shares of surgical robot maker Intuitive Surgical ISRG.O fall 5.7% to $451.56 after the bell

ISRG projects 2025 adjusted gross profit margin in a range of 65% to 66.5% of revenue, compared to 69.1% in 2024, including an impact from trade tariffs

Company's outlook takes into account tariffs that are in effect or have been announced, but if additional levies are implemented, there could be "material" impact on its 2025 results — ISRG

Over 90% of the instruments and accessories for ISRG's da Vinci Surgical Systems are produced at its facility in Mexico, which is facing tariffs

Posts Q1 revenue of $2.25 billion, beating analysts' estimate of $2.19 billion, per data compiled by LSEG

Adjusted profit of $1.81 per share also above estimates of $1.72 per share

Stock down ~8% so far this year, as of last close