Intuitive Surgical (ISRG) Stock Forecast & Price Target

Intuitive Surgical has demonstrated robust growth in its Ion and SP robotic systems, with Ion utilization rising by 14% and SP utilization increasing by 35%, supporting an expanding installed base that now includes 954 and 345 systems, respectively. There has also been a notable increase in Da Vinci system utilization, particularly due to the new D5 model, which is reflected in a year-over-year growth of approximately 2% in the U.S. market. Furthermore, the company's gross margin guidance has improved to 67-67.5%, indicating strong operational performance primarily driven by higher system placements and a favorable tariff outlook.

The negative outlook on Intuitive Surgical's stock is primarily driven by a combination of macroeconomic pressures impacting hospital capital budgets, which are causing delays in robotic purchasing decisions. Furthermore, the company is facing challenges with the adoption of newer robotic platforms, market resistance to robotic surgical approaches in emerging markets, and ongoing tariff issues related to imports from Mexico. Despite some positive metrics such as gross margins exceeding estimates and a year-over-year growth in certain procedures, the overall slowdown in bariatric surgeries and constraints in international placements may hinder the company's growth trajectory in the near term.