Intuitive Surgical stock plunged late Tuesday on worries about potential tariffs. The impact on gross profit margins "could be material."

Intuitive Surgical reported higher profit and revenue driven by growth of its da Vinci system surgical robots but warned that tariffs could hurt its gross margins going forward.

Medical device maker Intuitive Surgical said on Tuesday that U.S. tariffs will increasingly weigh on its business for the rest of the year, disrupting operations in China and potentially eroding its competitive edge in contract talks with hospitals.