Shares of Intuitive Surgical Inc (NASDAQ:ISRG) rose in early trading on Wednesday after the company reported upbeat first-quarter results.

The company's Procedure and System revenues outperformed expectations, despite a challenging macro, according to BTIG.

The Intuitive Surgical Analyst: Analyst Ryan Zimmerman reiterated a Buy rating and price target of $574.

The Intuitive Surgical Thesis: The company, which is a leader in the robotic surgery space, reported revenues of $2.770 billion and adjusted earnings of $2.50 per share, topping consensus estimates of $2.618 billion and $2.12 per share, respectively,Zimmermansaid in the note.

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Procedure revenues grew by a healthy 17%, versus Street expectations of around 14.6%, while System revenues "drove the bulk of the revenue upside," with around 16% Dv procedure growth and 39% Ion procedure growth, he added.

Intuitive Surgical raised its 2026 Procedure growth guidance to 13.5%-15.5%, from the previous projection of 13%-15%. The company also raised its gross margin guidance to 67.5%-68.5%, from prior forecast of 67%-68% prior, with an estimated tariff impact of around 100 basis points (bps) versus its previous estimate of 120 bps, the analyst stated.

Management left its full-year guidance for growth in operating expenses unchanged at 11%-14%, he added.

"The net result is that EPS is moving modestly higher for FY26 with some residual flow through into FY27 and beyond in our model," Zimmerman wrote.

Intuitive Surgical continues to "expand across various platforms with healthy procedure growth," the analyst said. Despite a challenging macro environment, new indications and incremental reimbursement in certain markets like Japan are offsetting bottlenecks in other markets, such as China and Europe, "which remain impacted by competition, pricing, and capital availability," he mentioned.

ISRG Price Action: Intuitive Surgical shares were up 8.48% at $489.56 at the time of publication on Wednesday, according to Benzinga Pro data.

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