Q3 2025 update and 2026 outlook

PROCEPT BioRobotics (PRCT) recently reported third quarter 2025 results that management described as strong, paired with an outlook for fiscal 2026 revenue of US$410 million to US$430 million.

Leadership is focusing on procedure utilization, new account launches, and wider therapy awareness to support adoption of its robotic systems, while also acknowledging modest procedural headwinds expected in the first half of 2026.

Despite a recent 5.37% 7 day share price return, PROCEPT BioRobotics has faced a 10.38% 30 day and 19.29% 90 day share price decline. The 1 year total shareholder return of a 53.76% decline points to momentum that has been fading even as the market reacts to the latest Q3 update and 2026 revenue outlook.

If you are interested in how other robotics focused names are trading around key news and execution updates, this is a good moment to scan the wider space using our 34 robotics and automation stocks

With the shares down 53.76% over the past year and trading about 23% below the average analyst price target of US$30.11, the key question is whether this weakness signals an opportunity or if markets are already pricing in future growth.

Most Popular Narrative: 19.5% Undervalued

With PROCEPT BioRobotics last closing at $24.52 against a narrative fair value of $30.44, the key question is whether the long term thesis behind Aquablation and HYDROS justifies that gap.

The ongoing expansion of HYDROS robotic system placements into both high volume and mid/lower volume hospitals, in conjunction with rising utilization by a growing base of engaged surgeons, indicates significant untapped market potential driving recurring consumables revenue growth and eventual expansion in gross and operating margins.

Curious what kind of revenue ramp, margin lift, and future earnings multiple are baked into that fair value? The narrative leans on ambitious growth, higher profitability, and a richer valuation than the wider medical equipment peer group to support that $30.44 figure.

Result: Fair Value of $30.44 (UNDERVALUED)

However, the narrative also leans on PROCEPT overcoming ongoing operating losses and its heavy reliance on HYDROS and Aquablation in a competitive BPH market.

Another View: Market Pricing Looks Less Generous

The fair value narrative sees PROCEPT BioRobotics as 19.5% undervalued, but the simple P/S ratio sends a cooler signal. The stock trades around 4.5x sales versus an estimated fair ratio of 3x and a US Medical Equipment average of 2.8x, which implies investors are already paying a premium that could limit upside if expectations are not met. So is this a reset opportunity, or a case of paying up for a story that still has a lot to prove?

Next Steps

With sentiment in this article mixed between pressure on the share price and confidence in the HYDROS and Aquablation story, it makes sense to review the full set of numbers, weigh the upside and downside quickly, and then lean on the 1 key reward and 2 important warning signs

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.