Intuitive Surgical (ISRG) stocks tumbled over 10% in Friday's premarket trading following the company's second-quarter earnings report, with shares tracking toward 30-month lows near the $359 level. The medical device maker reported earnings per share of $2.8, beating analysts' estimate of $2.51, and revenue of $2.89 billion, up 19% year-over-year versus the estimated $2.82 billion. Despite the earnings beat, JPMorgan noted that in-line procedures and reiterated guidance overshadowed the company's healthy da Vinci placements and robust profitability, triggering a wave of price target cuts from Wall Street analysts ranging from $400 to $685. Citi removed ISRG stocks from its upside 90-day catalyst watch, citing Affordable Care Act headwinds making management incrementally conservative on procedures.
Intuitive Surgical Reports Q2 Earnings and Procedure Growth
Intuitive Surgical reported earnings per share of $2.8 in the second quarter, compared to the analysts' estimate of $2.51. Revenue jumped 19% year-over-year to $2.89 billion versus the estimated $2.82 billion.
During the first-quarter earnings announcement, the company had highlighted that it expects Worldwide da Vinci procedure growth of approximately 13.5% to 15.5% in 2026. During the Q2 report, Intuitive said it now expects the figure to be closer to the midpoint of this range.
Worldwide procedures rose approximately 16% compared with the second quarter of 2025. Da Vinci procedures grew nearly 15%, and Ion procedures grew approximately 36%.
The firm's da Vinci surgical system installed base grew 12% to 11,710 systems in Q2, while the Ion endoluminal system installed base rose 21% to 1,096 systems.
Wall Street Analysts Cut ISRG Stock Price Targets
According to TheFly, Citi lowered its price target to $500 from $590 and keeps a Buy rating. The firm removed its upside 90-day catalyst watch on Intuitive Surgical. The analyst noted that Affordable Care Act headwinds are making management incrementally conservative on procedures.
Mizuho lowered its target to $400 from $500, while keeping a Neutral rating on the shares. It noted that the company's systems strength was offset by in-line performances across instruments and accessories, which were linked to a slowdown in da Vinci procedures.
Bernstein slashed its price target to $685 from $750, while maintaining an Outperform rating on the shares. The firm believes concerns about the U.S. procedure growth trend will ignite debates and weigh on the stock, especially as the third quarter approaches.
JPMorgan lowered its target to $450 from $550 and kept an Overweight rating on the shares. It noted that the company's in-line procedures and reiterated guidance overshadow the healthy da Vinci placements and robust profitability.
Retail Sentiment on ISRG Stocks Rises to Extremely Bullish
Retail sentiment on Stocktwits surrounding ISRG rose to extremely bullish territory from bullish a day ago.
One user on the platform expressed their bullish take on the stock, saying it's an opportunity of a lifetime.
ISRG shares have lost over 28% this year.
FAQ
What did Intuitive Surgical report for Q2 earnings?
Intuitive Surgical reported earnings per share of $2.8 in the second quarter, compared to the analysts' estimate of $2.51. Revenue jumped 19% year-over-year to $2.89 billion versus the estimated $2.82 billion.
Why did ISRG stocks fall after the Q2 earnings report?
JPMorgan noted that the company's in-line procedures and reiterated guidance overshadowed the healthy da Vinci placements and robust profitability. Citi removed ISRG from its upside 90-day catalyst watch, citing Affordable Care Act headwinds making management incrementally conservative on procedures.
What are the new price targets for ISRG stocks from Wall Street analysts?
Citi lowered its price target to $500 from $590, Mizuho lowered its target to $400 from $500, Bernstein slashed its price target to $685 from $750, and JPMorgan lowered its target to $450 from $550.
